VTR GlobalCom
- Increased churn and lower sales volume due to economic slow down.
- ARPU ahead of budget in Chilean pesos (but below budget in US$’s).
- Theft of service forecast to be 20-25% of homes passed.
- Opportunity to differentiate service with premium programming (e.g. adult).
- Economy experienced first recession in 16 yrs - GDP decline of 1.5%
- Chilean Peso experienced a 16.5% devaluation from 12/98-12/99.
- Recent presidential elections resulted in January run-off.
- Successful execution despite economic environment.
- 185,000 2-way homes built, 2 new markets launched, 51k net gain.
- New tariff decree hurts CTC, but diminishes VTR’s price advantage.
- Continued shake-out and consolidation in telecom sector.
- VTR launches high-speed trial to more than 1,000 customers.
- Heightened focus on pan-regional internet opportunities.
- Negotiations with chello complete.
Key Operating/Strategic Issues in 1999