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Argentina Telecommunications Report Q4 2009
Market |
Telecommunications |
Report Type |
Market Research |
Country |
Argentina |
Published |
14 August 2009 |
Number of Pages |
90 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Despite passing 100% penetration in mid 2008 Argentina's mobile operators continue to add new subscribers each quarter with the rate of growth hardly diminished. The continued fast rate of growth of services in the market has surprised even BMI, forcing us to upgrade our forecasts in earlier reports.
Operators are seeing very little decline in the number of net additions over the first two quarters of 2009 in comparison to the same period of 2008, and the growth rate has seen little decline. It is believed that the majority of this continued growth is being driven by interest in 3G services which have been heavily promoted in the country.
Expansion of 3G services can be expected with the announcement that regulator SeCom will auction additional frequencies before the end of 2009 allowing operators to expand their range of services.
However, this will be contingent on the spectrum cap of 50MHz being lifted, or abolished altogether, so that companies can acquire larger swathes of mobile frequencies to meet with the growing demand for mobile broadband.
Mobile broadband services look set to severely challenge fixed broadband offerings with a report that the number of monthly net additions are roughly equal between the two platforms. With fixed broadband services continuing to expand at a good rate, this only serves to generate more competition in the market, which should be good for subscribers in the long run as prices are lowered and services improve and expand. It may be that mobile broadband gains most popularity in more rural areas where fixed infrastructure is weaker. Nonetheless competition between incumbents Telecom Argentina and Telefónica de Argentina (TASA) has increased with fewer than 7,000 subscribers between the operators. Battling it out for supremacy may drive prices down and subscriptions up.
Cable TV operator Cablevisión was dealt a blow in July 2009 when its broadband arm was allocated fixed-line numbering to offer VoIP services only for this to be revoked just two weeks later. The incumbents plus the southern co-operative federation objected to the allocation of numbering. At the time of writing, there was no news on how Fibertel and Cablevisión intended to take their case forward.
However, the company had been requesting numbering from Secom for over a year and so is unlikely to let the issue lie.
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