SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20459

FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

October 31, 2002

Compañ ía de Telecomunicaciones de Chile S.A.
(Exact name of registrant as specified in its charter)

Telecommunications Company of Chile
(Translation of registrant’s name into English)

Avenida Providencia No. 111, Piso 22
Providencia, Santiago, Chile
(562) 691-2020
(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:)

Form 20-F X Form 40-F

(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:)

    Yes No X

(If “Yes” is marked, indicate below
the file number assigned to the registrant in
connection with Rule 12g3-2(b):)     N/A

COMPAÑÍA DE TELECOMMUNICACIONES DE CHILE S.A.

TABLE OF CONTENTS

Item
1.	Press release, dated October 30, 2002, entitled “Compañía de Telecomunicaciones de Chile S.A. announces third quarter 2002 results (3Q02)”

News Release
FOR IMMEDIATE RELEASE

COMPAÑIA DE TELECOMUNICACIONES DE CHILE S.A.
ANNOUNCES THIRD QUARTER 2002 RESULTS (3Q02)

Highlights:

Net loss of Ch$16,830 million (US$22.5 million) in 3Q02 and an accumulated net loss of Ch$15,494 million (US$20.7 million) for the nine-month period ended September 30, 2002

Extraordinary charge of Ch$14,941 million (US$20.0 million) in 3Q02 as a consequence of the headcount reduction of 1,070 employees of Telefónica CTC Chile and its subsidiaries

EBITDA amounted to Ch$98,852 million (US$132.0 million) in 3Q02 and Ch$292,669 million (US$390.9 million) for the nine-month period ended September 30, 2002

EBITDA margin reached 45.7% in 3Q02 and 45.8% for the nine-month period ended September 30, 2002

(Santiago, Chile — October 30, 2002) Compañía de Telecomunicaciones de Chile S.A. (NYSE: CTC) (“Telefónica CTC Chile” or the “Company”) announced today its quarterly unaudited financial results, stated in Chilean GAAP (in constant Chilean pesos as of September 30, 2002) for the third quarter ended September 30, 2002. U.S. dollar equivalent information is based on the Observed Exchange Rate (as defined by the Chilean Central Bank) for September 30, 2002, which was Ch$748.73 = US$1.00.

The following information is presented in accordance with Chilean GAAP. This information will be made publicly available through the Chilean Superintendencia de Valores y Seguros (“SVS”). Results in US GAAPwill be furnished at a later time by the Company in Form 6-K to the Securities and Exchange Commission of the United States of America. This press release and the Company’s reports on Form 6-K will be publicly available at the Securities and Exchange Commission (www.sec.gov), as well as at the Company’s website, www.telefonicadechile.cl.

1

Telefonica CTC Chile	3Q02 Earnings Release

NOTE: In order to show more clearly its revenues by business unit, Telefónica CTC
Chile has reclassified certain revenue items among “Fixed Telephony” revenues
and “Other businesses” revenues. All historic information has been adjusted
accordingly. For more details, see the Appendix that has been included for
explanatory purposes

CONSOLIDATED RESULTS FOR 3Q02

(Comparisons refer to 3Q01)

REVENUES	Telefónica CTC Chile’s revenues decreased by 2.4% in 3Q02 as compared to 3Q01, amounting to Ch$216,299 million (US$288.9 million). This decrease is mainly attributable to a 25.2% decrease in the subsidiary Sonda's revenues, as well as the drop in revenues resulting from the new agreement with Publiguías, effective since 3Q01. Excluding these effects, revenues in 3Q02 grew 1.4% year-over-year. Regarding the Company's core businesses, other impacts on revenues are: (i) a 6.1% decrease in fixed telephony revenues (decrease of 4.5% excluding Publiguís), and (ii) a 15.7% decrease in long distance revenues.These decreases were offset by: (i) a 16.0% increase in revenues from mobile services, and (ii) a 22.8% increase in revenues from corporate customer communications services. For the nine-month period ended September 2002, revenuesfell by 3.9% (increased 0.6% without the effect of Sonda and Publiguís), to Ch$639,554 million (US$854.2 million) compared to the same period in the previous year.
OPERATING COSTS AND EXPENSES	Operating costs and expenses increased by 1.5% in 3Q02 to Ch$181,711 million (US$242.7 million), as compared to Ch$179,098 million (US$239.2 million) in 3Q01. Salaries decreased by 7.8% in 3Q02 to Ch$21,249 million (US$28.4 million) as compared to 3Q01, principally due to the non-payment of salaries in July to personnel on strike. Other operating costs and expenses increased by 0.2% in 3Q02 to Ch$66,272 million (US$88.5 million) as compared to 3Q01, mainly as a result of higher interconnection costs of the mobile business to other mobile networks, as well as higher costs of sales of equipment and projects associated with corporate customers. The above was partially offset by savings derived from the cost control policy which is being implemented. Administrative and selling expenses increased by 15.0% to Ch$29,926 million (US$40.0 million), mainly due to the recognition of expenses associated with the information system services outsourcing agreement with IBM implemented as of 4Q01. These expenses were previously absorbed by the subsidiary Sonda. The above increase was partially offset by lower salaries paid to sales and administrative personnel that were on strike during July 2002.
2

