Tag Archives: Top 6

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

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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Virgin Mobile commences trial in Colombia

Virgin Mobile Latin America has launched an MVNO trial in Colombia. The operator has starting offering SIM cards to 300 users. Customers who want to be among Virgin’s first MVNO customers in Colombia should order a SIM card at the operator’s website.

Currently Virgin Mobile is offering customers four bundles both voice and data for monthly fees of COP 35,000, 65,000, 90.000 and 150.000 respectively.

The bundle also includes unlimited access to the Whatsapp mobile messaging service.

The official launch of Virgin Mobile’s MVNO service in Colombia is scheduled for mid-2013.


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President of Nextel Brazil Leaves with Immediate Effect

NextelNII Holdings – which operates in Latin America under the Nextel brand – has announced the immediate departure of Sergio Borges Chaia, the President of the Company’s Brazilian subsidiary, Nextel Brazil.

Gokul Hemmady, NII’s chief operating officer, will now spend the majority of his time, along with Claudio Hidalgo, Nextel Brazil’s chief operating officer, and the local leadership team, overseeing the Company’s operations in Brazil until a successor to Mr. Chaia is named.

The company did not explain the reasons for the sudden announcement, although the statement issued by the company hints at a disagreement about the future plans for the company.

“We have decided to move forward in a new direction to ensure Nextel Brazil is able to execute on its goals and deliver results,” said Steve Dussek, NII Holdings’ chief executive officer. “We thank Mr. Chaia for the time devoted to Nextel Brazil during the past several years and wish him the best in his future endeavors.”

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Chile's VTR reaches 100,000 mobile subscribers milestone

Chilean operator VTR has reached 100,000 mobile customers. Of these, nearly 45 percent are postpaid subscribers according to VTR Gneral Manager, Guillermo Ponce.

VTR launched mobile services in Chile in May. VTR also provides cable TV and broadband internet services on the local market. Of the overall 100,000 mobile customers, around 70 percent were already VTR fixed services subscribers, Ponce added.

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Argentina cancels 3G spectrum auction in favor of state-owned company Arsat

The Argentinean government has canceled an auction for the 25 percent of Argentina’s 3G spectrum still controlled by the government, and will now go into business itself through state-owned satellite company Arsat. The government says people are tired of monopolies and deserve more competition when using smartphones and other devices to access the internet, Associated Press reports.

Arsat is building three new satellites to provide the service, and with the government’s help, small companies and cooperatives are expected to find it much easier to become internet providers in parts of the country where consumers now have little or no choice when accessing the web or using mobile phones.

According to de Vido, there were five bidders, but Claro was the only company with the necessary resources to manage part of the spectrum, and letting Claro win ‘‘would have led to more concentration.’’

The government is also studying other ways of reducing monopoly control in the telecommunications business, de Vido said, citing the dominant positions of Telefonica and Telecom as a setback for consumers. “This is not a state takeover”, de Vido said, but an effort to bring consumer prices down through more competition. De Vido said the move also should give consumers more choices as 4G devices roll out

Iusacell and Telefonica Agree to Share Network Infrastructure

Mexican mobile network, Iusacell and Telefonica’s local subsidiary have jointly announced an agreement to share their network infrastructure in the country.

The combined network will also start LTE trials later this year in anticipation of a commercial launch in 2013.

Under the terms of the agreement, which is slated to last for at least five years, Iusacell will gain access to Telefonica’s rural network, while Telefonica should be able to improve coverage in the cities, where Iusacell is stronger.

The network sharing deal is limited to their towers and fibre-optic networks. Where one network has coverage that the other lacks, roaming between the networks will be possible.

The companies declined to detail any commercial aspects of the deal, which still needs clearance from the regulator.

The move may help the two companies cut costs and compete with America Movil, which dominates the Mexican market with a market share of around 70%..

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Colombia Begins 4G Spectrum Tender

Colombia’s ICT Ministry and the Agencia Nacional del Espectro (ANE) have announced they will soon launch a spectrum tender for provision of 4G services.

According to the tender schedule, published on the ANE website, interested parties will be invited to submit their bids starting 4 July. The spectrum is expected to be awarded in September. The tender will include 225 MHz of spectrum in the 1850-1990 MHz, 1710-1755 MHz, 2110-2155 MHz and 2500-2690 MHz frequency bands.
Additionally, Oscar Leon, head of ANE, announced that Colombia will increase the spectrum caps. Thus the amount of frequencies to be assigned to one operator will now be limited to 85 MHz for high frequency bands and 30 MHz for low frequency bands.