Solid performers that buck the trend
The Chilean telecoms market is the most competitive in the region. Chile was the first country to privatize the sector, in 1987, and there are few restrictions on foreign entry. Compañía de Telecomunicaciones de Chile (CTC), has been operating for 108 years and has continued to excel. "It has had tremendous competition since deregulation but it has positioned itself well," says Steven Barnes, telecoms analyst at Banco Santander in Chile.
CTC's success is based on its focus on its core business, its successful expansion into every market segment, and its partnership with Telefónica de España. Analysts widely agree that it is the best managed telecoms company in Latin America. Its operational and financial efficiency is equally good. Moreover, says Barnes: "Its investor relations department is one of the best in terms of being forthcoming with its material."
CTC has increased lines per inhabitant in Chile from 4.7 to 18 since its privatization. Claudio García, chairman of CTC, says it has been transformed from a bureaucratic institution to a private company centred on its customers. "It has brought us excellence as well as significant savings in cost.