VTR abandons mobile network for MVNO model

17 Jan 2014

US-backed quad-play provider VTR has shut down its wireless network and transitioned to a full mobile virtual network operator (MVNO), after reducing the use of its own infrastructure in late 2013, Diario Financiero writes. The operator launched its own network in May 2012 and used a hybrid model combining the use of its own platform with a roaming agreement with Spanish-backed rival Movistar. In early 2013 VTR began to explore alternative models to reduce costs. September that year saw the telco migrate all traffic to Movistar’s network and in December VTR expanded its agreement with Movistar to a full MVNO pact. The second largest broadband provider in Chile by subscribers, VTR noted that competition in the mobile segment has grown rapidly, with new entrants Falabella, Virgin Mobile and Grupo GTD seeing success with the MVNO model. VTR will now focus on expanding its position in the pay-TV market, adding that it currently has an eye on geographical expansion through acquisitions, but did not give details regarding which companies or areas would be targeted.