RIO DE JANEIRO, BRAZIL – Little by little, the offer of satellite internet in the country is adding participants and will soon have a special guest: billionaire Jeff Bezos.
On March 30, the intermediate concession decree was published in the Official Gazette, a document that allows Amazon to build its stations to connect low-orbit equipment to the earth. This permit was authorized on February 15 by the then Minister of Transport, Gloria Hutt, and the now former Undersecretary of Telecommunications, Francisco Moreno.
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“As already advanced with Starlink and Kuiper, if there were other interested actors they will receive the same facilities to operate,” said Undersecretary Claudio Araya.
The multinational received the approval of the authority so that it can “install, operate and exploit” tracking, telemetry and command stations, which will be connected to the Kuiper System Satellite Constellation, as the Amazon division that directs the project is called. global level. Unlike the decree that came out in August 2021 -which was the authorization request- this is the definitive permit.
The Undersecretary of Telecommunications, Claudio Araya, met last Friday with executives of the company to have more details of the three stations that are being built in the commune of San Pedro, Longovilo.
“For us it is good news that operators of this magnitude are interested in providing services in Chile. Above all, satellite operators, which allow us to offer services in places that are inaccessible to terrestrial networks. In this sense, as already advanced with Starlink and Kuiper, if there were other interested parties, they would receive the same facilities to operate, always within what our regulatory framework allows”, explained Araya.
Meanwhile, Francisco Moreno said that the installation of Amazon in the country “confirms the attractiveness of Chile for companies to test and develop new technologies that allow us greater digital inclusion. It only remains to hope that we do not lose said leadership by virtue of the norms that have been approved by the Constitutional Convention and that put a blanket of deep uncertainty on the rules of foreign investment”.
START OF SERVICE
Currently, the conglomerate linked to Bezos is in full execution of the project to set up the infrastructure and deploy its satellite service. According to the decree, the tech giant has 180 days to start construction works and another 60 days to finish them.
When both milestones are completed, Amazon has another 180 days to turn on its network, that is, it must launch the commercial offer at the end of 2023, according to the document published in the Official Gazette.
However, in order to distribute satellite internet to the end user, Amazon has to declutter the mechanism it will use. Unlike Starlink -Elon Musk’s company that already operates in the country-, Jeff Bezos’ firm requested an intermediate service concession. This allows you to be a wholesale cut operator, but you cannot access the end customer.
“So far they have not requested a public service concession, so the delivery of services to end users, if it were today, would have to be done through one or more local partners,” explained Undersecretary Claudio Araya.
During the installation of its satellite equipment, Amazon can request a public service concession, the only document that allows direct access to subscribers.
“While Starlink sells its installation kits directly to users and does not currently have local partners, Kuiper is considering its deployment with local partners. To date, Starlink has implemented five earth stations, which allows it to cover services between Caldera and Chiloé, and will soon reach Taltal to the north and Coyhaique to the south”, the authority announced.
In accordance with the Starlink concession decree, next June it must complete the rest of the switching on of the national coverage network.
POTENTIAL PARTNERS
In the case of Kuiper, there are two operators that are outlined in the market as possible candidates since it has some link with the North American: GTD and Entel. The firm linked to businessman Juan Manuel Casanueva has Amazon with network confidentiality contracts.
The versions about whether GTD could be a strategic partner were born in December 2021, when the satellite company requested a public service permit from the Undersecretary to install itself in Magallanes with this operator. The Chilean flag company lends Amazon a fiber optic support to download satellite information to earth, known as Headend, or header.
For its part, Entel could also be a potential partner, because Amazon installed its satellite center in the same location where the company linked to the Almendral Group has its low orbit base: Longovilo.
Despite the above, Amazon is obliged -in the first five business days of the months of February, June and October of each year- to inform Subtel of the number of stations installed in the system. In case of not doing so, Subtel will proceed to charge according to the calculation procedures for the established rights, according to what is stated in the decree.