How Chile can lead the Latin American telecom revolution

Latin American ICT executives and ministers, regulators, telecoms operators and industry associations will participate in the Latin American telecoms conference CLT16 taking place from June 20-23 in Cancún, Mexico.

Chile has long been held as a leading nation in the adoption of telecoms and IT services, and has been progressive in areas of regulation including net neutrality, spectrum auctions and digital access plans.

BNamericas spoke to Chile telecoms regulator Subtel head Pedro Huichalaf who will be attending the conference and asked him for his opinion on the major issues that will be discussed.

BNamericas: There are a number of key issues on the agenda of CLT, including narrowing the digital divide, creating a single digital market in Latin America and regulating data privacy. What do you think Chile can contribute to these matters from its experience?

Huichalaf: Chile is one of the leading nations in telecommunications in Latin America and I think our experience can be useful to other countries in attendance. In November, Chile will assume the presidency of [American telecoms regulators association] Regulatel. At CLT one of the key sessions for me will be the one related to regulation telecommunications in the future. I will speak about Chile's experience in auctioning the 700MHz band for LTE and LTE-A. We want to come up with new policies to prepare us for 5G and for digital TV.

BNamericas: What are the key regulatory challenges for Latin America?

Huichalaf: What we don't have is a centralized regulatory entity like they do in Europe through the European Union. We need to focus on boosting innovation and development through telecommunications. We are exploring how to work together through the Pacific Alliance trading bloc [consisting of Chile, Peru, Colombia and Mexico].

BNamericas: What about roaming?

Huichalaf: There are already experiences with roaming agreements. Throughout all of Central America, international calls are charged at local rates and there are talks of expanding that. In December, Claro Chile launched a roaming plan providing preferential rates to post-paid subscribers that travel to Argentina, Peru and Colombia. And this is an issue I will be bringing up in Regulatel.

BNamericas: Eclac has said Latin America needs a single digital market with a uniform legal framework and regulations to help expand the digital economy. What is needed to achieve this?

Huichalaf: Chile will participate in conversations around this idea but we don't believe that such a market can be implemented by a private entity. It has to come from public policy that encourages such activities, but not be focused on any one private sector in particular.

BNamericas: Another key theme at CLT will be how to regulate the internet, particularly protecting personal data and cyber security. Chile is debating a personal data protection law, so what can the country contribute to the debate?

Huichalaf: Chile has the highest internet penetration rate in Latin America. In Chile we participate in an inter-ministry committee that debates the issue of cyber security. Personal data protection is a sensitive issue and each country has to find the solution that best suits its population. The Agenda Digital 2020 presented last November by President Michelle Bachelet includes a clause to protect personal data and a bill is being debated in congress, which would bring Chile in line with requirements of the OECD and the UN.

BNamericas:  Asiet has estimated that an investment of over US$400bn is needed in fixed and mobile networks in Latin America to meet the goal of closing the digital divide by 2020. Is this goal achievable?

Huichalaf: Investments are being made. In Chile this year we're going to auction a US$100mn contract to deploy a fiber optic cable connecting all of Chile's south. Infrastructure is important and necessary for economic growth. But in terms of the region we need more interconnection and local content to encourage people to access the web.

BNamericas:  Spectrum is always and the center of any debate regarding infrastructure rollout. What challenges still lie there?

Huichalaf: Chile's experience has shown that the efficient use of spectrum contributes significantly to the greater connectivity of the population. We're now looking at how to apply that spectrum to other technologies and industries to improve productivity. Experiences in Europe have shown that, rather than more spectrum, it's more about the efficient use of spectrum, and that is what we'll keep in mind when encouraging IoT and smart cities.

BNamericas: Which countries stand out as examples to follow in telecommunications development?

Huichalaf: Mexico has made significant changes in its constitution in terms of telecommunications, but that applies specifically to the situation in that country, where there was a monopoly. I look at Asian Pacific countries like South Korea, Japan, and China, which have solid planning in telecommunications and they are working to standardize 5G by 2020.