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Home > Communications > Telecommunications > General Telecom
Chile Telecommunications Report Q1 2008
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There were some promising developments in Chile’s telecoms markets in Q307, notably the licensing ofthe country’s first mobile virtual network operators (MVNOs). Blue Two, a WiFi and Bluetooth operatorowned by alternative fixed-line operator Telsur, and Dotcom, a locally owned VoIP operator, have bothreceived 30-year licences to provide mobile services. Meanwhile, Nextel’s parent company hasconfirmed an US$80mn investment programme to roll out an ESMR network in Chile, following NextelChile’s December 2006 launch of roaming services for corporate customers.
The auction for 3G frequencies is expected to take place in Q108, although the three existing mobileoperators are all likely to be offering some form of 3G service by YE07. Regulators are consideringwhether to offer the existing operators small blocks of 45MHz spectrum in order to establish a fourthoperator in the market, which would focus specifically on 3G. However, BMI is sceptical that a fourthplayer can be tempted to invest in an already competitive and well-developed market, particularly giventhat MVNO licences are now available.
In addition to its MVNO licence, Telsur, which is consolidating its position as the country’s third-largestbroadband provider, launched IPTV services in July, just one month after Telefónica Chile’s IPTVoffering. Further competition in the triple play market will now come from Telmex, which followed itsMarch 2007 launch of fixed-wireless and broadband services with the acquisition of pay-TV providerZAP TV in August. BMI would not be surprised to hear of further pay-TV acquisitions by Telmex in thecoming months, a strategy it has pursued in Colombia and Peru as a way into the lucrative triple playmarket.
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