Colombia’s fixed internet market continued to expand during the first quarter of 2026, reaching 10.49 million accesses in March, approximately 950,000 more than a year earlier, according to the latest Boletín Trimestral del Sector TIC (Quarterly ICT Sector Bulletin) published by Colombia’s Ministry of Information and Communications Technologies (MinTIC).

The bulletin, which covers January through March, also recorded 10 million 5G accesses during the quarter, representing 7.7% growth from the previous quarter. The figures point to continued expansion of higher-capacity connectivity even as traditional fixed-line telephony continues to decline. The full bulletin is available through the Colombia TIC statistics portal.

“This figure confirms the advance in the expansion of network coverage and capacity.” – MinTIC, in its Quarterly ICT Sector Bulletin

Fiber drives fixed internet growth

Average fixed internet download speeds reached 255.2 Mbps nationally in March, an increase of 17.5 Mbps from a year earlier. Fiber optic connections continued to account for the largest share of fixed internet access, with 6.2 million accesses recorded during the quarter.

Fixed internet penetration reached 19 accesses per 100 inhabitants, continuing the growth trend reported since 2023.

Bogotá recorded the country’s highest fixed internet penetration, at 31 accesses per 100 inhabitants. Antioquia recorded the highest average residential download speeds, exceeding 335 Mbps.

The latest figures reinforce the expansion of fixed broadband infrastructure as Colombia moves toward higher-capacity networks.

5G adoption reaches 10 million

Mobile internet access remained comparatively stable during the first quarter, with 49.6 million accesses recorded nationally. Mobile internet penetration stood at 93 accesses per 100 inhabitants.

4G remained the country’s dominant mobile technology, with 36.5 million accesses. At the same time, 5G adoption continued to accelerate, reaching 10 million accesses, a 7.7% increase from the previous quarter.

Despite that growth, 5G coverage remains geographically limited. MinTIC reported that the technology was available in approximately 12% of Colombia’s municipalities during the quarter.

The expansion follows continued investment in next-generation mobile infrastructure. Finance Colombia previously reported on operators beginning 5G network trials in Colombia while continuing to expand 4G coverage.

Mobile telephony widens its lead over fixed lines

The country’s reliance on mobile communications was also reflected in the latest telephony figures. Colombia had 94.6 million mobile phone lines during the quarter, substantially exceeding the number of fixed lines.

Fixed-line telephony continued its long-term decline. Active fixed lines fell by approximately 760,000 from a year earlier, reaching 5.35 million.

The contrasting trends highlight the changing structure of Colombia’s telecommunications market. Fixed broadband and fiber networks are expanding while mobile connectivity continues to dominate communications and traditional fixed telephony contracts.

The Q1 bulletin provides the latest official snapshot of Colombia’s digital infrastructure as operators continue expanding fiber and 5G networks. Subsequent quarterly data will show whether the pace of 5G adoption and fixed broadband growth continues through the remainder of 2026.

Headline Photo: A man with his phone and beside a 5G pole. (Photo provided by Mintic)

The company’s flagship Jupiter 3 satellite was launched July 29, 2023 and covers north & south America with capacity exceeding 500gbps, and individual streams up to 100mbps bandwidth. The school-bus sized satellite runs off of 14 solar panels and sits perched at a longitude of 95 degrees east. Hughes packages this GEO (Geostationary Earth Orbit) with its managed LEO (Low Earth Orbit) service to provide connectivity without the end client or user having to manage the connections, coordinate, or even be aware of what satellite or network is providing the connectivity. This has allowed Hughes to deploy solutions such as its OneWeb in-flight satellite internet service for aircraft.

Hughes insists that its solutions are not just for the jet-set or big businesses. Locally, Hughes has been deploying its advanced technology in places like Colombia’s remote La Guajira peninsula, rural Huila and 12 other Colombian departments, connecting 12,510 previously isolated households. Rural schools, agriculture, and small, remote communities are all able to benefit from Hughes’ modern satellite technology.

