Watchdog Awaits Green Light to Launch 3G Auction

Chile's telecoms watchdog Subtel has presented the antimonopoly commission TDLC a technical report on its plans to launch auctions for 3G spectrum, a Subtel spokesperson told BNamericas, confirming local press reports.

In June, Subtel asked the TDLC to determine whether existing mobile concession holders should be restricted from participating in upcoming auctions for mobile spectrum. TDLC requested a report on the state of the market, which was handed in on Tuesday (Sep 4) and then updated with additional information requested by the TDLC on September 6.

Subtel head Pablo Bello has previously spoke of the watchdog's intentions to offer a 45MHz block of spectrum for 3G as part of a telecoms reform bill. The auctions are expected to take place in the first quarter next year.

The spokesperson said Subtel expects TDLC to make a ruling by the end of the year. He added that in the interests of trying to ensure the auction runs smoothly, Subtel had decided to try and preempt any foreseeable legal obstacles that could arise regarding which operators could participate in the new auction. For that reason it was requesting approval from the TDLC now.

The end of year timing fits well for other reasons as the 3G equipment needed for the services is expected to only become widely available in the US by that time, the spokesperson said.

Subtel's idea is to add a fourth completely new mobile operator to the market. As the idea is that the new operator would focus particularly on 3G services and not voice, Subtel does not envisage saturating what is already a highly competitive mobile market.

In June, Movistar Chile, of Spain's Telefonica, led the market with a 46% share, Entel PCS had 37.3%, while Claro Chile, of Mexico's America Movil, had 16.7%.

Subtel is keen for the existing mobile operators to compete for small blocks of 3G spectrum to ensure a competitive environment, the spokesperson said. However, whether all the operators will be able to participate will depend on the TDLC ruling.

Entel is currently the only company with an HSDPA 3G network, which it launched in December last year in a limited area of capital Santiago. Last month it completed coverage for the whole of the capital as well as some districts in neighboring region V.

Posted to the site on 7th September 2007