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Chile introduces tax on OTT digital services
[April 06, 2020]

Chile introduces tax on OTT digital services


Sydney, April 07, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Chile outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Chile-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Chile’s telecom sector benefits from effective competition, particularly in the broadband and mobile sectors. In recent years there has been an emphasis on developing fibre infrastructure to improve the reach and capacity of fixed-line services. Fixed-line teledensity continues to fall as consumers switch to mobile networks for voice calls. The leading operators are Telefónica Chile, trading as Movistar, VTR Globalcom (VTR), the GTD Group, Entel, and Claro. Telefónica Group in February 2020 selected banks to advise it on its plan to spin-off its Latin American units to allow it to focus on Germany, Spain, the UK and Brazil.

Fixed broadband penetration is relatively high for the region, with services among the fastest and least expensive in Latin America. The mobile penetration rate is among the highest in South America. Movistar and Entel remain the market leaders, with a similar market share, while Claro accounts for about a quarter of the market and WOM has rapidly increased its subscriber base. LTE infrastructure is extensive and while there is a National Plan for 5G, services await spectrum auctions scheduled for mid-2020 though these may be delayed given the current coronavirus pandemic.

This report provides an overview of Chile’s telecom sector and regulatory environment, including a range of statistical data and market analyses. It covers the mobile voice and data segments, profiling operators and the key MVNOs and assessing the development of LTE and 5G infrastructure, and also reviews the fixed-line and fixed-wireless broadband segments, including the status of DSL, cable and fibre broadband.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains all around the world. During this time, the telecoms sector may experience a downturn in mobile device and ICT equipment production and a decline in consumer spending on telecoms services. Overall progress towards 5G may also be postponed or slowed down in some countries. Please also note: Industry forecasts contained in this report have not taken Coronavirus into consideration as it is yet largely unknown what the long-term impact will be.

In response to the coronavirus crisis the Ministry of Transport and Telecommunication together with Movistar, Claro, Entel, VTR and Grupo GTD launched the ‘Solidarity Plan’ in April 2020, by which low-income fixed broadband subscribers under financial stress are guaranteed a minimum 2Mb/s service for three months, while mobile subscribers are able to access 300 minutes of calls, 50 SMS and basis data. The offer could potentially benefit up to three million households.

In addition, the Ministry of Education since March 2020 has promoted tele-education with free access to educational content for about three million school pupils.

Key developments

  • New telecom tax on OTT players introduced;
  • Telefónica Group making progress on selling its Latin American units;
  • Google completes laying the Curie submarine cable linking Chile with the US west coast;
  • GTD to lay a 3,500km submarine cable from Africa to Puerto Montt;
  • Regulator preps for 5G multi-spectrum auction by mid-2020;
  • Industry lobby group Atelmo proposes $26 billion investment program to 2024 to increase reach of LTE and fibre-based broadband networks;
  • Report update includes the regulator's market data update to September 2019, telcos’ financial and operating data to Q4 2019, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report

VTR, Claro Chile, GTD Group (including Telsur, GTD Manquehue, Telesat, Telcoy), DirecTV, CTR, CMET/Cable Central, Mundo Pacifico, TuVes HD, Nextel, VTR, Virgin Mobile, Falabella, Globalcom, Entel Chile

