Country profile: Chile

Chile, one of the most mature telecom markets in Latin America, led the region in auctioning 5G spectrum. In 2024 WOM, a significant player in the Chilean telecom market, filed for Chapter 11 bankruptcy in Delaware, affecting Phoenix Tower International (PTI) portfolio in the country. This development has created various potential scenarios for the country’s telecom sector, especially concerning WOM’s operations and its existing agreements. The implications of this bankruptcy could affect the competitive dynamics and infrastructure investments in Chile.

In July 2022, PTI announced the acquisition of 3,800 telecommunication sites from WOM’s portfolio in Chile. However, with WOM filing for bankruptcy shortly before this report, the future of these assets and the potential outcomes for PTI and WOM remain uncertain.

This was the latest of major deals forming the tower market in Chile. In June 2021, Telefónica completed the sale of Telxius’ tower business to American Tower, which included its Chilean assets. Prior to that, in 2019, Entel sold its tower sites in Chile and Peru to American Tower, freeing up capital for further expansion. In 2022, Entel announced plans to invest US$230 million in 5G technology over the next two years. American Tower is currently the country’s largest towerco, with nearly 4,000 sites.

DigitalBridge has also been active in Chile, exploring a sale of its portfolio towerco Andean Telecom Partners (ATP), which owns 1,280 sites in the country. ATP has expanded its presence on the continent with the purchase of assets from BTS Towers, an independent tower company with a presence in Colombia, Peru, Ecuador, and Paraguay.

Multinational towerco SBA Communications also has a presence in the Chilean market. Torrecom recently entered Chile and has been growing at double digits quarterly too. América Móvil has completed the formation of its tower carve-out Sites, which took over the ownership of the operator’s sites.

América Móvil to Take Majority Control of Claro. In 2024 - América Móvil (AMX) will gain around 91% control of ClaroVTR, consolidating it into their operations after Liberty Latin America (LLA) chose not to match funding.

This decision, pending approval from Chile’s National Economic Prosecutor’s Office, shifts the joint venture from a 50:50 split to América Móvil’s majority ownership. The change is expected to be finalized in the third quarter of 2024. Both companies’ CEOs expressed optimism about ClaroVTR’s future and the ongoing partnership.

These developments indicate a dynamic and evolving telecom landscape in Chile, with significant investments and restructuring shaping the future of the industry. Despite challenges, the country continues to advance in 5G deployment and infrastructure development, maintaining its leadership in the region.

Competitive pressures are prompting telecom operators to innovate and enhance service delivery across the country. The market dynamics underscore opportunities for infrastructure development and technological advancements, positioning Chile as a growth-oriented telecom market in the region.