| Chile’s telecommunications operators could increase their investments to expand coverage, including broadband coverage, if the regulator modifies the current rules, according to Claudio Muñoz, CEO of Telefónica CTC Chile.
From 2000 and 2004, annual telecommunications investments in Chile dropped from US$ 1.0 billion to US$ 400 million. The existing regulations have not motivated companies to invest in order to compete, but have created a situation where operators only invest in businesses that are well-established revenue generators, Muñoz said. Consequently, there is relatively low internet penetration among lower-income people.
CTC's focus is now on broadband, which will account for the largest portion of its US$ 150 million in investments for 2005. Last year, CTC recorded 60.3% growth in its broadband business, compared to 2003, with 200,760 clients, representing 40% of internet subscribers with access faster than 128 Kbps.
Source: Business News Americas |