Table of Contents

  • Key Statistics
  • Regional Market Comparison
    • Telecom Maturity Index by tier
      • Market Leaders
      • Market Challengers
      • Market Emergents
      • South America Telecom Maturity Index
      • Central America Telecom Maturity Index
    • TMI versus GDP
    • Mobile and mobile broadband penetration
    • Fixed and mobile broadband penetration
  • Country overview
  • Telecommunications market
    • Market analysis
  • Regulatory environment
    • Historical overview
    • Regulatory authorities
      • Subtel
      • Superintendency of Telecommunications
      • CNTV
    • Fixed-line developments
      • Telecommunications Development Fund
      • Number Portability (NP)
      • Interconnect
      • Access
      • Network neutrality
      • Digital agenda 2013-2020
    • Mobile network developments
      • 3G spectrum auctions
      • LTE spectrum auctions
      • 5G spectrum plan
      • 3.5GH
      • Mobile Number Portability (MNP)
      • Mobile Termination Rates (MTRs)
      • Mobile towers
      • Roaming
      • SIM card registration
  • Mobile market
    • Mobile statistics
    • Mobile infrastructure
      • 5G
      • 4G (LTE)
      • 3G
      • 2G (GSM)
      • Other infrastructure developments
      • Machine-to-Machine (M2M)
      • Mobile voice
      • Mobile data
      • Mobile broadband
    • Mobile network operators
      • Entel Chile
      • Movistar (Telefónica Móviles Chile)
      • Claro Chile (América Móvil)
      • WOM (Nextel Chile)
      • VTR
      • Mobile Virtual Network Operators (MVNOs)
    • Mobile content and applications
      • M-payments
  • Fixed-line broadband market
    • Market analysis
    • Broadband statistics
    • Hybrid Fibre Coax (HFC) networks
      • VTR
      • Claro
    • Digital Subscriber Line (DSL) networks
      • Entel
      • Movistar
    • Fibre-to-the-Premises (FttP) networks
    • Other fixed broadband services
      • WiMAX
      • Satellite broadband
    • Competition issues
      • Network Neutrality Law
      • Minimum access speeds
  • Fixed network operators
    • Introduction
      • Local operators
      • Long-distance operators
    • Movistar (Telefónica Chile)
    • VTR
    • GTD Group
      • Telefónica del Sur (Telsur)
    • Entel Chile
    • Claro Chile (formerly Telmex)
  • Telecommunications infrastructure
    • Overview of the national telecom network
      • VoIP
    • Digital economy
      • E-government
      • E-commerce
      • Tele-education
    • International infrastructure
      • Submarine cable networks
      • Satellite networks
    • Wholesale
  • Appendix – Historic data
  • Related reports




