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Access fees: Entel and Movistar downgrade their tariff proposals

In a report issued by the expert commission requested by Claro, Entel, Movistar and VTR operators, Subtel noted that eight of the 12 experts tended to go to efficient companies using only 4G networks, unlike what some companies proposed.

The Telecommunications Undersecretariat celebrates "extensive endorsement" of its technical proposals submitted by different expert commission members installed as part of the ongoing cellular tariff process, to exclusively consider 4G technology for calculating new tariff rates. access, and that combines 3G and 4G. The authorities said that eight out of a total of twelve experts supported the government's thesis.

For the tariff process, four expert commissions are formed, requested by Entel, Movistar, VTR and Claro concession holders (WOM refuses to form one), to counter objections raised by the authorities in the Objection and Counter-proposition Reports. Each commission consists of three experts in the area, one representing each concession holder, the other to the government, and the third party with mutual agreement, or expert consensus. In total, there were twelve experts.

The main problem that has become a controversy in developing the opinions of experts is related to the definition of efficient technology to comply with the provisions of the company's modeling law that "starts from scratch". The government's proposal is the exclusive use of 4G technology with VoLTE services (voice over data) given that it is a company that starts from scratch and that does not have to be subordinated to the technology provided by real companies or companies in line

In the case of the Wom and VTR operators, they proposed to exclusively consider the use of 4G + VoLTE technology in an efficient company model, while Entel, Movistar and Claro proposed a mix of technologies that considered 3G and 4G networks, given that they had debated. which is in the process of transitioning technology which will last around five years.

Subtel highlights that of the four experts who have different opinions from government proposals, two of them represent operators that together have a market share of more than 60%, namely, Movistar and Entel.

These companies, with expert reports as input – given that they were not binding -, proposed a reduction in relation to their original proposal. In the case of Entel, which proposes an access fee of $ 5.7 per minute, now it decreases to $ 4.9 per minute. Movistar, changed from the initial approach of $ 6 per minute to $ 4.6 per minute.

The government's proposal is to move from $ 8.7 per minute to $ 1.4 per minute, reducing the rate of cellular access costs by 84%.

Of course, Wom and VTR increase the access fee by $ 1; $ 0.19, and $ 0.2 per minute, respectively.

Deputy Secretary Pamela Gidi said that the final level of access fees, which will be published in January 2019, "will allow it to continue to increase competition, eliminate artificial asymmetry."

Company vision

Fernando Saiz, director of Movistar Chile's Strategy, Regulation and Public Affairs, said Pedro Pablo Errázuriz, an expert in agreements between authorities and companies, supported the need to consider the company's model in accordance with the reality of the telecommunications market today. , which includes the use of 3G and 4G technology to provide cellular voice services.

He added that the model considered by the authorities presents "serious numerical inconsistencies". For example, Saiz said that the proposal did not consider that most of the 4G terminals currently on the market do not support technologies such as voice in LTE technology (VoLTE).

"We believe that the arguments and numbers given during the process will be considered, thus correcting serious errors and inconsistencies detected at this stage of the process," he added.

In line with that, Entel indicated that joint experts, Tomás Flores, recommended a mix of 3G and 4G networks for efficient companies and gradual adoption of VoLTE technology.

From the VTR they show that "most experts have ratified" their position and Subtel to model the company with VoLTE 4G technology. "Therefore, it is not appropriate to consider the second network superimposed on the 4G network, because this would imply ignoring the principle of efficiency enshrined in the General Telecommunications Law, artificially inflating costs for users," the company said.

WOM, in its part, assessed "in depth" that the expert report ratified that demand for data will continue to grow "and that the 4G network is the most appropriate technology to spread the tariff process over the next five years".

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