Subtel proposes cut to mobile connection fees

25 Nov 2008

Reuters is reporting that Chilean telecoms regulator Subtel has proposed a swingeing 52% cut to fees mobile phone operators can charge to use each other’s lines for the next five years, citing low costs and high user traffic. The government must set new access rates for 2009-2014 before the current period expires; under the new proposals a figure of CLP43.07 (USD0.07) per minute would be imposed, much lower than the CLP88.88-CLP90.3 currently charged by the trio of incumbent operators Entel PCS, Telefonica and America Movil. ‘We are deeply surprised by the government’s proposal for a more than 50% rate cut, which does not seem reasonable, especially in light of the prevailing uncertainty and the still unknown magnitude and depth of the economic crisis,’ Entel said in a statement. The company said it would request an expert commission be formed to arrive at a proposal that ‘does not jeopardise the achievements of the industry to date.’