Hughes country manager for Colombia, Roque Lombardo was kind enough to take time out from his dealmaking at ANDICOM to speak with Loren Moss, executive editor of Finance Colombia, and himself a veteran of the early commercial satellite business, to talk about how Hughes is making the latest space technology like Jupiter 3 relevant and accessible for even a grade-school student in Colombia’s La Guajira desert or Chocó rainforest.

Finance Colombia: I’m here with Roque Lombardo, who is the country manager for Hughes Satellite here in Colombia. Thank you very much for your time. It’s an honor to be here talking with you. How’s it going here at ANDICOM?

Roque Lombardo: Well. We have been participating for several years now, truly with great success. I’d say it is the largest telecommunications and technology fair in Latin America, except for some events in Mexico. So, luckily, we are doing very well.

Finance Colombia: Excellent. I want to start by congratulating Hughes because one thing I have seen is that, year after year, you have a long-term commitment here in Colombia. Aside from all the technology that Hughes has developed throughout its history, from World War II, when you made aircraft, to now as a satellite company, you are committed to connecting not only Medellín and Bogotá and Cartagena here, but also rural areas of Colombia. Explain to me how you are applying your technology to bridge that gap.

Roque Lombardo: Satellite technology is, generally speaking, a long-term investment. Since you mention long-term commitment, obviously, there is a long-term commitment, but the business is very long-term because the satellites we launch have a useful life of 20, 25, or 30 years. So any business we can do in satellite connectivity is long-term.

This provides two things: it guarantees sustainability and regional coverage. From there, I would say that satellite communications are basically focused on rural connectivity, or are focused on rural connectivity and backup services; fundamentally, it’s those two. Our strength is in rural areas, but you can also see, even though we don’t compete with fiber optics, you can see our VSAT terminals in urban areas, like I don’t know, at a gas station. What is one of our VSAT terminals doing at a gas station in an urban area? It is a backup service because they cannot be left without communication. When the radio link or fiber optics connection fails, the backup service kicks in.

Now, to answer your question more specifically, there are two things I consider to reduce the digital divide. The first consideration is, obviously, that we are all very committed to reducing the digital divide, especially in the southern hemisphere. I am not talking only about Colombia, but on a global level.

And from there, we need to have a certain level of connectivity, but we also need to have content. Because many advocates for reducing the digital divide say that we have reduced the digital divide if, and only if, we have connected a school to a satellite station. But if you don’t feed that school with relevant content from a satellite station, it’s useless. You know? In other words, a connection alone is one thing, but a connection with relevant content so that people can educate themselves, engage in e-commerce, communicate, carry out e-government procedures, and so on, is another thing entirely.

So, from there, satellite connectivity is very useful, and we are working in that direction to increase connectivity. Because even narrowing the gap is sometimes a fallacy, because there are always more places to connect. In other words, the number of places to connect is growing, and the speed of coverage should grow at the same rate as the need for internet service, right?

Finance Colombia: Yes, it’s quite shocking. I’ve visited parts of Colombia: La Guajira, not far from here, Chocó, in the south, like the Amazon and Vaupés, and those areas where there’s no cell phone service, let alone internet access or anything like that. But I think you have technologies that allow cell phone operators to, like, they don’t have to run fiber optics,  they can install connectivity in remote areas like Leticia, or in Antioquia. There are areas where the only access is by river.

Roque Lombardo: 30 kilometers away from here, there are areas without coverage. We are in Cartagena, and 30 kilometers away, there are areas without coverage. That is another service we are providing called cellular backhaul, which connects cell phones through satellite stations. Why? Because, in a way, it is not profitable for cell phone operators to go to a very isolated location with fiber optics or a radio link. So, since they don’t go there with that, they can do it through a satellite link and achieve 4G or 5G cellular coverage in remote areas.

Finance Colombia: One thing that fascinates me is technological advancement. I’m old enough to remember when people had satellites like C-band antennas in their yards.

Roque Lombardo: 180 cm tall.

Finance Colombia: When you changed the channel, that satellite would move from one game to another.

