Letter from
the CEO

The telecommunications sector is one of the main drivers of society and economic growth in the country. Networks carry the lives of people, businesses, governments, everyone’s lives. This leads us to materialize our mission of “making our world more humane by connecting people’s lives” and, in this sense, we promote sustainable and inclusive connectivity that helps overcome inequality and generate well-being, and actions that allow us to continue connecting opportunities.

2023 was a challenging year, but it also presented a growth scenario for our business, as it accelerated positive results despite tax, macroeconomic pressures and other challenges such as climate change, which made us seek opportunities to react innovatively and differently to a highly competitive sector activity that maintained extremely high levels on several fronts: economic, commercial, regulatory and social.

However, thanks to the hard work and dedication of our diverse team, composed of 4,950 direct employees, we managed not only to achieve but to exceed all the goals we set for ourselves to contribute the best of ourselves to over 25 million customers, of which 23 million are individuals and 2 million are businesses. Undoubtedly, incorporating the culture of sustainability into the Company’s strategy has leveraged excellent economic, operational and financial results, as in 2023 revenues of 7.1 trillion pesos were generated, achieving an EBITDA of 1.5 trillion pesos. With the above, I want to express my recognition and gratitude to each one for their dedication, effort and ambition in working to change and place our Company at the forefront of our sector. I also want to express a special thanks to over 21,000 indirect employees, allied and business partners who are part of our supply chain. Together, we continue to strengthen our management responsibly.

As a Benefit and Collective Interest Company, we continue to develop good practices in our business model, corporate governance, environmental protection, respect for human rights, labor management and with the community. We also promote the management of our business from a sustainable perspective supported by technology and under the highest standards, evidenced by the certifications obtained in the Company’s Integrated Management System, which allow us to contribute significantly to the economic, social and digital growth of the country from what we do best: Connect.

And it is that commitment to digital growth that has led us to seek new and better connectivity models through a vehicle that has achieved foreign investment and the provision of connectivity services. In this way, we can be the leading operator in fiber optics in the country. Not only did we end the year with over 4.9 million homes passed in 69 municipalities, but we also connected over 1.2 million homes and businesses that today enjoy the best digital experience and the best speed, as has been recognized by Ookla’s speedtest consecutively in the last two years.
But we also seek social progress by connecting more people. Therefore, and with great pride, we highlight a milestone for our Company, as we obtained the approval of the Superintendence of Industry and Commerce to create a single access network with Tigo, which will allow us to have a robust network that benefits over 37 million Colombians and ensures a 10% expansion of coverage, thus proposing a new scheme of alliance that generates synergies, deepening the network sharing scheme that we have developed with this operator since 2013.

Furthermore, under the Temporary Union that we formed with Tigo, we obtained 80 MHz in the 3,500 MHz band during the spectrum auction for 5G technology carried out by the National Government. This Temporary Union and the awarded spectrum will allow users of both companies to have a network that will provide services with the highest quality and performance standards in the telecommunications market.

We achieved the awarding of the spectrum at the base price of the auction for over 318 billion pesos, which will allow us to have a spectrum use permit from 2024 for the next 20 years so that Colombians can access 5G services. We are sure that this technology will positively transform our lives and the activity of businesses. 5G not only represents an increase in network capacity so that users can enjoy greater speed, even in places with high congestion, but also an opportunity for businesses to develop solutions that benefit their productivity and bring them closer to the digital economy.

We have a prominent role in this new era. Looking towards the future and in an increasingly connected world, it is urgent to find a more sustainable economic model. Therefore, we also have a special focus on developing and offering digital solutions that help other companies decarbonize. We are providers of services to over 282,000 companies, of which over 67,000 have Movistar Business digital services. In 2023, we were the first company in the country to have a portfolio of digital solutions with the Eco Smart Seal, designed so that companies can optimize energy and water consumption, reduce CO₂ emissions and promote a circular economy through their implementations. Additionally, we launched Planeta Movistar, a portal of products and services with environmental and social attributes where you can find sustainable solutions designed to connect, promote responsible consumption and care for the planet, in addition to a free training offer to develop digital skills.

In this construction of the present and the future, we are aware of our responsibility and know that digitization must be done without contributing to an increase in emissions. Therefore, we have ambitious goals that will lead our Company to become a net-zero emissions company by 2040, reducing our own emissions and those of our value chain. We are making good progress on this path, as at the end of 2023, the Company’s emissions in Colombia are 71% lower compared to 2015.

Connectivity and digitization are fundamental, both in the present and the future. In this sense, for the ICT sector to continue in the coming years as a driver of the economy and facilitator of the well-being of Colombians, effective and forceful measures must be taken in the face of the issue of dominance that is still present in the market.

In this Report you will be able to learn about the main advances and challenges of our management in 2023, aligned with the Sustainable Development Goals (SDGs), the United Nations Global Compact Principles, as well as the Andesco Sustainability Agreement and the various initiatives in which we participate.

We are celebrating 20 years in Colombia, and our commitment today is stronger than ever with our stakeholders. We are ready for the future, so we will continue to contribute to the connectivity of people and businesses in our country with fiber; through training in digital skills and promoting diversity by strengthening our employees so that they are prepared for the future, and reinforcing sustainability throughout our supply chain so that together we can meet our commitment to respecting human rights, based on a robust and responsible governance model. I invite you to read it and continue working together for the sustainable development of Colombia and the world.