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Chilean Regulator Auctions 4G Spectrum

In an auction on the 30th of July, Claro Chile, Entel PCS and Movistar Chile all bought blocks of Chile’s 4G spectrum. The auction for blocks of the 20mhz spectrum was conducted by the Chilean regulator, Subtel.

There were three bidders. Claro, owned by Mexican operator America Movil, paid US$2.9 million. Entel, the domestic market leader, paid US$8.84 million. Movistar, part of Telefonica, paid US$503,134.

As part of the license agreements, the operators have agreed to roll out their 4G networks within 12 months and extend them to 543 isolated communities within 24 months. There are financial penalties for non-compliance.

Jorge Atton, the head of Subtel, told reporters: "The important thing about 4G is that we have a network with greater capacity. In simple terms, it will mean if I surf the web at 400-500Kbps on average, with 4G you will be able to do it at 4-5Mbps.”

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