Chilean comptroller approves 870km fiber network project

The comptroller of Chile’s Tarapacá region has approved an agreement between the regional government and telecoms regulator Subtel involving 870km of fiber optics and a 6.28bn-peso (US$8.68mn) subsidy from the national government.

Works on the Fibra Óptica Tarapacá (FOT) project are expected to begin only in the first half of 2023 and the network will be operational in the first half of 2024, according to a press release by Subtel.

In addition to regional projects like FOT, Chile is carrying out two national fiber initiatives: the national fiber optics backbone (FON) and the austral fiber backbone (FOA), plus the Humboldt cable project connecting South America to Oceania and Asia.

Unveiled in May 2019, FON is a 10,000km fiber backbone relying on a 86bn-peso subsidy, deemed the largest in the history of the telecommunications sector.

FOA, in turn, is a 4,000km network of submarine and terrestrial fiber being deployed in Puerto Montt (Los Lagos region) and Puerto Williams in the far south. 

Like FON, FOA relies on government subsidies (64bn pesos) to compensate for the low return of investments for private firms. Both networks complement each other.

Last week, Chile’s transport and telecommunications ministry (MTT) announced an agreement to reduce the digital divide with the support of leading telcos Claro, Entel, GTD, Movistar, Mundo, VTR and WOM.

The commitment involves public and private investment of up to US$2bn, focused on expanding connectivity in remote regions. 

According to MTT, “this initiative translates into support, both from the public and private sectors, to different projects that are currently under development or that will begin to materialize in the coming months.” 

The agreement then involves mostly already announced projects, including the FON and FOA.

One project, supported by Liberty Latin America’s Chilean cable operator VTR, involves connecting around 1.3mn students from seven regions, including Tarapacá.