Entel and OnNet Fibra deal can go ahead, says Chile’s FNE

Entel and OnNet Fibra deal can go ahead, says Chile’s FNE

It looks like the infrastructure deal between Entel and OnNet Fibra in Chile is going ahead – though there seem to be strings attached.

Chile's antitrust authority Fiscalía Nacional Económica (FNE) has now approved the US$432 million sale of fibre optic infrastructure from service provide Entel to OnNet Fibra, a joint venture between Telefónica and KKR that deploys and operates the first wholesale fibre optic infrastructure network in Chile, an open and neutral network that can be used by all current and future operators.

The go-ahead came after the companies offered yet another response – the sixth – to concerns made by FNE on the transaction in terms of concentration in the local market.

In this case there will be conditions to meet in order to allow Entel to sell the fibre optic network in eight districts where there is the greatest overlap between the OnNet and Entel networks.

FNE's conditions include signing a contract for fibre optic connectivity services and other access contracts between the buyer and Entel's assets to continue offering Entel's home internet services over the same network.

The authority also requires the amendment of “certain clauses” of the service provision contract between Entel and OnNet, though it’s not clear what this refers to.

The BNamericas news service says that after the deal with OnNet, Entel will have access to 4.3 million homes passed throughout the country in 2024. Entel plans to reach a 25-30% share of the fixed broadband market in Chile in the medium term. The Entel network acquired by OnNet has 1.3 million homes passed.

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