2016 Chile - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Chilean government progresses with 3,000km Fibra Optica Austral fibre network

Chile’s telecom sector is among the most developed in Latin America, with the modern infrastructure supporting a range of services in the fixed-line, digital media and mobile sectors. Full competition in all market segments has been encouraged by an effective regulatory regime. The country’s market-oriented economy has also made it a popular target with both national and international investors.

Chile’s fixed-line teledensity remains below the South American average, despite the country’s relatively high GDP per capita and the healthy investment environment. Teledensity peaked in 2001 and has since fallen, a trend which is being pushed by consumer adoption of mobile services for both voice calls and mobile broadband, which is reducing demand for fixed-line infrastructure but leading to a steady climb in the use of mobile voice and data services.

The incumbent telco Telefónica Chile, trading as Movistar, has effective competition from VTR Globalcom, the GTD Group, Entel, and Claro. VTR is the leading provider of cable TV and cable broadband, and the second largest provider of local telephony. The GTD Group operates through seven subsidiaries, including GTD Manquehue, GTD Telesat, and Telsur, which provide voice, data, and video services for residential and business customers. Entel offers fixed-line services primarily to the wholesale and corporate segments.

Chile’s broadband penetration is relatively high for the region, and broadband services are among the fastest and least expensive in Latin America. In terms of both broadband penetration and broadband speed, Chile ranks second in South and Central America after Uruguay.

Mobile penetration is also among the highest in South America, and as a result growth has slowed considerably. In the first half of 2016 the subscriber base fell 1.2% year-on-year, though some recovery is anticipated into 2017 as the availability of LTE networks and services widens. Movistar and Entel remain the market leaders, with a similar market share, while Claro accounts for about 23.7% of the market. There is a growing number of smaller MVNOs, which together have 3% of the market. New entrants include Virgin Mobile, which has a presence in a number of other markets in the region, as well as Vodafone.

The significant growth in the number of LTE subscribers in recent quarters highlights operator focus on mobile broadband and data services as a source of revenue in coming years. This is being supported by the growing adoption of smartphones, in turn driven by the popularity of social media and improved 3G and LTE coverage, as well as by the reduction in the price of devices.

This report provides an overview of Chile’s telecom sector and regulatory environment. It includes a range of statistical data and market analyses. The report also reviews the mobile market and includes scenario forecasts to 2021. In addition, the report analyses the internet, broadband, and pay-TV markets, including profiles of the main players, market statistics and broadband scenario forecasts to 2021.

Key developments:

• Government progresses with 3,000km Fibra Optica Austral fibre network;
• Industry lobby group Atelmo proposes $26 billion investment program to 2024 to increase reach of LTE and fibre-based broadband networks;
• Silica Networks signs agreement with REFSA Telecomunicaciones to build a 15,000km fibre network linking Argentina, Brazil and Chile;
• Intermodal number portability introduced;
• Telefónica extends Movistar Play service, launches satellite broadband service, expands videostreaming;
• Government amends Telecommunications Act to provide minimum internet access speed;
• Movistar and Entel launch LTE services using the 700MHz band;
• Entel expecting to provide national coverage with LTE-A by March 2017;
• Nextel Chile sold to Novator Partners, and rebranded as WOM;
• Tower Act helps promote MVNOs and infrastructure sharing;
• Report includes the regulator’s market data update to June 2016, telco’s financial and operating data to Q3 2016, recent market developments.

Companies mentioned in this report:

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