Local operator Claro was the only winner in the 5G auction
Chile has raised around $90 million following the conclusion of a new spectrum auction, in which local operator Claro won additional spectrum for 5G services.
Chile’s telecoms regulator, Subtel, confirmed in a statement that two bidders had been submitted: local telecoms company Claro, owned by Mexican giant America Movil, and Entel.
According to Subtel, Claro was awarded five blocks of 10 megahertz of spectrum in the 3.5 GHz band after submitting the most economical offer. Entel did not acquire any frequencies in the process.
Juan Carlos Muñoz, Minister of Transport and Communications, said: “As a State, we have a responsibility to manage public resources efficiently. In that sense, radio frequencies, the digital roads that enable mobile communications, are a public good whose use benefits the people. The funds raised in this auction are tax incentives that the State will use accordingly for the benefit of all the country’s inhabitants.”
Claudio Araya, Undersecretary of the Ministry of Telecommunications, said: “We have successfully concluded this spectrum auction and will continue to analyze the situation in the industry to determine whether it is necessary to hold new auctions. We are also pleased to see that operators want to continue investing in Chile and that we have a healthy and competitive market, which demonstrates the attractiveness of our industry to contribute resources to the country through public policy.”
The auction included certain conditions imposed on the winning bidder, such as expanding 5G coverage to more than 120 locations and connecting 1,500 kilometers of highways with 5G.
Claro already owns 50MHz in the 3.5GHz band to operate fixed wireless services, but due to local regulations, the band reserved for fixed services cannot be used to host 5G technology.
Entel currently owns 50 megahertz of spectrum in the 3.5 GHz band for its 5G network, and an additional 50 megahertz of spectrum for fixed wireless services.
Meanwhile, local operators Movistar and WOM did not submit bids to secure additional 5G spectrum in this upcoming auction, although these two operators are currently offering 5G services in Chile, having won spectrum in the previous 5G auction completed in 2021.
In January, Movistar filed a preliminary ruling with the Court for the Protection of Free Competition (TDLC) with the aim of suspending the auction process. According to the Spanish telecommunications operator, the 5G spectrum auction is built on anti-competitive foundations and would favor Claro in acquiring frequencies in the 3.5GHz band to provide 5G services in the country.
The TDLC rejected Movistar’s request to stay the proceedings.
Movistar explained that it did not take part in the auction due to dissatisfaction with the operating rules, which the operators said did not guarantee free competition between operators.
