MVNOs spark 76% drop in call charges

29 Oct 2014

The arrival of mobile virtual network operators (MVNOs) in Chile has led to a 76% drop in call rates charged by network operators, from CLP250 (USD0.43) per minute to around CLP60 per minute, Diario Financiero writes. The paper cites industry sources as saying that network operators have had to restructure their business in order to facilitate the launch of MVNOs, including creating special divisions to handle the legal requirements of working with MVNOs. To-date there are six functional MVNOs in Chile – namely Virgin Mobile, Movil Falabella, former network operator VTR, Grupo GTD, Netline and Mobilink – although a further 19 are waiting in the wings, including ‘Simple’ established by former Movistar executive Oliver Flogel. According to TeleGeography’s GlobalComms Database, there were 391,375 MVNO subscribers in Chile at the end of June 2014, compared to 191,674 twelve months earlier. Virgin represents the lion’s share, accounting for nearly 50% with 187,522 users, although the wireless arm of retailer Falabella is rapidly closing the gap with Virgin, claiming 109,315 subscribers as at 30 June 2014, up from 86,271 three months earlier and 54,822 at the end of December 2013.