Argentina Telecommunications Report Q1 2011

Business Monitor International's Argentina Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Argentina's telecommunications industry.

Argentina has a mature telecoms market, one that continually stays close to the top of the rankings in BMI's Business Environment Ratings for the Latin American region. Strong growth continues to be reported across all sectors, even despite mobile subscriber numbers passing 100% penetration. At 10% growth reported in 2009 and the first three quarters of 2010, on an annual comparison basis, Argentina sets itself apart from regional peers. Economically and politically the country may not be as stable as its neighbours, but this has not hampered the strong appetite for the latest products and services on offer by Argentina's telecoms operators.

The strongest competition is in the mobile market, with the three main operators, Claro, Movistar and Telecom Personal, reporting quite similar market shares. Demand for value-added services (VAS) is high and is helping to prop up subscriber revenues. Although average revenue per user (ARPU) from voice services should continue to drop, BMI believes that good growth in mobile data will prop up overall ARPU rates.

The past quarter has seen a number of developments in Argentina’s fixed-line and broadband sectors. Taking many observers by surprise, in Q410 Argentina’s competition authorities resolved over three years of conflict regarding shareholders in Telefónica de Argentina (TASA) and Telecom Argentina, the two main fixed-line providers. With Spain’s Telefónica holding a share in both Telecom Italia (itself a shareholder in Telecom Argentina) and TASA, Telecom Italia was under pressure to exit from Telecom Argentina. After months of negotiations, both firms have gained permission to continue operating in Argentina, although their businesses will be under the scrutiny of the Comisión Nacional de Defensa de la Competencia (CNDC) to ensure that anti-monopoly laws are abided by.

In broadband, an ongoing spat between the current administration and the owner of Argentina's most widely-read newspaper, Grupo Clarín's La Nación, is just days from being resolved. Clarín's cable TV and broadband operations are facing an increasingly hostile environment. Fibertel, owned by Clarín's Cablevisión, was told in August 2010 that it could no longer offer broadband services, affecting more than 1mn subscribers. Its permission to operate expires, in theory, in mid-November, but Fibertel is continuing to operate a business as usual strategy, giving no suggestion that it will actually close. The sudden death of ex-president Néstor Kirchner, a close economic advisor of current president (and wife) Cristina Fernández, has also created a sense of economic uncertainty in the country. Just a few days after Kirchner’s death, Grupo Clarín’s shares posted double-digit growth on the stock exchange. BMI is concerned over the government's increasing influence in the telecoms market, particularly with regards to Clarín's operations and is watching developments with interest.

The government has also announced a national project to expand broadband internet service and free digital TV services across the country. ‘Argentina Conectada’ aims to provide 75% of the population with internet access by mid-2011. State company Arsat is to deploy the necessary infrastructure. SHOW LESS READ MORE >

Executive Summary

SWOT Analysis
- Argentina Mobile Market SWOT Analysis
- Argentina Wireline Market SWOT Analysis
- Argentina Political SWOT
- Argentina Economic SWOT
- Argentina Business Environment SWOT

Business Environment Rankings
- Latin America Telecommunications Business Environment Rankings
- Argentina
- Table: Latin America Telecoms Business Environment Ratings Q111

Industry Forecast Scenario
- Mobile
- Table: Telecoms Sector - Mobile - Historical Data And Forecasts
- ARPU
- Table: Telecoms Sector - ARPU - Historical Data And Forecasts
- Fixed Line
- Table: Telecoms Sector - Fixed-Line - Historical Data And Forecasts
- Internet
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
- Market Data Analysis
- Mobile
- Table: Argentina Wireless Market, Q310
- Table: Argentina Wireless Market, Net Additions, Q210-Q310
- 3G
- Table: Mobile Contract Wins
- Mobile Content

Regional Overview

Country Outlook
- Table: VAS Timeline
- Mobile Operator Data
- Table: Argentina Mobile Market Overview
- Table: Claro
- Table: Movistar (TCP)
- Telecom Personal
- Table: Nextel
- Fixed Line
- Table: Argentine Local Fixed-Line Market Q310
- Table: Argentina ILD Market Calls (000) And Minutes Of Use(000)
- Internet
- Residential Internet Subscribers (000)
- Table: Argentine Broadband Market, Q210
- Table: Argentina Residential Internet Access By Region
- Table: Wireline Developments

Regulatory Developments
- Division Of Regulatory Responsibilities In Argentina
- Table: Regulatory Bodies And Their Responsibilities
- Background And Regulatory Bodies
- Regulatory Issues
- Competition

Industry Developments
- Market Structure
- Table: Key Players Argentina Telecoms Sector
- Table: Selected Operators Financial Indicators

Company Monitor
- Nokia
- Handsets
- Nokia Siemens Networks

Company Profiles
- Telecom Argentina
- Telecom Personal (TP)
- Telefónica de Argentina (TASA)
- Telefónica Móviles Argentina - Movistar
- Claro
- Nextel Argentina

Competitive Landscape
- Mobile
- Table: Regional Mobile Penetration Overview
- Fixed-Line
- Table: Regional Fixed-Line Penetration Overview
- Internet
- Table: Regional Internet User Penetration Overview
- Table: Regional Broadband Penetration Overview

Country Snapshot: Argentina Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education
- Table: Life Expectancy, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 1995-2001

BMI Methodology
- How We Generate Our Industry Forecasts
- Table: Key Indicators For Telecommunications Industry Forecasts
- Telecoms Business Environment Ratings
- Table: Ratings Indicators
- Weighting
- Table: Weighting Of Indicators
- Sources

- Nokia
- Handsets
- Nokia Siemens Networks