WOM Colombia looks forward after reorganisation vote

Details: Vaughan O'Grady; Category: Operators; 21 July 2025; 9979 views

Colombian operator WOM has secured approval for a proposed US$800 million reorganisation, staving off a potential bankruptcy. It now plans to continue developing 5G services and strengthening its operations in the country.

The agreement was confirmed recently by almost 86% of the company’s creditors with the power to vote. According to news resource BNamericas, Telecom Colombia, which operates as WOM, has recorded total assets of COP4.37 trillion (about US$1.1 billion) and liabilities of COP5.92 trillion (about US$1.48 billion).

The confirmation of the agreement will allow the reorganisation of part of the liabilities within a period of ten years. WOM will have up to 18 years to settle obligations with ICT ministry Mintic; these include about COP1.5 trillion (US$373.4 million) in committed future payments for 20-year spectrum licenses. However, due to debt indexation, by 2043 this amount could have tripled.

BNamericas notes that, as a priority, in 2026 WOM Colombia will pay 2,000 small business creditors to whom it owes under COP100 million pesos (a little under US$25,000).

The agreement will also allow the company to fulfil its commitments relating to the deployment of 5G technology. Local press suggests planned investments of up to US$100 million in Colombia after the debt agreement. The deployment of networks could take up to six years. In January, we reported that the company will commence its 5G deployment in the country’s major cities during the second half of the year, over 18 months behind its competitors.

Not only is it behind the other major operators in 5G rollout but, despite gains in recent years, it needs to target much higher market share than today’s estimated 7% (about seven million subscribers) compared to leaders Claro (about 45%), Movistar (25%) and Tigo (18%). The proposed merger between Movistar and Tigo, creating a much stronger single operator, could also make things difficult.

WOM has apparently asked to be allowed to share the networks already installed by its competitors while it completes the deployment of its own network.

Nevertheless, recent news suggests that WOM is in better shape than it has been for some while. Again in January, we reported that the company had been acquired by SUR Holdings, a group of businesspeople and investors from the United States and the United Kingdom with experience in the telecommunications and technology.