Claro and Entel submit offers in Chile's second 5G tender

Telcos Claro and Entel were the only bidders in Chile’s second spectrum auction for 5G services.

The tender is for up to five blocks of 10MHz each in the 3.5GHz band.

Details of the bids were not disclosed. The evaluation commission will review the offers to make sure they comply with the conditions established in the rules.

“We understand that we’re going to strengthen a public policy that has been successful and that has positioned Chile in a very good place in telecommunications as undisputed leaders in South America,” said the head of regulator Subtel, Claudio Araya, before the bid opening ceremony.

Currently the 5G network covers all the regional and provincial capitals of the country.

Araya also mentioned that “it is necessary to increase the available capacity for the provision of services” because it is possible that in two years the spectrum delivered to the market will not be enough to meet demand.

If América Móvil’s Claro is the winner, Chile will have a new 5G operator.

Both Claro and Entel provided a guarantee of 22,500 UFs (833mn pesos or US$860,000)

THE OPERATORS

Entel has 50MHz of spectrum in the 3.5GHz band for 5G networks. The operator has another 50MHz for fixed wireless services, which are in commercial use through an LTE network with 50,000 connections and 1,600 base stations, according to a Subtel report.

Entel has 1.5mn 5G customers and has completed the deployment of all mobile sites corresponding to the second phase of the first tender. It recently announced the opening of a radio base station in Antarctica.

Claro also has 50MHz in the 3.5GHz band to operate fixed wireless services, with 30,000 connections and 500 base stations. An attempt to change that concession to provide mobile services was rejected by the supreme court, although it does offer mobile services in other bands.

The company is merging with VTR, an operator and cable TV provider that owns some regional concessions from Arica y Parinacota in the north to Araucanía in the south in the 3.5GHz band for fixed wireless service. The bands for fixed services cannot be used for 5G.

Movistar and WOM also offer 5G services in Chile. Both operators obtained spectrum in the 3.5GHz band in the first auction.

Entel is the main mobile operator with more than 8.6mn lines counting all technologies, according to the latest figures from Subtel for end-September 2023. It was followed by Telefónica’s Movistar with 7.2mn, WOM with 5.7mn and Claro with 4.6mn, among others. Chile ended September with 26.7mn lines.