The Colombian government is considering the sale of its 32.5% stake in the local Telefonica unit, it has been reported. The development follows the recent COP4.8 trillion (USD1.6 billion) joint fine levelled at the telco – and rival Claro Colombia – for breaching the terms of their original 1994 licences. The two mobile operators were required to return all wireless network infrastructure to the state after a ten-year period (subsequently extended for a further ten years), but failed to do so.
As the co-owner of Telefonica Colombia, the government was duly obliged to participate in a capital increase of approximately EUR1.37 billion (USD1.64 billion) to pre-pay all commitments in relation to PARAPAT, the consortium that owns the telecoms assets and manages the pension funds of the former companies that resulted in the creation of legacy operator Colombia Telecomunicaciones (now Telefonica Colombia).