Claro and Entel to battle it out for spectrum in Chile auction

The proposals presented by Claro and Entel in Chile’s second 5G spectrum tender resulted in a technical tie, so the two telcos will compete for frequencies in a public auction.

The auction will involve the five 10MHz blocks in the 3.5GHz band that regulator Subtel had made available to operators in the second contest.

Companies must bid for each available unit and the winner will be the company that makes the highest offer. The minimum value for the frequencies has not been disclosed.

The date for the auction is set for June 17 at the offices of the transportation and telecommunications ministry.

In February 2021, WOM, Telefónica Movistar and Entel obtained 50MHz each in the 3.5GHz band for 32bn pesos (currently US$35.3mn), 117bn and 100bn pesos, respectively.

In March, Claro and Entel were the only operators that presented proposals for the new blocks tendered by Subtel. At the time, each operator paid about 833mn pesos in guarantees.

“Realizing this project is not only positive in terms of digital connectivity, but also for all the productive and economic development that arises from projects like this. Deploying 5G networks means generating new jobs, mobilizing the local economy and therefore strengthening regional development,” said telecommunications undersecretary Claudio Araya in a press release.

The new tender will allow the incorporation of 121 locations that do not yet have 5G coverage, in addition to connecting 1,600km of roads.