Chile: Spectrum hoarding claims lands complaint for top telcos

Wireless operators Entel, Movistar and Claro are facing competition complaints in Chile as a consumer rights group has reportedly asked authorities to fine the firms for spectrum hoarding.

The National Association of Consumers and Users of Chile filed a complaint with the Chilean Tribunal for the Defense of Free Competition, reports say, accusing the operators of holding too much spectrum as the government spectrum auction continues.

The companies have already placed their bids for the airwaves, but reports say the complaint alleges that the company have surpassed their approved spectrum limits.

Chile’s Supreme Court ruled in 2009 that wireless operators cannot hold more than 60 MHz of spectrum to preserve competition. But the consumers group claims that the three operators control 98 percent of the market and that Entel holds 100 MHz, while Movistar and Claro each hold 95 MHz, even before spectrum is acquired from the ongoing auction.

According to the complaint, the Supreme Court spectrum cap is not considered by the government in its spectrum auction. The complainant is now seeking fines imposed on the companies.

Full Content: Telecompaper

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