Telefonica CTC Chile	3Q02 Earnings Release

EBITDA	As a result of the above, EBITDA[1] in 3Q02 decreased by 7.1% to Ch$98,852 million (US$132.0 million), compared to Ch$106,427 million (US$142.1 million) recorded in 3Q01. For the nine-month period ended September 2002, EBITDA increased by 1.4% to Ch$292,669 million (US$390.9 million) with regards to the same period in 2001. EBITDA margin[2] in 3Q02 was 45.7%, compared to 48.0% recorded in 3Q01. For the nine-month period ended September 2002,EBITDA margin was 45.8% as compared to 43.4% in the period January-September 2001.
DEPRECIATION	Depreciation expense increased 0.5% to Ch$64,264 million (US$85.8 million) in 3Q02 as compared to the 3Q01, mainly as a result of an increase in the Company's assets in operation.
OPERATING INCOME	OPERATING INCOME decreased by 18.6% to Ch$34,588 million (US$46.2 million) in 3Q02 as compared to Ch$42,512 million (US$56.8 million) recorded in 3Q01. The operating margin amounted to 16.0% in 3Q02 as compared to 19.2% in 3Q01. For the nine-month period ended September 2002, the Company registered an operating income of Ch$99,227 million (US$132.5 million), which represents a 0.7% decrease compared to the nine-month period ended September 2001.
NON- OPERATING INCOME	NON-OPERATING INCOME (LOSS): Telefónica CTC Chile recorded a 151.0% increase in its non-operating losses, amounting to Ch$44,208 million (US$59.0 million) in 3Q02, as compared to a non-operating lossof Ch$17,613 million (US$23.5 million) in 3Q01. The higher non-operating loss in 3Q02 is primarily the result of: an extraordinary charge of Ch$14,941 million (US$20.0 million) resulting from the amortization of severance indemnities paid to 1,070 employees who left the Company as a consequence of lay-offs in connection with the corporate reorganization process; a net loss of Ch$1,136 million (US$1.5 million) from the sale of 25% of Sonda in 3Q02. This transaction generated an extraordinary gain of Ch$6,788 million (US$9.1million) plus Ch$960 million (US$1.3 million) as a result of the elimination of a reserve account in the Company's balance sheet that recorded the exchange rate variations of Sonda's investments abroad. This gain was offset by an extraordinary charge of Ch$8,884 million (US$11.9 million) corresponding to the write-off of goodwill related to 25% of Sonda's ownership, which was being amortized over a 7-year period; an extraordinary charge of Ch$2,940 million (US$3.9 million) in 3Q02 in order to adjust for a decrease in market value of the investment in Terra Lycos shares as their market value decreased from €5.75 as of June 28, 2002 to €4.05 as of September 30, 2002, and

[1] EBITDA = operating income + depreciation

[2] EBITDA margin = (operating income + depreciation) / total operating revenues.

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Telefonica CTC Chile	3Q02 Earnings Release

	extraordinary one-time gain of Ch$11,202 million (US$15.0 million) registered in 3Q01, relating to the anticipated termination of the agreement with Publiguías. The above was partially offset by an 11.2% reduction in interest expenses in 3Q02 compared to 3Q01, as a result of a 20.1% reduction in average interest-bearing debt over the same period. The reduction in interest expenses was partly offset by lower capitalized interests as well as the accelerated amortization of expenses related to debt that was prepaid in the period.
INCOME TAXES	INCOME TAXES: In 3Q02, Telefónica CTC Chile recorded a total income tax charge in the amount of Ch$7,086 million (US$9.5 million) composed of a Ch$1,510 million (US$2.0 million) current income tax and a Ch$5,576 million (US$7.4 million) charge for deferred taxes of the period as well as amortization of deferred taxes of previous periods.
NET RESULT	The Company registered a net loss of Ch$16,830 million (US$22.5 million) in 3Q02 as compared to a net income of Ch$15,598 million (US$20.8 million) registered in 3Q01. For the nine-month period ended September 2002, the Company registered a net loss of Ch$15,494 million (US$20.7 million) compared to a net loss of Ch$9,597 million (US$12.8 million) recorded in the same period of the previous year. Net loss per ADR in 3Q02 amounted to US$0.09, compared to a net income per ADR of US$0.09 recorded in 3Q01. For the nine-month period ended September 2002, losses per ADR amounted to US$0.09.
CAPEX	Capital expenditures for Telefónica CTC Chile and its consolidated subsidiaries amounted to US$50 million in 3Q02 compared to US$66 million in 3Q01, reaching a total of US$110 million for the nine-month period ended September 2002, compared to US$144 million in the same period of the previous year.
CASH FLOW	The consolidated free cash flow from operations[3]for Telefónica CTC Chile in 3Q02 increased by 18.5% to Ch$40,937 million (US$54.7 million) as compared to Ch$34,560 million (US$46.2 million) in 3Q01. Free cash flow for the nine-month period ended September 2002 increased by 34.3% to Ch$153,292 (US$204.7 million), as compared to Ch$114,117 million (US$152.4 million) in the same period of the previous year.

[3] Free cash flow = EBITDA - capital expenditures - net interest expense - taxes

4

Telefonica CTC Chile	3Q02 Earnings Release

REVENUES BY BUSINESS UNIT

                 * Sonda: only includes two months of consolidated revenues

FIXED TELEPHONY

Revenues from fixed telephony services include Primary Service, Access Charges and Interconnections and Directory Advertising. Fixed telephony revenues, which represented 43.7% of total operating revenues in 3Q02, decreased by 6.1% to Ch$94,567 million (US$126.3 million) as compared to 3Q01.

Revenues from Fixed Tel ephony represent 44% of total operating revenues

Lines per employee (excluding employees of Telefónica CTC Chile's subsidiaries) increased by 0.7% from 839 at September 30, 2001 to 845 at September 30, 2002, despite the decrease in lines in service in the period. Primary service revenues, which include the fixed monthly charge, variable charge, connections and other installations, value added services and equipment marketing, among others, decreased by 4.1% in 3Q02 as compared to 3Q01 to Ch$86,115 million (US$115.0 million). This decrease is mainly attributable to: (i) a 1% additional tariff decrease applied in May 2002 in variable and fixed charges pursuant to the Tariff Decree, (ii) a 4.2% decrease in total local traffic, (iii) an increase in traffic charged as local tranche (fixed-mobile and fixed-Internet calls) which rates are lower than those of traffic rated as Measured Local Service (fixed-fixed calls), and (iv) a 0.2% decrease in average lines in service in 3Q02 vs. 3Q01, which resulted from disconnections in 3Q02 of 47,454 fixed lines which had been suspended for over 120 days. Access charges and interconnections revenues include revenues from access charges generated by DLD and ILD carriers, as well as those paid by other telecommunications operators that use Telefónica CTC Chile's network; they also

