Entel's Sound Investment Strategy Will Ensure Strong Market Position

Chile's second- largest mobile operator Entel announced plans to invest between US$500 and 600mn over the 2011-12 financial year to defend its market position and remain competitive in the Chilean mobile services market. This move followed market leader Movistar's announcement of a US$100mn innovation fund to improve mobile technology, and in advance of Chilean regulator Subtel's radio spectrum auction for LTE services, to take place on April 1 2011. Entel is the only Chilean operator so far to have carried out LTE trials, and BMI predicts the company will bid in this auction. Entel proposes to invest the majority of in expanding and enhancing the operator's mobile network. This is wise; mobile broadband in Chile continues to be a high growth area and is likely to remain so during 2011. BMI considers the strategy appropriate to ensure maintenance of market share.

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