Telecom Argentina to increase investment in technology in 2010

10 Dec 2009

Argentine fixed line incumbent Telecom Argentina plans to increase investment in technology next year, after paying off the majority of its debt ahead of schedule, Dow Jones Newswires reports citing the company’s chief executive, Franco Bertone. The telco hopes to increase investment in 2010 to about 15%-16% on a capital expenditure basis, up from 13%-14%. The funds will be spent on the upgrade of its transport network to allow increased internet access for mobile users. The company also expects to resume paying dividends in 2010, Bertone said, adding that annual revenues of around USD3.5 billion are anticipated at end-2009, representing an increase of 14% year-on-year, while net profit could rise 20% compared to full-year 2008. As reported by CommsUpdate, Telecom Argentina paid off USD352 million in October 2009 as part of a loan extended in 2005. The amount was the last tranche of a USD1.9 billion loan which formed part of the company’s agreement with its creditors following the country’s economic crisis of 2001/2002, and was repaid five years ahead of the payment plan.

Argentina, Telecom Argentina (incl. Cablevision)