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Chile is now the best equipped country for telecommunications in Latin America, with a fully digital network. Huge investments built an infrastructure with high capacity and capable of traffic increases. The entire sector is completely privatized and the telecoms equipment and services markets are open to competition and foreign participation.
In 1997, the telecoms market in Chile totaled US$ 698 million. The cornerstone of Chile's impressive telecoms development is the multi-carrier system that includes seventeen authorized carriers (seven local operators and ten long distance companies). The emergence of Personal Communications Service (PCS) and the implementation of "calling party pays" will stimulate further growth in the dynamic wireless market. The constant need for new services, residential and business, assures the continued development of basic telephone service, expected to reach a density of 20 per 100 people by year 2000.
The telecommunications sector continues to be one of the most booming sectors in Chile's economy. Since its privatization in 1989, the telecoms sector has grown at an average annual rate of 14 percent. It has required major investments from the telecoms companies. Today, all service providers are privately owned. Chile has Latin American's most modern telecoms network. It is one of the few in the world that is completely digitalized.
In Chile, wireless telecoms services, which include cellular, PCS, paging and trunking, have shown strong growth during 1997. Cellular phone charges in Chile are supposed to be the cheapest in Latin America.
The Undersecretariat of Telecommunications (SUBTEL), part of the Ministry of Transportation and Telecommunications, is the main authority for supervising and regulating telecoms services. It is responsible for issuing concessions, establishing standards, supervising the operators, and developing national and international telecommunications policies. SUBTEL has the sole authority for allocation of radio frequencies.
The Telecommunications Law, promulgated in 1994, created the framework to introduce competition. The multi-carrier system implemented later that year allows end-users to select a carrier for each long-distance call. Chile has the most open market in Latin America, and also the most competitive one. It has no restrictions on foreign investment. Foreign companies such as Telefonica de Espana (Spain) and Stet (Italy) are present in the Chilean market, as well as BellSouth, Motorola, Qualcomm and others from the U.S. either as service providers or equipment suppliers, directly or indirectly.
Companies interested in obtaining a copy (free of charge) of the telecommunications law may contact the U.S. Embassy in Chile, Commercial Service; Fax: 56-2-330-3172, Attention: Commercial Specialist/Telecommunications Sector.
Chilean telecoms companies are interested in participating in foreign markets. They are establishing strategic alliances with other local and/or foreign companies to increase their local market share by providing global services and to participate in the opportunities offered by other Latin American countries.
Some of the largest local telecom companies
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