July 23 (Bloomberg) -- 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 0.9 percent to 8,984.5 pesos at the close in Santiago. The IPSA benchmark 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.
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