The National Economic Prosecutor’s Office (FNE) reported the approval of the sale of the assets that make up the fiber optic infrastructure business line for the provision of Internet services to Entel’s home to ON*NETFIBRA in Chile, a wholesale fiber optic infrastructure company.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction, it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services, which will allow the technology and telecommunications company to continue offering Internet services for the home in the country, now over the wholesale company’s wider and more modern neutral network.
At the end of 2023, Entel reaches 1.3 million homes with technical feasibility and it is expected that, as a result of this agreement, a total of 4.3 million homes will be reached in 2025, from the regions of Arica to Aysén, in the very short term. As part of the approval, a portion of the network in eight communes will be divested, in accordance with the agreement with the FNE. The implementation of this measure does not affect the estimated total amount of UF10.2 million (approx. US$432 million), already reported for the transaction.
Entel’s CEO, Antonio Büchi, valued the approval, as this transaction is pro-competitive and beneficial for consumers in the Chilean home internet market.
“With this transaction we can enter with strength into the home Internet business. It allows us to offer Internet to 4.3 million homes and small businesses in the very short term, three times the reach we have today with our own network. In addition, it provides us with a competitive cost model, which assures us to reach Chilean homes with a very competitive offer of high-quality fiber. This is the advantage of promoting the use of neutral infrastructure operators such as ON*NETFIBRA”, said Büchi.
He also stressed that “now we will be able to concentrate our efforts and investments in the development of 5G, in connecting customers, ensuring a great service experience inside the home and in digital services, in line with our purpose of bringing the infinite possibilities that technology offers to responsibly transform society. This model will also allow us to expand this shared fiber coverage to many places where today it is difficult and costly to reach”.
José Miguel Torres, CEO of ON*NETFIBRA, indicated that “Entel’s confidence in our model fills us with satisfaction. The closing of this transaction reinforces our wholesale structure, open and neutral, boosting competition, raising the quality of service and expanding fiber optic coverage for the benefit of families and businesses in Chile. This transaction supports our commitment to expand connectivity, allowing people to enjoy the benefits of high speed and significantly advancing our goal of achieving a zero digital divide”..
About Entel
Entel is a company with 59 years of history, one of the largest publicly traded companies listed on the Santiago Stock Exchange, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$3,137,710 million as of December 2022. The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In each of these services, it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
About ON*NETFIBRA
ON*NETFIBRA began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure network in the country. Since then, it has driven the entry of new players into the telecommunications industry, collaborating with the country’s goal of achieving zero digital divide.
Its fiber optic network is available in all 16 regions to be used by all current and future telecommunications operators, contributing to the digitalization of more people and companies, regardless of where they live.
ON*NETFIBRA is 60% controlled by infrastructure funds managed by entities related to the U.S. firm KKR, a leading global investment execution, and 40% owned by Telefónica Hispanoamérica.
15 Dic, 2023
The National Economic Prosecutor’s Office (FNE) reported the approval of the sale of the assets that make up the fiber optic infrastructure business line for the provision of Internet services to Entel’s home to ON*NETFIBRA in Chile, a wholesale fiber optic infrastructure company.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction, it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services, which will allow the technology and telecommunications company to continue offering Internet services for the home in the country, now over the wholesale company’s wider and more modern neutral network.
At the end of 2023, Entel reaches 1.3 million homes with technical feasibility and it is expected that, as a result of this agreement, a total of 4.3 million homes will be reached in 2025, from the regions of Arica to Aysén, in the very short term. As part of the approval, a portion of the network in eight communes will be divested, in accordance with the agreement with the FNE. The implementation of this measure does not affect the estimated total amount of UF10.2 million (approx. US$432 million), already reported for the transaction.
Entel’s CEO, Antonio Büchi, valued the approval, as this transaction is pro-competitive and beneficial for consumers in the Chilean home internet market.
“With this transaction we can enter with strength into the home Internet business. It allows us to offer Internet to 4.3 million homes and small businesses in the very short term, three times the reach we have today with our own network. In addition, it provides us with a competitive cost model, which assures us to reach Chilean homes with a very competitive offer of high-quality fiber. This is the advantage of promoting the use of neutral infrastructure operators such as ON*NETFIBRA”, said Büchi.
