Faced with a complex environment for the industry, the Chilean telecommunications company will use its own resources to sustain the technological evolution of its service.
Within the framework of its Annual Shareholders' Meeting, the Chilean telecommunications company Entel reported the investment programmed to implement its strategic plan: maintain its leadership in Chile in the mobile business by consolidating the deployment of its 5G network; continue its growth in the mobile business in Peru, where it is already the second operator in the country; connect hundreds of thousands of fiber optic customers in both countries, and grow with Entel Digital.
Specifically, in 2024 it will invest US$618 million, which would be equivalent to 19.7% of income. Of these, US$ 451 million will be allocated to the operation in Chile and US$ 167 million to Peru. And as reported by the technology and telecommunications company, this will be financed entirely with its own resources.
“2023 was a challenging year for Entel and for the industry in general, in which we were able to meet the objectives defined for the year and enhance what we made a difference, despite facing a complex environment in Chile and Peru. Entel celebrates 60 years connecting Chileans and 10 years in Peru and, looking ahead to the next 60 years, it is gratifying to see that we are a company that, despite the challenges, continues to be a pioneer and at the forefront in the market, projecting ourselves into the future, but with a history that supports us,” said Entel general manager Antonio Büchi.
In this context, he highlighted that Entel was the first company to complete the project committed to in the last 5G tender, in addition to signing the agreement with Starlink, which will allow millions of smartphones to access basic satellite connectivity direct to the cell phone towards the end of 2024. , at any point in the geography of both countries where there are no mobile networks, without the use of any other device.
He also highlighted that the approval of the operation with ON*NET Fibra will allow for a nationwide broadband offer and inject competition into the residential internet market, without having to invest in the deployment of the network and at substantially better average costs than Build your own fiber optic network.
INVESTMENT PLAN IN DETAIL
Regarding the investment plan, Büchi commented that “in Chile there is a slight decrease of -1.4% if we discount the investment in Home and consider only mobile and business connectivity. This industry faces a complex scenario and just maintaining investments is a challenge, which we assume to maintain our leadership. All in all, we are significantly increasing investment in Homes and SMEs in Chile and Peru, where millions of Past Homes are now being opened to us, which requires an approximate investment of US$200 for each client we connect.”
In addition, he said that, in Peru, in line with its objective of continuing to grow in the mobile business, "we plan to increase investments by 10%, to increase coverage and accommodate the greater traffic due to the larger expected customer base."
Meanwhile in Chile “the promise is to deliver the best and most consistent browsing experience in the mobile market. For this, it is essential that we have very robust and reliable 4G and 5G networks, which requires an additional investment effort in these years of technological transition,” he stated. For this reason, this year they will allocate US$286 million to the mobile business in the country.
Additionally, he maintained that, with this investment, added to the deployment that has already been made of the 5G network, “we will advance in our objective of consolidating ourselves as leaders of this new technology as well, always concerned with delivering the best experience to our customers.” In 2023 Entel led in 3G, 4G and 5G mobile connections, with a 34.6% share of the total, also reaching leadership in 5G with a 41.5% share.
In addition, they will allocate US$88 million to the Home sector in Chile, mainly in connecting new homes with fiber optics, which is one of the key pillars of Entel's growth. According to Büchi, “we are now reaching almost 4 million homes in the country with a very competitive offer. The objective is to reach between 25% and 30% market share in the home internet business in a few years, and this operation makes it possible.”
Regarding Entel Digital, the investment for 2024 is US$ 13 million. “In line with our vision of being leaders in technology, we launched this business unit that offers cutting-edge technological solutions for companies. We hope to triple revenues in four years and represent up to 10% of the company's consolidated revenues,” he said.
ENTEL PERU
Regarding investments in Peru, he highlighted that US$ 131 million will be allocated to the mobile sector and US$ 16 million to the Home business. “It continues to be a market where we see great potential for growth. We are already the second mobile operator in the market and the objective is to close the gap with the leader, supported by a valued brand and a first-class service. We want to grow in market share to reach and exceed 30% in 3 or 4 years,” said Büchi.
One of the axes of Entel Perú's growth strategy is the extension of the coverage of its 4G mobile services in the provinces. Added to the above is the growth potential in the fiber optic business after the signing of the agreement with PangeaCo, which is awaiting approval from the free competition regulator in that country. “This will allow us to access more than 5.2 million people in 86 provinces by 2026 with this technology,” he highlighted.
