Chilean antitrust agency FNE (Fiscalia Nacional Economica) has submitted for consultation to the Tribunal for the Defence of Free Competition (TDLC) the proposed merger of domestic operators GTD and Entel.

At end-November 2011, Chilean operator Empresa Nacional de Telecomunicaciones (Entel), controlled by Almendral Telecomunicaciones, announced plans to acquire GTD Manquehue via an all-share merger. According to a TDLC statement, the FNE identified “various risks to free competition in the telecommunications markets where the two companies operate,” and called for measures to mitigate this. FNE says the combined company would concentrate, in some regions, up to three quarters of the spectrum allocated in the 3.4–3.6 MHz frequency bands.

Moreover, the merger would result in Entel having a signed MVNO contract with Movistar. This contract would be superfluous as both Entel and Movistar own mobile networks, and may generate coordination issues, the FNE added. Interested parties have 20 days to submit their comments and opinions related to the Entel-GTD deal. The merger is suspended until the TDLC releases its decision related to the deal.