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Chile - Telecoms, Mobile, Broadband and Forecasts

Chile - Telecoms, Mobile, Broadband and Forecasts

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Price $895.00
Meta Description Strong domestic demand and rising GDP in Chile drive telecom market growthChile’s telecom sector is one of the most developed in
Publisher BuddeComm
Date of Report Jun 29, 2011
Quick Overview
Strong domestic demand and rising GDP in Chile drive telecom market growthChile’s telecom sector is one of the most developed in Latin America, with a state-of-the-art infrastructure and regulatory system. Competition, investment, and innovation have been key factors in the development of the country’s telecommunications. Chile is deemed the most transparent country in Latin America, with the lowest level of corruption. Its market-oriented economy and its openness to international investment have made it a popular target with foreign investors.
GDP per capita in Chile is one of the highest in the region, only surpassed by Uruguay and a few Caribbean islands. With solid economic growth and strong domestic demand predicted for 2011, telecom revenues are expected to continue posting double-digit growth rates. The fastest growing services will be fixed and mobile broadband. Smartphones sales are likely to escalate, driven by lower prices and intensive use of social networks.
Chile’s fixed-line market has been stagnating for more than a decade. Teledensity is about 14% higher than average for Latin America, but lags behind Costa Rica, Uruguay, Argentina, Venezuela, Brazil, and a number of Caribbean small island nations.
Telefónica Chile, trading as Movistar, is the incumbent local telephony operator and the largest telecom company in Chile. It is the market leader in local and long-distance telephony, broadband, and satellite TV. Its sister company Telefónica Móviles Chile – also trading as Movistar – leads Chile’s mobile market.
Movistar’s main fixed-line competitors are pay TV/triple play operator VTR Globalcom, incumbent long-distance provider Entel Chile, the GDT group (including GTD Manquehue, GTD Telesat, Telsur, and Telcoy), and América Móvil’s Claro Chile.
In a bid to unify services under a single trademark, the fixed-line business previously conducted by Telmex Chile has been taken over by mobile operator Claro Chile, both companies being controlled by Mexican tycoon Carlos Slim.
Chile’s mobile penetration is one of the highest in Latin America, but lags behind Panama, Uruguay, and Argentina. Three major mobile companies serve the Chilean market: Telefónica’s Movistar, Almendral’s Entel, and América Móvil’s Claro. Two new market entrants, Nextel Chile and VTR, have won licences for 3G services. Both companies are expected to launch UMTS networks in the second half of 2011.
Mobile phone tariffs in Chile are among the cheapest in Latin America, with a basic plan costing about 1.3% of an average wage. Chile is also the Latin American country with the cheapest smart phones compared with per capita income.
Mobile broadband has taken off in Chile; by 2012, about one in ten Chileans will own a 3G USB modem or portable computer with built-in 3G receiver. The mobile broadband market has already passed one million subscribers, and accounts for about 36% of all broadband subscribers including fixed and mobile.
Chile’s fixed broadband market is one of the most developed in Latin America. In terms of speed, Chile is the regional leader, with a mean download speed of 6.45Mb/s (as of June 2011) – which, albeit the highest in Latin America, is still low compared with the rest of the world.
For many years – in fact, from the early days of broadband until 2009 – Chile retained the regional leadership in terms of fixed broadband penetration. Slow growth in 2010, however, has relegated it to third place, after Uruguay and Argentina. The slowdown was partly due to the effects of the devastating earthquake at the start of the year, partly to the mobile broadband boom, and partly to the fact that saturation has been reached in the urban middle- and upper-income segments.
Market highlights:
In July 2010, Chile became the first country in the world to pass a Network Neutrality Law aimed at ensuring free and equal access to the internet.Fixed and mobile number portability was approved in August 2010, with implementation expected in late 2011 or early 2012 – mobile number portability first, then fixed number portability.The government is considering the establishment of a wholesale telecom infrastructure provider.Operators are consolidating their fixed-line, mobile, broadband, and pay TV operations under a single brand name: Movistar for Telefónica, Claro for América Móvil, and Entel.Chile’s telecom regulator Subtel plans to auction 2.6GHz spectrum for LTE/4G services towards the end of 2011.Telsur offers TVoIP services and GTD Manquehue provides IPTV over Chile’s first FttH network.The GTD group and Movistar have been holding talks aimed at reaching an MVNO agreement, which would allow GTD to offer mobile services over Movistar’s network.Chile fixed-line, broadband, and mobile statistics – 2009 - 2011
Sector | 2009 | 2010 | 2011 (e) |
Fixed-lines in service |
Total subscribers (million) | 3.56 | 3.46 | 3.50 |
Penetration rate | 21.0% | 20.1% | 20.2% |
Annual growth | 1.0% | -3.0% | 1.2% |
Broadband |
Total subscribers (million) | 1.71 | 1.85 | 2.04 |
Penetration rate | 10.1% | 10.8% | 11.8% |
Annual growth | 16% | 8% | 10% |
Mobile telephony subscribers |
Total subscribers (million) | 17.59 | 21.26 | 24.04 |
Penetration rate | 103% | 124% | 139% |
Annual growth | 11% | 21% | 13% |
(Source: BuddeComm based on industry data)
For those needing an objective and high-level strategic analysis on Chile, this report is essential reading and gives further information on:

