OECD Digital Connectivity Review of Colombia

Executive summary

Digital connectivity: A key driver of Colombia’s development

Digital transformation is central to Colombia’s economic growth, productivity and social inclusion. High quality connectivity underpins this transformation, making the communication sector a strategic priority in Colombia’s National Development Plan and Digital Transformation Strategy. To fully harness digitalisation, Colombia must continue expanding and upgrading digital infrastructure through a sound policy and regulatory framework that promotes investment, fosters competition, and ensures affordable, reliable broadband services.

Over the past decade, Colombia has implemented significant reforms, notably the 2019 ICT Modernisation Law, which improved regulatory coherence and supported progress in network deployment, service quality and affordability. Despite this progress, Colombia still trails regional and OECD benchmarks. Structural challenges persist in the communication sector to ensure robust investment, strengthen competitive dynamics, and adapt regulation to an environment increasingly shaped by over-the-top (OTT) services. Colombia has an opportunity to consolidate achievements and adopt targeted policy and regulatory measures to deliver secure, high quality digital connectivity nationwide — the backbone of digital transformation.

Key findings

Colombia has improved; however, connectivity outcomes remain below OECD benchmarks, with enduring regional disparities

Colombia has modernised its digital infrastructure in the past decade. Fibre deployment expanded rapidly, 4G coverage is widespread, and initial 5G rollout has begun. By the end of 2024, fibre-to-the-home represented 48% of all fixed broadband subscriptions, comparable to the OECD average of 47%. However, Colombia continues to lag on key connectivity indicators. Fixed broadband and fibre penetration remain about half the OECD average. Mobile broadband performance – Colombia’s primary mode of access – trails both OECD and regional peers, and early 5G uptake remains limited.

Regional disparities are pronounced. By late 2024, fixed broadband speeds in rural areas were 43% below the OECD rural average, and rural mobile download speeds were 78% lower (Ookla). Compared to the average of OECD Latin American Member countries, Colombia also falls behind in fibre penetration and 5G uptake. While cities continue advancing, rural areas risk falling further behind. As basic access expands, policy focus should shift toward ensuring high-quality, reliable connectivity nationwide, requiring targeted interventions in areas where market incentives are insufficient.

Market concentration remains high, limiting consumer choice and competitive pressure

Colombia’s communication markets have evolved over the past decade, shaped by technological change, new entrants, and shifting consumption patterns. Nevertheless, market concentration remains high, especially in mobile markets. In the fixed broadband segment, while it appears fragmented nationally, locally, it is highly concentrated, reducing consumer choice.

In mobile markets, one operator has retained a dominant position, while smaller players face financial pressure. Mobile virtual network operators (MVNOs) have struggled to scale due to limited wholesale access and weak differentiation. Competitive dynamics will be transformed further following the merger of the second- and third largest mobile operators.

To support sustained competition, Colombia should reinforce ex ante pro-competitive regulation, apply rigorous scrutiny to merger remedies, and strengthen wholesale access frameworks.

Financial performance shows resilience, alongside emerging vulnerabilities

Colombia’s communication sector has maintained relatively stable profit margins despite decreasing real revenues over the last decade, suggesting efficiency gains among major operators. However, average revenue per user for mobile services is low compared to OECD and regional benchmarks. Persistent price pressure and low revenues have tightened margins for smaller players, concentrating investment capacity among a few large operators, especially the dominant firm. Some operators have undergone financial restructuring raising concerns of potential market exit and reduced contestability. These vulnerabilities pose risks to long-term investment and competition, particularly in less profitable regions.

To safeguard investment while preserving competition, policy should encourage infrastructure sharing; ensure efficient spectrum management; and use public funding strategically to complement private investment in non-commercially viable areas.

Communication markets are at an inflection point amid structural changes

Colombia’s communication sector is undergoing consolidation and technological transition. The merger between the second- and third-largest mobile operators increases market concentration. If efficiency gains translate into better market outcomes, the merged entity could strengthen its financial stability and investment capacity, contributing to a more balanced competitive landscape relative to the dominant operator. However, the merger also poses risks for consumer welfare and for challenger firms.

The competition authority approved the merger with behavioural remedies; their implementation should be closely monitored. Consistent with OECD best practice, such remedies must be proportionate, enforceable and transparent. The regulator should also use all available tools to strengthen competition, including potential ex ante measures on the dominant operator not involved in the merger.

A platform-driven environment requires more agile, modern regulation

OTT services — streaming, messaging, and social online platforms — now shape consumption patterns and drive demand for high-quality networks. Their rise has spurred digital infrastructure investment, including content delivery networks (CDNs), and submarine cable capacity. It has also created interdependencies between connectivity providers and online platforms, increasing the complexity of the digital connectivity ecosystem.

As in many OECD Member countries, Colombia’s regulatory framework has not fully adjusted to this convergent environment. To ensure timely and proportionate market assessments, consistent with Open Internet principles, its framework should be updated. Current approaches across OECD Member countries suggests adopting a gradual approach: clarifying the treatment of OTT services; updating market analysis to reflect functional substitution; improving transparency on interconnection and CDN placement; strengthening Open Internet enforcement; aligning universal service goals; and considering dispute resolution mechanisms.

Policy considerations for the next phase of Colombia's connectivity agenda

Colombia’s communication sector stands at a crossroads. The country has built strong foundations for digital connectivity through a modernised regulatory framework, sustained investment and rising demand of digital infrastructure. Yet persistent structural challenges, uneven communication market dynamics, and emerging platform-driven pressures, highlight that additional efforts are needed to maintain the momentum. To consolidate progress and ensure affordable, high-quality connectivity for all, Colombia should:

• Reinforce competitive conditions and promote sustained investment in the communication sector.

• Narrow persistent broadband coverage, quality and adoption gaps through targeted initiatives supported by robust monitoring and evaluation.

• Enhance regulatory agility to adapt to an increasingly convergent ecosystem shaped by OTT services and online platforms.

• Strengthen evidence, institutional capacity, and regulatory co‑operation to keep pace with evolving market dynamics.