Ericsson has inked a three-year deal with Chilean operator Entel Chile which will pave the way for the launch of 5G and IoT services, the companies said in a joint statement.

According to the release, both services are expected to be launched before the end of the year.

The new 5G agreement will help enable several 5G applications using augmented and virtual reality (AR/VR) along with IoT capabilities.

Entel plans to deploy a 5G network using Ericsson 5G RAN products and solutions from the Ericsson Radio System portfolio, including spectrum sharing and massive MIMO radios for high-band (26 GHz and mid-band (3.5 GHz).

“Together with Ericsson, we will be able to continue to provide our customers with innovative new services and use cases, along with a superior browsing experience, leveraged on the new 5G network,” said Antonio Büchi, CEO of Entel.

“Ericsson is proud to continue to be the RAN partner for Entel Chile and is now extending the partnership to take this step towards 5G. We are powering nearly 90 commercial 5G live networks in 43 countries, and we are excited to lead this process once again,” said Arun Bansal, President of Ericsson for Europe and Latin America.

Entel Chile and Ericsson’s path towards 5G began in 2019, when the companies began a series of 5G tests in the country

Rival operator Movistar, owned by Spanish telecoms giant Telefonica, selected Nokia to provide its AirScale portfolio to launch the operator’s 5G network in Chile.

The upgraded network, which will operate across Movistar’s recently won spectrum in Chile’s 5G auction in the 3.5 GHz band. Nokia also noted that the 5G network will offer Movistar’s business customers access to 5G use cases, including support for Industry 4.0, public sector and health innovations, and private wireless.

In February, Chile completed what it claimed to be the first tender to assign 5G spectrum in Latin America.

The country’s telecoms watchdog Subtel said that the government raised $453 million in four rounds (700 MHz, AWS, 3.5 GHz and 26 GHz), which is 512% more than what was collected in all previous spectrum tenders combined.

Subtel also confirmed that a total of 1.8 gigahertz was awarded for mobile broadband.

Mobile operators Movistar, Entel and WOM secured 50 megahertz of 3.5 GHz spectrum each, disbursing 117 billion pesos (currently $158 million), 100 billion pesos and 32 billion pesos respectively.

WOM won a 20 megahertz block in the 700 MHz band, 30 megahertz in the AWS band, and 50 megahertz in the 3.5 GHz band, paying around $150 million.

Claro and Entel also secured additional spectrum in the 26 GHz band.

The Chilean government expects the future development of 5G networks will lead to additional investments of $5 billion over five years.

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