Tag Archives: Chile

Chile’s VTR acquired by Liberty Global

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Chilean based operator, Liberty Global has acquired the remaining 20 percent of the outstanding shares in both VTR GlobalCom SpA and VTR Wireless SpA. Liberty Global purchased these shares in VTR from a subsidiary of Corp Group Holding Inversiones Limitada in exchange for 10.1 million Liberty Global Class A ordinary shares.

The share consideration had a market value of approximately USD 422 million, based on the closing price of LBTYK of USD 41.80 per share on 13 March. As a result of the transaction, VTR Finance BV, the parent entity of the recently created Chilean credit pool, will now own 100 percent of both the Chilean broadband communications and wireless businesses.

Chile's ENTEL Plans on Investing $2.2 Billion Into Region by 2015

Telecoms, , , , ,

Entel ChileOne of Latin America’s most successful telecoms, Chile’s Empresa Nacional de Telecomunicaciones (ENTEL) has announced plans to invest $2.2 billion into regional development over the next two years, in an effort to boost both its mobile and fixed-line telephone businesses. This will be a bold move for ENTEL, which posted revenues of $2.9 billion in 2012, and are looking to smash critics by taking major steps into securing their piece of the LatAm telecommunications market.

ENTEL Chile made waves earlier this year after purchasing the highly coveted Nextel de Peru from NII Holdings for $400 million. With Nextel de Peru, as well as this new investment strategy, the company has set their goals high, aiming at market dominance only once held by groups like Carlos Slim’s America Movil, or Spanish giant Telefonica.

Though details have been sparse, the company has stated that a key part of this investment plan will be to enhance its 3G network, as well as introducing a new 4G network into the region in the next 18 months. And while the investment will be mostly financed in cash by ENTEL, they are also prepared to supplement funding by taking on some debt if necessary.

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Chile’s Entel Pegs Ericsson to Deploy LTE Technology in Region

High Tech, Telecoms, , , ,

With the demand for data growing in many parts of Latin America, there’s little surprise in Chile’s most recent move into bringing LTE technology closer to home. Late last week, Chilean mobile operator Entel made a strategic choice by selecting Swedish telecom giant Ericsson to deploy its 4G LTE networks as part of a strategic alliance the two companies have committed to. The move symbolizes a growing trend in the region to upgrade cellular network data in order to meet an ever-increasing demand. As we’ve mentioned before, mobile broadband adoption in Latin America is overpassing fixed broadband, and the race to see who can develop the best network, fastest, is well underway.

Ericsson the Perfect Fit

Ericsson

Entel announced this most recent news in a written statement released to local press in Chile, and has plans to further disclose more details as the project progresses. For now, Entel is very optimistic about this partnership, and feels that there’s no better group to work with at this time than Ericsson. According to a statement made by Entel, “Ericsson is the largest international provider of LTE technology (4G) and mobile broadband…” adding that they will “introduce cutting edge technology and provide a platform for Ericsson to test its new products and services.” All in all, it’s a win/win for both companies. Ericsson gets to expand its market reach to Chile, a country with a booming data and tech demand. Entel gets tested, proven technology that they can implement far more rapidly than if they had to develop and test in house.

Other LTE Projects in Chile

Entel, along with Telefonica’s Movistar Chile, and América Móvil’s Claro, together won the LTE spectrum rights in the 2.6GHz band category in July 2012. They each now have 12 months to roll out the infrastructure, and capitalize on implementing the networks into the Chilean marketplace. Movistar also made an announcement announced on Feb 21 that it had chosen Nokia Siemens Networks (NSN) for its LTE rollout. This move follows Claro, who announced a partnership with Nokia Siemens last November. If these projects are successful, Chile could be used as a model for other telecoms in the region to follow suit, and partner up with other foreign entities for further LTE projects in the future.

América Móvil, who was the first to make such a partnership, plans to launch its LTE in Chile within the next month or two, which would make it the first out of the three companies to do so. In a market research study released last November, it was reported that NSN had actually gained ground on market leaders Ericsson during Q3 2012, watching its worldwide market share rise to 20% from 18% in the previous quarter. Likewise, Ericsson saw its market share fall just slightly by 1.5 percentage points to 34%, which still leaves it at a greater advantage than NSN as far as overall market presence. Needless to say, both companies will be competing heavily to roll out successful LTE technology in Chile this year.

