Secom moves to curtail possible Telefonica influence

4 Jul 2008

Telecoms watchdog Secom has taken steps to avoid any possible moves by Telefonica to limit competition, reports BNamericas. Argentina’s two main fixed line operators are Telefonica and Telecom Argentina. The latter is owned by Telecom Italia (TI) via holding company Sofora Telecomunicaciones, and the regulator is concerned that following Telefonica’s acquisition of an indirect 23.6% stake in TI, the Spanish company could seek ways to limit competition between its own Argentine subsidiary and that of TI. According to a report in local paper Clarin, TI will not be able to sign any contract to transfer its stock to a third party or sign contracts with the aim of limiting competition or access to the Argentine telecoms market.