It is noteworthy that this situation occurs in a context in which the Company has experienced a considerable loss of customers in recent years. According to reported data, ETB has faced difficulties in retaining its users, particularly due to competition from other operators offering similar services.<\/p>\n\n
ETB has lost customers and market share<\/strong><\/h2>\n\nAccording to the Q4 2023 Integrated Report, ETB lost more than 10,000 customers in the fixed services segment between Q2 2022 and Q2 2023. In addition, it went from a market share of 30% to 27.6% in the same period.<\/p>\n\n
Revenues from copper-based services continue to show a decreasing trend in relation to total revenues, decreasing from 23% in 2021 to 14% in 2023. On the other hand, revenues from fiber services have grown to 38% of total television service revenues.<\/p>\n\n![\"internet](\"https:\/\/mascolombia.com\/wp-content\/uploads\/2023\/05\/como-buscar-informacion-de-una-persona-por-internet-gratis-1024x683.jpg\" "\\"\\"")
<\/figcaption><\/figure>\n\nData services, dedicated internet and special businesses have increased their share to 44%, mainly due to the Special Businesses Resale product and the Digital Centers project. Finally, the share of mobility revenues remained at 4%.<\/p>\n\n
According to the company\u2019s report, vandalism and cable theft have experienced a notable increase, especially affecting copper and fiber networks, which has also resulted in the loss of customers in all technologies.<\/p>\n\n
As this is an issue that in 2023 generated impacts on the company\u2019s financial statements due to budgetary additions and loss of income from compensation, adjustments, in addition to the loss of customers, it was included as a business risk and is monitored by senior management in the last financial report.<\/p>\n\n
For Miguel Angel Rodriguez, Cedetrabajo\u2019s research coordinator and specialist in international financial management, the current administration sees as normal the loss of 10,000 annual clients and strategic clients such as TERPEL, Ministry of Labor, Ministry of Housing, Totto, Legal Medicine, OXXO and Conmagro. The most worrying aspect is that the contracts with the Bogota Aqueduct, ITAU and the Social Security Secretariat are at risk.<\/p>\n\n
You may also read: Exporting regions in Colombia continue to grow<\/strong><\/a><\/p>\n\nMore than $37,000 million in losses put ETB in trouble<\/h2>\n\n
According to the financial statements, in 2023 ETB recorded losses of more than $37,206 million. A worrisome result considering that in 2021 and 2022 it recorded profits of $138,704 million and $49,093 million respectively.<\/p>\n\n
In addition to the decrease in current assets and liabilities in 2023, the company faces a financial risk due to its growing indebtedness and lack of investment in innovation and development.<\/p>\n\n
In the last decade, ETB has invested in modern infrastructure, such as fiber optics, digital television and satellite services, which has contributed to its technological positioning.<\/p>\n\n
However, these investments have generated high production costs and have affected the company\u2019s financial profitability, since the drop in copper customers is much greater than the growth of new fiber customers, so there is no migration but a loss.<\/p>\n\n
What are Gal\u00e1n\u2019s plans for ETB?<\/h2>\n\n
The role of the mayor\u2019s office is vital, especially on the security front, since in the last three years theft and vandalism of the network have not been reduced and are generating a massive loss of customers.<\/p>\n\n
On March 5, the recently inaugurated mayor of Bogot\u00e1, Carlos Fernando Gal\u00e1n, told journalist Manolito Salazar, on the program \u00bfcu\u00e1l es el man\u00ed, in relation to ETB, that he is analyzing how to take advantage of the investment made in the company in recent years, especially in fiber optics, to strengthen its role in the future of Bogot\u00e1.<\/p>\n\n
Although Gal\u00e1n ruled out the sale of ETB, he was clear in his intention to seek partners to optimize the investment made by the city in recent years in the replacement of traditional copper communication networks with fiber optic networks.<\/p>\n\n
The objective of the strategy, according to the Mayor, is to look for formulas that guarantee that the city can make the most of the investment it has made as a city.<\/p>\n\n
Something worrying, taking into account what the city has experienced. Under the discourse of getting a strategic partner to strengthen the provision of public services, strategic companies such as Telecom, Empresa de Energ\u00eda de Bogot\u00e1 and, more recently, UNE were privatized.<\/p>\n\n
According to Diego Otero, President of the Colombian Association of Critical Economy-ACECRI, \u201cIt is the best way to privatize; private persons are appointed as members of the boards of directors, government representatives do not appear, except as secondary figures, and private persons are appointed as presidents of the boards of directors. This privatization is very easy because private individuals manage state companies without contributing a single peso, and they administer them according to their personal criteria and the interests they represent\u201d.<\/p>\n\n