The development of Chile’s fixed-line, mobile, broadband, and pay TV sectors together with industry outlook and forecasts.
Company performances and ARPU.
Analyses of Chile’s broadband and mobile sectors.How different scenarios are likely to affect the fixed-line, mobile, and broadband markets in the ten years to 2020.Data in this report is the latest available at the time of preparation and may not be for the current year.
Table of Contents

1. Key Statistics
2. Telecommunications Market
2.1 Country overview
2.1.1 Outlook
2.2 Telecommunications market
2.2.1 Overview of Chile’s telecom market
2.2.2 Market analysis – 2011
2.2.3 Chile’s 2010 earthquake
3. Regulatory Environment
3.1 Background
3.2 Regulatory authorities
3.2.1 Subtel
3.3 Telecommunications Development Fund
3.4 Foreign investment
3.5 Tariffs
3.6 Number portability
3.7 Interconnect
3.8 Access
3.9 Network neutrality
4. Fixed Network Operators
4.1 Overview of operators
4.1.1 Local operators
4.1.2 Long-distance operators
4.2 Movistar (Telefónica Chile)
4.3 VTR Globalcom
4.4 GTD Group
4.4.1 Telefónica del Sur (Telsur)
4.5 Entel Chile
4.6 Claro Chile (former Telmex)
5. Telecommunications Infrastructure
5.1 National telecom network
5.1.1 Fixed-line statistics
5.1.2 Public payphones
5.2 International infrastructure
5.2.1 Submarine cable networks
5.2.2 Satellite networks
5.3 Infrastructure developments
5.3.1 IP and voice over internet protocol (VoIP)
5.4 Wholesale
6. Broadband Market
6.1 Overview
6.1.1 Fixed broadband statistics
6.1.2 Broadband market analysis
6.2 Broadband players
6.2.1 Overview
6.2.2 Movistar (Speedy)
6.2.3 VTR Banda Ancha
6.2.4 GTD/Telsur/Telcoy
6.3 Cable modems
6.4 Asymmetric digital subscriber line (ADSL)
6.5 Fibre-to-the-home (FttH) networks
6.6 Wireless broadband
6.6.1 WiMAX
7. Digital Media / Digital Economy
7.1 Media convergence
7.1.1 Overview of media convergence
7.1.2 Triple play models
7.1.3 Broadband TV (IPTV and TVoIP)
7.2 Digital economy
7.2.1 E-government
7.2.2 E-commerce
7.3 Digital media
7.3.1 Overview
7.3.2 Broadcasting
8. Mobile Communications
8.1 Overview of Chile’s mobile market
8.1.1 Mobile statistics
8.1.2 Mobile market analysis
8.2 Regulatory issues
8.2.1 3G spectrum auctions
8.2.2 Mobile number portability (MNP)
8.2.3 Mobile virtual network operators (MVNOs)
8.3 Mobile technologies
8.3.1 Overview
8.3.2 Second Generation (2G) mobile
8.3.3 Third Generation (3G) mobile
8.3.4 Long-term evolution (LTE)
8.3.5 Mobile handsets/smart phones
8.4 Mobile operators
8.4.1 Movistar (Telefónica Móviles Chile)
8.4.2 Entel PCS
8.4.3 Claro Chile (América Móvil)
8.4.4 Nextel Chile
8.4.5 VTR
8.5 Mobile voice services
8.5.1 Prepaid
8.6 Mobile messaging
8.6.1 Short message service (SMS)
8.7 Mobile broadband
8.8 Mobile satellite
9. Forecasts
9.1 Forecasts – fixed-line market – 2015; 2020
9.1.1 Overview
9.1.2 Scenario 1 – higher fixed-line growth
9.1.3 Scenario 2 – lower fixed-line growth
9.2 Forecasts – fixed broadband market – 2015; 2020
9.2.1 Overview
9.2.2 Scenario 1 – higher broadband growth
9.2.3 Scenario 2 – lower broadband growth
9.3 Forecasts – mobile market – 2015; 2020
9.3.1 Overview
9.3.2 Scenario 1 – higher mobile market growth
9.3.3 Scenario 2 – lower mobile market growth
10. Glossary of Abbreviations
Table 1 – Country statistics – 2011
Table 2 – Telephone network statistics – 2011
Table 3 – Internet user statistics – 2011
Table 4 – Broadband statistics – 2011
Table 5 – Mobile statistics – 2011
Table 6 – National telecommunications authority
Table 7 – Evolution of GDP in Chile – 2000 - 2011
Table 8 – Fixed and mobile market share – 1997 - 2011
Table 9 – Telecommunications revenue – 2005 - 2011
Table 10 – Telecom revenue by segment – 2010
Table 11 – Telecom revenue by operator – 2010
Table 12 – Fixed lines in service – operators’ market share – 2000 - 2011
Table 13 – Entel and Movistar – market share of ILD and DLD traffic – 2000 - 2010
Table 14 – Movistar – fixed lines in service – 1999 - 2011
Table 15 – VTR – fixed lines in service – 2000 - 2011
