Entel Rises in Chile After Winning Peru Broadband License

Empresa Nacional de Telecomunicaciones SA, Chile’s second-largest mobile-phone operator, rallied after gaining a broadband license allowing it to increase services in Peru.

Entel, as the company is also known, increased 0.4 percent to 8,940 pesos at 12:55 p.m. in Santiago. The IPSA benchmark index was little changed

Americatel Peru, a unit of Entel, was awarded a license to offer 4G broadband services in Peru and is paying $106 million, according to an Entel regulatory filing. The company agreed in April to pay $400 million for Nextel Peru, a unit of Reston, Virginia-based NII Holdings Inc. Peru’s economy will grow 5.75 percent this year, the fastest among the biggest South American countries, according to the median forecast of analysts surveyed by Bloomberg.

“We view the win as positive long term, as it should help Entel gain market share in Peru,” Banco BTG Pactual SA analysts Tomas Gonzalez, Carlos Sequeira and Fabio Levy said today in a research note to clients.

Spain’s Telefonica SA and Mexico’s America Movil SAB control about 94 percent of the Peruvian mobile market, according to BTG Pactual.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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