Roque Lombardo: I am that old as well.

Finance Colombia: And I remember that in the nineties, I had a company that provided services for those things.

Roque Lombardo: C-band.

Finance Colombia: Right, yes. And up north, when it’s cold, the lubricant freezes.

Roque Lombardo: And the antenna wouldn’t move.

We have approximately 10,000 schools connected in Colombia, and we have between 15,000 and 17,000 homes connected – Roque Lombardo

Finance Colombia: It was a money-maker for us, because they called us so they could watch the game, and it was just a matter of cleaning the arm that moves it. But what killed that was the Ku-band. And then the dish satellites arrived, which already had the small things, and changed the industry completely. Now, twenty years later, for example, you have antennas that are like small laptops. The connection and installation are much easier. Before, a technician had compasses and weird things.

Roque Lombardo: Elevation and azimuth.

Finance Colombia: It looked like voodoo, installing that for the consumer. So my question is… You guys are still at the forefront. How do you see and what is your strategy with the advancement of systems, which they say are disruptive, but we already have Low Earth Orbit, which has like satellite constellations? You guys already have it; you’ve been setting the pace with every piece of technology. How is that changing the market, and what is your strategy in response to that?

Roque Lombardo: Yes, let’s see, what changes the market dramatically is the reduction in hardware and service costs, beyond the technology itself. I mean, it can be GEO, or LEO in this case; either one. Now, GEO technology has a specific coverage area, and LEO technology, due to the characteristics of the networks, has global coverage.

What does LEO allow for? It allows you to have connectivity everywhere, absolutely everywhere. GEO has very significant coverage, with extremely high capacity, but in perfectly defined areas, right? So, I believe that fixed Internet connectivity is becoming more democratic, but two paths are also opening up: the residential path, B2C, and the business path, B2B. In the residential sector, with low orbit or stationary GEO, needs can be met without any problem. In the business sector, you have two solutions: a LEO solution, a GEO solution, or a mixed solution.

Finance Colombia: Yes.

Roque Lombardo: In general, the best solutions are mixed ones, in which the provider analyzes your needs and gives you the best solution for each of those needs. There is no single GEO solution or single LEO solution.

Finance Colombia:  Something you guys have is a featured product that provides services to airlines.

Roque Lombardo: Yes, that is LEO.

Finance Colombia: That is LEO, okay. And aside from that, your customers obviously include broadcasters, traditional media outlets that always send their signals that way, and one of your first commercial customers. Apart from that, obviously, cell phone operators, but… there’s something in Colombia and many countries here in Latin America, as well as in Canada and Alaska, there are businesses that are located in very isolated places. And I don’t know if there’s much coverage so far north, but my question is, aside from those traditional clients who have known you for decades, what are the companies, I imagine like we have many readers from the mining and oil sectors, what are the sectors where you see the most growth, where perhaps you have solutions for those industries?

Roque Lombardo: There is a need in all industry verticals. Banking, finance, oil and gas, mining, agriculture and livestock; because in addition to everything we’ve already talked about in these few minutes, you have what is called IoT, which is the famous Internet of Things, with 5G technologies in which everyone can set up their own virtual private network, and from there have all their connectivity needs covered. That demand is infinite, because I’m talking about wanting to connect a television camera, wanting to connect my refrigerator, wanting to connect a drone, wanting to connect a moisture detector to measure agricultural moisture, or wanting to connect livestock to see how it is evolving and to monitor it.

Finance Colombia: The water levels.

Roque Lombardo: Water levels, I mean, the applications are endless. That’s why I say that demand is growing all the time, and all the solutions that are appearing in any type of orbit are going to be necessary to meet all that demand.

Finance Colombia: That’s right. Well, I remember that, I don’t think it was last year, but two years ago, you guys were celebrating, and you invited us to celebrate with you the launch of a satellite. I don’t remember if it was Jupiter 3, off the top of my head.

 Roque Lombardo: Jupiter 3.

Finance Colombia: Is there something we haven’t mentioned that you want to mention, or a question I didn’t ask you, or some successes since then?