5

Telefonica CTC Chile	3Q02 Earnings Release

	include other interconnection services apart from access charges, such as interconnection of networks and information services to carriers, among others. These revenues decreased by 10.3% in 3Q02 to Ch$5,747 million (US$7.7 million) as compared to 3Q01, mainly as a result of lower market traffic, particularly ILD traffic. Revenues from directory advertisingdecreased by 40.6% in 3Q02 to Ch$2,705 million (US$3.6 million) as compared to 3Q01, mainly because revenues in 3Q01 included a one-time payment from the sale to Publiguís of Telefónica CTC Chile’s customer database.This sale occurred pursuant to the new agreement signed between the two companies in 3Q01.
LONG DISTANCE 188 Telefónica Mundo LD Plans compensate lower traffic	Long distance revenues include revenues from domestic and international long distance multicarrier traffic generated on fixed lines as well as revenues from the rental of the long distance network to other telecom operators. Total long distance revenues, which accounted for 8.3% of total operating revenues in 3Q02, decreased by 15.7% as compared to 3Q01, to Ch$17,898 million (US$23.9 million). This decrease was mainly due to: (i) lower revenues from domestic long distance services ("DLD") due to the 11.7% decrease in DLD traffic carried by 188 Telefónica Mundo and Globus in 3Q02 as compared to 3Q01, mainly as a result of the slow economic recovery and the substitution effect of mobile service, (ii) lower revenues from international long distance services (“ILD”) due to the fact that the 7.9% increase in outgoing ILD traffic was offset by lower average price per outgoing minute in 3Q02 vs. 3Q01 caused by higher competition, and (iii) lower revenues from the rental of the long distance network to other telecom operators in 3Q02 in comparison with 3Q01 due to lower prices and lower market traffic in general.
MOBILE COMMUNICATIONS 19% subscriber increase from 3Q01	Mobile communications revenues include revenues from outgoing cellular traffic and interconnection revenues from Calling Party Pays, as well as revenues from mobile equipment sales. Total revenues from mobile communications, which accounted for 23.3% of total operating revenues in 3Q02, increased by 16.0% as compared to 3Q01, to Ch$50,472 million (US$67.4 million). This increase is mainly as result of a 19.3%increase in average cellular subscribers, partially offset by a decrease in the average monthly revenue per user (“ARPU”), due to an increase in the proportion of prepaid customers in Telefónica Móvil’s subscriber base. Prepaid customers represented 76% of total average cellular subscribers in 3Q02, as compared to 74% in 3Q01. As of September 30, 2002, Telefónica Móvil had 1,761,432 customers.
CORPORATE CUSTOMER COMMUNICATIONS	Corporate customer communicationsinclude revenues from (i) telecommunications equipment, which refers to voice equipment (fax, PABX, etc.); (ii) complementary telephone services, such as 600, 700 and 800 numbers and digital communications; (iii) data services, including ATM, Frame Relay, data equipment and services related to the IP network, and (iv) dedicated links and others, including videoconference, Datared, E1 Links and VSAT, "ISP Empresas" revenues, services such as housing and hosting and consulting services to corporate customers.
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Telefonica CTC Chile	3Q02 Earnings Release

Higher revenues from IP solutions	Revenues from corporate customer communications increased by 22.8% to Ch$21,220 million (US$28.3 million) in 3Q02 as compared to 3Q01. The contribution of corporate customer communications revenues to total operating revenues increased from 7.8% in 3Q01 to 9.8% in 3Q02.This increase was mainly due to increased revenues related to the IP network (Intranet, Extranet services), higher revenues associated with "ISP Empresas" (Internet services for corporate customers) and increased connectivity services through data links, such as ATM. However, prices of data services have progressively decreased due to strong competition. Data links, with the exception of Frame Relay which decreased by 6%, grew at rates of 22%, 267% and 23% for ATM, dedicated IP network customers and switched IP network customers, respectively in 3Q02 as compared to 3Q01. (Certain revenues of services provided by Telefónica Data were reclassified for 2001 from Data Services to Dedicated Links and Others, in accordance with their accounting since 2002).
OTHER BUSINESSES	These revenues includepublic telephone and information systems services (Sonda) revenues, as well as revenues from interior installation and equipment marketing of the subsidiary CTC Equipos, among others. They represented 14.9% of total operating revenues in 3Q02, a decrease of 17.2% in 3Q02 vs. 3Q01.
Revenues from Other Businesses affected by lower Sonda revenues	Public telephone revenues decreased by 15.9% in 3Q02 to Ch$2,573 million (US$3.4 million) as compared to 3Q01, mainly as a result of lower average revenue per public telephone due to mobile traffic substitution. Interior installation and equipment marketing revenues decreased by 3.2% in 3Q02 to Ch$6,604 million (US$8.8 million) compared to 3Q01. Information systems services (Sonda) revenues amounted to Ch$18,502 million (US$24.7 million) in 3Q02, a 25.2% decrease as compared to 3Q01, mainly as a result of lower revenues from Sonda's foreign subsidiaries, as well as the accounting of Sonda's revenues only for July and August 2002. As of and including September 2002, Sonda no longer consolidates with Telefónica CTC Chile and 35% of Sonda's net result is recognized as a non-operating income/expense. Other businesses revenues increased by 6.1% to Ch$4,463 million (US$6.0 million) in 3Q02, as compared to 3Q01. These revenues include revenues from other subsidiaries such as Istel (employee health insurance) and Telemergencia, among others.
7

Telefonica CTC Chile	3Q02 Earnings Release

BUSINESS UNIT PERFORMANCE FOR 3Q02

Business Unit	EBITDA (Ch$ mn)	EBITDA Margin	Net Result (Ch$mn)
Fixed telephony	55,365	53%	(19,795)
Long distance	10,946	46%	3,595
Mobile	18,073	34%	604
Corp. Communications (incl. Data)	n.a.	n.a.	4,279
Others	n.a.	n.a.	(5,513)
Consolidated	98,852	45.7%	(16,830)

COMPANY NEWS

CORPORATE REORGANIZATION

On October 28, 2002, Telefónica CTC Chile announced a reorganization of its businesses which also includes personnel reductions of 1,070 employees of the Company and its subsidiaries. The non-operating financial impact of Ch$14,941 million (US$20.0 million) related to this restructuring process has been accounted for in Telefónica CTC Chile’s 3Q02 financial results.

