UNE, EmCali And ETB Consider Possible Merger

The mayors of Bogota, Medellín and Cali have signed a Memorandum of Understanding, the first step towards a merger between the three regional telecoms operator Empresas de Bogotá (ETB), Empesas Publicas de Medellín (UNE) and Empresas Municipales de Cali (EMCali). BMI welcomes this move towards consolidation in one of the most divided telecoms markets in Latin America, which demonstrates that our view of consolidation through the regional telecoms market is playing out. We believe the synergies from the union will bring great benefits in terms of economies of scale and efficiency for all three companies, and will improve services for Colombians. It would also provide a viable solution for ETB, which has been struggling to identify a strategy to reverse its decline.

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