Although the Mayor of Bogot\u00e1, Carlos Fernando Gal\u00e1n, has expressed his interest in strengthening Empresa de Telecomunicaciones de Bogot\u00e1 (ETB) as a tool to close the digital divide in the city, his latest actions sow a blanket of uncertainty about the future of the company, as ETB is mentioned only once in the draft Development Plan of the District Government.<\/p>\n\n
How a franchise works: 8 key elements to understand the business model<\/a><\/blockquote>
Data services, dedicated internet and special businesses have increased their share to 44%, mainly due to the Special Businesses Resale product and the Digital Centers project. Finally, the share of mobility revenues remained at 4%.<\/p>\n\n
According to the company\u2019s report, vandalism and cable theft have experienced a notable increase, especially affecting copper and fiber networks, which has also resulted in the loss of customers in all technologies.<\/p>\n\n
As this is an issue that in 2023 generated impacts on the company\u2019s financial statements due to budgetary additions and loss of income from compensation, adjustments, in addition to the loss of customers, it was included as a business risk and is monitored by senior management in the last financial report.<\/p>\n\n
For Miguel Angel Rodriguez, Cedetrabajo\u2019s research coordinator and specialist in international financial management, the current administration sees as normal the loss of 10,000 annual clients and strategic clients such as TERPEL, Ministry of Labor, Ministry of Housing, Totto, Legal Medicine, OXXO and Conmagro. The most worrying aspect is that the contracts with the Bogota Aqueduct, ITAU and the Social Security Secretariat are at risk.<\/p>\n\n
You may also read: Exporting regions in Colombia continue to grow<\/strong><\/a><\/p>\n\n According to the financial statements, in 2023 ETB recorded losses of more than $37,206 million. A worrisome result considering that in 2021 and 2022 it recorded profits of $138,704 million and $49,093 million respectively.<\/p>\n\n In addition to the decrease in current assets and liabilities in 2023, the company faces a financial risk due to its growing indebtedness and lack of investment in innovation and development.<\/p>\n\n In the last decade, ETB has invested in modern infrastructure, such as fiber optics, digital television and satellite services, which has contributed to its technological positioning.<\/p>\n\n However, these investments have generated high production costs and have affected the company\u2019s financial profitability, since the drop in copper customers is much greater than the growth of new fiber customers, so there is no migration but a loss.<\/p>\n\n The role of the mayor\u2019s office is vital, especially on the security front, since in the last three years theft and vandalism of the network have not been reduced and are generating a massive loss of customers.<\/p>\n\n On March 5, the recently inaugurated mayor of Bogot\u00e1, Carlos Fernando Gal\u00e1n, told journalist Manolito Salazar, on the program \u00bfcu\u00e1l es el man\u00ed, in relation to ETB, that he is analyzing how to take advantage of the investment made in the company in recent years, especially in fiber optics, to strengthen its role in the future of Bogot\u00e1.<\/p>\n\n Although Gal\u00e1n ruled out the sale of ETB, he was clear in his intention to seek partners to optimize the investment made by the city in recent years in the replacement of traditional copper communication networks with fiber optic networks.<\/p>\n\n The objective of the strategy, according to the Mayor, is to look for formulas that guarantee that the city can make the most of the investment it has made as a city.<\/p>\n\n Something worrying, taking into account what the city has experienced. Under the discourse of getting a strategic partner to strengthen the provision of public services, strategic companies such as Telecom, Empresa de Energ\u00eda de Bogot\u00e1 and, more recently, UNE were privatized.<\/p>\n\n According to Diego Otero, President of the Colombian Association of Critical Economy-ACECRI, \u201cIt is the best way to privatize; private persons are appointed as members of the boards of directors, government representatives do not appear, except as secondary figures, and private persons are appointed as presidents of the boards of directors. This privatization is very easy because private individuals manage state companies without contributing a single peso, and they administer them according to their personal criteria and the interests they represent\u201d.<\/p>\n\n Although the Mayor of Bogot\u00e1, Carlos Fernando Gal\u00e1n, has expressed his interest in strengthening Empresa de Telecomunicaciones de Bogot\u00e1 (ETB) as a tool to close the digital divide in the city, his latest actions sow a blanket of uncertainty about the future of the company, as ETB is mentioned only once in the draft Development Plan of the District Government.<\/p>\n\nMore than $37,000 million in losses put ETB in trouble<\/h2>\n\n
What are Gal\u00e1n\u2019s plans for ETB?<\/h2>\n\n
How a franchise works: 8 key elements to understand the business model<\/a><\/blockquote>