Telefónica de Argentina seeks to reinstate suspended claim

18 Jul 2007

Argentine telco Telefónica de Argentina (TdA) has started working on a request to maintain its 2003 compensation claim against the government, reports BNamericas, quoting local newspaper Infobae. TdA filed the USD2.38 billion damages claim with the World Bank’s international arbitration tribunal ICSID, seeking compensation for billing restrictions imposed on it as a result of Argentina’s 2002 financial crisis. The telco first suspended the claim in February 2006, accepting this as a necessary measure under which the Argentine government would renegotiate the operator’s concession contract. In July 2006 it promised to withdraw the lawsuit altogether should the law change allowing telcos to offer triple-play services of voice, video and data over a single line. Telecoms authorities have said they are studying modifications to current regulations but have not given any indication as to when they may be ready to go to parliament, and in February this year the government said that no new law was likely ‘in the short term’.

Argentina, Telefonica Argentina (Movistar)