He also stressed that “now we will be able to concentrate our efforts and investments in the development of 5G, in connecting customers, ensuring a great service experience inside the home and in digital services, in line with our purpose of bringing the infinite possibilities that technology offers to responsibly transform society. This model will also allow us to expand this shared fiber coverage to many places where today it is difficult and costly to reach”.
José Miguel Torres, CEO of ON*NETFIBRA, indicated that “Entel’s confidence in our model fills us with satisfaction. The closing of this transaction reinforces our wholesale structure, open and neutral, boosting competition, raising the quality of service and expanding fiber optic coverage for the benefit of families and businesses in Chile. This transaction supports our commitment to expand connectivity, allowing people to enjoy the benefits of high speed and significantly advancing our goal of achieving a zero digital divide”..
About Entel
Entel is a company with 59 years of history, one of the largest publicly traded companies listed on the Santiago Stock Exchange, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$3,137,710 million as of December 2022. The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In each of these services, it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
About ON*NETFIBRA
ON*NETFIBRA began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure network in the country. Since then, it has driven the entry of new players into the telecommunications industry, collaborating with the country’s goal of achieving zero digital divide.
Its fiber optic network is available in all 16 regions to be used by all current and future telecommunications operators, contributing to the digitalization of more people and companies, regardless of where they live.
ON*NETFIBRA is 60% controlled by infrastructure funds managed by entities related to the U.S. firm KKR, a leading global investment execution, and 40% owned by Telefónica Hispanoamérica.
The National Economic Prosecutor’s Office (FNE) reported the approval of the sale of the assets that make up the fiber optic infrastructure business line for the provision of Internet services to Entel’s home to ON*NETFIBRA in Chile, a wholesale fiber optic infrastructure company.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction, it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services, which will allow the technology and telecommunications company to continue offering Internet services for the home in the country, now over the wholesale company’s wider and more modern neutral network.
At the end of 2023, Entel reaches 1.3 million homes with technical feasibility and it is expected that, as a result of this agreement, a total of 4.3 million homes will be reached in 2025, from the regions of Arica to Aysén, in the very short term. As part of the approval, a portion of the network in eight communes will be divested, in accordance with the agreement with the FNE. The implementation of this measure does not affect the estimated total amount of UF10.2 million (approx. US$432 million), already reported for the transaction.
Entel’s CEO, Antonio Büchi, valued the approval, as this transaction is pro-competitive and beneficial for consumers in the Chilean home internet market.
“With this transaction we can enter with strength into the home Internet business. It allows us to offer Internet to 4.3 million homes and small businesses in the very short term, three times the reach we have today with our own network. In addition, it provides us with a competitive cost model, which assures us to reach Chilean homes with a very competitive offer of high-quality fiber. This is the advantage of promoting the use of neutral infrastructure operators such as ON*NETFIBRA”, said Büchi.
He also stressed that “now we will be able to concentrate our efforts and investments in the development of 5G, in connecting customers, ensuring a great service experience inside the home and in digital services, in line with our purpose of bringing the infinite possibilities that technology offers to responsibly transform society. This model will also allow us to expand this shared fiber coverage to many places where today it is difficult and costly to reach”.
José Miguel Torres, CEO of ON*NETFIBRA, indicated that “Entel’s confidence in our model fills us with satisfaction. The closing of this transaction reinforces our wholesale structure, open and neutral, boosting competition, raising the quality of service and expanding fiber optic coverage for the benefit of families and businesses in Chile. This transaction supports our commitment to expand connectivity, allowing people to enjoy the benefits of high speed and significantly advancing our goal of achieving a zero digital divide”..
About Entel
Entel is a company with 59 years of history, one of the largest publicly traded companies listed on the Santiago Stock Exchange, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$3,137,710 million as of December 2022. The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In each of these services, it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
About ON*NETFIBRA
ON*NETFIBRA began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure network in the country. Since then, it has driven the entry of new players into the telecommunications industry, collaborating with the country’s goal of achieving zero digital divide.
Its fiber optic network is available in all 16 regions to be used by all current and future telecommunications operators, contributing to the digitalization of more people and companies, regardless of where they live.
ON*NETFIBRA is 60% controlled by infrastructure funds managed by entities related to the U.S. firm KKR, a leading global investment execution, and 40% owned by Telefónica Hispanoamérica.