July 12, 2024
General News

Internet Uptake, Quality Puts Medellin in ‘Vanguard’ in South America

A new study by U.S.-based consultant Telecom Advisory Services (TAS) finds that Medellin is in the “vanguard” in Colombia in terms of high-speed internet uptake and other factors that make-up a “digitalization” ranking.

 According to the study, the recent sale of internet/phone/cable TV provider UNE (formerly part of Medellin city-owned utility EPM) to private-sector telecom multinational Tigo not only is providing economic benefits to the city but also enabling wider internet penetration, competitive prices and continuing innovations for end-users.

It’s been slightly more than one year since UNE fused with Tigo, with the result that the combined UNE network is one of Colombia’s top-three internet/phone/cable TV providers, the study noted.

Thanks to this fusion, accessibility and quality of internet services (otherwise known as “digitalization) in Medellín and Antioquia will grow even faster than if the two companies hadn’t merged, according to the study.

“Digitalization” development from 2004 to 2014 has already generated US$1.1 billion extra in gross internal product (“PIB”) for the city and US$2.4 billion for Antioquia department, according to the study.

Now, thanks to the Tigo-UNE fusion, greater efficiencies, more innovations, more investment and lower costs are expected between 2014 to 2020, the study found.

The “digitalization index” used in the study – which includes accessibility, reliability, capacity, utilization and impacts on human capital — shows that Medellin and Antioquia will be competing with Chile for having the broadest, most advanced internet network in South America.

The impact on PIB from 2015 to 2020 is expected to total about US1.18 billion for Medellin and US$2.8 billion for Antioquia, the study concluded.

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