List of Tables


  • Table 1 – Top Level Country Statistics and Telco Authorities - Chile – 2020 (e)
  • Table 2 – Change in the number of mobile and fixed-line subscribers – 2010 – 2019
  • Table 3 – Change in the fixed and mobile market share of subscribers – 2010 – 2019
  • Table 4 – Telecom market investment – 2009 – 2017
  • Table 5 – Annual fixed number portings – 2012 – 2020
  • Table 6 – Spectrum auction 700MHz band – February 2014
  • Table 7 – Annual mobile number portings – 2012 – 2020
  • Table 8 – MTRs – 2014 – 2018
  • Table 9 – Growth in the number of mobile subscribers and penetration – 2010 – 2025
  • Table 10 – Development of mobile network traffic – 2010 – 2019
  • Table 11 – Change in the number of mobile prepaid/postpaid subscribers – 2010 – 2019
  • Table 12 – Change in the proportion of mobile prepaid/postpaid subscribers – 2010 – 2019
  • Table 13 – Change in the share of mobile subscribers by major operator – 2010 – 2019
  • Table 14 – Growth in the number of Movistar’s LTE subscribers and penetration – 2016 – 2019
  • Table 15 – Growth in the number of Entel Chile’s LTE subscribers – 2017 – 2019
  • Table 16 – Change in operators’ 3G market share – 2009 – 2019
  • Table 17 –M2M connections via mobile broadband – 2013 – 2019
  • Table 18 – Movistar Chile M2M connections – 2014 – 2019
  • Table 19 – Decline in the number of SMS messages sent, annual change – 2010 – 2019
  • Table 20 – Decline in the number of MMS messages sent, annual change – 2010 – 2019
  • Table 21 – Change in the number of mobile internet connections by platform – 2009 – 2019
  • Table 22 – Change in the proportion of mobile broadband connections by technology – 2009 – 2019
  • Table 23 – Mobile broadband penetration by technology – 2009 – 2019
  • Table 24 – Change in mobile broadband market share by major players – 2013 – 2019
  • Table 25 – Mobile broadband market share by minor players– 2013 – 2019
  • Table 26 –Smartphones using mobile internet – 2013 – 2019
  • Table 27 – Growth in mobile data traffic – 2017 – 2019
  • Table 28 – Growth in the number of active mobile broadband subscribers and penetration – 2010 – 2025
  • Table 29 – Growth in the number of Entel Chile’s mobile subscribers – 2010 – 2019
  • Table 30 – Change in the number of Entel Chile’s mobile broadband subscribers – 2012 – 2019
  • Table 31 – Decline in Entel Chile’s mobile revenue – 2017 – 2019
  • Table 32 – Change in the number of Movistar’s mobile subscribers – 2010 – 2019
  • Table 33 – Development of Movistar Chile’s mobile revenue – 2012 – 2019
  • Table 34 – Growth in Movistar Chile’s traffic by type – 2013 – 2019
  • Table 35 – Change in Movistar Chile’s mobile ARPU – 2013 – 2019
  • Table 36 – Change in the number of Claro’s mobile subscribers – 2010 – 2019
  • Table 37 – Development of Claro’s mobile revenue – 2012 – 2019
  • Table 38 – Growth in the number of WOM’s mobile subscribers – 2008 – 2019
  • Table 39 – Growth in the number of VTR’s mobile subscribers – 2012 – 2019
  • Table 40 – MVNO subscribers by operator – 2011 – 2019
  • Table 41 – Virgin Mobile’s mobile subscribers – 2012 – 2019
  • Table 42 – Growth in the number of fixed broadband subscribers and penetration – 2010 – 2025
  • Table 43 – Change in the number of fixed broadband subscribers by platform – 2010 – 2019
  • Table 44 – Change in the market share of fixed broadband technologies by subscribers – 2010 – 2019
  • Table 45 – Change in the number of fixed broadband connections by speed – 2010 – 2019
  • Table 46 – Change in operator market share of fixed broadband subscribers – 2010 – 2019
  • Table 47 – Mobile and fixed-line internet subscribers – 2009 – 2019
  • Table 48 – Decline in dial-up traffic (minutes and sessions) – 2010 – 2019
  • Table 49 – Growth in the number of cable modem subscribers and penetration – 2010 – 2019
  • Table 50 – Growth in the number of VTR’s fixed broadband subscribers – 2010 – 2019
  • Table 51 – Growth in VTR’s revenue – 2011 – 2019
  • Table 52 – Growth in the number of Claro’s broadband subscribers – 2007 – 2019
