Chile’s telecom infrastructure is capable of supporting a wide range of services in the fixed-line, digital media and mobile sectors. Full competition has been proactively encouraged in all market segments, which has attracted many investors. The country’s market-oriented economy has also made it a popular international target. The incumbent comfortably leads the fixed-line sector, whereas other competitors fight for the mobile and broadband markets, usually through specialized subsidiaries. The technical regulator is the Ministry of Transportation and Telecommunications, through the Undersecretariat of Telecommunications (Subtel).
Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some 60% of total exports. Copper alone provides 20% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to an estimated 2.3% in 2015. A continued drop in copper prices prompted Chile to experience its second consecutive year of slow growth, elevated inflation and a depreciating currency.
Although its dependence on imported oil makes Chile vulnerable to volatility in global commodities markets, solid economic fundamentals undergirded an economic rebound in 2018. Chile retains the Pacific Alliance’s best investment profile and benefits from many free-trade agreements, and it shows one of the lowest corruption rates in the region.