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Chile Telecommunications Report Q4 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: August 2009 Product Code: R302-7717 Description The year-on-year growth rate in Chile fell further in Q109 seeing 7.4% y-o-y growth in mobilesubscriptions compared with just over 8.5% reported throughout 2008. The number of net additions fellsharply as the Chilean mobile market moves slowly to 100% penetration. Indeed, BMI does not expectthe market to see 100% penetration reached until late 2010 even with the prospect of a new mobileoperator. Two companies were announced to have prequalified for acquiring additional spectrum with thethree existing operators choosing not to participate. VTR Globalcom, a broadband operator in Chile, andNextel, which already has some wireless spectrum, were selected by Subtel to bid for 30MHz ofspectrum. Movistar and Entel PCS called on the regulator to issue further spectrum to enable them tomeet growing demand for mobile data services.Chile’s mobile operators are restricted to just 60MHz of spectrum and there has been growing concernover the ability of operators to meet the growing usage of mobile broadband which Subtel data show tohave grown exceedingly quickly over 2008 and early 2009. Mobile data services are seeing rapid take upin Chile with operators keen to offer the latest content to the market as a means of driving continuedrevenue growth. The reliance on traditional voice services is waning leading to greater interest fromoperators to providing the newest services in the market. Mobile broadband holds real potential as a rival to fixed broadband services and creates furthercompetition for fixed broadband operators. New projects that will bring WiMAX to rural areas alsointensify the broadband market and sees growth likely to continue at a good pace. However, slowergrowth in 2008 hints at high prices that are putting potential subscribers off acquiring a data line. In thesame way as the mobile market operators need to ensure that they have high bandwidth and a widevariety of service on offer broadband operators must offer this as well as competitive pricing to encouragegreater take up. Meanwhile Chile’s good growth and strong revenues from telecoms services help it retain its position atthe top of BMI’s Business Environment Rankings from which it has yet to be displaced. One of Chile’sstrongest points is the high rating it receives for Independence of Regulator - the highest in LatinAmerica - as Subtel has sought to encourage competition and develop new services in the telecomsmarket. A more recent focus on rural telecommunications highlights Subtel’s push to encourage operatorsto invest in more sparsely populated areas. Chile is helped by its stronger Country Risk score as theChilean government steers its course through the global economic crisis and forecasts for the Chileaneconomy remain positive. Table of Contents
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