Nextel Chile has announced that it will invest USD300 million in its 3G mobile network, after winning 60MHz of 3G spectrum in a closed tender. Local cableco VTR, an arm of Liberty Global, and Nextel both submitted bids for three bands of 30MHz of 3G wireless spectrum. Nextel was by far the highest bidder on two of the blocks, offering USD14.6 million for the two bands, while VTR will pay USD3 million for a single 30MHz band. The concession contracts will be signed in coming days.
VTR and Nextel were the only companies to submit bids for the bands in July, but the regulator Subtel determined the bids were technically tied so the companies were invited to participate in a closed tender. The companies have twelve months to build their 3G networks and start offering services nationally.
VTR and Nextel will compete with Chile’s three main mobile telephone companies that already have 3G spectrum: Entel PCS, Telefonica (Movistar) and America Movil (Claro)