Chilean Experience in Provide the band of 700 MHz Regulatory Policies & Main Challenges Pedro Huichalaf Roa
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1 Chilean Experience in Provide the band of 700 MHz Regulatory Policies & Main Challenges Pedro Huichalaf Roa Subsecretaría de Telecomunicaciones November, 2015
2 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
3 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
4 SUBTEL The Undersecretariat of Telecommunications is a secretariat belonging to the Ministry of Transport and Telecommunications. Its work is focused on the coordinating, promoting, fostering, and developing telecommunications in Chile, turning this sector into driver of economic and social development. Its main functions are proposing national policies in the areas of telecommunications, according to government guidelines, exercising direction and control of its implementation, monitoring public and private sector companies in Chile, controlling the fulfillment of the laws, regulations and standards.
5 SUBTEL Five strategic goals Bridging the digital divide and promote social inclusion Increase protection of Telecommunication users Improve the quality of service in Telecommunications Promoting competition to accelerate the advance of the information society Stimulate innovation and development of new information and communication technology
6 SUBTEL SUBTEL is responsible of technical and administrative processes regarding spectrum. Licenses are assigned based on contests (not auctions). However, operators are required to submit a warranty of duly fulfillment. Decisions on Technology to implement networks are taken by Operators themselves. Licenses last for 30 years Regulator is planning to create a secondary market in order to allow companies to sell/lease unused spectrum blocks 6
7 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
8 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
9 The Telecommunication Sector in Chile: An overview Human Development Index (UNDP 2014): Chile, first in Latin America
10 The Telecommunication Sector in Chile: An overview INTERNET Chile got 70% internet user penetration (include fixed and mobile connections), (End 2014, G connections) However, reaching rural, isolated, and remote areas remains a key challenge.
11 The Telecommunication Sector in Chile: An overview Chile with 70 internet user per 100 inhab. is on the footsteps of developed countries (78 per 100 inhab) Sources: International Telecommunications Union (ITU), 2013: 5th Access and Use Internet Survey (Intelis-U. Chile, National coverage Study). 2012: from 4th Access and Use Internet Survey
12 The Telecommunication Sector in Chile: An overview In urban areas, fixed access reaches 77% of households with access to the internet. Both Urban (%) Other 0,2% 23,1% Both Rural (%) Other 0,0% 4,7% 4,9% In rural areas 95% of households have access to the internet through mobile platforms. 53,9% Fixed BroadBand 22,8% 90,4% Mobile BroadBand Fuente: VI Encuesta Nacional de accesos, usos y usuarios de internet, CADEM, Dic Marzo
13 The Telecommunication Sector in Chile: An overview 3G + 4G Access per 100 inhab During 2014 mobile broadband has kept breaking ground 3G has been the main driver of telecom growth Today almost 1 out of 2 Chilean has mobile broadband 13
14 4G opens a new growth cycle in Telecoms Chile, 4G Connections (Thou) Chile, 4G Market share, 2Q Q Q Q Q Q Q-2015 Claro 40% Telefónica 13% 47% Entel In its first 18 months, 4G had an explosive growth that even surpassed the growth that 3G experienced during its inception back in At 2Q G already represents 12% of total mobile broadband. Three operators are actively competing in this new market. 14
15 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
16 Summary of Presentation Telecommunication Undersecretariat (SUBTEL) The Telecommunication Sector in Chile: An overview Chile s Spectrum Allocation in 700 MHz band
17 Chile s Spectrum Allocation in 700 MHz 380 MHz blocks are distributed among 5 operators (all technologies). 70 MHz blocks in 700 MHz Band (for 4G LTE) were assigned in Villa Ortega, Aysen, Patagonia Chilena 17
18 Chile s Spectrum Allocation in 700 MHz SUBTEL developed new criteria in the contests for 700 MHz. New obligations to cover with data and voice services in rural towns,. New obligations to offer facilities to MVNO. New obligations to offer low prices in the transport network (data backbone).
19 Chile s Spectrum Allocation in 700 MHz 700 MHz Contest 70 MHz blocks in 700 MHz Band (for 4G LTE) were assigned in Provision of Internet access to rural towns, 854 Km of rural ways and 503 schools (deadline: aprox. 2017). Facilities wholesale offer for MVNO, including facilities to Internet transport for other telecom. operators. Facilities wholesale offer for national roaming. Company Block MHz % off MVNO and roaming National average price (USD/Mbps) International average price (USD/Mbps) Towns (obligations) ways (Km) schools Claro C % Movistar A % Will B %
20 Chile s Spectrum Allocation in 700 MHz 700 MHz Allocation MHz: Terminal Tx MHz: Gap Tx/Rx MHz: Base Tx A, B y C: already assigned to operators. Bloque D: reserved for emergency systems implemented by the chilean government. Uso Comercial Sistema nacional de emergencia
21 Chile s Spectrum Allocation in 700 MHz Banda Adjudicataria Decreto Publicación en D.O. Fecha inicio máxima servicio 700 MHz Fecha Inicio de Servicio máxima Localidades, Rutas y Escuelas Cantidad de Localidades Cantidad de Rutas Cantidad de Escuelas A Telefónica N 71 Móviles Chile ( ) B Will N C Claro Servicios Empresariales ( ) N 65 ( )
22 Gracias.
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