  • Table 53 – Decline in the number of DSL subscribers and penetration – 2010 – 2019
  • Table 54 – Growth in the number of Entel’s broadband subscribers – 2007 – 2019
  • Table 55 – Change in the number of Movistar’s fixed broadband subscribers – 2010 – 2019
  • Table 56 – Growth in the number of GTD Group’s broadband subscribers – 2010 – 2019
  • Table 57 – Growth in the number of fibre broadband subscribers – 2011 – 2019
  • Table 58 – Growth in the number of Movistar’s fibre broadband subscribers – 2014 – 2019
  • Table 59 – Decline in the number of WiMAX broadband subscribers – 2009 – 2019
  • Table 60 – Change in operator market share of fixed lines in service – 2010 – 2019
  • Table 61 – Decline in fixed-line local traffic (minutes and calls) – 2010 – 2019
  • Table 62 – Decline in the number of Movistar’s fixed lines in service – 2010 – 2019
  • Table 63 – Development of Movistar’s financial data – 2014 – 2019
  • Table 64 – Decline in the number of VTR’s fixed-line subscribers – 2010 – 2019
  • Table 65 – Decline in the number of GTD Group’s fixed-line subscribers – 2010 – 2019
  • Table 66 – Decline in the number of Entel’s fixed-line subscribers – 2010 – 2019
  • Table 67 – Development of Entel Chile’s financial data – 2014 – 2019
  • Table 68 – Change in the number of Claro’s fixed lines in service – 2006 – 2019
  • Table 69 – Development of Claro’s revenue by platform – 2012 – 2019
  • Table 70 – Decline in the number of fixed lines in service and teledensity – 2010 – 2025
  • Table 71 – Growth in international internet bandwidth – 2010 – 2018
  • Table 72 – Historic - Mobile and fixed-line subscribers – 2005 – 2009
  • Table 73 – Historic - Mobile prepaid/postpaid ratio – 1999 – 2009
  • Table 74 – Historic - Mobile network traffic – 2000 – 2009
  • Table 75 – Historic - Mobile market share of subscribers by major operators – 2000 – 2009
  • Table 76 – Historic - Fixed and mobile market share of subscribers – 1997 – 2009
  • Table 77 – Historic - Mobile subscribers and penetration rate – 1995 – 2009
  • Table 78 – Historic - SMS messages sent, annual change – 2002 – 2009
  • Table 79 – Historic - Entel PCS mobile subscribers – 2000 – 2009
  • Table 80 – Historic - Movistar mobile subscribers – 2000 – 2009
  • Table 81 – Historic - Claro mobile subscribers – 2000 – 2009
  • Table 82 – Historic - Internet users and user penetration – 1998 – 2015
  • Table 83 – Historic - Fixed broadband subscribers and penetration rates – 2001 – 2009
  • Table 84 – Historic - Fixed broadband technologies by market share of subscribers – 2001 – 2009
  • Table 85 – Historic - Fixed broadband connections by data speed – 2007 – 2009
  • Table 86 – Historic - Dial-up traffic (minutes and sessions) – 2000 – 2009
  • Table 87 – Historic - Cable modem subscribers and penetration rates – 2001 – 2009
  • Table 88 – Historic - VTR broadband subscribers – 2001 – 2009
  • Table 89 – Historic - Fixed broadband technologies by market share of subscribers – 2001 – 2009
  • Table 90 – Historic - DSL subscribers and penetration rate – 2001 – 2009
  • Table 91 – Historic - Fixed broadband operators’ market share of subscribers – 2007 – 2009
  • Table 92 – Historic - Movistar fixed broadband subscribers – 2001 – 2009
  • Table 93 – Historic - GTD Group fixed broadband subscribers – 2001 – 2009
  • Table 94 – Historic - Fixed lines in service – operators’ market share – 2000 – 2009
  • Table 95 – Historic - Fixed-line local traffic (minutes and calls) – 2000 – 2009
  • Table 96 – Historic - Movistar fixed lines in service – 2000 – 2009
  • Table 97 – Historic - VTR fixed-lines subscribers – 2000 – 2009
  • Table 98 – Historic GTD Group fixed lines in service – 2000 – 2009
  • Table 99 – Historic Entel fixed lines in service – 2000 – 2009
  • Table 100 – Historic - Fixed lines in service and teledensity – 1995 – 2009
  • Table 101 – Historic - International internet bandwidth – 2000 – 2009
  • Table 102 – Historic - Falabella Móvil mobile subscribers – 2013 – 2018