Roque Lombardo: No, basically, we have continued to grow. We have approximately 10,000 schools connected in Colombia, and we have between 15,000 and 17,000 homes connected. We have many deals with large companies, and we have cellular backhaul, as I mentioned before. And we are marketing, let’s say, if we’re talking about basic services, we are marketing everything that Hughes offers with geostationary orbit satellites and OneWeb’s service with low orbit satellites, with full coverage.

Finance Colombia: And if there are businesses or school districts that want to learn more, is there a specific section of the website or a contact? What steps can be taken?

Roque Lombardo: Yes, at Hughes.com, you can find all the information there. It’s a very user-friendly site with instructional videos, product lines, services, and more. It’s at Hughes.com.

Finance Colombia: Okay, thank you very much for your time.

Roque Lombardo: Great, thank you.

Finance Colombia: Okay.

Colombia concluded the quarter with over 49.1 million mobile internet accesses, a figure that covers 92% of the population. The data shows that 4G technology remains the dominant mobile network, accounting for 83% of connections. However, 5G technology experienced notable growth, representing 9.6% of total accesses and adding more than 2.5 million new users over the past year.

The adoption of 5G networks saw a quarter-over-quarter increase of 23.7% between the fourth quarter of 2024 and the first quarter of 2025. This growth is attributed to the expansion of 5G infrastructure and the increasing availability of compatible devices. The report highlights that mobile telephony lines reached 92.5 million, a penetration rate of nearly 174%.

Fixed internet also demonstrated growth, with access reaching 9.34 million. This represents an increase of 235,000 connections compared to the same period in the previous year.

Regionally, Bogotá maintained its position as the area with the highest connectivity penetration, with 29 accesses per 100 inhabitants. Antioquia followed with 24 accesses per 100, and Risaralda with 23. Nationwide, the average download speed increased to 236 megabits per second (Mbps), an increase of 10 Mbps over the last year.

For detailed statistics and information, the full Quarterly ICT Bulletin is available on the ICT Sector Statistics Portal.

Mobile internet access. Photo credit: Claudid from Pixabay.

Many of the headlines will be reserved for Friday when National Administrative Department of Statistics (DANE) reveals the inflation number for March. The expectation is that it will have dropped again. According to the Fedesarrollo survey, it is estimated to come it at 7.34%, down from the current 7.74%. Meanwhile, the same survey is now expecting a 5.51% year-end inflation rate to close 2024.

If the analysts are correct, that will comfortably give Banco de la República room to cut another 50bps (to 11.75%) when they sit down in a few week’s time.

That conversation will no doubt be helped the weather experts appearing to be spot on with their El Niño estimate, which suggested it would break last week. There was certainly lots of rain, but XM is still suggesting people need to be careful with energy (which has been impacted by the drop in hydroelectric reservoirs) given that demand rose 8.31% year-over-year in March. Nonetheless, overall, it looks like Colombia will soon be into a normal weather pattern, having had a narrow escape from the dry period.

Hopefully, the central bank will also have taken note of the national unemployment data for February, which stood at 11.7% versus 11.3% a year ago. That is the first year-over-year increase in a very long time — and that backslide sits firmly at the door of a Banco de la República committee that has stubbornly refused to lower rates.

The International Monetary Fund (IMF), in its latest report, highlighted the authorities work in getting the economy back on track after an unbalanced 2021 and 2022. Some of that is the aforementioned central bank raising overnight rates, albeit too far, but also captures the work on the external deficit.

Colombian President Gustavo Petro may take a lot of flak, but the economy has far from come off the rails since August 2022, despite the new head of state inheriting a number of problems from the administration of former President Iván Duque.

If the IMF and ratings agency are generally happy, perhaps the press should take another look. Of course, there is work to do still. But one step at a time.

Finally, the spat in Antioquia over 4G, etc., and ‘Vaca (Piggy Bank)’ continues.

