Telecom Argentina to invest USD0.5 billion this year

13 May 2008

Former incumbent telco Telecom Argentina (TA) expects total investment this year to reach USD530 million, reports BNamericas, quoting marketing manager Marcelo Ozino Caligaris. The officer said that 51% of the CAPEX will be directed to mobile operations while the other 49% will be earmarked for fixed telephony services. Last year, TA spent ARS1.44 billion (USD453 million) in its various business segments. According to Caligaris, the company expects to see higher monthly average revenue per user (ARPU) this year in the fixed line arena due to the launch of new value-added services (VAS), including fixed SMS and videocalls.

Commenting on a possible launch of IPTV services, the executive said that during 2008, TA expects to conduct internal tests. Current regulations do not allow telecoms operators to offer broadcasting services. It is known that both TA and fellow former incumbent Telefonica de Argentina have long wanted to launch triple-play services to compete with cablecos such as Multicanal and Cablevision, which are permitted to offer broadband and fixed telephony products over their cable infrastructure.

Caligaris added that Telecom is studying the launch of WiMAX technology to offer services in rural areas and closed communities. However, there are no concrete plans on this issue at present.

Argentina, Telecom Argentina (incl. Cablevision)