Chile’s three leading operators have all acquired 700 MHz spectrum suitable for 4G services following a beauty contest-style auction conducted by regulator Subtel.
Incumbent Entel paid Ps6.8bn (US$12.3m) to acquire the B block, Telefonica’s local…
Chile’s three leading operators have all acquired 700 MHz spectrum suitable for 4G services following a beauty contest-style auction conducted by regulator Subtel.
Incumbent Entel paid Ps6.8bn (US$12.3m) to acquire the B block, Telefonica’s local unit Movistar spent Ps4.2bn (US$7.6m) on the A block, and America Movil subsidiary Claro purchased the C block for Ps404m (US$0.7m).
Subtel attached a number of conditions to the licences which are in line with its policy objectives. The operators are obliged to provide connectivity in more than 1,200 rural towns and 500 schools, and together build more than 800km of fixed line infrastructure. The also have to offer MVNOs access to their networks at fixed rates.
Chile undersecretary of telecommunications, Jorge Atton, said the commitments from the telcos would save the state US$250m. Subtel expects the conditions will give 98% of the country’s population access to telecommunication services.
The operators have 18 months to meet the conditions of their licences and 24 months to build out nationwide 4G networks.
Subtel said the auction comes as the country experiences a surge in demand for mobile internet. In the last three years, Chile’s mobile penetration has more than quadrupled, according to OECD figures cited by Subtel.
Entel, Movistar and Claro all won a block of 2.6 GHz spectrum each in Chile’s July 2012 spectrum auction, allowing the country to raise more than US$12m.
Entel and Movistar both have around 37% of Chile’s mobile market, and Claro has 24%. The remainder is attributed to business-focused Nextel and MVNOs.
