SANTIAGO (WiMAX Day) by Joachim Bamrud. With the speed of a Formula 1 racer, Chile may become one of the most advanced users of WiMAX in Latin America.

When the Formula 1 racing car Red Bull made a exhibition run in the Chilean capital of Santiago at the end of October, WiMAX played a key role in bringing images of the racing to keen spectators that couldn’t get close to the cars.

Using a combination of WiMAX, WiFI and microwave, along with a mobile TV unit, Chilean newspaper El Mercurio broadcast the event live in what was the first such transmission of its kind. More than 65,000 F1 fans visited the El Mercurio Internet site to watch their favorite racers.

“Chile has been transformed into the first country in Latin America to transmit a sports event online via WiMAX,” Arturo Catalan, a sub-editor of El Mercurio and intellectual author of the idea, told his paper.

The equipment and network came courtesy of Intel, Chinese PC maker Lenovo, local WiMAX operator Entel and local firm IMCAST, who integrated the technology.

The Formula 1 broadcast came on the heels of Entel formally launching WiMAX in Chile the previous month. The initial phase includes the deployment of 22 base stations, but plans call for a further expansion later. Among the beneficiaries: the city of Penalolen, which received a free hookup from Entel. Its partner Intel also donated 22 PCs to a local school, which became the first in Chile with a WiMAX connection. Intel Chairman Craig Barrett was on hand for the donation and emphasised the cost efficiency of WiMAX as a way to boost broadband Internet.

Increased competition
With one of the most competitive telecom markets in the world, Chile is now also set to see major WiMAX competition.

Entel is not likely to be the only WiMAX provider. VTR, the leading cable operator, and the Chilean subsidiary of Mexican telecom giant Telmex are both likely to provide strong competition, predicts Pyramid Research analyst Thomas Abreau.

Ian Cox, principal analyst at London-based industry research firm TelecomView, agrees, adding Telefonica CTC Chile and Manquehue Net to the roster of potential Entel rivals. “These companies could supplement their fixed services using WiMAX,” he says.

Chile already has the best telecom infrastructure in Latin America with 700,000 broadband connections and 7 million households, according to Cox. “This is still low and WiMAX could bring additional coverage more quickly than DSL or cable,” he says.