Entel’s move with Ericsson should be a good indicator on the potential value of the Chilean mobile broadband market. With smartphone and data adoption expected to grow in the 20-30% range annually over the next two years, it appears that the rush to invest is well under way. Though we may not have seen these networks in action yet, all signs point to quick implementation, and even quicker adaptive trends, both in Chile, and across the continent.

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Chile Plans 4G Spectrum Tender

Telecoms, ,

Chile’s telecoms regulator, Subtel has published the details of its planned 4G spectrum tender which will be based on reusing the 700Mhz radio spectrum.

The proposal establishes frequencies from 703 to 748 MHz for the transmission stations and the user terminals 758 to 803 frequencies for transmission base stations. The frequency bands between 698 and 703 MHz and 803-806 MHz bands will be reserved.

The proposal is for the spectrum to be awarded by public tender, with licenses covering the entire country.

The regulator has also published details for its Wi-Fi network expansion plan to boost coverage in rural areas.

The first phase will cover 321 locations nationwide and two routes of the Antofagasta Region. The second phase to develop a network of 1,036 Wi-Fi hotspots for free public access in 259 villages over the next five years.

Funding will come from the telecoms development fund and the regulator.

Entel Chile makes offer for Nextel Peru

Telecoms, , , , , ,

Entel, the Chilean based mobile network operator is reportedly making plans to acquire the Nextel Peru according to local newspaper, Diario Financiero.   NII Holdings which operates the Peruvian base mobile operator under the Nextel Brand plans to sell various of its operations in Latin America.

Entel already has a presence in  Peru via its Americatel Peru subsidiary. Americatel provides voice, data and internet services for business customers in the Lima capital area.

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Coca-Cola Invests over US$ 1bn in Chile’s Future

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The world’s largest soft-drinks producer aims to make a big investment in
Latin American markets with a USD billion-plus investment strategy in Chile. The Atlanta based beverage giant, whose brand is the world’s most recognizable, has laid out a 5-year plan that will see major development in their distribution strategy, as well as significant investments into sustainability projects. The company has already made progress by building a new $200 million bottling plant for Embotelladora Andina.  Andina made headlines earlier in 2012 by merging with Embotelladora Polar, ranked #374 on the Latin Target 500 list, making it Coca Cola’s second-largest partner in the region.

Coca-Cola has a history as a dominant player in the Latin American market as represented by Fomento Economico Mexicano (FMX), which owns 53.7% of Coca-Cola FEMSA, ranked #61 on the Latin Target 500 and valued at $8,941.7 million. The combined partnership of both FEMSA and FMX makes it the world’s second largest bottler of Coke products; a statistic not lost on the people behind the company’s newest Chilean investment plans. In fact, shares of FEMSA have even exceeded those of the American beverage maker in the past year, making a whopping $14,557.7 million, as compared to Coca-Cola USA, which posted $4,690.0 million over the same time frame.

What are Coca-Cola’s investment goals with Andina?

According to Coca-Cola Andina President Juan Claro:

“This new plant is aligned with the vision we have at Coca-Cola Andina to be a benchmark of sustainability – a very attractive company with sustainable development and innovation. We want to make a difference as a company that cares about providing a quality work environment, cares about the environment, contributes to the country and to the community, and focuses on efficiency in the growth of our production, marketing and logistics.”

Sustainability seems to be the name of the game across the board, and Coca Cola believes that within this sustainability concept, it will not only lead the way in responsible business practices in the region, but turn a healthy profit as well.

Why Chile?

Simple. In the past few years, Chile has transformed itself into a power
ful center for business development and international trade. With limited trade regulations and business development potential ranking amongst the most favorable in Latin America, Chile is a prime location to tackle the regional market, especially in neighboring southern cone states like Argentina and Brazil. With the growth of Andina, as well as Embotelladora Polar, Coca-Cola can vastly expand production in an area that’s already “thirsty” for industrial growth.
Coca-Cola’s $1.3 billion investment into the South American nation is a good sign for other companies looking to invest in there. Stable, sustained growth, something that had long eluded many Latin American nations, appears to be on the horizon for Chile, which is going through their biggest economic boom in decades. And the market for consumer goods in the greater region appears ready to explode, with both the World Cup and Olympics coming to Brazil in the next few years.

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Virgin Mobile Chile shows 120,000 subscribers in first 6 months

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Virgin Mobile Chile has signed up over 120,000 subscribers in the first six months of operation on the local market. Virgin Mobile launched its MVNO in Chile in April this year using the movistar network in Chile.

Chile is the first market for Virgin Mobile Latin America , but the organisation whose main demographic is the  young customer segment, has growth plans to Brazil and Colombia later this year.

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