Chile Telecommunications Report Q4 2009

The year-on-year growth rate in Chile fell further in Q109 seeing 7.4% y-o-y growth in mobile subscriptions compared with just over 8.5% reported throughout 2008. The number of net additions fell sharply as the Chilean mobile market moves slowly to 100% penetration. Indeed, BMI does not expect the market to see 100% penetration reached until late 2010 even with the prospect of a new mobile operator. Two companies were announced to have prequalified for acquiring additional spectrum with the three existing operators choosing not to participate. VTR Globalcom, a broadband operator in Chile, and Nextel, which already has some wireless spectrum, were selected by Subtel to bid for 30MHz of spectrum. Movistar and Entel PCS called on the regulator to issue further spectrum to enable them to meet growing demand for mobile data services.

Chile's mobile operators are restricted to just 60MHz of spectrum and there has been growing concern over the ability of operators to meet the growing usage of mobile broadband which Subtel data show to have grown exceedingly quickly over 2008 and early 2009. Mobile data services are seeing rapid take up in Chile with operators keen to offer the latest content to the market as a means of driving continued revenue growth. The reliance on traditional voice services is waning leading to greater interest from operators to providing the newest services in the market.

Mobile broadband holds real potential as a rival to fixed broadband services and creates further competition for fixed broadband operators. New projects that will bring WiMAX to rural areas also intensify the broadband market and sees growth likely to continue at a good pace. However, slower growth in 2008 hints at high prices that are putting potential subscribers off acquiring a data line. In the same way as the mobile market operators need to ensure that they have high bandwidth and a wide variety of service on offer broadband operators must offer this as well as competitive pricing to encourage greater take up.

Meanwhile Chile's good growth and strong revenues from telecoms services help it retain its position at the top of BMI's Business Environment Rankings from which it has yet to be displaced. One of Chile's strongest points is the high rating it receives for Independence of Regulator - the highest in Latin America - as Subtel has sought to encourage competition and develop new services in the telecoms market. A more recent focus on rural telecommunications highlights Subtel's push to encourage operators to invest in more sparsely populated areas. Chile is helped by its stronger Country Risk score as the Chilean government steers its course through the global economic crisis and forecasts for the Chilean economy remain positive.

• Executive Summary
• SWOT Analysis
• Chile Mobile Business Environment SWOT
• Chile Wireline Business Environment SWOT
• Chile Political SWOT
• Chile Economic SWOT
• Chile Business Environment SWOT
• Business Environment Rankings
• Latin America Business Environment Rankings
• Chile
  • Table: BMI Telecommunications Business Environment Ratings
• Industry Forecast Scenario
• Mobile
  • Table: Chilean Telecoms Sector ??