Wednesday , January 20 2021

How does it compete with Entel, Movistar and Claro? The vision of Virtual Virtual Operators after the harsh verdict of the Supreme

Yesterday afternoon afternoon woke up three of the Mobile Virtual Operators (OMV) was clear. The Supreme Court, in a three-vote decision against two, decided to reject the lawsuit of Netline, OPS and TelecoMax in the old struggle against the country's three largest mobile operators: Movistar, Claro and Entel.

The MVNO recently accused the construction of entry barriers that caused suffocation on the margins, while ensuring that large companies would not comply with the rulings of the 2011 Free Competition Court, which requires them to provide larger facilities. These are companies that must rent spectrum and buy minutes for their operations, and that each time there is a lower market share because of the high concentration of the communications market.

Companies pretended to have access to wholesale programs that enabled them to offer competitive prices to consumers, most of whom were rejected.

But who is behind MVNO who dared to challenge the Big Three?

OPS, is a company founded in 2003 by three engineers: José Luis Zumaeta, Paolo Muñoz and Gastón Lizana. They work with 80 people. They have a presence in Santiago and focus, at the moment, on business niches of various sizes. They can not provide more services, as they want, they say.

"The business will never work under these conditions right now. We've been out of this market. We have special and business niches, but we do not think about the rankings that the PA does. In the end, OMV contracts have clauses, but they do not turn to the MVNO like us who have a network and we have our branding capability, "he said. The third prime minister, Jose Luis Zumaeta, partner of the OPS.

In his opinion, the sub-secretary of telecom should be more active in promoting free competition between large operators and MVNOs.

As part of this procedure before the Supreme Court, the OPS was represented by attorney Jose Miguel Gana.Although TelcoMax is related to Antel's former business manager and manager, Conrad Burch will be represented by lawyers Mario Bravo and Christian Rice. , Controlled by J & Bendersky and was protected by lawyer Ximena Rojas.

For Oscar Cabello, TelcoMax consultant in the case "neither TDLC nor the Supreme Court realized that MVNOs become viable, it is necessary that the wholesale offers of large operators do not cause strangulation of the margin.In other words, they did not realize that wholesale prices should be lower than market prices , In any segment of the market. "

In his view, many years ago, there is a project that speaks of the Subtle, in which it seeks to improve the MVNO's capacity as of 2017. "It included only expressions of good intentions and not concrete steps to prevent the strangulation of margins."

Chile currently has a competitive mobile market, 5 OMR operated mobile network (two are OMV VTR, Wom) plus Netline, OPS, TelecoMax, Telestar, and Virgin Mobile. There are several markets that show the amount of players.

According to the former Secretary of the Ministry of Communications, Rodrigo Ramírez "Subtel must create a positive regulatory environment in order to promote a strategy that prefers investing in the network while simultaneously ensuring wholesale access to networks by mobile operators that do not have radio spectrum And / or infrastructure, while ensuring appropriate conditions in order to encourage competition in the markets. "

Competitive market

A very different vision is that of Oliver Flugel, chairman of the board and shareholder of Simple Inc. Microsoft's former CEO, Chile, said, "I do not see this as a non-competitive market." "The development of industry margins in recent years is a clear sign that there is competition.The fact that there are four large operators fighting for leadership has made it harder for less capitalized operators to compete," he added.

"The lower margins are the result of greater competition and a sharp fall in unit prices," he added, "Wholesale prices do not always go down as fast and it's a clear challenge, although I think it's more commercial than legal."

However, the number of subscribers has simply decreased over the last three years. In light of this, the Director added that "The competitive context was complex, but today we have a very organized operation and we hope to resume the growth path in Chile in 2019. We have taken more time than we would like to launch our 4G services, which will be done in March."

"The mobile phone market in Chile has always been very competitive, with an efficient mobility system, which this year chooses to change almost 20% of the industry base, and with the largest number of network operators," said Manuel Arie, Antel's regulatory and business manager. And MVNOs in the region.

Regarding MVNO, he added that "we are the country in Latin America with the largest number of players, who have managed to grow and are already part of the Mobility Committee Library." At the moment they have 2% of the market.

However, OMV business was recently commissioned. In fact, the sale announced the market made by Flavella, adding the sale announcement of Virgin Mobile.

While another luck kept VTR. Liberty Global's subsidiary has grown considerably over the past few years through its signature "VTR Móvil". The company, led by Voz Móvil, VTR, Veronica Peña and Lillo Fuentes, raised its data. The management has been part of Intel for nine years, according to its LinkedIn.

VTR has a market share that can reach at least 1% by the end of the year, rising in Virginia and its growth has been constant in customers since 2013. It is considered that as of September it reached 0.9988% of the market's 30-day subscription, "The last of Subtel's.

This is a slight problem, given that market managers are held by Antel (31.60%), Movistar (28.14%), Claro (24.56%) and Wom (13.74%).

M. Subtel refused to comment on this article, although the entity went beyond the OMV situation and assesses the failure. In many VTR, he did not respond to those consulted by this measure, arguing that it was not part of the ruling.

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