Chile Telsur to piggy-back on Telefonica mobile arm

SANTIAGO, Nov 17 (Reuters) - Telsur, Chile's No. 3 listed telecom company, said on Monday it will offer services in the country's south, piggy-backing on mobile networks and antennae of Telefonica Spain's (TEF.MC) mobile phone unit, Movistar.

Telsur CON.SN signed an agreement with Movistar enabling it to add mobile phone services in an area where it dominates in fixed-line services. In turn, it will also allow Movistar to use some of its infrastructure.

"It means that Movistar wins by selling services to Telsur, and Telsur wins because it will most likely be able to package mobile services with fixed-line service," said Cristina Acle, head of research with CorpResearch in Santiago.

No details were given on the value of the agreement.

Movistar is the market leader, but Entel PCS ENT.SN runs a close second in Chile's competitive mobile phone market, which has a market penetration of over 90 percent, the highest in Latin America. (Reporting by Monica Vargas, writing by Lisa Yulkowski)