Subtel Sees MVNOs Entering the Market

The entrance of mobile virtual network operators (MVNOs) to the Chilean market will only be possible once companies reach agreements to unbundle their networks, Chile's telecoms regulator Subtel head Pablo Bello told reporters.

Chilean companies, such as internet services provider Chile.com and operators VTR and GTD, have requested Subtel concessions to enter the Chilean mobile market as MVNOs but have encountered strong opposition from the three mobile companies operating in the country.

"The government has said there is no special regulation required for MVNOs to enter the market. In the countries where this business model has been successful there are no regulations but agreements between operators that own the networks and those that do not," Bello said.

According to the authority, there are negotiations taking place and Subtel expects them to come to a positive conclusion that allows MVNOs to operate in Chile.

"As Movistar [a unit of Spain's Telefónica], we think there is a need for clear rules to grant a concession and we understand that those rules do not exist. There are too many questions about post-sales services, who is responsible for the clients or what would happen if the MVNO leaves the market," local newspaper Diaria Financiera quoted Movistar Chile CEO Oliver Flögel as saying.

However, Bello said MVNOs do need a mobile concession particularly in order to guarantee the quality of service they provide.

"We are interested in the development of this market; we aim for the mobile market to have a more competitive environment and MVNOs are an opportunity for that," he added.

BNAmericas.com"

Posted to the site on 4th October 2006