This is effectively local politicians (and some other entities that should know better) stirring up the press in order to gain a few points ahead of the 2026 elections. The government has already stated the original money will be delivered for the infrastructure projects by the July deadline.

The issue is the overspend, which is considerable, and you can’t just print $100 of millions of dollars — not in Colombia anyway. The budget is tight — and being handled carefully — and the money has to come from somewhere. But doubt it will appear before the ‘Vaca’ is filled, which is currently projected to be in June 2025.

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Banco de la República cut rates by 50 bps, to 12.25%, on Friday, but despite Chairman Leonardo Villar’s words expressing the “magnitude” of the cut, the simple fact is that:

1. It was the absolute minimum they could have done
2. It was not enough in the eyes of either Finance Minister Ricardo Bonilla or the private sector
3. The central Bank remains the single biggest handbrake in Colombian economic expansion.

The committee almost chose to ignore their own most recent analysis, which lowered the 12-month and 24-month inflation estimates to 4.7% and 3.5%, down from 5.7% and 3.8%, respectively. On top of this, according to almost every document you care to read, El Niño has not been as fierce as expected, despite some glorious suntans, and that we are in the final throughs of the drought.

Despite the central bank’s obstinacy, JP Morgan published an upbeat economic report suggesting that first-quarter GDP will rise 4% and that 2024 will total 1.6%, which is at the top end of the range. This would be supported by employment data that has remained robust despite high interest rates badly impacting investment, as well as the housing and automotive sectors, among others. That said, try to find a parking space at any given shopping mall — good luck!

The other talking point last weekend was the ongoing dispute around the government and its tight hold on the budgetary purse springs, especially the 4G infrastructure projects. Colombian President Gustavo Petro’s team is watching the pennies, a fact that hasn’t upset the ratings agencies — but has caused disgruntlement in the regions, especially Antioquia and Medellín.

The 4G projects are 95% finished. But due to overspend, Petro is required to send extra funds — and he hasn’t. As of yet.

The government says the money is coming. But former President Álvaro Uribe, who is ideologically juxtaposed to Petro, isn’t waiting. He has called for Antioquia to raise approximately $250 million USD, take over the 4G projects, and complete the job. Without getting into the political weeds, this is less about 4G projects than political jousting and point-scoring between Bogotá and what is referred to as the Federalist wing in Medellín. Beyond all of that, the legal complexities of such a move must be immense.

It’s a sideshow — but at least an interesting one!

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Colombia’s mobile market is the most saturated in the Andean region, with over 82 million mobile lines as of 1Q23. The competitive environment has intensified in recent years, spurred by new entrants such as WOM Colombia, as well as high levels of capex related to the renewal of spectrum and network modernization. Examples of the latter include fiber investments and transition spending related to the move to fifth-generation (5G) technology in the coming years from 4G.
Within this rapidly evolving environment where mobile penetration is high, companies are trying to maximize their 4G network by offering bundle services but post-paid subscriber growth is offset by competitive pressures on ARPUs.
Fitch expects already depressed industry cash flows to be pressured as a result of spectrum license renewals. During 2023-2024, Colombia’s four main operators face renewal processes of their spectrum holdings and need to financially prepare for the upcoming 5G spectrum auctions adding more uncertainty about capex allocation.

5G mobile network technology will enable significantly faster data speeds compared to existing cable or ADSL, low latency, and greater capacity. It will also allow for new applications and services in various industries, such as healthcare, transportation and manufacturing. The share of smartphone subscribers reached half of the Colombian market in 2022 driven by the increased availability of low-cost options, as well as lower pricing of voice and data services.

In the Colombian broadband market, Fiber to the home’s (FTTH) deployment is gaining traction, especially in urban areas, as it offers faster speed compared to traditional cable (copper or ADSL) and more reliable internet connections, supporting the increasing demand for data-intensive applications. Telecom providers, including Coltel and Tigo in Colombia, are expanding their FTTH infrastructure to offer higher-speed internet services and capitalize on the growing digital needs of consumers and businesses.

