Publication Overview
Chile stands out in Latin America for its openness to innovation, and its telecom sector is a popular target with both national and international investors. The report covers trends and developments in the fixed-line, mobile, internet, broadband, and pay TV markets. Subjects include:
- Market and industry analyses, trends and developments;
- Facts, figures, and statistics;
- Government policies and regulatory issues;
- Major players (fixed, mobile and broadband);
- Fixed-line market and infrastructure;
- Broadband market (including ADSL, cable modem, FttH, and WiMAX);
- Internet and VoIP;
- Convergence and triple play solutions;
- Broadcasting (including cable TV and satellite-based TV services);
- Mobile market (including 3G/4G and mobile broadband);
- Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.
Key developments:
- A bill is in the pipeline to create a Superintendency of Telecommunications.
- Mobile Number Portability was introduced nationwide in January 2012; Fixed Number Portability is being launched region by region, starting in December 2011 and concluding in February 2013.
- To encourage customer mobility, the regulator, Subtel, has banned the sale of carrier-locked handsets, and ordered operators to unlock devices free of charge.
- Chile is eliminating domestic long distance charges and establishing a single nationwide calling area.
- Chile’s Tower Act, devised for health and environmental reasons, is helping to promote MVNOs and infrastructure sharing.
- Smartphone sales are soaring in Chile, driven by the popularity of social media and improved 3G coverage – as well as diminishing prices and a wider range of devices.
- Chile’s Facebook penetration rate is the highest in Latin America and one of the highest in the world.
- In Chile, more fixed-line customers subscribe to telephony bundled with another service than to telephony on its own.
- Following a failed bid to buy GTD, Entel plans to roll out satellite TV and triple play services for residential customers.
Companies covered in this report:
- Fixed line operators include Movistar (Telefónica Chile), VTR Globalcom, the GTD group (including Telsur, GTD Manquehue, Telesat, and Telcoy), Entel Chile, Claro Chile.
- Mobile operators include Entel, Movistar, Claro.
- Fixed broadband providers include Movistar, VTR, Claro, Telsur, Telcoy, GTD Manquehue, GTD Internet, Entel, Comunicación y Telefonía Rural (CTR), Complejo Manufacturero de Equipos Telefónicos (CMET), Pacifico Cable.
- Pay TV providers include Movistar, VTR, Claro, DirecTV, CMET/Cable Central, Mundo Pacifico, TuVes HD.
Researcher:- Lucia Bibolini
Current publication date:- September 2012 (11th Edition)
Executive Summary
Competition hots up in Chile’s mobile market
Chile stands out in Latin America for its openness to innovation, and this is particularly true in telecommunications. Solid economic growth and a progressive regulatory system have contributed to make Chile’s telecom market one of the most dynamic in the region. The government takes a proactive role in promoting telecom competition and places no restriction on foreign investment. As a result, the country’s telecom sector is a popular target with both national and international investors.
Competition is hotting up in 2012 thanks to the introduction of fixed and mobile number portability as well as the launch of four new mobile market players, with a fifth one expected to begin operations by early 2013. The four are Nextel, VTR, GTD, and Virgin Mobile. Nextel and VTR have launched 3G networks, while GTD and Virgin Mobile are offering Mobile Virtual Network Operator (MVNO) services. The fifth, local retail giant Falabella, is also preparing to enter the MVNO market. Hitherto, the MVNO model has been largely unsuccessful in Latin America, but 2011 marked a turning point, with several operations launched in a number of countries. In Chile, the government is actively supporting MVNOs through licence clauses and regulatory requirements.
Teledensity in Chile is only slightly higher than average for Latin America. This compares poorly with the country’s other economic indicators such as GDP per capita, which is the highest in South and Central America. Chile’s mobile penetration, on the other hand, is one of the region’s highest, though still lagging behind Panama, Uruguay, and Argentina.
In terms of broadband penetration, Chile ranks second in the region after Uruguay, but the latter’s download speeds are considerably slower. In fact, in terms of broadband speed, Chile is the regional leader, well ahead of any other Latin American country.
More than one Chilean household out of three subscribes to pay TV services, and the pay television market is one of the most mature in the region, with penetration ranking third in South America after Argentina and Uruguay.
In the fixed-line market, the leading operator is the incumbent Telefónica Chile, which trades as Movistar. Its main competitors are VTR Globalcom (VTR), the GTD group, Almendral’s Entel, and América Móvil’s Claro. VTR is the leading provider of cable TV and cable modem broadband, and the second largest provider of local telephony. The GTD Group operates through seven subsidiaries, including GTD Manquehue and Telsur. Entel offers fixed-line services primarily to the wholesale and corporate segments.
In the mobile market, Chile’s major operators are Entel, Movistar, and Claro. Entel and Movistar are in the lead, followed by Claro. Chile’s telecom regulator, Subtel, has completed a public auction for frequencies in the 2.5GHz band, to be used for 4G LTE services. Having each won a block of spectrum, Entel, Movistar, and Claro are required to launch an LTE network by mid-2013.
Several operators provide broadband access; Movistar is the leader, closely followed by VTR. Claro, in third place, has a small but fast-growing market share. Competition in the broadband market is livelier in Chile than in most other Latin American markets; nevertheless, it remains weak by international standards, and is largely limited to competition across technologies (ie ADSL versus cable modem).
Strong demand for telecom products is expected to continue in Chile. The country has a technology-hungry consumer base; to keep up with consumer expectations, operators must improve and invest or lose out to competition. We can expect substantial investments in 2012 and 2013 as Entel, Movistar, and Claro roll out their LTE networks.
Chile’s fixed-line, broadband, and mobile statistics – 2010 - 2012
|
Sector
|
2010
|
2011
|
2012 (e)
|
|
Fixed-lines in service
|
|
Total subscribers (million)
|
3.46
|
3.37
|
3.30
|
|
Broadband
|
|
Total subscribers (million)
|
1.86
|
2.06
|
2.21
|
|
Mobile telephony subscribers
|
|
Total subscribers (million)
|
21.26
|
24.47
|
27.00
|
(Source: BuddeComm based on industry data)
For those needing an objective and high-level strategic analysis on Chile, this report is essential reading and gives further information on:
- The development of Chile’s fixed-line, mobile, broadband, and pay TV sectors.
- Company performance, ARPU, and spectrum awards.
- An analysis of Chile’s broadband sector.
- An analysis of Chile’s fledgling MVNO market.
- The development and expansion of mobile broadband and 3G/4G services in Colombia.
- How different scenarios may affect the fixed, mobile, and broadband markets in the years to 2020.
Data in this report is the latest available at the time of preparation and may not be for the current year.
