An Expert's View about Telecommunications in Chile

Posted on: 12 Jul 2012

Chile has a population of 16.7 million and there are 19.8 million mobile phones in the market.

Telecommunications A Top Export Prospect for Chile June 2012 Overview 2012 2013 In USD millions 2010 2011 (estimated) (estimated) Total Market Size 4,680 3,953 4,330 5,129 Total Local Production 220 190 225 250 Total Exports 200 167 195 225 Total Imports 4,660 3,930 4,300 5,104 Imports from the U.S. 549 471 541 622 Exchange Rate: 1 USD 500 484 486 489 Total Market Size = (Total Local Production + Total Imports) – (Total Exports) Data Sources: Total Local Production: Local industry source. Total Exports: Chile Customs Data, Southbridge Total Imports: Chile Customs Data, Southbridge Imports from U.S.: Chile Customs Data, Southbridge Source: Unofficial estimates based on info from industry sector sources Chile's telecommunications sector is completely privatized and probably the most advanced in Latin America. The Under Secretariat of Telecommunications (SUBTEL) regulates the sector, sets standards and issues licenses and concessions. Since privatization began in 1988, huge infrastructure investments have been made by the private sector. As a result, Chile’s telecom industry grew an average of 20 percent annually over the last decade. Investments in modernization of equipment and implementing new technologies will continue. It is estimated that the telecom sector will continue growing at an estimated rate of 15 percent annually. The mobile telephony market is the fastest growing subsector in the telecommunications market. Chile has a population of 16.7 million and there are 19.8 million mobile phones in the market. Number portability was recently introduced in Chile, generating stronger competition among mobile communications operators. Due to the high penetration of mobile services, the fixed line market in Chile is declining. Residential fixed lines accounted for 62% of the market in 2009 but fell 6.2% in 2010. Commercial landlines account for 35% of the market. Chile’s telecom industry showed great deficiencies after the earthquake in February 2010, so the government had to promote the development of the communications infrastructure. Chile’s authorities hope to improve connectivity, education, and, most important, the integration of all of Chile’s regions. Both the private and the public sectors’ efforts to extend Top US rt 2 Expo Prospects in Chile 2012: Telecommunications current fixed lines and mobile infrastructure have slowly resulted in increased revenue for operators. The government has also tried to modify current regulations to allow companies to focus efforts on expansion. Telecom imports are critical since the high-tech telecom equipment is not manufactured locally. Local manufacture is limited to some copper cable and telephone exchange. U.S. products are highly regarded for their high quality. However, the United States market share is affected by the strong competition from manufacturers of other countries, especially from Asia, that offer lower prices for similar of equipment even though it is not of the same quality. Back to top Sub-Sector Best Prospects Chile does not manufacture telecommunications equipment. There are interesting opportunities for U.S. exporters of equipment, products and services for the telecommunications sector, especially in the fastest growing wireless communications sector. With the entry into the market of two new operators of mobile communications, Nextel and VTR, the competition among operators will become stronger in order to maintain and increase their market share. These companies have had to make huge investments during the last couple of years to implement their network and operations. Back to top Opportunities The introduction of number portability in Chile is generating fierce competition among operators of mobile communications. This system will allow subscribers of different mobile companies to switch from one company to another without losing their number. This is generating fierce competition among operators of mobile communications that must find new and additional products and services to compete. Providing an excellent service and coverage is no longer enough. Chile offers a good potential for all value-added services and corporate communications services, such as hot lines, home security services, automatic collect-calls. Also, according to recent studies completed in Chile, the trend for young people it to use their cell phone for playing music and playing games. Back to top Web Resources • Ministry of Transportation and Telecommunications: • Under Secretariat of Telecommunications: • Association of Mobile Telephony: Back to top Top US ects mmunicat 3 Export Prosp in Chile 2012: Teleco ions For More Information Please contact Isabel Margarita Valenzuela, Commercial Specialist for telecommunications at the U.S. Commercial Service in Chile at or (56) 2-330-3421. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 12 July 2012

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