After the local data, fixed-line, cable TV and Internet provider Grupo GTD gave up the merger with Chile’s Empresa Nacional de Telecomunicaciones S.A. Entel, the second largest telecom operator has release a material fact regarding its eventual entrance into the pay-TV market. Entel said that pay-TV is a business the company has analyzed for some time, and the company had planned to enter the market via a merger with Grupo GTD.
In November 2011, Entel signed an agreement with Media Network, and at the end of December the company obtained a concession. These actions have enabled Entel to make the decision to develop a pay-TV business and launch commercial offerings.
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The partnership agreement with Media Network will enable Entel to offer satellite pay-TV services on the local market, which it expects to launch commercially in about three months, according to the local press.
Entel has offered services to the home market in various forms throughout its history. To this end, the company continuously evaluates its options to generate a more complete service offering that introduces greater competitiveness to the home access market via landline or wireless services.
Entel also noted that it will continue to update the market with regard to its pay-TV business, as well as other services expected to be launched throughout the year.
Grupo GTD cancelled the merger with Entel little more than a month after its announcement.
Chile currently has some 1.9 million pay-TV service users, with VTR as a leader with 46% of market share, followed by Claro (19.2%), Movistar (17.5%) and DirecTV with 10.3%.