Deputy President criticises Movistar spectrum sale

29 Jun 2006

The Deputy President of Chile, Jaime Mulet, has criticised Telefonica Moviles’ sale earlier this year of 25MHz of wireless spectrum to Smartcom as going against the spirit of the antimonopoly tribunal’s ruling designed to introduce further competition to the market. According to a story carried by BNAmericas, in a letter to the country’s transport and communications minister Sergio Espejo, Mulet argues that the frequencies should have been sold to a newcomer and not to an established player. In order to get approval for last year’s merger with BellSouth Chile, Movistar was required to sell some of its spectrum; it raised a reported USD50 million from the sale to Smartcom, a subsidiary of America Movil.