Telefonica blocked from offering triple-play services due to ownership

10 Sep 2009

BNamericas, citing local press reports containing quotes from legislator Agustin Rossi, says that Telefonica de Argentina must change its shareholder structure if it wants to launch triple-play services. Although the government has paved the way for telcos to offer broadcasting services by modifying the broadcasting law, Telefonica de Argentina will not be able to do so until a local company has secured a stake in the company: the telco is currently fully controlled by Spain’s Telefonica. A local consultant, however, claims that Telefonica may seek to build upon an existing investment agreement with the government in the hope of being allowed to launch triple-play services without having to sell a significant stake.

Argentina, Telefonica Argentina (Movistar)