Member Article

During the last 10 years there has been a significant market debate about the position Chile should take in connection with open digital television. This debate is all teh more significant because this service may predominate in the future because of its ability to allowing users to better administer the content they wish to watch.

Since the beginning of the debate, different countries have tried to introduce their respective technologies in Chile. The first standard offered to our authorities were the United States model (ATSC) and the European model (DVB), which for a long period were the only technologies analyzed by the Chilean government.

The subject, however, lost momentum for a few years, reappearing only at the end of 2005, when it captured the interest of some of the main local telecommunications companies. From that moment, the discussion focused on questions like which system provides the best definition, which is the best signal compression to allow entrance of new competitors to the market and to provide a national coverage at lower prices and which is the best alternative to allow not only image transmission but also radio, data and Internet communications.

During 2006 the Japanese model (ISDB) appeared as a new option. In October 2006, the Chilean Undersecretary of Telecommunications promoted an open discussion about the three technological options (the American, the European and the Japanese models) which were analyzed in public audiences. These groups included television channels, cable operators, telecommunications companies, equipment manufacturers and other players in the market.

On December 2006, the Brazilian digital television technology (SBDTV) was also presented in Chile, adding a fourth alternative to the pool of options.

Additionally, the main telephone operators have also taken an active part in the debate. Telefónica CTC (a subsidiary of Telefónica de España) is trying to implement the Spanish technology, known as "Imagenio", which the company believes may become an important new source of income. In turn, at the end of 2005, VTR (a subsidiary of Liberty Media) started a free digital cable television pilot project for its premium customers and intends to gradually expand it to different sectors of its customers. Finally, Telefónica del Sur (a domestic company controlled by the Luksic Group) started last year an ADSL digital television plan, intending to transform each line of Telefónica Del Sur into a "broadband line that may support Internet telephony, digital television and any Internet services".

This debate will continue until the Chilean Undersecretary of Telecommunications makes a final decision based on an exhaustive study currently being performed. According to media information, the decision is expected to be made during the second quarter of 2007.

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