The National Telecommunications Company (Spanish: Empresa de Telecomunicaciones de Bogota, ETB) designed in 2012 a strategic plan focused on the fiber optic deployment and the retention of their fixed customer base, for which added virtual mobile telephony (and soon, IPTV). All this, delayed in comings and goings, the 4G auction process that ETB sees as its gateway to mobility. Convergencialatina interviewed Saúl Kattan Cohen, president of the company, on specifications announced by the Ministry of Information and Communications Technologies (Spanish: Ministerio de Tecnologías de la Información y las Comunicaciones, MINTIC). ETB's intentions are clear: go for 1.7-2.1 GHz spectrum and for the moment, without allies.

"We're still analyzing and studying the specifications on the 4G spectrum auction, because it is very long and complex. While it has advantages for new entrants, the dates are very limited and has very high prices," said Kattan.

Convergencialatina (CL): Tell me about the decisions taken on the company's participation in the auction?

SK: We are mostly interested in the AWS band, no doubt, which is the bid that will concentrate the most players. In contrast, the 2600 MHz band will not have so many interested because it requires greater investments in infrastructure. Claro may by one because at the end of the day, to invest US$ 300 or US$ 400 million in infrastructure is not much for a monopoly in the telecommunications market.

CL: Is ETB considering partnerships for the auction?

SK: No. we plan on bidding alone, with our own resources.

CL: Tell me about costs and additional premiums for those established and incoming?

Saul Kattan (SK): The cost of spectrum and additional premiums are very high, not only in absolute values ​​but due to commitments and the high concentration of one player, Claro. Thus, changes the financial model for those of us interested in participating in the auction.

CL: Tell me about the timetable given by the MINTIC for submission of information and requirements?

SK: The timetable for filing the documentation is very tight. Last week I wrote to the Minister Diego Molano, requesting two weeks to make the presentation. Certain information is very difficult to obtain, especially insurance policies. Another downside is the beginning of Easter in the next few days, which delays the possibility of such procedures even further.

CL: ETB sustains that Claro should not be allowed to participate, beyond its dominant position, for its debt with ETB. The MINTIC opposed this argument.

SK: Of course it should not be able to participate because it has debt with ETB, about US$ 100 million, and the MINTIC should not let it. The auction is organized by the state, and the debt of Claro is with a state entity, the ETB, state public capital. Thus, the entity should not allow Claro to participate in any government process.

CL: Do you think the process will attract foreign investment?

SK: I do not see that companies named by the Minister (referring to Entel Chile, Korea Telecom and TV Azteca) will participate, because entering is far more difficult for those who are not in the current market. Even for us, competition is complex. It would be even harder for those unfamiliar with the dynamics of the market in the country.

CL: The auction includes obligations to winners in terms of transfer of bands occupied by military forces. What does this task represent to eventual winners?

SK: This is a very delicate and complex issue: for the money one has to invest, the time it takes and the conditions of the country in the armed conflict. It is a responsibility that should not be in the hands of operators: we do not have networks or infrastructure to make the transfer of those frequencies; it should be the responsibility of the Government.

CL: Another obligation is related to municipal coverage. What are the possibilities of creating it?

SK: For new operators it is relatively easy, because one must achieve 51 municipalities of major cities. It's something that can be achieved. But for those who are already established, it is complicated by the geographical conditions of the country and much of the mountainous areas of the Colombian territory. However, to meet this point, many will be limited to installing just one tower: from there to improving coverage, there is a long way.

CL: This provision is also related to the infrastructure sharing obligation. Tell me about its regulatory progress in Colombia, beyond the 4G auction?

SK: On this issue, it is necessary to move forward in the regulation. The issue is still under discussion and would not want to discourage the industry.