Background on Verizon and its Relevance
Verizon Communications Inc., headquartered at West Street 140, New York, is a leading global provider of communication, technology, information, and streaming products and services for consumers, businesses, and government entities. With a global presence, Verizon offers data, video, and voice services across networks and platforms.
Verizon Chile’s History and Current Concessions
Verizon Chile has been legally established in the country since 1999, according to records from the Chilean Comisión para el Mercado Financiero (CMF). The Subsecretaría de Telecomunicaciones (Subtel) granted Verizon Chile a new concession for internet-based voice services, i.e., telephony. Verizon Chile already holds two other telecommunications service concessions in the country: data transmission and intermediate telecommunications services.
Verizon Chile requested the new concession to expand its services and meet growing customer demand, as stated by Subtel.
Industry Context and Speculation
In an industry often complaining about limited space for multiple players, rumors circulated that Verizon Chile’s new concession could be driven by an interest in acquiring assets from other companies, particularly Movistar Chile.
This speculation arises as the parent company of Movistar Chile, Spanish Telefónica, is divesting from Latin America. In just five months, Telefónica has sold its businesses in Argentina, Peru, Colombia (pending authorization), Uruguay, and Ecuador. Industry experts suggest that if Verizon intends to acquire assets or another telecom company, it doesn’t need additional concessions; acquiring an existing telecom firm with the appropriate licenses would suffice.
Verizon reported $134,738 million in operating revenues and $17,090 million in investments for 2024.
Key Questions and Answers
- Who is Verizon Communications Inc.? Verizon Communications Inc. is a global leader in communication, technology, information, and streaming products and services for consumers, businesses, and government entities.
- What are Verizon Chile’s current concessions? Verizon Chile holds three telecommunications service concessions in Chile: data transmission, intermediate telecommunications services, and internet-based voice services (telephony).
- Why might Verizon Chile seek a new concession? Verizon Chile requested the new concession to expand its services and meet growing customer demand.
- What is Telefónica’s role in this situation? Telefónica, the parent company of Movistar Chile, is divesting from Latin America. This divestment could create opportunities for Verizon Chile to acquire assets or expand its presence in the region.
