Telecom Lead America: Telecom services market in Argentina has generated revenues of $18.44 billion in 2012, according to Frost & Sullivan.
Telecom companies in Argentina are investing in triple play services to increase fixed and mobile data services usage since voices services usage has been decreasing.
Frost & Sullivan says Argentina’s telecommunications services markets will reach $26.58 billion in 2017. The growth will be mainly due to the intensifying competition, offer of multiple-play bundles, expansion of 3G mobile networks, and the implementation of Action Plan Argentina Connected, conducted by the Government.
The agency noted that telecom operators that cannot offer TV can deliver content on demand through broadband, giving subscribers access to a wide variety of audiovisual content on their TV and computer. They compel cable operators to provide lower-priced services and triple-play offerings.
Frost & Sullivan ICT Industry Analyst Maria Agustina Di Genaro says that mobile data services’ adoption will be supported by the extended coverage of mobile broadband networks and network investment in HSPA+ and LTE.
Competition in the market is expected to escalate with the approval of the new regulation relating to 26,522 Law on Audiovisual Communication Services. The regulation will raise the number of cities with coverage overlap of different fixed and mobile networks, and intensify competition among integrated participants offering converged services.
However, this competition among mobile operators will not reach remote areas and small cities. The regulated tariff and regulator’s delay on spectrum auctions and competitive remedies will also hold back the Argentinian market.
Operators are increasing investments to expand 3G network coverage and improve the quality of their services. In addition, the major Telcos are investing in network and customer base expansion, and launching new digital services in the country.
Investments will be focused on generating revenue with converged plans such as bundling data and voice services, retaining client base with more value-added services, and migrating prepaid consumers to the postpaid segment through attractive price promotions.
