What Does the Acquisition Mean for WOM Colombia’s 5G Plans?
WOM Colombia is preparing to roll out 5G services by the second half of 2025, following a crucial acquisition by new investors. In an exclusive interview with Forbes Colombia, CEO Ramiro Lafarga confirmed that the telecom company aims to deploy 5G infrastructure this year, marking a significant step forward in its ambitious expansion plans.
Lafarga’s statement came just days after SUR Holdings acquired the financially troubled operator, which had filed for bankruptcy in April of the previous year. The acquisition promises a fresh start, with new capital and resources allowing WOM to accelerate its growth trajectory.
The Impact of New Ownership and Restructuring
WOM Colombia’s restructuring is already underway. Lafarga emphasized that the company is in the midst of a comprehensive reorganization, with the new owners offering substantial financial backing. The goal is clear: WOM plans to achieve profitability sooner than expected with the additional resources at its disposal.
“Our new shareholder base provides the necessary support to reach a break-even point faster,” Lafarga explained. This support is critical as the company navigates its recovery phase and prepares to compete with industry giants.
Government Support Helps Ease Financial Pressure
WOM’s turnaround is also aided by the Colombian government’s strategic interventions. Lafarga shared that the company has successfully negotiated with the Ministry to defer payments on its 4G spectrum licenses. This delay, coupled with an inflation-adjusted interest rate, grants WOM the breathing room it needs to stabilize financially.
“The government’s flexibility has been crucial in giving us the time we need to reorganize and make the company profitable,” Lafarga noted. These agreements reflect the government’s commitment to supporting the telecom sector during challenging times.
What Is WOM Colombia’s Current Market Position?
Launched in 2020 as Colombia’s fourth-largest mobile network operator, WOM has faced significant hurdles. Initially backed by Novator Partners, a London-based investment fund, the company promised to invest over $1 billion in infrastructure projects across the country within five years. Despite early financial setbacks, WOM currently serves approximately 7 million mobile subscribers.
This places WOM behind the country’s top three operators: Claro, with 40.1 million subscribers; Movistar, with 20.9 million; and Tigo, with 15.1 million. However, with its planned 5G rollout, WOM hopes to close the gap and gain market share.
The Road Ahead: 5G Deployment and Competition
As the second-largest mobile carrier in Colombia, Claro is leading the race for 5G deployment, followed by Movistar and Tigo. WOM’s entry into the 5G market comes at a crucial time, as the telecom sector transitions to next-generation networks. The operator’s ability to successfully launch and scale its 5G services will play a key role in its ability to compete effectively in an increasingly crowded market.
The upcoming 5G rollout is expected to improve WOM’s service offerings, enhance customer satisfaction, and help it better compete with larger players in the industry. The company’s successful deployment will also contribute to the broader expansion of 5G coverage in Colombia, driving future innovation in mobile communication.
FAQ: WOM Colombia’s 5G Plans
When will WOM Colombia launch its 5G services?
WOM Colombia plans to begin deploying its 5G network in the second half of 2025, after being acquired by SUR Holdings.
How has the recent acquisition helped WOM Colombia?
The acquisition by SUR Holdings provides WOM Colombia with much-needed financial resources, enabling the company to accelerate its 5G plans and restructure its operations.
What role has the Colombian government played in WOM’s recovery?
The Colombian government has supported WOM by granting payment delays for its 4G spectrum licenses, allowing the company to stabilize its financial position.
What is WOM Colombia’s market share in the telecom industry?
Currently, WOM Colombia serves approximately 7 million subscribers, ranking fourth in the market behind Claro, Movistar, and Tigo.
How does WOM Colombia compare to other operators in terms of 5G deployment?
WOM Colombia is entering the 5G race later than larger competitors like Claro, Movistar, and Tigo, but its planned 5G rollout aims to increase its market presence and customer base.
