Argentina Telecommunications Report - Q4 2014

Business Monitor International
September 10, 2014
111 Pages - SKU: BMI5325512
Countries covered: Argentina

Argentina Telecommunications Report - Q4 2014

BMI View: The fragile Argentine economy will have a hugely negative impact on the telecoms sector in2014, as high inflation and concerns about currency stability will affect the purchasing power of Argentinepeople as inflation is expected to move above 30%. The country's recent default on its restructured bondswill likely send borrowing costs higher across the economy, weighing on investment in general. This mayimpact the upcoming October 2014 auction of 3G and 3G spectrum, where operators may be reluctant tocommit large capital expenditure outlays in such an uncertain environment. Nevertheless, there are severalbright spots, including growing interest in pay-TV as operators increase the availability of multi-playoptions. Merging operations to offer converged services also supports this trend, and enables operators tolower their costs, supporting the market's long term growth potential.

Key Data

Mobile connections fell by 796,000 in Q114, and growth is expected to slow significantly as operatorsupgrade existing subscribers to next generation networks.



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