Telecom Lead America: Telecom Argentina’s strategies to
enhance mobile data and VAS revenues have contributed to the company’s growth.
During a recent analyst meet, Franco Bertone, chief
executive officer of Telecom Argentina, said sustained VAS revenue growth
particularly mobile Internet that grew 82 percent year-on-year is a proof of a
successful strategy.
Post-paid segment ARPU rose 10 percent year-on-year to
P$54.3.
Telecom Argentina said its 3G posted 92 percent
year-on-year increase reaching 21 percent of its customer base. Leveraging 3G
customer base will maintain consisting growth of VAS revenue.
The mobile operator retained leadership of revenue shares
at 34.5 percent of the market or service revenues, Seekingalpha.com reported.
Service revenues grew 23 percent year-on-year mainly
driven by mobile Internet that posted an 81 percent year-on-year increase.
Revenue performance was delivered mainly by usage in customer increase and its
pricing has been stable since fourth quarter of last year.
In Paraguay, the subscriber base reached 2.2 million
expanding 13 percent year-on-year above its competitors. Revenues in local
currency rose 22 percent year-on-year while the margin rose to 37 percent
thanks to VAS contribution as mobile Internet revenues more than doubled thanks
to our top quality 3G network and leadership in the segment.
Mobile revenues reached more than P$7.5 billion in the
first semester with a 24 percent increase or P$1.5 billion compared to the same
period of 2011. Data generated additional P$642 million, a 32 percent increase
year-on-year. Paraguayan operation posted a 25 percent increase year-on-year in
Argentinean pesos and currently account for about 5 percent of our mobile
revenue.
Broadband ARPU increased by 12 percent while churn
declined to 1.1 percent per month. The second quarter of this year data
services increased 29 percent year-on-year showing great strength on a more
challenging economic environment. As an integrated network provider the launch
of its cloud computing group services will contribute to the growth of these
services or value added service and data services in the future.
In fixed VoIP line, prepaid voice revenue increased 6
percent, thanks to the higher penetration of supplementary services and less
than flat pricing of this.
Telecom Argentina spent P$1,345 million towards Capex, 13
percent of consolidated revenues in the first half of the year. Of this amount,
intangible asset represents P$427 million, increasing 32 percent on annual
basis mainly due to subscriber acquisition and retention expenditure related to
MNP implementation.
The mobile operator’s full year Capex will be about P$4.5
billion.
