Telefonica fined USD7.6m over network outages

16 Jul 2010

Argentina’s antitrust agency, the National Commission for the Defense of Competition (CNDC), has fined Telefonica de Argentina and its wireless subsidiary Telefonica Comunicaciones Personales Argentina (Movistar) ARS30 million (USD7.61 million) for disruption of fixed and mobile telephony services in the Buenos Aires area. According to a report by local daily La Nacion, the cuts caused problems for more than half a million subscribers between 3 and 5 June 2010. Around 140 base stations in the Parral, Culpina, Vernet, Flores, Nazca and Rosario areas were affected. The two companies have been fined a total of ARS15 million each under Resolutions 2300 and 2301 of the Telecommunications Act, after the CNDC found that Telefonica had not reacted adequately to the situation, in order prevent or resolve the problems experienced by its fixed and mobile subscribers.