Chilean 5G deployment regulatory dispute

Chile’s Undersecretariat of Telecommunications (Subtel) began evaluating a potential $38 million penalty against the telecommunications company WOM. The regulator noted that WOM failed to meet a September 30 deadline to complete 90% of its planned 5G network deployment, as required by an agreement with the State Defense Council (CDE). WOM submitted 86 requests for force majeure, citing extreme weather, permit delays, and land access issues to justify the setbacks.

Following these regulatory developments, América Móvil, the parent company of ClaroVTR, initiated preliminary procedures to bring the Chilean state before the International Centre for Settlement of Investment Disputes (ICSID). América Móvil alleges discriminatory treatment, arguing that the agreement between the CDE and WOM regarding modified deployment deadlines provided an unfair advantage. The company is questioning why non-compliance guarantees were not fully executed. A 90-day negotiation period has been triggered, after which América Móvil may formally request arbitration.