Telconet's CSN-1 submarine cable landed in Barranquilla, marking the first time in 10 years that a new cable system has reached Colombia's shores.
The milestone was achieved on Sunday, October 26, according to BNamericas.
CSN-1 is expected to be joined soon by another submarine cable, TAM-1, from Trans Americas Fiber System (TAFS), whose southern portion is already 50% deployed.
“Ten years have passed since the PCCS submarine cable landed in Cartagena (Telconet was one of the main investors in that project in 2015), and now CSN-1 lands in Barranquilla,” said Francisco Villacreses, Telconet's commercial vice president, in a statement shared with BNamericas.
“Colombia has naturally been one of the best-connected countries in the region by submarine cables after Brazil. Telconet's commitment to the Colombian market paves the way for the country to become a driving force in the development of AI and its applications,” Villacreses added.
CSN-1 is an open cable system with dark fiber pairs that Telconet plans to commercialize in the Colombian market over the system's 25-year lifespan.
ASN is in charge of building the cable. Construction is underway on all segments up to the Florida coast in the United States, using ASN's vessel Ile de Sein. The system is expected to be ready for service in the second half of 2026.
Financing
Earlier this month, Grupo Telconet announced the closing of a US$50 million, five-year international syndicated loan, the initial tranche of a credit facility with a leverage ratio of approximately 2.5x.
The financial structure supports the investments in CSN-1, as well as the expansion of Telconet's fiber-to-the-home (FTTH) and B2B businesses in Ecuador. The estimated capital investment for CSN-1 is US$300 million.
The credit facility can be expanded to US$120 million, giving Telconet access to additional resources from future international investors and Ecuadorian banks.
ArtCap Strategies structured and managed the transaction, acting as sole lead arranger and administrative agent.
Legal support was provided by several international and regional law firms, including Nelson Mullins Riley & Scarborough LLP; Curtis, Mallet-Prevost, Colt & Mosle LLP; Pérez Bustamante & Ponce; Arias, Aleman & Mora S.A.; Veria Asesores; Alemán, Cordero, Galindo & Lee; and Philippi Prietocarrizosa Ferrero DU & Uria.