Telecom Market in Chile Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Telecommunications Market in Chile is segmented by Services (Voice Services (Wired, Wireless), Data and Messaging Services (Coverage to Include Internet and Handset Data Packages and Package Discounts), and OTT and Pay TV Services). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Chile Telecom Market Size

Chile Telecom Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.13 %
Market Concentration Medium

Major Players

Chile Telecom Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Chile Telecom Market Analysis

The Chile telecom market was valued at USD 7.22 billion in the previous year, and it is expected to reach USD 10.14 billion during the forecast period registering a CAGR of 6.13%. With several significant companies providing a variety of services, including mobile, fixed-line, and broadband internet, Chile has a well-established telecom sector. To enhance fair competition and consumer protection, the market is governed by the Telecommunications Sub-Secretariat (SUBTEL) and the Free Competition Defense Court (TDLC).

  • The Chile telecom industry is growing as a result of the rise of end-user industrial sectors and applications like IoT, cloud, data centers, and 5G. The country is also seeing a rise in internet usage as a result of industrial advancements like video on demand. To fulfill the rising demand for internet services and grab a sizable share of the market, businesses are introducing an array of internet plans.
  • The Mobile network is growing substantially with time due to the introduction of 5G and the increase in mobile internet speed. The usage of several devices per user, high replacement rates, and individuals switching from traditional phones to smartphones as prices dropped are all major drivers in the growth of the mobile network in the market. This is anticipated to assist the Chile telecom sector.
  • Furthermore, the telecom industry is rapidly changing regarding technological developments, service delivery, competitive landscape, and telecommunication services expansion in the non-traditional telecom services section. These include managed infrastructure, data center/co-location, and cloud services.
  • The country's telecom industry is also facing several challenges, including rising financial risk and rising customer sophistication. By promoting competition between a few significant players like Telefonica, VTR Chile, WOM SA, and others, service price reductions have benefited customers and emphasized the need for innovation.
  • The COVID-19 shutdown increased network transport capacity, making mobile broadband more popular because most people were forced to stay at home. Many telecoms need to accelerate their 3G/4G/5G networks to allow users to connect to the Internet and stay connected with customers, as well as conduct business meetings with coworkers, clients, and other company stakeholders while working remotely.
  • Post-pandemic, customers' preference for digital services like purchasing things online, mobile payments, robust collaboration tools, and many more will become the new norm for telecom service providers. Telcos should keep making investments in their network infrastructure to satisfy these demands in the future.

Chile Telecom Market Trends

Rising Demand for 5G to Drive the Chilean Telecom Market

  • As 5G technology offers faster data speeds and lower latency than other mobile networks, the country's demand for 5G connection and services is growing. Additionally, 5G connectivity provides seamless streaming, faster downloads, and real-time communication, driving the need for telecom services in the country.
  • The growing popularity of video streaming, online gaming, and other data-intensive applications drives the demand for higher data speeds and capacity. With 5G, telecom operators may meet the increasing demand for mobile data consumption, resulting in higher revenue opportunities in the market.
  • The deployment of 5G networks may contribute to economic growth and enhance the competitiveness of a country, attracting investment, supporting innovation, and driving productivity gains across various sectors. As a result, there is a strong focus on expanding 5G infrastructure in Chile to promote economic development and stay competitive on a global scale. For instance, in May 2022, the Chilean government introduced a new strategy, Chile Digital 2035, to reduce inequality and foster the country's digital transformation.
  • Furthermore, in June 2023, the Inter-American Development Bank approved a USD 100 million loan to support the Chilean digital government agenda. Through the digital transformation of the state, both at the national and local levels and the municipal level, this operation aims to increase efficiency and equity in the delivery of citizen services. Such an initiative for digital transformation by the government is creating demand for 5G services and is expected to add growth to the market in the coming years.
  • Moreover, according to GSMA, by 2025, Brazil is expected to have the highest share of 5G mobile connections in Latin America, with the technology accounting for 20% of total mobile connections in the country. Mexico and Chile followed with a 14 % share.
  • The demand for 5G services is growing exponentially due to the technological transition. As a result, the telecom companies operating in the country are investing in 5G networks to maintain the company's leadership. The government initiatives related to digital transformation and 5G investment by the players operating in the market in Chile, owing to the rising adoption of 5G, are driving the growth of the telecom market in the country.
Chile Telecom Market: Estimated Share of 5G In Mobile Connections, in Selected Countries, In Percentage, Latin America, 2025

