Telefonica ordered to compensate subs over network outage

9 May 2012

The Argentine mobile unit of Spanish telecoms company Telefonica has been ordered to pay a fine of around ARS185 million (USD41.6 million) following an outage on its wireless network that left its subscribers without service for several hours early last month. Reuters writes that Argentina has ordered Movistar to pay ARS10 to each of its roughly 18 million customers, in addition to a fine of around ARS6 million to the state. ‘The system is deregulated, they charge market rates. There is no reason, no motive and no argument that could justify this failure in the security and continuity of our communications,’ planning minister Julio De Vido minister told a news conference. He added that Telefonica has the option of appealing the compensation order and fine.