The Argentine government has told wireless operators that they face being nationalised if they do not improve the quality of their service.
New regulations governing quality have been introduced in the country, where Spain’s Telefonica, Mexico’s…
The Argentine government has told wireless operators that they face being nationalised if they do not improve the quality of their service.
New regulations governing quality have been introduced in the country, where Spain’s Telefonica, Mexico’s America Movil (AMX) and Telecom Argentina – which is part-controlled by Telecom Italia – are the dominant operators.
Argentina’s planning and public finance minister Julio De Vido, a long-time ally of President Kirchner, was quoted by El Economista as saying that underperforming telcos would face the same fate as Correo Argentino, Aguas Argentinas and Aerolineas Argentinas; businesses which have all been nationalised.
In 2012 Kirchner expropriated the stake of Spanish oil giant Repsol in local energy company YPF. The Argentine government has made clear that it expects foreign-owned businesses, including telcos, to invest in the country.
Telefonica generated US$5bn revenues in Argentina in 2012, Telecom Argentina reported US$4.1bn, and America Movil recorded US$2.9bn for its Argentina, Paraguay and Uruguay business unit.