The new business structure establishes three main business units:

- General Consumers and Small Businesses: responsible for all products offered to the general customer segment (fixed telephony, LD, prepaid, broadband, value-added services, among others);

- Corporate Customers (including the businesses of the subsidiary Telefónica Data): responsible for corporate customers, and

- Mobile: responsible for mobile services

In addition, two areas are reorganized to serve as support areas for the above business units: Management of Customers, in charge of sales and distribution of all products throughout the country, and Management of Network Services, in charge of infrastructure and technical network maintenance.

SALE OF 25% OF SONDA

On September 26, 2002, Telefónica CTC Chile, through its subsidiary Telefónica Empresas, sold 25% of its information systems subsidiary Sonda S.A. to Sonda’s founder Mr. Andrés Navarro for Ch$27,921 million (US$37.3 million). In addition, Telefónica CTC Chile signed a put option for its 35% stake in Sonda, to be exercised in July 2005, at book value plus a premium, with a guaranteed minimum value of UF2,048,885 (approximately US$45.0 million). Furthermore, Mr.

8

Telefonica CTC Chile	3Q02 Earnings Release

Navarro signed a call option for Telefónica CTC Chile’s 35% stake in Sonda, to be exercised in July 2003, July 2004 or August 2005, at book value plus a premium, also with guaranteed minimum prices.

DEBT RESTRUCTURING

During 3Q02, Telefónica CTC Chile prepaid US$102.7 million in debt pursuant to certain loan and bond agreements that, together with quarterly amortizations, reduce interest-bearing debt by 7.2% in the period, to a total of US$1,674 million as of September 30, 2002.

WE INVITE YOU TO VISIT TELEFONICA CTC CHILE'S INVESTOR RELATIONS WEBSITE
AT: WWW.TELEFONICADECHILE.CL / INVESTOR RELATIONS

For more Information Contact:
Gisela Escobar - Veronica Gaete
Maria Jose Rodriguez - Florencia Acosta	Richard Huber /Mariana Crespo
Telefonica CTC Chile	Thomson Financial Corporate Group
Tel.: 562-691-3867	212-807-5026 / 212-807-5014
Fax: 562-691-2392
E-mail:	E-mail:
gescoba@ctc.cl, vgaete@ctc.cl	richard.huber@tfn.com
mjrodri@ctc.cl, macosta@ctc.cl	mariana.crespo@tfn.com

Compañía de Telecomunicaciones de Chile S.A., the first South American company to list shares on the New York Stock Exchange, is the largest telecommunications enterprise in Chile, providing local service, as well as domestic and international long distance services throughout the country. Additionally, the Company provides equipment marketing, data transmission, value-added services and information systems services and operates a nationwide cellular network.

This news release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1996, including but not limited to Compañía de Telecomunicaciones de Chile S.A.’s expectations for its performance for the quarter. Forward looking statements may also be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future”, or similar expressions. The forward-looking statements included in this news release are based on current expectations, but actual results may differ materially from anticipated future results due to various factors many of which are beyond the control of Compañía de Telecomunicaciones de Chile S.A. and its subsidiaries. Certain factors which could cause the actual results of Compañía de Telecomunicaciones de Chile S.A. and its subsidiaries to differ materially from the expected results include, among others, changes in Chile’s regulatory framework, impact of increased competition and other factors beyond Compañía de Telecomunicaciones de Chile S.A.’s control.

==================

APPENDIX: REVENUE RECLASSIFICATION

In order to show more accurately its revenues by business segment, in 3Q02 Telefónica CTC Chile has modified the breakdown of its operating revenues. This change affects the revenues of “Fixed Telephony” and “Other Businesses”. For comparative purposes, historical information has been restated accordingly.

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Telefonica CTC Chile	3Q02 Earnings Release

MAIN CHANGES

• Fixed Telephony is divided into three segments:
  1. Primary Service: Revenues from basic telephony and other revenues associated to fixed lines.
  2. Access Charges and Interconnections, include all revenues from access charges, interconnections and other network services provided to other telecom operators.
  3. Directory Advertising, includes revenues associated to the commercial agreement with Publiguias.
• Certain revenues formerly included under "Fixed Telephony" were reclassified to "Other Businesses" since, although they are related to services associated to fixed telephony, they are provided by the subsidiary CTC Equipos. These are namely revenues from interior installations, maintenance and equipment marketing.
• Some revenues from services associated to fixed lines were formerly included under "Other Operating Revenues" and have now been included in "Fixed Telephony". These include revenues from flat fee lines, network interconnection, information services to carriers, and network rental, among others.

