Deputy: Movistar Auction Not in Line with TDLC Guidelines

The sale of 25Mhz of spectrum from mobile operator Movistar Chile to rival firm Smartcom was not in line with the idea proposed by Chilean antimonopoly tribunal TDLC, when ordering this process, Chilean deputy Jaime Mulet told BNamericas.

In a letter sent to Chile's transport and telecommunications minister Sergio Espejo, Mulet argued that the TDLC spirit behind this request was to allow new operators to enter the mobile market.

Under request by TDLC, Movistar Chile, owned by Spain's Telefónica Móviles, sold off 25MHz of spectrum in the 800 band as a way to get authorization for its merger with BellSouth Chile.

The process ended on April 21, when Movistar awarded the spectrum to Smartcom, now owned by Mexico's América Móvil, in a deal reported worth US$50mn.

"For us, the sale of the spectrum to Smartcom violates the TDLC idea which was to add new players to the mobile market. Movistar was asked to sell spectrum but it is hilarious to sell it to a company that is already operating," Mulet said.

Mulet is also requesting Chile's telecoms regulator Subtel to improve supervision over the quality of service offered by the three mobile operators: Movistar Chile, Entel PCS and Smartcom, following complaints about lapses in service over recent months.

"I presented a formal request to supervise a series of situations in the mobile market including quality of service problems, interrupted calls and lack of coverage in areas where it previously existed," he added.

Subtel is currently carrying out an investigation into the issue.

When asked why was it important to formally request the ministry to do a job that is part of its responsibilities, Mulet said there is an impression that there have been no sanctions or recommendations to mobile operators despite the lower quality of services.

"We have not seen any actions, all that I have seen is Subtel's head [Pablo Bello] saying this is a problem between users and the companies, and that seems serious because the entity in charge of regulating the market is Subtel, and they need to supervise [operators]," he added.

BNAmericas.com"

Posted to the site on 29th June 2006