List of Charts

  • Chart 1 – Latin America –Overall Telecoms Maturity Index
  • Chart 2 – Latin America Telecoms Maturity Index – Market Leaders
  • Chart 3 – Latin America Telecoms Maturity Index – Market Challengers
  • Chart 4 – Latin America Telecoms Maturity Index – Market Emergents
  • Chart 5 – South America –Telecoms Maturity Index by country
  • Chart 6 – Central America –Telecoms Maturity Index by country
  • Chart 7 – Latin America Telecoms Maturity Index vs GDP per Capita
  • Chart 8 – South America mobile subscriber penetration versus mobile broadband penetration
  • Chart 9 – Latin America fixed broadband penetration versus mobile broadband penetration
  • Chart 10 – Change in the number of mobile and fixed-line subscribers – 2010 – 2019
  • Chart 11 – Change in the fixed and mobile market share of subscribers – 2010 – 2019
  • Chart 12 – Growth in the number of mobile subscribers and penetration – 2010 – 2025
  • Chart 13 – Development of mobile network traffic – 2010 – 2019
  • Chart 14 – Change in the number of mobile prepaid/postpaid subscribers – 2010 – 2019
  • Chart 15 – Change in the proportion of mobile prepaid/postpaid subscribers – 2010 – 2019
  • Chart 16 – Change in the share of mobile subscribers by major operator – 2010 – 2019
  • Chart 17 – Growth in the number of Movistar’s LTE subscribers and penetration – 2016 – 2019
  • Chart 18 – Change in operators’ 3G market share – 2009 – 2019
  • Chart 19 – Decline in the number of SMS messages sent, annual change – 2010 – 2019
  • Chart 20 – Decline in the number of MMS messages sent, annual change – 2010 – 2019
  • Chart 21 – Change in the number of mobile internet connections by platform – 2009 – 2019
  • Chart 22 – Change in the proportion of mobile broadband connections by technology – 2009 – 2019
  • Chart 23 – Mobile broadband penetration by technology – 2009 – 2019
  • Chart 24 – Change in mobile broadband market share by major players – 2013 – 2019
  • Chart 25 –Smartphones using mobile internet – 2013 – 2019
  • Chart 26 – Growth in the number of active mobile broadband subscribers and penetration – 2010 – 2025
  • Chart 27 – Growth in the number of Entel Chile’s mobile subscribers – 2010 – 2019
  • Chart 28 – Change in the number of Entel Chile’s mobile subscribers – 2012 – 2019
  • Chart 29 – Change in the number of Movistar’s mobile subscribers – 2010 – 2019
  • Chart 30 – Development of Movistar Chile’s mobile revenue – 2012 – 2019
  • Chart 31 – Change in Movistar Chile’s mobile ARPU – 2013 – 2019
  • Chart 32 – Change in the number of Claro’s mobile subscribers – 2010 – 2019
  • Chart 33 – Growth in the number of WOM’s mobile subscribers – 2008 – 2019
  • Chart 34 – Growth in the number of VTR’s mobile subscribers – 2012 – 2019
  • Chart 35 – Growth in the number of fixed broadband subscribers and penetration – 2010 – 2025
  • Chart 36 – Change in the number of fixed broadband subscribers by platform – 2010 – 2019
  • Chart 37 – Change in the market share of fixed broadband technologies by subscribers – 2010 – 2019
  • Chart 38 – Change in the number of fixed broadband connections by speed – 2010 – 2019
  • Chart 39 – Change in operator market share of fixed broadband subscribers – 2010 – 2019
  • Chart 40 – Mobile and fixed-line internet subscribers – 2009 – 2019
  • Chart 41 – Growth in the number of cable modem subscribers and penetration – 2010 – 2019
  • Chart 42 – Growth in the number of VTR’s fixed broadband subscribers – 2010 – 2019
  • Chart 43 – Growth in VTR’s revenue – 2011 – 2019
  • Chart 44 – Decline in the number of DSL subscribers and penetration – 2010 – 2019
  • Chart 45 – Change in operator market share of fixed lines in service – 2010 – 2019
  • Chart 46 – Decline in fixed-line local traffic (minutes and calls) – 2010 – 2019
  • Chart 47 – Decline in the number of Movistar’s fixed lines in service – 2010 – 2019
  • Chart 48 – Development of Movistar’s financial data – 2014 – 2019
  • Chart 49 – Decline in the number of VTR’s fixed-line subscribers – 2010 – 2019
  • Chart 50 – Decline in the number of GTD Group’s fixed-line subscribers – 2010 – 2019
  • Chart 51 – Decline in the number of Entel’s fixed-line subscribers – 2010 – 2019
  • Chart 52 – Development of Entel Chile’s financial data – 2014 – 2019
  • Chart 53 – Development of Claro’s revenue by platform – 2012 – 2019
  • Chart 54 – Decline in the number of fixed lines in service and teledensity – 2010 – 2025

List of Exhibits

  • Exhibit 1 – Generalised Market Characteristics by Market Segment
  • Exhibit 2 – South America - Key Characteristics of Telecoms Markets by Country
  • Exhibit 3 – Central America - Key Characteristics of Telecoms Markets by Country
  • Exhibit 4 – Regions and primary zones in Chile
  • Exhibit 5 – Local telephony operators – number of zones of operation


Read the full report: https://www.budde.com.au/Research/Chile-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Nicolas Bombourg
[email protected]

Within Australia
(02) 8076 7665

Outside Australia
+44 207 097 1241

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