Data and Messaging Services to Dominate the Market

  • The country's data and messaging services in the telecommunication market include the Internet, text message, etc., from both fixed and mobile networks. These services are rising in Chile due to the adoption of 5G services, fiber-based optical fixed Internet connection, etc.
  • Telecom providers are forming partnerships, getting licensing agreements, expanding fiber and copper-based network infrastructure, and deploying 5G services in the country to support the increasing demand for data and messaging services in the country. For instance, in October 2022, VTR Communications and Claro Chile collaborated to establish a joint venture offering fixed and mobile services, including Internet and text messaging. The JV is anticipated to provide greater benefits for consumers and businesses and further stimulate social and economic progress by extending telecom access and coverage across the country.
  • The digitalization of business processes, such as using internet-based services in BFSIs, governments, retail, manufacturing, healthcare, etc., in the country, is creating a demand for telecom service providers' data services across industries and the people to use digital services, which include internet data packages for both prepaid and post-paid data services. In addition, vendors in the market are expanding their data service offerings packages to support the market growth in Chile.
  • The market has been witnessing acquisitions, investments, and collaborations among telecom providers to increase their market presence in mobile and fixed data services, which shows the market potential for the segment in the country. Moreover, the number of mobile broadband connections in Chile is estimated to reach 24 million by 2028.
  • Additionally, in March 2022, Mundo, a Chilean fiber-optic internet provider, planned to develop its fiber network in the country with an investment of USD 200 million. The company would invest this capital in adding 6,000 kilometers of fiber optics to its already existing 7,000 kilometers of fiber, with an additional 4,000 miles planned for 2023 in Chile. The increasing investment by the vendors to expand their telecom services is expected to support the market adoption of fiber-based telecom data services.
  • Therefore, the expansion of the optical fiber network, the deployment of mobile internet networks such as 4G and 5G, and the need for high-speed data and messaging services across the industry verticals and retail consumers to support the country's digitalization strategy in 2035, is fueling the market for data and messaging services in the telecom sector of the country.
Chile Telecom Market: Number of Mobile Broadband Connections, in millions, Chile, 2018 - 2028

Chile Telecom Industry Overview

The telecom market in Chile is moderately consolidated with key players like Telefonica, WOM SA, and others. The regulatory system attempts to encourage fair competition, safeguard consumer rights, and ensure the delivery of high-quality services. Regulations have been set into effect to promote innovation, draw in investment, and keep the playing field equivalent for every player.

In June 2023, Empresa Nacional de Telecomunicaciones is well-focused on various expansion strategies where the two antennas that Entelinstalled in Rapa Nui correspond to the second phase of the tender for the 3.5 GHz 5G spectrum, which allows 5G connectivity from Putreto Puerto Williams.

In April 2023, Claro Chile, a telecommunications company, was given provisional authorization by the Subsecretaria de Telecomunicaciones, Subtel (Department of Telecommunications) to utilize a portion of the spectrum it already holds in the 3.5 GHz band to provide commercial 5G services.

In January 2023, WOM announced that it completed the installation of the first of the rural 4G/5G sites it committed to deploying as part of its bid for 700MHz spectrum in 2021.

