2014 Chile - Telecoms, IP Networks, Digital Media and Forecasts

Report Cover Image

Last updated: 3 Dec 2014 Update History

Report Status: Archived

Report Pages: 78

Publication Overview

This report provides an overview of Chile’s telecom infrastructure, as well as profiles of the key fixed network operators. It provides relevant statistics, analyses, and fixed-line scenario forecasts for the years 2015 and 2020. It covers the broadband and pay-TV markets, including subscriber forecasts to 2020, as well as the mobile market, with data on mobile operators and the key MVNOs, as well as market statistics and market analyses.

Researcher:- Henry Lancaster
Current publication date:- December 2014 (13th Edition)

Executive Summary

Mobile broadband growth reducing consumer need for fixed-line telecoms

Chile’s telecom sector is one of the most open and mature in Latin America, with full competition allowed in all areas, excellent infrastructure and a progressive regulatory system which encourages competition. The country’s market-oriented economy has made it a popular target with both national and international investors. A Digital Agenda for 2013-2020 has set out a roadmap for the development of Chile’s ICT sector, including strategies and specific initiatives and goals to facilitate improved telecom access for all citizens. The country has also benefited from solid GDP growth during the last decade, with a decline recorded only in 2009 as the effects of the GFC were first felt. GDP per capita is among the highest in the region, which has translated into disposable income for telecom services.

Fixed-mobile substitution is particularly strong in Chile, with fixed-line teledensity slipping while mobile penetration continues to climb. The consumer trend to adopt mobile services for both voice calls and broadband is further reducing demand for fixed-line infrastructure.

The fixed-line services sector is dominated by the incumbent Telefónica Chile, trading as Movistar, while its main competitors are VTR Globalcom (wholly owned by Liberty Global), the GTD group, Entel, and Claro.

Broadband penetration is relatively high for the region. Competition in the market is intense, though given the dominance of the major players much of this competition is cross-platform. The pay TV market is also mature, with the third highest penetration in South America after Argentina and Uruguay. By mid-2014 almost half of all households subscribed to pay TV services.

Chile’s mobile penetration is one of the highest in South America, and as a result growth has slowed considerably. Movistar and Entel are the market leaders, compete neck-and-neck with about 37% share each, while Claro accounts for about 22% market share and the half-dozen MVNOs take the remaining 2%. LTE services are offered by all three MNOs, which has stimulated the sale of smartphones as well as mobile data use among consumers.

Key developments:

NII Holding sells Nextel Chile; MTRs set to fall 73% over five years; regulator negotiates reduced roaming charges with Argentina and Peru; Entel launches LTE services; Chile’s Tower Act helps promote MVNOs and infrastructure sharing; VTR closes down its wireless network to become solely an MVNO; Claro expands LTE service; regulator conducts 700MHz auction; Telefónica launches satellite broadband service, expands IPTV service to another four cities; broadband penetration broaches 13%; VTR bought out by Liberty Global; growing customer use of bundled services; Facebook penetration rate the highest in Latin America; report includes telcos’ operating data to Q3 2014; regulator’s June 2014 market update; recent market developments.

Companies and subsidiaries mentioned in this report include:

Entel Chile, Claro Chile, VTR, Nextel, GTD, Virgin Mobile, Falabella Movil, Movistar (Telefónica Chile), Globalcom, Telsur, GTD Manquehue, Telesat, Telcoy, DirecTV, CTR, CMET/Cable Central, Mundo Pacifico, TuVes HD 

Data in this report is the latest available at the time of preparation and may not be for the current year

Related Reports

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Monitor critical insights with our AI-powered Market Intelligence Platform gathering and analyzing intelligence in real time. With AI trained to spot emerging trends and detect new strategic opportunities, our clients use TMT Intelligence to accelerate their growth.

If you want to know more about it, please see:

TMT Intelligence Platform

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:

Research Methodology

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to BuddeComm's weekly newsletter.