The government of Argentina has cancelled the internet licence of Fibertel, part of media conglomerate Grupo Clarin, which owns its parent company Cablevision.
Grupo Clarin has had a long-running battle with Argentina’s President Cristina Fernandez de…
The government of Argentina has cancelled the internet licence of Fibertel, part of media conglomerate Grupo Clarin, which owns its parent company Cablevision.
Grupo Clarin has had a long-running battle with Argentina’s President Cristina Fernandez de Kirchner and has attacked her government through its newspapers, TV and online media.
Only last week, at the release of his company’s H1 2010 results, Grupo Clarin’s CFO Alejandro Urricelqui attacked the “intimidatory and illegal actions of the government…” and “…a shocking abuse of their power by public officers and agents, who are deliberately trying to affect the freedom of expression.”
Today Fibertel’s website is out of commission.
The Argentine government says that Fibertel’s merger with Cablevision was illegal. According to Argentine planning minister Julio de Vido, Fibertel has been operating illegally, without federal approval, even though the merger took place in 2002 and was approved by the Justice General Inspection agency.
Nearly 1.3 million Argentineans use Fibertel as their ISP.
“Fibertel dissolved when it decided to merge with Cablevision. The company no longer exists. This company has been breaking the law since January 15, 2009, and it is now time for it to end,” de Vido, said at a televised press conference.
In response, Cablevision sent an emailed statement to Bloomberg, which claimed that the government’s decision was “illegal and arbitrary,” and Cablevision will pursue all legal actions to continue with Fibertel’s internet service.”
The statement continued: “This is a new and serious chapter amid an increasingly totalitarian series of attacks by the government against companies owned by Grupo Clarin.”
About 63% of Grupo Clarin’s Ps1.87bn (US$470m) in sales in the second quarter came from its cable and internet services, according to the company’s earnings report.
Although the Kirchner has claimed that there are hundreds of ISPs in Argentinia, the market is dominated by Fibertel, Arnet and Speeds. Closing down Fibertel would effectively give Arnet and Speedy a duopoly on internet access in Argentina. In some areas, either company would be the only provider available. One of the main charges levied at Grupo Clarin by the government is that its control of newspapers, TV and internet makes it a media monopoly.