CHANGES IN FIXED TELEPHONY REVENUES

Revenues under the new classification	Change / Description	Corresponding item under the former classification
Primary Service, Fixed monthly charge	No change	No change
Variable charge	No change	No change
Connections and other installations	Include revenues from connections of lines to the public network and other installations, such as cut-off and replacement of fixed line service, technical visits and moving of lines, among others	“Connections to public network“ + part of “other installations”
Value added services	Includes revenues from value added services such as voice mail, call transfer and 600 and 700 numbers, and revenues from dedicated lines	“Value added services” + “dedicated lines”

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Telefonica CTC Chile	3Q02 Earnings Release

Equipment marketing	Includes revenues from the sale and rental of equipment of Telefónica CTC Chile S.A.	Previously “equipment marketing” included all revenues from equipment marketing and maintenance generated by Telefónica CTC Chile S.A. and the subsidiary CTC Equipos. Revenues generated by CTC Equipos are now registered as “interior installation and equipment marketing” under “Other Businesses”
Other fixed telephony revenues	Include revenues from operator services, rural telephony and flat fee services, among others	Part of “other installations” + part of “other operating revenues”
Access charges and interconnections Domestic long distance International long distance Other interconnection services	No change No change Revenues from network interconnection services and services such as information services to carriers, administrative services and network rental, among others	No change No change “Interconnection to LD carriers” + “other services to carriers” + part of “other operating revenues”
Directory advertising	No change	No change

CHANGES IN REVENUES FROM OTHER BUSINESSES

Revenues under the new classification	Change / Description	Corresponding item under the former classification
Public telephones	No change	No change
Interior installations and equipment marketing	Includes revenues from interior installations, maintenance services, and equipment marketing generated by CTC Equipos	“Interior installations” + part of “other installations” + part of “equipment marketing”
Information System Services	Includes revenues from the subsidiary Sonda, excluding revenues from the former subsidiary of Sonda, SondaCom, which was 100% acquired by CTC in 2001; revenues from this subsidiary are now classified as “other	“Information System Services” (previously included revenues from Sondacom)

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Telefonica CTC Chile	3Q02 Earnings Release

	operating revenues”
Other operating revenues	Includes revenues from other subsidiaries such as Istel, Telemergencia, Sondacom, among others	Part of “other operating revenues"

12

PHYSICAL STATISTICS
	I	II	III	IV	I	II	III
	2001	2001	2001	2001	2002	2002	2002
Total lines in service at the end of period	2,725,587	2,743,126	2,751,956	2,723,310	2,746,178	2,760,252	2,721,412
Average number of lines in service (quarterly)	2,713,195	2,734,712	2,745,657	2,752,968	2,734,366	2,752,418	2,740,296
Number of lines installed (1)	3,006,558	3,020,345	3,014,573	3,019,416	3,024,693	3,027,354	3,030,444
Lines per 100 Inhabitants	17.6	17.7	17.7	17.4	17.5	17.6	17.3
Public telephones in service at end of period	22,227	26,860	30,702	33,830	37,740	36,759	36,251
Effective minutes of local traffic measured by second (million)	3,887	4,183	4,160	4,180	3,650	4,088	3,984
Local calls MLS (millions)	1,337	1,376	1,404	1,439	1,245	1,328	1,265
DLD voice traffic (thousands of minutes) - CTC network	480,810	468,836	449,392	443,235	424,259	417,626	411,147
Outgoing ILD voice traffic (thousands of minutes) - CTC network	36,752	37,427	36,058	37,254	35,980	36,368	35,341
Incoming ILD traffic (thosands of minutes) - CTC network	63,623	63,449	68,860	72,765	71,234	78,061	76,988
DLD traffic of 188 Telefónica Mundo + Globus 120 (thousands of minutes)	198,787	199,601	199,510	201,434	183,372	184,456	176,075
Outgoing ILD traffic of 188 Telefónica Mundo +Globus 120 (thousands of minutes)	14,154	16,290	16,137	16,270	15,218	16,071	17,404
Access charge traffic (thousands of minutes)	1,780,130	1,846,722	1,814,701	1,809,440	1,672,282	1,762,580	1,707,252
Number of pending applications	91,132	56,364	40,205	32,329	36,951	n.a.	36,352
Number of lines connected	91,622	99,033	68,593	71,371	71,898	93,617	76,950
Number of CTC's employees (end of period)	4,594	3,260	3,025	3,223	3,219	3,231	3,225
Number of subsidiaries' employees (end of period)	4,673	4,452	4,773	4,497	4,565	4,654	4,703
Number of cellular subscribers (end of period)	1,295,483	1,416,103	1,480,795	1,570,087	1,651,282	1,710,326	1,761,432
(1) Includes circuits and ISDN lines in order to indicate the real capacity of the network.
ANNUAL VARIATION
	I	II	III	IV	I	II	III
	2001	2001	2001	2001	2002	2002	2002
Total lines in service at the end of period	4.6%	4.4%	3.4%	0.8%	0.8%	0.6%	-1.1%
Average number of lines in service (quarterly)	4.5%	4.5%	4.0%	2.7%	0.8%	0.6%	-0.2%
Numbers of lines installed	0.9%	1.2%	1.2%	1.0%	0.6%	0.2%	0.5%
Lines per 100 Inhabitants	3.5%	3.5%	2.3%	-0.6%	-0.6%	-0.6%	-2.3%
Public telephones in service at the end of period	62.7%	100.4%	115.6%	77.1%	69.8%	36.9%	18.1%
Effective minutes of traffic measured by second (million)	-1.6%	-1.2%	-3.0%	-5.2%	-6.1%	-2.3%	-4.2%
Local calls MLS (millions)	-9.0%	-11.7%	-7.1%	-5.5%	-6.9%	-3.5%	-9.9%
DLD voice traffic (thousands of minutes) - CTC network	-1.5%	2.1%	0.0%	-5.5%	-11.8%	-10.9%	-8.5%
Outgoing ILD voice traffic (thousands of minutes) - CTC network	-2.5%	2.8%	-2.2%	0.0%	-2.1%	-2.8%	-2.0%
Incoming ILD traffic (thosands of minutes) - CTC network	39.6%	17.2%	24.6%	6.5%	12.0%	23.0%	11.8%
DLD traffic of 188 Telefónica Mundo + Globus 120 (thousands of minutes)	3.2%	18.4%	20.8%	8.4%	-7.8%	-7.6%	-11.7%
Outgoing ILD traffic of 188 Telefónica Mundo +Globus 120 (thousands of minutes)	-4.8%	17.4%	17.5%	17.9%	7.5%	-1.3%	7.9%
Access charge traffic (thousands of minutes)	20.4%	7.1%	-13.7%	-8.8%	-6.1%	-4.6%	-5.9%
Number of pending applications	170.0%	179.7%	89.8%	215.3%	-59.5%	n.a.	-9.6%
Number of lines connected	50.7%	42.3%	-2.4%	-18.7%	-21.5%	-5.5%	12.2%
Number of CTC's employees (end of period)	-0.6%	-29.5%	-34.8%	-30.5%	-29.9%	-0.9%	6.6%
Number of subsidiaries' employees (end of period)	-3.2%	-8.1%	3.0%	-2.5%	-2.3%	4.5%	-1.5%
Number of cellular subscribers (end of period)	7.5%	15.6%	28.3%	28.2%	27.5%	20.8%	19.0%

