Argentina has one of the more advanced telecom
infrastructures in Latin America, with a large number of companies licensed to
provide services. Telecom revenue is expected to have reached more than $17.8
billion in 2013. Mobile revenue accounts for more than two thirds of the total,
and this proportion continues to rise at the expense of fixed-line sales.
Telefnica Argentina and Telecom Argentina are the largest
telcos in terms of subscribers and revenue, followed by Claro and Grupo Clarn.
The country's regulatory framework encourages competition
and supports smaller telecom players. Argentina has adopted a single licence
system (Licencia nica), which telcos must obtain regardless of the services
they provide. Operators must list in their licence applications which services
they wish to offer, but can at any time register for additional ones. However,
broadband competition is weak, and the wholesale market is poorly regulated.
Argentina's fixed-line teledensity is the fourth highest
in South America after Uruguay, Chile, and Brazil. As in other countries,
fixed-to-mobile substitution has adversely affected the fixed-line market,
leading to lower revenue while teledensity has shrunk by 2.7 percentage points
since peaking at 24.5% in 2005.
The local fixed-line market is dominated by Telecom and
Telefnica Argentina. Some 400 smaller telcos, mostly cooperatives, are also
active, as well as a few cable TV companies which provide fixed telephony over
their networks as part of bundled service offerings. While long distance
services are highly competitive, in the local telephony sector, despite the
large number of operators, meaningful competition has yet to develop. Telefnica
Argentina and Telecom own respectively 52% and 45% of the country's fixed lines
in service.
Unlike other countries where triple play has helped boost
the flagging fixed-line sector, the only company that could have made a
difference - Grupo Clarn - has not been allowed to offer telephony services.
Although Argentina's broadband penetration is the third
highest in Latin America, after Uruguay and Chile, economic and political
difficulties during the last decade have impacted on sector investments, with
the result that average download speeds, at about 5.5Mb/s, are relatively low
for the region. The average speed ranks Argentina 120th of 190 countries.
To boost fixed broadband uptake, further regulatory
measures are needed to promote competition. Telefnica Argentina and Telecom
dominate the DSL market, offering similar services and together controlling
about 68% of all broadband connections. Competition from Grupo Clarn, via its
cable network, has been complicated by disputes between the company and
government, which obliged Grupo Clarn to separate its operations, including its
broadband division Cablevisin (providing services branded as FiberTel) into
separate entities as part of new media legislation introduced in 2013.
A national connectivity plan, dubbed 'Argentina
Conectada' and launched in late 2010, involves the deployment of broadband
services and free-to-air digital TV to underserved parts of the country. The
plan, to be completed by the end of 2015, is being undertaken by the
state-owned satellite company Arsat.
Argentina's pay TV market is the most mature in Latin America.
The country has one of the highest pay TV penetration rates in the region, with
about two-thirds of homes subscribing to services. Pay TV households are evenly
distributed, with penetration in the major cities only slightly higher than in
the rest of the country.
Grupo Clarn's Cablevisin is the country's leading pay TV
operator with about 36% of the market; DirecTV is the second largest player,
followed by Supercanal, Telecentro, and Red Intercable. About a quarter of the
market is shared among small local companies and cooperatives.
Argentina also has one of the most dynamic mobile markets
in the region, with the third largest number of subscribers after Brazil and
Mexico. Three mobile operators compete and a small number of other players,
with Amrica Mvil's Claro the market leader, followed by Telecom Personal (the
mobile unit of Telecom Argentina) and Telefnica's Movistar. Argentina's
smartphone penetration is relatively high for the region, though it continues
to be held back by the high cost of devices.
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