Capitalizing on new technologies are key for future growth; however, the ultimate roll-out cost and investment payback periods remain uncertain due to the weak consumer environment and affordability’s issues for these technologies. Companies are trying to offset the upfront costs by transitioning to less capital-intensive business models; however, the change will take time.

Some actions taken, or under consideration, to move to capital-light operating models include selling and leasing backs passive assets and partially divesting fixed infrastructure. Another example includes entering into partnerships, such as Tigo and Coltel’s recent efforts to explore the possibility of sharing their mobile networks and other network resources. The definitive agreement is subject to approval by the relevant governmental authorities.

Fitch Ratings believes the concerns with the final amounts of the top-up payment (DR8) for Colombia’s Fourth Generation (4G) toll roads have largely dissipated. All Fitch-rated Colombian public initiative 4G toll roads have signed or are close to signing agreements with grantor Agencia Nacional de Infraestructura (ANI) to amend their concessions and clarify the discrepancies in the calculation of the top-up payments scheduled in the eighth year.

ANI and the concessionaires agreed there is no measurement of the monthly compliance index prior to the signing of the Act of Termination of each toll road tranche (unidad funcional, UF). In addition, it is not possible to consider those monthly periods in which there is no measurement of the compliance index in calculating of the DR8. Therefore, the compliance index will be calculated based on the indicators effectively measured. It was also agreed that ANI’s obligation to pay the interests generated by the delayed payment of any remaining amounts of the DR8 would be waved, where applicable.

The concessions, of which total or partial DR8 is already due, expect to receive their payments between May and June 2023. Fitch expects the DR8 amount received will be equal or very close to what was originally estimated by the concessionaires and considered in the original projects’ financial models. Fitch will closely monitor the reception of such payments and any other related event. Publicly rated issuers that had or will have concession amendments in connection with this matter include: Fideicomiso P.A. Costera, Fideicomiso P.A. Pacifico Tres, P.A. Autopista Rio Magdalena and Patrimonio Autonomo Union del Sur.

From Fedesarrollo this week we had two reports:

Firstly, their monthly financial sector for February survey saw a sense of calm. The expectations for 2023 inflation rose slightly (from 8.89%-9.00%) as did the terminal interest rate (13%-13.25%) but growth for the same 2023 fell from 1.5% to 1.1% – although that remains above many other estimates, including the Central Bank (0.3%). In terms of the COLCAP, Ecopetrol and Bancolombia remain the top picks, but amidst a pessimistic view for the overall market.

Briefly on interest rates, the Central Bank head Villar stated on Thursday that Colombia was close to the end of the tightening cycle and that the impact on inflation should come soon.

Also from Fedesarrollo we had the Retail ($29.7%) and Industrial (3.6%) confidence data for January and both came in better than expected and significantly higher than December – a surprise given the poor Consumer Confidence number (-28.6%) for the same month.

Within the construction sector there is something of a confusing picture. There was a 50% drop in new home sales in January and with mortgage rates, which have never been low anyway, rising sharply, that is understandable. That said, anecdotally, at least here in Medellin – prices continue to rise sharply, that is if you can find anything to buy ! On the public side the 4G projects are largely into the home straight but the 5G works will be coming on line towards the back end of 2023 which will compensate and move that sector forward.

Solid news from the oil sector again as Campetrol reported January production of 773k bpd – down slightly on December’s 784k bpd however it was still 4.6% higher YoY and part of a gradual improvement in the trend which began to manifest itself in October.

Sticking with oil – Brent has had a complicated week and this has been reflected in the Peso which has been struggling. DXY has also largely moved against the Peso due to a mix of interest rate concerns and geopolitical events.

Within the equity market, the MSCI Colcap is still playing with a dangerous support level. In the meantime, Grupo Argos has joined Celsia & Cementos Argos in announcing continued buyback programs, between the three entities approvals are sought for US$200mn.

Wishing you all a peaceful weekend.

