US companies close to entering Chile's mobile mart

SANTIAGO, July 20 (Reuters) - U.S. companies Nextel and VTR Moviles were the only bidders in Chile's auction of third generation (3G) mobile spectrum, making them likely new players in the country's mobile market of 15 million users, a source close to the auction talks said on Monday.

Both companies have complied with all the requirements and "It's a fact that Nextel and VTR Moviles will be the new players in the mobile market," said the source, who asked not to be named because he was not authorized to speak publicly about the auction.

The U.S. companies are expected to face fierce competition from Telefonica's (TEF.MC) Movistar, based in Spain, and Entel PCS, owned by Entel ENT.SN and based in Chile. Telefonica and Entel already operate in Chile.

Claro, a unit of Mexico's America Movil (AMXL.MX), is the third main provider in Chile.

Chile's telecommunications regulator is offering three blocks of 30 megahertz 3G mobile spectrum. Local law prevents a single mobile operator from owning more than 60 megahertz, meaning Nextel or VTR will get two blocks.

VTR Moviles is owned by international cable group Liberty Global Inc (LBTYA.O). Nextel operates several radio frequencies and has shown interest in entering Chile's mobile telecom market.

The regulator will take around two months to review the bids before accepting formal offers from both U.S. companies. (Reporting by Mario Naranjo; Writing by Alonso Soto)