New Market Study Published: Chile Telecommunications Report Q1 2014

Chile is one of the most developed telecoms markets in Latin America with a high penetration of mobile services, strong broadband growth and investments in advanced services by operators. Claro launched the first 4G LTE service in June 2013, while Entel is reportedly considering building out an FTTH network. Growth has slowed in terms of mobile subscriptions, but the mobile internet market is booming and is the most dynamic segment of the market. Chile's mobile internet market grew four times faster than its OECD peers, according to a new report from the international organisation. Chile's impressive performance supports our already positive view of the country's developments and particularly its leadership among Latin American telecoms markets.

Key Data

* Mobile subscription growth has slowed as penetration has risen, but remains in positive territory. Total subscriptions increased 6.4% y-o-y to 26.793mn at the end of June 2013.
* Broadband subscriptions are increasing rapidly in Chile, with mobile broadband growth the strongest segment of the market.
* Pay-TV growth has been sluggish - subscriber numbers climbed by just 3.9% y-o-y in December 2012 to stand at 2.16mn.

Full Report Details at
- http://www.fastmr.com/prod/723545_chile_telecommunications_report_q1_2014.aspx?afid=303

Key Trends & Developments

The most significant recent developments in Chile relate to investments in next generation technologies. In September 2013 it was reported that Entel was preparing to deploy its own national fibre-to-the-home (FTTH) network, beginning with various areas in Santiago before gradually expanding to the rest of the country. The company hopes to launch in 12 months, according to unnamed sources with knowledge of the project. The deployment of a FTTH network will allow it to offer service bundles made up of fixed telephony, pay-TV and fixed broadband - and the prospects for growth are strong by selling to its existing mobile subscription base.

Meanwhile in the mobile market the arrival of LTE is a significant development. Claro commercially deployed Chile's first long-term evolution (LTE) network in the Santiago metropolitan area in June 2013. Claro's LTE network will be extended to Punta Arenas in Q313. The final quarter of the year will see infrastructure and services rolled out in Valparaiso, Vina del Mar and Concepcion. Claro claims it will cover 98% of the population by March 2014, increasing the current number of 300 LTE base stations to 1,600. The significance for the market is the growth potential in high value high capacity services. Early signs are good, with Claro reporting that its LTE subscribers are signing up to contracts over US$100 a month. This is a positive sign for the operator in building up ARPU through data services.

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