Chile Telecom Market Leaders

  1. GTD Grupo Teleductos SA

  2. Empresa Nacional de Telecomunicaciones SA


  4. Claro Chile (AMÉRICA MÓVIL SAB DE CV)

  5. WOM SA

*Disclaimer: Major Players sorted in no particular order

Chile Telecom Market Concentration
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Chile Telecom Market News

  • June 2023: EntelChile announced the launch of a 5G network on the island of Rapa Nui. Through this launch, the island will achieve significant advancements in its telecommunications infrastructure. Due to its unique geographical location, the island was dependent on advanced satellite-based internet connectivity with capacities lower than fiber optics. However, introducing the 5G network represents a major leap forward in terms of technological capabilities and connectivity options for the island. Moreover, Entelhas installed two 5G antennas as part of the second phase of its 5G spectrum project, which will offer over 1.5 million customers the opportunity to experience the benefits of 5G technology.
  • April 2023: Chilean regulator Subtelgranted Claro the provisional authorization to offer commercial 5G services through its 3.5 GHz spectrum. Earlier, the company was not able to launch a 5G offering in Chile as the 3.5GHz band was restricted to fixed wireless use. However, this limitation was overturned, making 5G a possibility for Claro in the country.

Chile Telecom Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Ecosystem Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of the Impact of COVID-19 on the Industry Ecosystem

    5. 4.5 Regulatory Landscape in Chile


    1. 5.1 Market Drivers

      1. 5.1.1 Rising Demand for 5G

      2. 5.1.2 Growth of IoT usage in Telecom

    2. 5.2 Market Restraint

      1. 5.2.1 The Emergence of Stiff Competition is a Concern for the Industry

    3. 5.3 Analysis of the Market based on Connectivity (Coverage to include In-depth Trend Analysis)

      1. 5.3.1 Fixed Network

        1. Broadband (Cable modem, Wireline-fiber, Wireline DSL, and Fixed Wi-Fi ), Trends regarding ADSL/VDSL, FTTP/B, Cable Modem, FWA, and 5G FWA

        2. Narrowband

      2. 5.3.2 Mobile Network

        1. Smartphone and Mobile Penetration

        2. Mobile Broadband

        3. 2G, 3G, 4G, and 5G Connections

        4. Smart Home IoT and M2M Connections

    4. 5.4 Analysis of Telecom Towers (Coverage to include In-depth Trend Analysis of Various Types of Towers: Lattice, Guyed, Monopole, and Stealth Towers)


    1. 6.1 By Services

      1. 6.1.1 Voice Services

        1. Wired

        2. Wireless

      2. 6.1.2 Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)

      3. 6.1.3 OTT and PayTV Services


    1. 7.1 Company Profiles

      1. 7.1.1 GTD Grupo Teleductos SA

      2. 7.1.2 Empresa Nacional de Telecomunicaciones SA

      3. 7.1.3 VTR FINANCE NV

      4. 7.1.4 Claro Chile (AMRICA MVIL SAB DE CV)

      5. 7.1.5 WOM SA

      6. 7.1.6 Ericsson Chile SA

      7. 7.1.7 AT&T

      8. 7.1.8 Telefonica

      9. 7.1.9 Verizon

      10. 7.1.10 Virgin Mobile Chile

    2. *List Not Exhaustive


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Chile Telecom Industry Segmentation

Telecom or Telecommunication is the long-range transmission of information by electromagnetic means. The Chile Telecom market is defined based on the revenues generated from the services used in various end-user applications across Chile. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the market in terms of drivers and restraints.

The Chile Telecom Market is segmented by Services (Voice Services (Wired, Wireless), Data and Messaging Services (Coverage to Include Internet and Handset Data Packages and Package Discounts), and OTT and PayTV Services). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Services
Voice Services
Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)
OTT and PayTV Services
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Chile Telecom Market Research FAQs

The Chile Telecom Market is projected to register a CAGR of 6.13% during the forecast period (2024-2029)

GTD Grupo Teleductos SA, Empresa Nacional de Telecomunicaciones SA, VTR FINANCE NV, Claro Chile (AMÉRICA MÓVIL SAB DE CV) and WOM SA are the major companies operating in the Chile Telecom Market.

The report covers the Chile Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Chile Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Telecom in Chile Industry Report

Statistics for the 2023 Telecom in Chile market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Telecom in Chile analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Telecom Market in Chile Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)