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (CHGAAP) ( Ch$ millions as of September 30, 2002)
	JAN-SEP	IQ	IIQ	IIIQ	IVQ	JAN-SEP	IQ	IIQ	IIIQ	VARIATION
	2001	2001	2001	2001	2001	2002	2002	2002	2002	IIIQ02/IIIQ01	| 2002/2001
OPERATING REVENUES
FIXED TELEPHONY	306,955	97,719	108,480	100,756	98,707	277,526	90,273	92,686	94,567	-6.1%	-9.6%
Primary Service	272,777	90,614	92,369	89,794	91,186	256,440	83,836	86,489	86,115	-4.1%	-6.0%
Telephone Line Serv.Fee (Fixed Monthly Charge)	122,037	41,564	40,232	40,241	39,349	116,666	38,908	38,756	39,002	-3.1%	-4.4%
Variable Charge	123,569	40,105	42,285	41,179	41,131	113,464	35,632	38,436	39,396	-4.3%	-8.2%
Connections and other installations	5,682	1,673	2,022	1,987	2,206	5,246	1,937	1,704	1,605	-19.2%	-7.7%
Value added services	12,534	4,224	4,003	4,307	4,651	12,103	3,956	4,120	4,027	-6.5%	-3.4%
Equipment Marketing	5,455	1,747	1,909	1,799	1,811	3,433	1,570	1,163	700	-61.1%	-37.1%
Other fixed telephony revenues	3,500	1,301	1,918	281	2,038	5,528	1,833	2,310	1,385	392.9%	57.9%
Access Charges and Interconnections	17,414	5,403	5,602	6,409	6,454	17,262	5,596	5,919	5,747	-10.3%	-0.9%
Domestic long distance	6,739	2,242	2,290	2,207	2,324	6,858	2,196	2,295	2,367	7.2%	1.8%
International long distance	3,270	1,097	1,124	1,049	1,060	2,609	815	925	869	-17.2%	-20.2%
Other interconnection services	7,405	2,064	2,188	3,153	3,070	7,795	2,585	2,699	2,511	-20.4%	5.3%
Directory Advertising	16,764	1,702	10,509	4,553	1,067	3,824	841	278	2,705	-40.6%	-77.2%
LONG DISTANCE	59,244	18,834	19,183	21,227	21,305	54,314	18,529	17,887	17,898	-15.7%	-8.3%
Domestic Long Distance	26,533	8,130	8,944	9,459	8,890	24,344	8,322	7,928	8,094	-14.4%	-8.3%
International Service	22,562	7,312	7,478	7,772	8,013	20,735	7,097	6,894	6,744	-13.2%	-8.1%
Rental of LD Network	10,149	3,392	2,761	3,996	4,402	9,235	3,110	3,065	3,060	-23.4%	-9.0%
MOBILE COMMUNICATIONS	132,487	45,158	43,823	43,506	48,645	147,637	48,259	48,906	50,472	16.0%	11.4%
Outgoing Traffic	73,816	24,661	26,008	23,147	27,439	86,477	27,015	29,370	30,092	30.0%	17.2%
Interconnection under Calling Party Pays	58,671	20,497	17,815	20,359	21,206	61,160	21,244	19,536	20,380	0.1%	4.2%
CORPORATE CUSTOMER COMMUNICATIONS	49,937	15,511	17,139	17,287	21,204	60,267	18,642	20,405	21,220	22.8%	20.7%
Equipment	14,232	4,395	5,058	4,779	5,024	16,210	4,939	5,562	5,709	19.5%	13.9%
Complementary Services	5,144	1,509	1,610	2,025	2,793	8,541	2,603	2,738	3,200	58.0%	66.0%
Data services	9,678	2,526	3,916	3,236	6,285	13,054	3,792	4,397	4,865	50.3%	34.9%
Dedicated links and others	20,883	7,081	6,555	7,247	7,102	22,462	7,308	7,708	7,446	2.7%	7.6%
OTHER BUSINESSES	116,661	37,834	39,993	38,834	49,705	99,810	36,124	31,544	32,142	-17.2%	-14.4%
Public Telephones	12,131	4,667	4,405	3,059	3,660	8,930	3,326	3,031	2,573	-15.9%	-26.4%
Interior installation and equipment marketing	19,511	6,254	6,433	6,824	6,425	20,462	7,025	6,833	6,604	-3.2%	4.9%
Information System Services (Sonda)	77,416	24,575	28,097	24,744	33,550	61,321	23,281	19,538	18,502	-25.2%	-20.8%
Other Operating Revenues	7,603	2,338	1,058	4,207	6,070	9,097	2,492	2,142	4,463	6.1%	19.7%
TOTAL OPERATING REVENUES	665,284	215,056	228,618	221,610	239,566	639,554	211,827	211,428	216,299	-2.4%	-3.9%
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (CHGAAP), continued ( Ch$ millions as of September 30, 2002)
	JAN-SEP	IQ	IIQ	IIIQ	IVQ	JAN-SEP	IQ	IIQ	IIIQ	VARIATION
	2001	2001	2001	2001	2001	2002	2002	2002	2002	IIIQ02/IIIQ01	| 2002/2001
OPERATING COSTS AND EXPENSES
Salaries	76,486	26,707	26,728	23,051	22,994	64,544	21,033	22,262	21,249	-7.8%	-15.6%
Depreciation	188,833	62,906	62,012	63,915	62,454	193,442	64,289	64,889	64,264	0.5%	2.4%
Other Operating Costs	207,120	70,566	70,436	66,118	78,626	185,682	59,752	59,658	66,272	0.2%	-10.4%
Adm. & Selling Expenses	92,962	35,476	31,472	26,014	36,234	96,659	33,454	33,279	29,926	15.0%	4.0%
TOTAL OPERATING COSTS AND EXPENSES	565,401	195,655	190,648	179,098	200,308	540,327	178,528	180,088	181,711	1.5%	-4.4%
OPERATING INCOME	99,883	19,401	37,970	42,512	39,258	99,227	33,299	31,340	34,588	-18.6%	-0.7%
EBITDA	288,716	82,307	99,982	106,427	101,712	292,669	97,588	96,229	98,852	-7.1%	1.4%
Operating Margin	15.0%	9.0%	16.6%	19.2%	16.4%	15.5%	15.7%	14.8%	16.0%	-3,2pp	0,5pp
EBITDA Margin	43.4%	38.3%	43.7%	48.0%	42.5%	45.8%	46.1%	45.5%	45.7%	-2,3pp	2,4pp
NON-OPERATING INCOME
Interest Income	12,774	3,296	4,284	5,194	5,660	10,362	3,413	3,322	3,627	-30.2%	-18.9%
Other Non-Operating Income	14,099	548	1,553	11,998	6,250	14,245	3,497	2,241	8,507	-29.1%	1.0%
Revenues from Related Companies	527	(466)	(88)	1,081	75	454	13	(295)	736	-31.9%	-13.9%
Interest Expense	(71,631)	(23,857)	(22,635)	(25,139)	(21,262)	(60,443)	(19,046)	(19,070)	(22,327)	-11.2%	-15.6%
Amortization of Goodwill	(11,456)	(3,893)	(3,715)	(3,848)	(4,488)	(20,472)	(3,772)	(3,951)	(12,749)	231.3%	78.7%
Other Non-Operating Expenses	(42,259)	(7,752)	(24,886)	(9,621)	(3,901)	(31,013)	(3,822)	(6,545)	(20,646)	114.6%	-26.6%
Monetary Correction	5,395	(1,138)	3,811	2,722	(3,301)	(6,927)	(4,026)	(1,545)	(1,356)	-149.8%	-228.4%
NON-OPERATING INCOME	(92,551)	(33,262)	(41,676)	(17,613)	(20,967)	(93,794)	(23,743)	(25,843)	(44,208)	151.0%	1.3%
INCOME BEFORE INCOME TAX	7,332	(13,861)	(3,706)	24,899	18,291	5,433	9,556	5,497	(9,620)	-138.6%	-25.9%
Income Tax	(13,330)	(806)	(4,403)	(8,121)	(3,279)	(20,201)	(7,081)	(6,034)	(7,086)	-12.7%	51.5%
Minority Interest	(3,602)	(413)	(2,008)	(1,181)	(1,254)	(726)	(326)	(276)	(124)	-89.5%	-79.8%
Amortization of Negative Goodwill	3	0	2	1	3	0	87	(87)	0	-	-
NET INCOME	(9,597)	(15,080)	(10,115)	15,598	13,761	(15,494)	2,236	(900)	(16,830)	C.S.	61.4%
Observed exchange rate (end of the period)		594.97	629.00	695.02	654.79		655.90	688.05	748.73
		1Q	2Q	3Q	4Q		IQ	IIQ	IIIQ
		2001	2001	2001	2001		2002	2002	2002
Earnings per Common Share (Ch$)		-15.8	-10.6	16.3	14.4		2.3	-0.9	-17.6
Earnings per ADR (US$)		-0.09	-0.06	0.09	0.08		0.01	-0.01	-0.09
Weighted Average Number of Shares Fully Paid (millions)		957.2	957.2	957.2	957.2		957.2	957.2	957.2
Fully Diluted Weighted Average Number of Shares (millions)		957.2	957.2	957.2	957.2		957.2	957.2	957.2

