Telefónica expands Chile's national fiber backbone in Los Ríos region

Over the next months, Telefónica will be extending the southern section of Chile’s national fiber backbone (FON) by 90km into localities near Panguipulli in Los Ríos region.

The company is in charge of this stretch of the PPP project.

The backbone expansion is expected to benefit around 30,000 inhabitants in Neltume, Coñaripe, Panguipulli and Liquiñe, among others, Telefónica Chile (Movistar) said in a statement.

The company did not provide details on capex or deadlines for activating the fiber.

In addition to Panguipulli, the section will benefit more than 300,000 people in 10 localities in Los Ríos region through 550km of fiber, Telefónica Chile said.

FON involves the deployment of more than 10,000km across the country and is divided into six macrozones, with separate areas and tenders. Five of the macrozones were awarded to WOM (Arica y Parinacota, north, center-north, center and center-south).

The sixth stretch, comprising Macrozone South (Araucanía, Los Ríos and Los Lagos regions), had to be re-tendered after the only bidder in the first process, Mundo, failed to meet certain economic requirements.

Telefónica Empresas won this new tender and was awarded the contract to build the section in 2021, beating offers by GTD and WOM.

Macrozone South encompasses more than 2,500km fiber deployment, reaching 790,000 inhabitants in 60 localities. 

Partly because of problems with the first bidding process, the overall project is delayed.

“The network has been deployed during 2023,” Telefónica said, without providing details. 

“A project of this magnitude requires great active coordination between our company Movistar Chile, which in this case carries out the deployments, together with the ministries of transportation and telecommunications, public works, as well as municipalities and various government entities involved,” Mauricio Oviedo, Movistar Chile manager for Los Ríos Region said in the statement.