Chile’s leading telcos present bids for 700MHz spectrum

Chile’s leading operators – Movistar, Entel and Claro – have each presented their offers for the upcoming 700MHz spectrum tender in the country, with Claro and Entel finding themselves in a tie for the attractive 30MHz block, the head of telecoms regulator Subtel, Jorge Atton, said at a meeting with journalists.

There are a total of 70MHz available in the 700MHz spectrum, divided into one block of 30MHz and two blocks of 20MHz each. A further 20MHz of spectrum is being reserved for use by emergency services. As Claro and Entel’s offers tied for the 30Mhz spectrum block, authorities will now review the bids, and if the tie is maintained the tender will be decided based on the financial offers made by the companies, which will be opened within the next 30 days.

Chile’s government auctioned spectrum in the 2.6GHz band in 2012 for 4G services, with tender winners Claro and Movistar having already launched their commercial LTE offerings, and Entel set to do so in March.

However, the release of the 700MHz spectrum will provide improved 4G coverage in indoor environments compared to the 2.6GHz spectrum alone.  The 700MHz band is essential for providing a uniform 4G service to clients, according to Entel’s head of regulation and corporate affairs, Manuel Araya.Chile has seen explosive mobile broadband growth in recent years, with 3G connections reaching some 5.56mn as of the end of 2Q13.

Strong growth in the industry is expected to continue and the 700MHz tender is an important step to increase coverage, according to transport and telecoms minister Pedro Pablo Errázuriz.

Date: Business News Americas, Monday, 13 Jan 2014

Sourcehttp://www.bnamericas.com