CONSOLIDATED BALANCE SHEET (CHGAAP) (Figures in thousands of Ch$ as of September 30, 2002)
ASSETS			2002 Ch$	2001 Ch$	LIABILITIES			2002 Ch$	2001 Ch$
CURRENT ASSETS					CURRENT LIABILITIES
	Cash and banks		15,062,503	17,039,897		Banks and financial institutions - short-term		17,844,283	22,771,063
	Time deposits		50,968,988	182,435,719		Banks and financial institutions - current maturities		41,887,639	197,228,152
	Marketable securities		86,668,023	73,099,663		Debentures		25,660,980	30,941,433
	Trade receivables		198,530,284	220,562,238		Current maturities of other long-term liabilities		472,233	1,574,182
	Notes receivable		5,452,284	11,779,854		Dividends payable		194,680	277,859
	Sundry debtors		25,104,898	33,026,215		Accounts payable		127,601,659	151,501,754
	Due from related companies		19,075,192	31,764,675		Notes payable		84,633	622,145
	Inventories		16,297,300	39,698,684		Sundry creditors		5,424,312	7,538,582
	Refundable taxes		16,198,762	40,102,329		Due to related companies		11,308,659	30,463,451
	Prepaid expenses		9,493,486	8,497,439		Provisions		25,255,159	15,996,321
	Deferred taxes		25,817,043	20,132,337		Withholdings		12,828,345	13,621,073
	Other current assets		77,298,681	128,794,642		Unearned income		2,323,704	3,408,941
	Total current assets		545,967,444	806,933,692		Other current liabilities		1,934,992	4,238,518
FIXED ASSETS						Total current liabilities		272,821,278	480,183,474
	Land		26,763,634	28,660,122
	Construction and infrastructure works		180,355,257	196,428,468	LONG-TERM LIABILITIES
	Machinery and equipment		3,190,035,417	3,190,634,331		Banks and financial institutions		598,969,232	718,138,228
	Other fixed assets		392,025,907	428,057,751		Debentures		549,871,742	597,389,894
	Technical revaluation		8,982,020	8,979,598		Due to related companies		25,038,143	34,666,901
	Less: accumulated depreciation		1,879,799,905	1,779,063,087		Sundry creditors		5,526,180	14,207,309
		Fixed assets-net	1,918,362,330	2,073,697,183		Provisions		22,168,277	19,599,795
						Deferred Taxes		28,019,248	8,936,204
OTHER ASSETS						Other long-term liabilities		9,981,670	20,262,869
	Investments in related companies		38,772,278	14,203,796		Total long term liabilities		1,239,574,492	1,413,201,200
	Investments in other companies		752,483	714,009
	Goodwill		180,232,462	207,548,620	MINORITY INTEREST			1,182,182	38,991,306
	Less: Negative goodwill		0	32,930
	Long-term debtors		50,569,508	51,955,409	EQUITY
	Intangibles		30,008,964	16,576,735		Paid-in capital		715,017,592	708,720,958
	Amortization (less)		2,214,367	1,411,133		Reserve		9,295,229	15,591,863
	Other long-term assets		17,304,451	32,296,209		Share premium		112,622,346	112,622,346
						Other reserves		723,314	1,642,027
	Total other assets		315,425,779	321,850,715		Retained earnings:		428,519,120	431,528,416
							Prior years	444,012,656	441,472,342
							(Losses) Income for the period	(15,493,536)	(9,597,927)
							Less: deficit from development stage enterprise	0	345,999
							Total equity	1,266,177,601	1,270,105,610
TOTAL ASSETS			2,779,755,553	3,202,481,590	TOTAL LIABILITIES AND EQUITY			2,779,755,553	3,202,481,590

