UPDATE: Colombian Phone Co ETB To Pick Partner Around Oct 16

Colombian state-controlled telecommunications company Empresa de Telecomunicaciones de Bogota SA (ETB.BO), or ETB, will select a partner to inject fresh capital in return for a stake in the company "around" Oct. 16, ETB said in a filing to the local regulator.

The new partner will have to operate at least 1.5 million fixed lines or 5 million mobile lines, and at least 100,000 Internet connections, The company expects its future partner to have booked at least $1 billion in total revenues in the last fiscal period.

ETB needs capital to face rising competition from Spain's Telefonica SA (TEF) and Mexico's Telefonos de Mexico SA (TMX).

ETB's revenues from fixed-lines and long distance calls are stagnating as the three firms are now offering fixed-lines, Internet connection and cable TV bundled together, a service known as triple-play.

ETB followed the recommendation of the investment banking unit of Banco Santander SA (STD).

ETB is controlled by the Bogota city council, which holds 88.5%, while minority shareholders have the remaining 11.5%.

Shares of ETB were up 2.4% on Tuesday at 930 Colombian pesos ($0.44) at 12.49 a.m. EDT, while the IGBC stock index was almost unchanged.

-By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; [e-mail]