Friday , October 22 2021

The government announces a "historic" reduction in mobile charges



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This morning, President Sebastián Piñera reported a "historic" tariff cut for interconnection services or access fees paid by all mobile companies every time they stop calling on another network.

In this way, the new access fee for the next five years will be US $ 1.8 per minute, as this new value does not include a gradual reduction as previous processes (Glide Path). The current average is $ 8.7 per minute, which means a reduction of about 80%.

The government said that the cut is a great news for "all Chilean citizens", especially in the prepaid and fixed network segment. In the Authority's view, this will allow small businesses and companies using telecommunications as a basic tool.

According to the telecoms secretary's website, the tariff decree on mobile operator access fees, which will come into force after it has been taken into account by the controller, changes the current value of the tariff decrees established in 2014. t

It means that all mobile companies will pay less to end their calls on their networks (interconnecting), thus eliminating the competitive barriers that existed, especially for complex operators.

One of the biggest impact factors that will be reflected in this significant reduction in interconnection rates will be increased competition from operators and a significant dynamic offer to users with prepaid plans.

Transport and Telecom Minister Gloria Hutt confirmed that "this historic reduction in mobile charges will be one of the most important tariff modifications in the industry, as it will lead to high competitiveness and commercial dynamics in the mobile sector, mainly prepaid plans and fixed telephony renewal, which will also reduce communication costs. with mobile phones. "

In turn, telecoms secretary Pamela Gidi called on mobile companies to transfer this benefit to their mobile users as soon as possible to create better and better deals on telecom services.

"Reducing access costs means significant savings in the cost of running smaller mobile operators, so we, like Subtel, hope that in the short term we will see new offers on prepaid rates and that today it costs about 60 pesos per minute and that this new value could be reduced about 20% of the final rate, while voice calls from the landline to the mobile phone will fall by 50%, averaging $ 14 to $ 7 (per minute plus VAT), ”he said.

Mobile rate surveys reflect the cost-effective structure of services provided by companies. With a previous rate of $ 8.7 per minute, Chile was one of the top ten ODCE tariffs, but now that the new value is US $ 1.8 per minute, our country is on the rise to the forefront of the most advanced countries.

To this end, we need to add the enormous increase in the mobile communications industry in Chile, reaching 23 million subscribers in the country, and dominated by 4G network users who are already over 15 million in a highly competitive market.

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