Chile regulation continues to move towards secondary spectrum market

Chilean telecom regulations are continuing to move towards a secondary spectrum market, as the country's national economic attorney's office (FNE) requested that antitrust watchdog (TDLC) begin developing a legal framework to develop such a market in the country.

The FNE also called for regulations for the secondary spectrum market to be drawn up by telecoms watchdog Subtel.

The economic attorney voiced concerns that some mobile operators have incentives to acquire spectrum in order to expand their capacity or services, which - in the face of higher levels of market concentration - increases the possibility that telcos could acquire spectrum with the aim of increasing costs for their competitors.

Any request to transfer spectrum from one operator to another will be reviewed in a period of not more than 60 days, during which time the effects of the transaction on market competition for mobile telephony and broadband services will be considered, FNE said in a release.

Subtel can currently authorize transfers of concessions. However, the telecoms regulator considers principally technical criteria, and lacks the faculties to deny requests based on competitive reasons.

More efficient use of spectrum is essential in a dynamic market such as mobile telecommunications, FNE added.

The national attorney's office began to consider the establishment of a secondary spectrum market following the decision of mobile operator VTR to abandon its network in favor of operating as an MVNO.