Entel to invest almost US$620mn in Chile and Peru this year

Chilean operator Entel will invest US$451mn this year in Chile and US$167mn in Peru, with the total corresponding to 19.7% of income.

“2023 was a challenging year for Entel and for the industry in general, in which we were able to meet the objectives defined for the year and grow where we made a difference, despite facing a complex environment in Chile and Peru,” CEO Antonio Büchi told a shareholders meeting.

Last year's capex totaled 476bn pesos (US$522mn) for both countries, down 7.6% on 2022 and below estimates due to the delayed authorization process for the operation with OnNet in Chile, which focuses on access the neutral fiber.

“We are significantly increasing investment in the home [segment] and SMEs in Chile and Peru, where millions of passed homes are now open to us, which requires an approximate investment of US$200 for each client we connect,” Büchi said.

US$88mn will be allocated to the home segment. “Now [with the Chilean OnNet agreement], we are reaching almost 4mn homes in the country with a very competitive offer. The objective is to reach between 25% and 30% market share in the home internet business in a few years, and this operation makes it possible,” added Büchi.

Investment in areas like mobile and business services in Chile will be reduced by 1.4%. “This industry faces a complex scenario and just maintaining investments is a challenge, which we assume to maintain our leadership,” said Büchi.

Recently, Chilean operator WOM filed for Chapter 11 proceedings in the US District Court for Delaware.

Entel expects to invest US$286mn in Chile's mobile business and strengthen its 4G and 5G networks.

In 2023, Entel achieved leadership in mobile connections (3G, 4G and 5G), operating 34.6% of the total, and was the top 5G operator, with 41.5%.

In December, Entel had 8.6mn mobile subscribers, or 32% of the total, Movistar 26.6%, WOM 21.6%, Claro 17.9% (ClaroVTR 19%) and Mundo 0.5%, with MVNOs accounting for the rest.

Movistar and ClaroVTR each held 30.7% of fixed internet accesses, Mundo 18.4%, Entel 7.4% and GTD 7.1%.

PERU

Investments are expected to increase by 10% to step up coverage and accommodate rising traffic in anticipation of a growing customer base.

Entel will invest US$131mn in the mobile business and US$16mn in the home segment. “We want to grow in market share to reach and exceed 30% in three or four years,” said Büchi.

According to figures from regulator Osiptel, Claro led the mobile market last year, operating 30.2% of the 41.3mn connections nationwide. Movistar held a 28% share, Entel 22.5% and Bitel 19%.

Entel is also awaiting approval of an agreement with PangeaCo to access a fiber network of more than 5.2mn homes in 86 provinces by 2026.