Chile 5G Technology

The President of Chile announced the start of a process to implement 5G technology in Chile. In this process, 1,600 MHz of spectrum will be tendered, four times more than what has been tendered in the entire history of the sector. This will mean an estimated investment of US$ 3,000 million in the next 5 years, allowing 10 times the speed of navigation and having 100 times more capacity than current 4G networks.

The implementation of 5G technology will allow Chile to enter the world of the Internet of Things and achieve advances in the field of smart cities, modernization of the State, telemedicine, production and distribution of goods and services. Likewise, Chile is promoting digital highways, through the National Fiber Optic, the Southern Fiber Optic and the Fiber Optic cable that will connect Chile and South America with Asia and Oceania.

The Undersecretary of Telecommunications, Pamela Gidi, reported that the call for tender is being made in the Official Gazette immediately and two weeks later, in mid-August, the bidding rules will be published. The proposals will be received during the last months of the year and the spectrum will be awarded by the end of 2020. The companies will have a period of one year to complete their project, although SUBTEL believes that the companies could be ready to launch their project by mid-year 2021.

The 5G tender is possible after the Supreme Court ratified SUBTEL’s proposal which set the spectrum limits that will serve as the basis for the 5G tender. SUBTEL appreciates that future frequency assignments will be more expeditious and it will not be necessary to review the spectral limits each time there is a contest for a new band.

To implement 5G technology, four bands will be tendered, 700 MHz, AWS, 3.5 MHz and those known as 26,000 MHz millimeter bands. The spectrum will be awarded to those companies that offer the best model and that have a greater social benefit in the use of spectrum. In addition, there will be a “wholesale block”, that large companies will be able to obtain and then lease to virtual mobile operators. Although the telecommunications companies are the main actors in this tender, at a later stage it will be in the field of technology suppliers where the next battle will take place.

For more information contact your local U.S. Commercial Service  office, or office.santiago@trade.gov.