Court rejects Telestar appeal, clearing way for 700MHz allocations

5 Jan 2015

The Santiago Court of Appeals has rejected a plea from Telestar against the Ministry of Transport and Telecommunications (MTT) over the auction of spectrum in the 700MHz range. Telestar had claimed that the auction process and rollout obligations prevented smaller operators from bidding for the frequencies but the court found that the operator’s argument was not intended to claim that the spectrum allocations were invalid but to indicate an impact on competition in the market in relation to its own bankruptcy. El Mercurio writes that the operator has been instructed to pay legal fees, as well as a fine of ten Monthly Tax Units (Unidad Tributaria Mensual, UTM) – equivalent to CLP430,198 (USD703.4). The decision clears the way for the MTT to finally allocate the 700MHz frequencies won by Entel, Movistar and Claro in February 2014.