CHILE · TELECOMS
Key Facts
- The country Chile is a South American country of about 20 million people and a major market for US telecom and mining investors, led by President José Antonio Kast.
- What happened On Wednesday 21 October 2026 the telecoms undersecretary told senators that Chile will demand US$38 million in cash from mobile operator Wom.
- The claims Wom has filed 86 force majeure claims, which argue that events outside its control delayed its 5G antenna works.
- The guarantees Bank guarantees of 211,123 UF, a Chilean inflation-linked unit worth about US$8.9 million, could be collected if the delays are confirmed.
- The deadline Wom had to finish 90% of its remaining 5G works by 30 September, and was given no extra time.
- What it means for you US bondholders, lenders and telecom investors who followed Wom’s US bankruptcy now watch a Chilean state claim on the company.
- Power Index Chile ranks 3rd of 14 in The Rio Times Latin America Power Index, with 63.6 points (October 2026 edition).
Chile will demand US$38 million in cash from mobile operator Wom over its Wom 5G failures, an official told senators on Wednesday 21 October 2026. Telecommunications Undersecretary Romina Garrido said her office is still reviewing 86 force majeure claims from Wom, according to Diario Financiero.
Wom is the Chilean mobile carrier that went through a US bankruptcy process in 2024, so the Wom 5G dispute matters to American creditors. The government is not backing down on the cash demand, although the final ruling on the claims is still days away.
What the Undersecretary Told Senators
Garrido spoke at the Senate, where lawmakers have pressed the government for months over Wom’s unmet promises. She said the review of Wom’s claims has taken a little longer than expected.
The milestone date was 30 September, and Garrido said Wom has not been given any extra time. Her office expects to finish its final analysis this week, according to Diario Financiero.
Why Chile Wants Cash and Not More Antennas
Under an agreement reached with the State Defence Council, the government’s legal arm, Wom owes the State US$15 million plus a compensation of 950,000 UF. Diario Financiero put that compensation at about US$38 million, and Wom could pay it in works or in cash.
Garrido said Subtel, the telecoms regulator, will choose cash and will not accept more infrastructure. Subtel plans to issue a formal administrative act before December, and the first instalment is due at the end of January 2027.
The 86 Force Majeure Claims
Force majeure is a legal term for events outside a company’s control, such as severe weather, that can excuse a missed deadline. Wom filed 86 such requests under the second milestone of its agreement, which requires 90% of the Wom 5G works left unfinished in 2023.
Garrido said the review covers only claims filed up to 30 September, and Wom may still file more because the project is under way. An extra period could be granted if the events were genuinely overcome, for example weather, she said.
What Has Been Built and What Is at Stake
Garrido said not everything Wom has filed is compliant, because some work receptions were rejected. Of 952 base stations to certify, Wom filed 626 requests in July, 7 in August and 388 in September, according to Diario Financiero.
Those bank guarantees expire on 18 January 2027, according to Radio Pauta. When the agreement was announced, Subtel said non-compliance could start a process to strip Wom of its licences and return its spectrum.
How Wom Got Here
Wom’s first deadline for its Wom 5G network expired in October 2023 with the company at 69% progress, Radio Pauta reported. Subtel sanctioned Wom in April 2023, according to Telesemana.
Wom filed for bankruptcy in the United States in 2024, Diario Estrategia reported. Telesemana said it left Chapter 11, the US court process for restructuring debts, in 2025 with US$650 million less debt.
Wom blames its former controllers for poor management, according to Diario Estrategia. It says the new shareholders will meet the inherited obligations and the Wom 5G deadlines.
What It Means for US Readers
For US bondholders and lenders in Wom’s restructuring, the Chilean state has become a claimant on the company’s cash. A US$38 million payment plus possible guarantee collections competes with other creditors for the same money.
For US telecom investors, the case shows how Chile enforces Wom 5G licence terms against a carrier that restructured in a US court. Wom competes with rivals such as Entel and Movistar.
Consumers are a second concern, because Senator Loreto Carvajal said in August that millions of customers pay for a service that is not being provided. No change to roaming or coverage for visitors has been announced.
What Is Not Known
Subtel has not published its final ruling on the 86 force majeure claims. Wom’s reaction to Garrido’s statements is not known.
It is not known whether the licences will be withdrawn, which Chile has not decided. Whether Wom will pay the first instalment due at the end of January 2027 is also open.
What Comes Next
Subtel expects to finish its analysis this week and to issue its act on the cash payment before December. The Senate commission has asked for a special session and a summons for the State Defence Council, with no date set, according to Radio Pauta.
For Chile’s broader dealings with foreign investors, see our report on Chile’s US$105 billion mining pitch in London. For another recent telecom rule, see Chile’s end to anonymous prepaid phone lines.
More: Chile news in English, every day from The Rio Times.
Frequently Asked Questions
What does Chile want from Wom?
Chile wants US$38 million in cash as compensation for missed 5G targets, plus US$15 million owed to the State. Subtel says it will not accept more infrastructure in place of cash.
What is force majeure in the Wom case?
Force majeure means events outside a company’s control, such as severe weather, that can excuse a missed deadline. Wom filed 86 such claims, and Subtel is still reviewing them.
Could Wom lose its 5G licences?
Subtel said earlier that non-compliance could start a process to withdraw Wom’s licences and return the spectrum to the State. No such decision has been taken.
Why does this matter to US investors?
Wom went through a US bankruptcy process in 2024, so American creditors have a stake in the company. A Chilean state claim on its cash competes with other debts.
When will the decision come?
Subtel expects to finish its analysis this week, and a formal act on the cash payment is planned before December. The first instalment is due at the end of January 2027.
Sources: Diario Financiero, 21 October 2026; Radio Pauta, 2 October 2026; Diario Estrategia, 28 August 2026; Telesemana, 27 June 2025.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error