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Access fee: Entel and Movistar are lowering their tariff offers



In the reports issued by the commissions of experts requested by the operators Claro, Entel, Movistar and VTR, Subtel noted that eight out of 12 experts are prone to an effective company using only 4G network, unlike what some firms have suggested.

The Deputy Minister of Telecommunications noted the “widespread approval” of his technical proposal, which was made by members of various expert commissions established within the framework of the current mobile tariff processes, solely to consider 4G technology for calculating the new charge rate. access, and one that combines 3G and 4G. Authorities said eight out of 12 experts supported the government’s thesis.

For the tariff processes, four expert commissions requested by the concessionaires Entel, Movistar, VTR and Claro (WOM declined to form one) were created to challenge the objections made by the authority in its reports on objections and counter-proposals. Each of these commissions consists of three experts in this field, one of which represents the respective concessionaire, the other to the government, and a third party – by general agreement or an expert on consensus. There are a total of twelve experts.

The main issue causing controversy in the development of these expert opinions was in line with the definition of an effective technology that complies with the provisions of the law concerning the modeling of a company that “starts from scratch”. The government proposal was the exclusive use of 4G technology with VoLTE (voice) service, given that this is a company that starts from scratch and does not have to obey the technology provided by the real company or company in the up.

In the case of Wom and VTR, they offered to solely consider using 4G + VoLTE technology in an efficient model of the company, while Entel, Movistar and Claro offered a combination of technology that considers 3G and 4G networks, considering that they claimed that they are in the process of technological transition, which will last about five years.

Subtel stressed that of the four experts, whose opinion differs from the government's proposal, two of them represent operators who together have a market share of more than 60%, that is, Movistar and Entel.

These companies, using expert reports as input – given that they are not mandatory – suggested reductions from their initial proposal. In the case of Entel, which offered an access fee of $ 5.7 per minute, it now reduced it to $ 4.9 per minute. Movistar, went from the initial approach of 6 dollars per minute to 4.6 dollars per minute.

The government’s proposal is to go from $ 8.7 per minute to $ 1.4 per minute, reducing the mobile access rate by 84%.

Of course, Wom and VTR raise a fee for accessing $ 1; $ 0.19 and $ 0.2 per minute, respectively.

Deputy Minister Pamela Ghidi said that the final access fee rate, which will be published in January 2019, “will allow to continue to increase competition, eliminating artificial asymmetries”.

Company Vision

Fernando Says, director of strategy, regulation and public relations at Movistar Chile, said that Pedro Pablo Errazuriz, an expert on agreement between the authorities and the company, supported the need to consider the company's model in accordance with the current reality of the telecommunications market. , which includes the use of 3G and 4G technologies for the provision of mobile voice services.

He added that the model considered by the authorities represents "serious numerical discrepancies." For example, Saiz said that the proposal did not take into account that the majority of 4G terminals on the market do not support such technology as voice over LTE technology (VoLTE).

“We believe that the arguments and figures presented during the process will be taken into account, which will make it possible to correct the serious errors and inconsistencies found at this stage of the process,” he added.

In the same vein, Entel pointed out that joint expert Thomas Flores recommended a mixed 3G and 4G network for an efficient company and the gradual introduction of VoLTE technology.

From the VTR, they indicated that "most experts approved" their position and Subtel to model the company with 4G VoLTE technology. “Therefore, it is inappropriate to consider the second network imposed on the 4G network, since this would mean ignoring the principle of efficiency enshrined in the General Law on Telecommunications, artificially increasing the cost for users,” the company said.

WOM, for its part, “deeply” appreciated that expert reports confirm that the demand for data will continue to grow “and that the 4G network is the most appropriate technology to deploy the tariff process over the next five years.”


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