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Mobile bet at war: Claro, Wom and VTR support the government, but Entel asks



Subtel justified the proposed 80% reduction. "There's no reason that a minute's voice will cost more than WhatsApp," he said.

The intense will be next week in the mobile phone industry. On Monday, the government presented a proposal to set rates that would regulate the industry between 2019 and 2024: it proposed reducing access costs by more than 80%.

Of course, Wom and VTR (outsiders) expressed their support for the institution. But Entel (which together with Movistar is the dominant company) questioned the proposal.

Transport and Telecommunications Minister Gloria Hutt said: "The government wants the access fee to be reduced to the new technologies."

According to the law, every five years, every five years, it establishes the access fee charged by the telephone company to another to end the call on its network and end with a 73% reduction. The average today is $ 8.76 per minute.

For the current process, Subtel presented the model company's 4G network, which together with a series of other indicators that defined an efficient company, offered an average access fee of $ 1.36 per minute, which seeks to create more competition.

Entel questioned that only the 4G network was included in the model company, rather than older systems (3G and 2G).

"While today's dominant technology is 4G, Chile has over 10 million people using 3G to communicate, and the Subtel proposal does not consider this technology," said Norwegian Regulatory and Corporate Affairs Manager. Signature Manuel Araya.

He said the proposed network does not meet the current and future demand for mobile telephony, which would prevent proper customer service.

However, Telecommunications Secretary Pamela Gidi categorically defended the proposal.

"There is no technical or economical justification for paying for Voice over minutes of WhatsApp or e-mail. Therefore, like Subtel, we believe that our proposal for access fees must comply with international standards, where voice is already considered one more information part, "he said.

Cristián Salgado, Director of Legal and Regulatory Affairs at Claro Chile, said: "We are fully convinced that the 4G network is technically feasible technology to offer an effective business model."

In the same way, the VTR assessed the technical "stability" of the proposal. Miguel Oyonarte, vice president of company law and corporate affairs, supported the decision of the institution because, in his opinion, the technical and economic reality of the market is recognized.

"This justifies a significant reduction in access fees, which is essential for industry competitiveness and tariff reduction," he said.

Although Wom highlighted the proposal, Felipe Simonsohn, the Bureau of Regulatory Affairs and Corporate Affairs, said they were pointing to an even lower access fee.

"This will bring more benefits to competition and consumers," he said.

Movistar avoided the statements.

After the government has submitted its proposal, companies have a five-day period for Subtel to issue the Modification and Insistence Report (IMI).

The idea is that the company that uses this resource goes to the Expert Commission – in the process in which they propose an expert, the secretary-general names another person and together they appoint a third party.

Their point of view is not binding, but given the fact that they have expressed their reputation, they usually resolve the differences. If the company is still not satisfied, you can contact the Financial Controller.

The Subtel plan is to foresee that the decrees will be ready by the end of 2019.

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