Last Published: 11/1/2018
Overview
Chile has the most modern and mature telecommunications infrastructure in Latin America. Since its privatization in 1980, the telecom sector has experienced continual growth. Nonetheless, industry sources indicate the investment in telecom infrastructure needs to be doubled to overcome the existing digital gap. Chile imports almost all of its telecommunications equipment. Therefore, while significant opportunities exist, U.S. suppliers face intense international competition.
On June 6, 2018, the Undersecretariat of Telecommunications of Chile (SUBTEL) announced a plan to increase investment in telecommunications in Chile by 30% over the next four years. To achieve this goal, SUBTEL invited all Chilean and international telecommunications players (industry, public sector, and academia) to join the recently launched Telecommunications Investment Working Group. The group is open to U.S. companies and has four sub-groups: 1) Digital infrastructure; 2) International connectivity (including a cable to Asia); 3) IoT Services and Applications; and 4) 5G Implementation. Leveraging the consensus and input from players in these groups, by December 2018, SUBTEL plans to have a four-year telecommunications and digital development investment agenda.
Mobile telephone and broadband services (internet and telephone) are the fastest growing telecommunications sectors where investment demand is the highest. One-third of Chile’s telecommunications investments have gone into the wireless market. Two wireless operators, Movistar (Telefonica, Spain) and Entel PCS (Chile), dominate the Chilean market share, followed by Claro (America Movil, Mexico). In 2015, Nextel Chile was sold to Novator Partners and re-branded as WOM, which has successfully positioned itself as a new low-cost mobile phone service carrier and earned a spot in the market among its top competitors.
Overview
Chile has the most modern and mature telecommunications infrastructure in Latin America. Since its privatization in 1980, the telecom sector has experienced continual growth. Nonetheless, industry sources indicate the investment in telecom infrastructure needs to be doubled to overcome the existing digital gap. Chile imports almost all of its telecommunications equipment. Therefore, while significant opportunities exist, U.S. suppliers face intense international competition.
On June 6, 2018, the Undersecretariat of Telecommunications of Chile (SUBTEL) announced a plan to increase investment in telecommunications in Chile by 30% over the next four years. To achieve this goal, SUBTEL invited all Chilean and international telecommunications players (industry, public sector, and academia) to join the recently launched Telecommunications Investment Working Group. The group is open to U.S. companies and has four sub-groups: 1) Digital infrastructure; 2) International connectivity (including a cable to Asia); 3) IoT Services and Applications; and 4) 5G Implementation. Leveraging the consensus and input from players in these groups, by December 2018, SUBTEL plans to have a four-year telecommunications and digital development investment agenda.
Mobile telephone and broadband services (internet and telephone) are the fastest growing telecommunications sectors where investment demand is the highest. One-third of Chile’s telecommunications investments have gone into the wireless market. Two wireless operators, Movistar (Telefonica, Spain) and Entel PCS (Chile), dominate the Chilean market share, followed by Claro (America Movil, Mexico). In 2015, Nextel Chile was sold to Novator Partners and re-branded as WOM, which has successfully positioned itself as a new low-cost mobile phone service carrier and earned a spot in the market among its top competitors.
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