Chile Telecommunications Report Q2 2013: New Research Report Available at Fast Market Research

Fast Market Research recommends "Chile Telecommunications Report Q2 2013" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 14 March 2013

BMI View: The Chilean telecoms market continues to make strides, gaining subscribers in mobile phones and mobile/fixed broadband sectors. We have adjusted our five-year forecasts to reflect the growth that Chile continues to experience, as it represents the most mature market in the Latin American region. Mobile number portability has proven to be hugely successful, and plans to expand coverage to rural settlements have also been completed. MVNOs are proving to have a significant impact on the market, with VTR and Virgin Mobile adding more than 100,000 each since their introductions in 2012. This should help drive growth and foster competition, showing Chile's strength as a dynamic market that will benefit subscribers.

Mobile broadband is helping to drive internet penetration rates, which passed 34% a year ahead of Subtel's scheduled date. 4G auctions have taken place and BMI expects its launch will be more successful than other regional players, particularly as the operators look to share infrastructure to reduce costs. Fixed-line phones continue to experience a decline, a trend we have observed across emerging markets, and we do not expect to see growth in this sector in our five-year forecasts. We have adjusted these forecasts to reflect the decline in this sector over the long term, as the mobile market becomes stronger and replaces demand for fixed lines entirely.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541169_chile_telecommunications_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/541169_chile_telecommunications_report_q2_2013.aspx?afid=201)

Key Data

- Since the introduction of MNP in January 2012, 750,000 subscribers had changed their operator by December 31 2012. This has been extremely successful, lowering tariffs by 25% and benefiting smaller operators as subscribers migrate away from larger providers.
- By the end of Q312, mobile broadband connections had grown to 4.34mn and fixed broadband to 2.17mn subscribers. This represents a 12.7% increase and a 2.4% rise respectively.
- Net additions bounced back in Q312 to 255,000 after a record low 82,000 in Q212, but are still behind 2011 rates. This is due to maturation of the Chile market, at 145.9% penetration in Q312. ARPUs remained buoyant. Entel led with CLP8,900, followed by Movistar with EUR12.4 and Claro with CLP6,105. Entel retained the top spot in market share.

Risk/Reward Ratings

Chile remained in second place in our Q213 Risk/Reward Ratings, despite a second downward revision of its country risks score. Chile offers investors a stable operating environment and is one of the most advanced telecoms markets in Latin America, although its GDP growth forecasts are muted.

Key Trends & Developments

Claro, Movistar and Entel were awarded 4G tenders in July 2012, picking up spectrum in the 2.6Ghz band, with offers exceeding CLP6bn (US$12mn). The operators are keen to minimise costs and are evaluating a joint venture for the launch of 4G in Chile.

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