Abstract
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.
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