Roops

In January 2022, Ericsson filed at least 12 preliminary injunction requests against Apple before different judges in Colombia. All those actions were filed as ex parte proceedings, in which an alleged patent infringer needs to be stopped in order to prevent illegal action causing an actual harm to the patent owner. Two of them were filed before the Superintendence of Industry and Commerce (SIC). At the same time, Ericsson filed all the remaining known actions before conventional courts, also with general jurisdiction over patent infringement.

These lawsuits concern the license for patent “5225,” regarding 4G or LTE wireless technology, entered into agreements in the year 2008 with the corporation Apple, whose purpose consisted of a cross license, which included patents that were within telecommunications standards. Subsequently, and in light of its expiration, Ericsson asked Apple to negotiate new terms to authorize use of the patent, which only occurred in the year 2015, when a second license was signed, which recently ended. According to Ericsson, the importation, marketing, and use of Apple devices, which comply with 4G standards, are then in violation of the mentioned license, since such equipment is configured to handle 2G, 3G, and 4G SEPs (Standard Essential Patent) of the license.

Ericsson has also initiated numerous patent cases against Apple and its various subsidiaries, in the courts of Belgium, Brazil, Germany, the Netherlands and the United States. Ericsson has argued that it had to do so because negotiations between the parties to renew the license failed, and barely began taking place. According to Apple’s counsel, “Ericsson initiated many lawsuits against the Apple group in secret, so that Apple would not have knowledge of the litigation initiated by Ericsson”.

Even though new iPhones are a status symbol in Colombia, the country only accounts for 0.2% of Apple sales globally.

Apple’s counsel also maintained that “Ericsson did not provide evidence on the essential characteristics of its patents, and it appears that, in fact, Ericsson’s patents are not really essential to the 4G or 5G standards”.

Prohibition for iPhone 12, 13 and 14

Despite the fact that the 5G network has not yet been introduced in Colombia, Ericsson is demanding payment from Apple for using its proprietary technology. It demands a $5 charge for each iPhone, but Apple has so far declined to pay.

On July, Court 43 of the Circuit of Bogotá granted Ericsson’s request for an injunction and entered orders to Apple Colombia prohibiting the import, sale, commercialization and advertisement for all equipment using the allegedly infringed patent, which are all current devices using 4G or 5G technologies, including iPhone 12, 13, and iPhone 14, introduced in September. Apple briefly hinted that the iPhone 14 would finally be available in October; in a press release, Apple initially stated that iPhone 14 Plus would be available in Colombia on October 28. But the firm corrected the press release by removing this note.

When contacted, Adriana Huerta, head of corporate communications for Latin America at Apple, only stated that “for now, we do not have more information than what is available in our Apple press room in Colombia about the latest releases of our products.” Ericsson’s attorney in Colombia, Carlos Olarte, confirmed that the lawsuit goes ahead, and Apple still cannot market its iPhone 14 in Colombia. “Talks continue between Apple and Ericsson, and there is clearly a mutual desire to reach an agreement. Everyone is hopeful that a mutually satisfactory negotiation will be reached,” he ensured to Finance Colombia. No further details regarding the discussions were disclosed, as they are confidential.

Besides, a Colombian court denied Apple’s emergency request for relief, upholding the constitutionality of the sales and import ban.

Apple considers that this prohibition is “highly unnecessary since 5G technology is not operational in Colombia; not effective as the inclusion of features that support 5G technology does not necessarily imply the use of Ericsson’s patent rights; and nonproportional as it will cause a greater damage to the Colombian consumer particularly as the real infringement of the patent has not been demonstrated and in any case it would be occurring supposedly only while the parties reach a monetary agreement and in a very small section of a very complex device.”

In contrast to other countries like the United States or even the Dominican Republic, 5G networks are still not available for consumer use in Colombia.

