Subtel to incorporate MVNOs in unbundling decree

Chile's telecom regulator Subtel plans to draft regulations allowing the mobile virtual network operator (MVNO) system through which operators can resell minutes carried on another operator's network, local newspaper Estrategia reported. The authority is studying whether to incorporate this model in its next decree, which will deal with network unbundling and the resale of public telephony minutes. Meanwhile, Subtel is drafting responses to questions from Chile's antimonopoly regulator TDLC regarding the merger of mobile operators Telefónica Móvil and BellSouth Chile and the impact this operation would have on the market. The regulator has recognized that the company resulting from the merger might be required partially to return spectrum, but to reassign frequencies Subtel would need to launch a public tender. Subtel still needs to assign the last part of the spectrum (1,710-2,290MHz for 3G service) and has said it will do so when it deems the market's technical and economic conditions appropriate. For the regulator, it is not important whether there is more spectrum to be allocated or not, but whether the spectrum assigned is enough to satisfy current requirements. "The 800MHz band has higher potential use than operators are making of it today. It is therefore important to change current technology for a more modern [system]," the report said.