Table 16 – Telsur – fixed lines in service – 2000 - 2011
Table 17 – Entel – fixed lines in service – 2000 - 2011
Table 18 – Fixed lines in service and teledensity – 1995 - 2011
Table 19 – Public phones – 1996 - 2011
Table 20 – Movistar wholesale accesses – 2004 - 2011
Table 21 – Entel – wholesale segment net revenues – 2003 - 2010
Table 22 – Internet users and user penetration – 1996 - 2011
Table 23 – Fixed broadband subscribers and penetration rates – 2001 - 2011
Table 24 – Fixed broadband market share by technology – 2001 - 2011
Table 25 – Fixed broadband operators’ market share – 2001 - 2011
Table 26 – Movistar – broadband subscribers – 2001 - 2011
Table 27 – VTR – broadband subscribers – 2001 - 2011
Table 28 – GTD group – broadband subscribers – 2001 - 2011
Table 29 – Cable modem subscribers and penetration rates – 2001 - 2011
Table 30 – ADSL subscribers and penetration rates – 2001 - 2011
Table 31 – Volume of e-commerce – 2001 - 2011
Table 32 – Pay TV subscribers and penetration – 2006 - 2011
Table 33 – Pay TV technologies – market share – 2006 - 2011
Table 34 – Pay TV operators – market share – 2006 - 2010
Table 35 – VTR – pay TV subscribers by technology – 2000 - 2011
Table 36 – Movistar – satellite TV subscribers – 2006 - 2011
Table 37 – Claro – satellite and cable TV subscribers – 2006 - 2011
Table 38 – Cable TV subscribers and penetration rates – 1995 - 2011
Table 39 – Satellite TV subscribers and penetration – 2006 - 2011
Table 40 – Mobile subscribers and penetration rate – 1995 - 2011
Table 41 – Evolution of mobile ARPU in Chile – major operators – 2007 - 2010
Table 42 – 3G subscribers and penetration – 2006 - 2011
Table 43 – 3G subscribers and market share – 2010
Table 44 – Mobile operators’ market share– 1999 - 2011
Table 45 – Movistar – mobile subscribers – 1999 - 2011
Table 46 – Entel PCS – mobile subscribers – 1999 - 2011
Table 47 – Claro – mobile subscribers – 1999 - 2011
Table 48 – Mobile prepaid/postpaid ratio – 1999 - 2011
Table 49 – SMS messages sent – 2003 - 2010
Table 50 – Mobile broadband subscribers and penetration – 2007 - 2011
Table 51 – Entel – mobile broadband subscribers – 2007 - 2011
Table 52 – Forecast fixed lines – higher growth scenario – 2010; 2015; 2020
Table 53 – Forecast fixed lines – lower growth scenario – 2010; 2015; 2020
Table 54 – Forecast broadband subscribers – higher growth scenario – 2015; 2020
Table 55 – Forecast broadband subscribers – lower growth scenario – 2015; 2020
Table 56 – Forecast mobile subscribers – higher growth scenario – 2015; 2020
Table 57 – Forecast mobile subscribers – lower growth scenario – 2015; 2020
Chart 1 – Fixed and mobile subscribers in Chile – 1997 - 2011
Chart 2 – Fixed and mobile subscribers in Chile by market share – 1997 - 2011
Chart 3 – Evolution of telecom revenue in Chile – 2005 - 2011
Chart 4 – Revenue breakdown by segment – 2010
Chart 5 – Revenue breakdown by operator – 2010
Chart 6 – Fixed line market share at a glance – March 2011
Chart 7 – Evolution of fixed lines in service – 1995 - 2011
Chart 8 – Fixed broadband technologies at a glance – 2001 - 2011
Chart 9 – Fixed broadband market share at a glance – 2001 - 2011
Chart 10 – Pay TV technologies at a glance – 2006 - 2011
Chart 11 – Pay TV operators’ market share at a glance – 2010
Chart 12 – Evolution of cable TV in Chile – 1995 - 2011
Chart 13 – Operators’ mobile ARPU – 2007 - 2011
Chart 14 – 3G market share at a glance – 2010
Chart 15 – Mobile market share at a glance – March 2011
Exhibit 1 – Map of Chile
Exhibit 2 – Regions and primary zones in Chile
Exhibit 3 – Local telephony operators – number of zones of operation – March 2011
Exhibit 4 – Telefónica Chile at a glance
Exhibit 5 – VTR Globalcom at a glance
Exhibit 6 – GTD Group at a glance
Exhibit 7 – Telsur at a glance
Exhibit 8 – Entel Chile at a glance
Exhibit 9 – Claro at a glance
Exhibit 10 – Telefónica Móviles Chile at a glance
Exhibit 11 – Entel PCS at a glance
Exhibit 12 – Claro Chile at a glance




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