HomeStation, digital home platform digital launched by Movistar Chile in April, is the first solution of this type provided by Grupo Telefónica in Latin America, and the first convergent product of the Chilean subsidiary alter the unification of brands under the name Movistar, carried out in October 2009. As explained by Edwin Elberg, Convergence and Interactivity Manager of MoviStar Chile, in conversation with Convergencialatina, the company wants to encourage new subscriptions and to position as loyalty tool and ARPU's increase. Cloud Computing is the complement to the connected home solution. Elberg stated that the digital home is an old promise, only available for a limited group of people, basically expert users who could think of and arrange their home network. Consequently, HomeStation proposal is based on two concepts: to make digital home available to all broadband customers, and to “achieve presence at home” for Movistar. (For further information, read paragraph “Product”). Elbertg believes main driver for the development of these offers is to provide the customer with something more than only discounts on subscription to new services. Movistar's strategy considers the product as driver of new subscriptions and loyalty and ARPU’s increase tool. By the end of June 2010, the product had already complied with subscription goals planned, it had a customers range between “5 and 10 hundreds”, posting high satisfaction indexes with the connected home solution. This is why HomeStation could be launched in regions beyond Santiago’s boundaries in the short term.

Regional synergies. The project of this platform was developed together with the headquarters during more than a year and it is related to the “Pasarela Residencial” (Residential Catwalk) of Telefónica from Spain. Elbert has explained that HomeStation was launched first in Chile because it is a highly competitive market,; and Brazil might be the next market for the launch, and connected home solution in Latin America might use the name of HomeStation.

Elberg considered that “in the future, HomeStation solution-type trend will be consolidated in the region. In the case of Chile, as it is the spearhead, other Smartphones and Interactive TV are expected to be added this year.” So far, the proposal does not include Internet TV alternatives, although works will be done to incorporate settings to digital TV set-top-boxes, which will enable access to Internet TV as the Play Station, which might be launched before the yearend. Regionally-speaking, the case of HomeStation of Movistar Chile shows the maturing processes on the operators’ convergent strategies. After promised IPTV was not successful in Latin America, proposals like this seem closer to the regional reality, where it is not only a matter of entertainment; there are two segments to be exploited: a home that not always has the electronic arrangement or the internal infrastructure to strengthen use and network reliability; and the other, the Cloud Computing, that makes files storing accessible, and increases network reliability. Cash flows generated by these products might enable investments in networks required for IPTV.

Design and Cloud Computing. With the design of the platform, Telefónica decided “to remove the router from under the table”. The HomeStation case is not only an evidence of the convergence between services and unification of brands, but is also shows the importance of the design at the time of entering the customer’s house. The company Thompson manufactured the phone hardware and the design was hired by Telefónica from a company in France, while manufacturing is carried out in China. Brazil's case production or assembly, though it is not defined yet, might be carried out in Manaos. Second leg of HomeStation is the Cloud Computing service, which enables to store up to 50 GB for free and is focused on the fact that everything can be seen and used through the computer monitor. The service, that was launched by mid Mayo, had 160,000 users by the end of June.

Convergence, a matter of channels. Launch required a new training for sale forces and technical support staff for broadband and residential products. Although, they use the same channels as broadband, web channel seemed the most important for product marketing. Added to these convergent projects is the friendly test carried out by Telefónica for more than two years in the Benedictinos neighborhood, in San Carlos de Apoquindo. There, copper of 4,000 homes is being replaced with fiber optic, within the framework of the drive given by Telefónica to this deployment after the earthquake dated February 27. Elberg believes the IPTV service is related to Interactive TV, and this one needs the digital home for its development. Deployment of fiber is now only taking place in Benedectinos, though they do not reject moving forward through fiber or other high speed technologies.

Product. The product HomeStation combines Voice over IP, high definition voice, music box, file store and share prints, including other functions. The proposal gives an extra value to and customizes the fixed phone. On the one hand, they can be connected to up to five terminals with the standard for DECT wireless phones, and through a VoIP solution is possible to have different phone numbers so that members of e family have their personal fixed line. On the other hand, high definition voice possibility (CD quality) and the news reception on RSS format set on terminals can be added. The solution shows the wireless system as the way to connect the home, since through Wi-Fi it enable to share devices such as printers, storing USB, music box and digital radios, and a minimum interaction with television context through Play Station.