2013-09-16 08:52:26 - Fast Market Research recommends "Chile Telecommunications Report Q4 2013" from Business Monitor International, now available
The launch of 4G services by Claro in June 2013 was the biggest development in the quarter as it marks the first deployment of the technology in Chile. The company has signed up 1,000 subscribers in the first month and expects 20,000 by the end of 2013. The prospect of LTE/4G technology should help drive the market further, encouraging subscribers to upgrade handsets and opt for more expensive data packages - with Claro offering 4G subscriptions for US$100 a month. This is particularly important for operators as the data for Q113 suggest the market is beginning to slow down, reporting the lowest y-o-y growth of all-time, having reached 152%. Chile's mobile internet market grew four times faster than its OECD
peers, according to a new report from the international organisation. The OECD includes mobile handset broadband usage and dedicated mobile broadband, which differs slightly from BMI's mobile data classifications. Nevertheless, Chile's impressive performance support BMI's already positive view of the country's developments and particularly its leadership among Latin American telecoms markets.
Full Report Details at
- www.fastmr.com/prod/673220_chile_telecommunications_report_q4_20 ..
* Subtel revealed 1.099mn wireless and 116,686 fixed-line subscribers ported their numbers to other operators since the introduction of number portability. Due to MNP, which was introduced in January, 2012, 616,686 prepaid subscribers and 480,571 postpaid customers had shifted their numbers to other carriers by June. Telefonica's subsidiary Movistar has lost the most subscribers with net losses of 167,398 subscribers due to MNP, while Claro has seen the largest gain with 160,969 net new subscribers. By the end of Q412, mobile broadband connections had grown to 4.92mn and fixed broadband to 2.19mn subscribers.
* Net additions have shown signs of slowing down in Q113, the market gaining 417,000 in the quarter. This is due to maturation of the Chile market, at 152% penetration in Q113.
* Pay-TV growth has been sluggish - subscriber numbers climbed by just 3.9% y-o-y in December 2012 to stand at 2.16mn. One of factors behind this trend is the popularity of IPTV.
Chile moved up into first place in our Q413 Risk/Reward Ratings. Chile offers investors a stable operating environment and is one of the most advanced telecoms markets in Latin America with a strong demand for new technologies.
Key Trends & Developments
Claro has commercially deployed Chile's first long-term evolution (LTE) network in the Santiago metropolitan area in June 2013. Simultaneously, six new LTE-enabled smartphones and five tariffs were introduced for the new service. Claro claims it will cover 98% of the population by March 2014, increasing the current number of 300 LTE base stations to 1,600. Entel, meanwhile, has expressed concerns over the viability of 4G services on the 2.6GHz band. However, plans to auction the 700MHz 'digital dividend' spectrum should bolster the company's outlook.
Movistar announced it plans to launch 4G services by the end of the year or at the start of 2014. In April 2013, it was awarded spectrum in the 2.6GHz bandwidth; the firm has assigned US$200mn to fund the deployment of its 4G network over the next three years.
Chilean retailer Falabella has revealed plans to launch its local mobile virtual network operator (MVNO) unit in August, reports Prepaid MVNO. The firm, which signed an MVNO agreement with Chile-based telecoms operator Empresa Nacional de Telecomunicaciones, had originally planned the launch for January, but failed to carry out the plans. Falabella is expected to target its existing subscribers and its financial service provider units through the launch.
Chilean regulator Subtel has launched two tenders to facilitate internet access. One is for the deployment of 1,036 Wi-Fi hotspots, which will offer internet access free of charge for five years, and the second will see the development of voice and data networks in the north of the country. In June 2013, the government of Chile announced plans to invest CLP38bn (US$80.5mn) over the next year to extend connectivity to remote areas and for free broadband in schools. Telecoms regulator Subtel, revealed in a statement that between 2010 and 2012, Chile invested CLP34bn (US$72.1mn) in digital development projects, so this marks a substantial upgrade for a single year. BMI believes these projects show how Chile has become the most advanced market in the region.
According to reports by local news outlet Economia y Negocios, the Chilean regulatory authority Subtel, is working on a proposal to create a secondary spectrum market. This would allow operators to sell, lease, transfer, partition and disaggregate radio frequencies to other companies that have greater need, without having to rely on the release of new spectrum via government auctions. BMI highlights operators, consumers and M2M providers as those who will benefit most from this policy, as well as potential risks.
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