Two important dates

Apple’s counsel also commented that Apple and Ericsson have previously agreed that active litigation between the parties in the US District Court in the Eastern District of Texas will be the action that will determine the FRAND (Fair, Reasonable, And Non-Discriminatory) terms for a license that will cover both parties’ portfolios of “patents declared essential to the standards,” including patents that Ericsson has asserted against Apple in Colombia. In other words, “both Ericsson and Apple have asked the judge to determine whether Apple’s and Ericsson’s offer is reasonable,” Olarte explained to Finance Colombia. “And depending on this determination, it will help to reach an agreement in Colombia. Essentially because the judge will tell them that either Ericsson’s price is reasonable, or Apple’s offer is reasonable, or that both proposals are reasonable. That may motivate the parties to reach an agreement.” This lawsuit in Texas will take place in December.

Another important date is set on the calendar: as Ericsson is also suing Apple in Germany, some hearings are expected in Mannheim over the coming weeks. The decision should also influence the parties in finding an agreement, Olarte pointed out. “For example, if they grant an injunction in favor of Ericsson, that would be one more country to add to the list where Apple is losing. And that could also motivate Apple to settle,” he told Finance Colombia.

According to Olarte, Apple’s annual sales in Colombia represent about 0.2% of the company’s global market. This raises the question whether it is really worth it for Apple to resist so fiercely. Why not accept Ericsson’s licensing terms straight away? “One could say that Apple should take into account the very small size of this market,” says Ericsson’s attorney. “But another analysis suggests that Apple has a reputation to defend. Apple does not like to be accused, or even less to be declared infringing in a country. And there’s also the real impact, beyond the small percentage. If you multiply 0.2% by Apple’s global sales, it comes out to a big number. That number hurts someone. Even Colombia being as small as it is, it’s a major irritation.” As an example, Apple declared that just the net sales of Ishop,  one of the distributors of Apple Colombia within the Colombian territory, in 2017 were $2,642,637 USD. “It is also a message that Apple sends to other countries, where it is fighting similar lawsuits,” concluded Olarte, a statement that the company does not intend to give up so easily.

The 1% number for the month and 8.53% for 12 months was basically in line with expectations—a first for a few months now, however there is clearly still work to do. We are still at levels that haven’t been seen for many a year and the consensus is that rates are going to close the year well outside the authorities’ 2-4% range; in fact anything close to 5-6% would likely be considered a victory at this juncture. The latest Fedesarrollo survey placed consensus at 6.4%.

The Central Bank who last week voted to only raise rates by 1% to 5% admitted the same themselves – despite the 5-2 split vote (2 members wanted 5.5%) – according to the minutes published on Tuesday there is a consensus that rates need to go higher. Again, the latest view of the Fedesarrollo survey was we would end 2022 at 7%, still some way off.

Rupert’s opinions & analysis as an independent expert contributor are his own and not necessarily those of Finance Colombia or the BVC.

The 1% increase was viewed as both prudent and part of a long-term policy that will continue over the next few months to increase rates and combat prices.

Those prices in March were heavily impacted by food which rose 2.84% YoY. Over recent years that same element has risen about 1% on average in the same month. The importance of food inflation has been well documented over recent months, the combination of increased costs plus a weak Peso has driven up direct prices. But in addition, there are the indirect costs such as feed, fertilizer, wheat and other agricultural equipment which has also impacted. This also saw the government act this week. Last month the authorities decreed those 165 agriculturally related goods would be tariff free, and this week they added a further 39 which included animal feed, chemicals and veterinary products.

Not being heavily discussed, but also a factor is the weather. It has been a long time since Colombia enjoyed a genuine 2-month summer – and if the sun isn’t shining in Colombia that means it is probably raining heavily. Again, newsreels have been filled with images of landslides and flooding rivers; crops often rot in the fields or fail to make it to market. The 4G projects are progressing well enough but they need to be completed and complemented by G’s 5-20 before the problem of getting goods to market can be fully avoided.

So work to do on inflation and the global situation isn’t helping much, one bright spot is the Peso which has fallen to 3740 (against the dollar) and which is helping lower import costs somewhat – whether that is due to rising oil or the realization that a Petro victory is less likely, is unclear, but the Central Bank will care little at this point.

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That is about it for today – remember these are just themes that jump out at me – please refer to your local analyst, economist, salesperson or soothsayer for more details.

My regards to all,

Roops