Undersecretary Claudio Araya has guided Chilean telecoms regulator Subtel’s process of reordering the 3.5GHz band to offer more capacity and expand the number of competitors.
Subtel hopes telcos such as GTD and Mundo will benefit from the reordering and provide 5G services.
The regulator is also implementing the Brecha Digital Cero plan to close the digital gap by facilitating the formation of cooperatives and forming a state company that serves neglected areas.
Large infrastructure investments are expected to enable 5G this year. They will connect 366 prioritized localities, 199 hospitals, 16 regional capitals, 56 provincial capitals, and 358 rural localities.
Other projects on Subtel’s agenda are tenders for six regional last-mile projects, and connectivity for educational projects and border crossings.
BNamericas talks to Araya about the agenda and more.
BNamericas: Once you assumed office, you rearranged the 3.5GHz band. What’s the goal?
Araya: The goal is to make the 200MHz not being used available for 5G. Of these, 40MHz are not in use and 160MHz are assigned to other services, but in reality, they are also not being used.
There is a good for public use that is not being used to provide a service to citizens. We are working with the industry, and then we will pass it through the competition defense tribunal [TDLC] to find the best way to make those 200MHz accessible.
BNamericas: When could this spectrum be cleared up and available for auction?
Araya: We are working with a horizon of three months. We will have a very clear vision for the industry in the next two weeks and, later, we will send the request for interpretation to the TDLC to define the method.
BNamericas: The transport ministry said spectrum will be used more efficiently to make room for new players. What is this about?
Araya: Some sector players are excluded or have reduced participation in 5G, specifically Claro, Grupo GTD, and Mundo. Of course some participate, but with the millimeter band, which is a different network deployment than the one in medium bands.
As they become interested in joining this new service platform, we will have to creatively search for spaces in the spectrum band so they can join.
BNamericas: Could they be interested in the 200MHz you seek to free up in the 3.5GHz band?
Araya: It is one alternative, yes.
BNamericas: Brazil will review the decision to provide the entire 6GHz band for Wi-Fi. Should Chile follow suit?
Araya: We have received some opinions about it, but we don’t see it as an urgent need, so no, the issue is not on our immediate agenda. It will probably become more relevant once we resolve the 3.5GHz issue.
BNamericas: Is the model for the planned state company Argentina’s Arsat or Mexico’s CFE-TEIT?
Araya: The truth is that this is very incipient. We understand that there is a space the industry has not filled and we believe we must fill. We are not interested in creating a state company that comes to Santiago to compete with others. That’s not the objective.
We find it interesting that this company could be in charge of some infrastructure deployments, which is the most expensive part to deliver the services and the one with the longest-term profitability environment. So, we are analyzing that line, but at the moment we have no details, not even when it should be created.
There is still an internal discussion on when the state company will be required, so any speculation about it is still just that, speculation.
BNamericas: You stated your interest in promoting cooperative telecommunications companies. How will you go about that?
Araya: Within the different schemes to cover localities that are not commercially attractive for industry, we are thinking, for example, of the role the state company could play, but also the municipalities as telecommunication service facilitators and the formation of self-service cooperatives.
This is not a new idea. At least in Chile, I know of an entity that, although not in the form of a cooperative, operates and provides an efficient solution in one of the red [underserved] zones. If this is formalized into a cooperative model, it could yield great results.
BNamericas: What’s needed so this idea gains momentum? Are you aiming to involve the private sector?
Araya: Yes, but precisely where is not certain; we have to consolidate the intention.
I have spoken with social leaders who complained about coverage, and I have challenged them to be part of the solution. Of course, with our advice and support, it is not about leaving them in the open.
The idea is that with our assistance, they can build a cooperative to provide service to underserved neighborhoods and contract internet access with an operator that operates at the margins of the area. I think it is a feasible option.
BNamericas: Would you offer financing?
Araya: Eventually, yes, through subsidies from the development fund.
BNamericas: How is the Humboldt submarine cable progressing? Have more countries signed up to use the system?
Araya: Here I have to make a clarification, because project implementation was entrusted to Fondos de Infraestructuras, which is a state company. We are only technical advisers on the matter, so we don’t lead these conversations.
However, I can comment that talks are being held with the countries of arrival of the cable, mainly in Australian territory, and in South America, with Paraguay, Uruguay and Bolivia, because our interest is that all of South America joins the new system.
BNamericas: And how do you plan to speed up the infrastructure permitting process?
Araya: Well, we are approaching this in two ways. On the one hand, there is a legal order that we are looking for. We have provided some input to a bill that declares the internet a public service and allows us to improve our notification processes, for example. That it is a delay we deal with today.
On the other hand, we are analyzing our internal authorization processes to see where we can optimize and obtain regulatory change.
At the same time, I asked our cabinet to start talks with other state bodies such as municipalities, road, housing and urban planning authorities, the indigenous development agency and the forestry corporation [Conaf], which are institutions that participate in the granting of authorizations.
The idea is to see how we could generate an integrated process, because one of our problems is that these grant processes have stalled. They involve five, six, or seven different authorizations for the same process, all with different timing and requesting the same information, but in a different format.
It seems to us that the State has an enormous responsibility in terms of generating an integrated mechanism that provides certainty.
This is what we will work on. Now, it is going to be a slow process because it means adapting our bureaucracies, but I think it would be of great benefit if this could be improved.
BNamericas: You have announced projects such as fiber optics in border areas, connectivity for educational establishments, and last-mile connectivity. Could you provide more details on the pipeline?
Araya: These projects are very relevant to us. The national fiber optics projects and the first phase of border projects are already underway. Our focus this year and all of next year are last-mile projects, which are financed with regional development funds.
There are six of these projects that are ready to start defining the bankruptcy rules and proceed with public tenders [Coquimbo, O’Higgins , Ñuble, Los Lagos, Aysén and Magallanes]. Some processing is still required for others, while five preliminary projects are being redefined to make sure the new regional authorities share the priorities of the previous ones.
BNamericas: Will the projects for which the bases are ready to be defined be presented this year?
Araya: I think so. We face some uncertainty because the insolvency rules must be approved by the comptroller, which will depend on its workload, but I estimate we will be able to [resolve the issue] during the year.
