Colombian Mayors, ETB Strike Telecom Pact

Mayors for the Colombian cities of Bogota, Medellin and Cali have struck an alliance of sorts between their three municipally-controlled telecom companies. Under a signed memorandum of understanding Telecomunicaciones de Bogota (ETB), UNE EPM Telecomunicaciones, the telecom unit of Empresas Publicas de Medellin, and Cali’s government-owned utility Emcali, will join forces to “seek mechanisms” of cooperation to strengthen the companies’ service and infrastructure, according to the document. The mayors plan to create a working group staffed with telecom company presidents, their aides and telecom specialists to further define the details of the agreement, a potential first step towards a resolution of ETB’s long search for investment partners. Earlier this year, Bogota aimed to sell its 88% stake in ETB, but the plan was dashed by a city council vote in July rejecting the idea. ETB has long sought alternatives to finance its expansion, including partnerships with several domestic and foreign candidates such as Emcali, Brazil’s Oi and even Korean investors.