The sale, led by investment banks BNP Paribas, Santander and financial adviser Scotiabank, is subject to approval by Chile's economic regulator, expected in the first half of 2023.

Entel and ON*NET Fibra signed an agreement as part of the deal that will enable Entel to continue offering internet services for residences on ON*NET's network, Entel said in a statement.

"By selling our network, rather than leaving the fixed market, we are increasing coverage rapidly to offer our internet services to the home at efficient costs and without the need to invest the sums required for a fiber deployment with this coverage," the statement added.

Following the closing of this transaction, ON*NET Fibra is expected to reach more than 4.3 million homes in 2024.

Entel has operations in Chile and Peru and has more than 20 million mobile subscribers.