América Móvil initiates international dispute against Chile over 5G competition

América Móvil, the parent company of ClaroVTR, has initiated preliminary procedures to bring the Chilean state before the International Centre for Settlement of Investment Disputes (ICSID). The Mexican group alleges discriminatory treatment following an agreement between the Chilean State Defense Council (CDE) and the telecommunications company WOM regarding 5G network deployment.

The dispute stems from a deal that modified deadlines for WOM to fulfill 5G licensing commitments originally made in 2021. While WOM faced a US$52.75 million fine for delays, the agreement established a new schedule requiring 90% of pending antenna installations by September 30, 2026, with the remainder due by December 31. América Móvil contends these conditions provided unfair advantages to its competitor and questions why associated guarantees for non-compliance were not fully executed.

A 90-day negotiation period has been triggered. If no settlement is reached, América Móvil may formally request arbitration through the World Bank-linked ICSID. This development follows a previous legal action by ClaroVTR in Chilean courts seeking to nullify the agreement. Meanwhile, the Undersecretariat of Telecommunications (Subtel) has noted that certain non-compliances persist despite the new schedule.