COMPAÑÍA DE TELECOMUNICACIONES DE CHILE S.A. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED AS OF SEPTEMBER 30, 2001 AND 2002 Figures in Thousands of Constant Ch$ as of September 30, 2002
	2002		2001
NET CASH PROVIDED BY USING IN OPERATING ACTIVITIES	229,237,817		220,581,884
Net income (Gain/Losses)	(15,493,536	)	(9,597,927	)
Result in sales of assets	(7,442,934	)	(302,879	)
(Gain) Loss in sale of fixed assets	305,017		120,857
Gain in sales of investments	7,747,951		423,736
Charges (credits) to income not affecting cash flows:	282,282,793		241,070,163
Depreciation	194,592,616		190,560,004
Intangibles amortization	648,518		357,459
Write-off and provisions	17,733,483		19,883,082
Equity earnings from related companies	916,524		1,027,910
Equity losses from related companies	460,607		500,600
Amotization of goodwill	20,477,085		11,456,157
Amortization of negative goodwill	0		2,549
Price-level restatement (net)	3,303,543		(519,573)
Gain (loss) on foreign currency transactions	3,620,291		(4,853,032)
Other credits not affecting cash flows	17,939,897		15,455,695
Other charges not affecting cash flows	60,303,071		40,171,620
Decrease (increase) in current assets:	9,809,854		26,280,391
(Increase) Decrease in trade receivables	(12,681,574	)	(17,595,231	)
(Increase) Decrease in inventories	8,972,475		(12,641,898)
(Increase) Decrease in other current assets	13,518,953		56,517,520
Increase (decrease) in current liabilities:	(40,644,659	)	(40,470,781	)
Increase (decrease) in due to related companies,
related with operating activities	(59,924,515	)	(19,762,973	)
Increase (decrease) in accrued interest payable	(5,807,126	)	(5,236,178	)
Increase (decrease) in income tax payable, net	18,994,189		(9,364,114	)
Increase (decrease) in other accounts payable
related with non operating result	5,842,918		7,315,382
Increase (decrease) in value-added tax, net, and other	249,875		(13,422,898	)
Income ( loss) of minority interest	726,299		3,602,917
COMPAÑÍA DE TELECOMUNICACIONES DE CHILE S.A. AND SUBSIDIARIES    CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED AS OF SEPTEMBER 30, 2001 AND 2002    Figures in Thousands of Constant Ch$ as of September 30, 2002
	2002		2001
NET CASH PROVIDED BY FINANCING ACTIVITIES	(144,869,199	)	(21,609,018	)
Increase in bank borrowings	13,593,843		28,206,967
Other sources of financing	981,333		597,644
Dividend payments (less)	1,243,254		1,579,758
Capital distribution	0		0
Repayment of loans (less)	74,589,275		34,419,028
Repayment of debentures (less)	73,704,476		13,225,648
Repayment other loans from related companies	9,907,370		0
Other disbursements (less)	0		1,189,195
NET CASH USED IN INVESTING ACTIVITIES	(82,806,600	)	(111,754,645	)
Sale of fixed assets	527,704		249,221
Sale of investments in related companies	27,920,701		0
Sale of other investments	0		2,957,881
Other revenues from investments	0		146,312
Additions to fixed assets (less)	48,713,086		66,441,393
Payment of capitalized interests (less)	3,626,115		14,478,138
Investments in related companies (less)	117,967		2,109,983
Investments in financial instruments (less)	29,780,205		26,308,502
Other loans to related companies (less)	0		4,633,208
Other investment disbursements (less)	29,017,632		1,136,835
NET CASH FLOW FOR THE PERIOD	1,562,018		87,218,221
PRICE-LEVEL RESTATEMENT EFFECT ON CASH AND CASH EQUIVALENTS	(1,192,079	)	(3,515,370	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	369,939		83,702,851
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	85,450,863		133,925,918
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	85,820,802		217,628,769

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Compañía de Telecomunicaciones de Chile S.A.
Date:	October 31, 2002	By:	/s/ Julio Covarrubias F.
			Name:	Julio Covarrubias F.
			Title:	Chief Financial Officer