Argentina - Telecommunication Services: A challenging market (Strategy, Performance and Risk Analysis)
Argentina offers potential for subscription growth, however high churn rates and declining voice ARPS remain a challenge. The Mobile segment dominates the Argentinian telecommunication industry, with increasing data revenues offsetting the fall in voice revenues. However, high mobile sector specific taxation will lead operators to bear the cost or pass it on to the customer.
MarketLine’s Premium industry reports provide a comprehensive market view including sections on: industry risk & reward, key industry trends and drivers, industry SWOT analysis, industry benchmarking to compare key performance indicators with regional and global markets, competitive landscape, and innovation.
A large telecom market
Argentina’s mobile subscription increased at a CAGR of 2.4%, from 58.3 million in 2012 to 64.1 million in 2016, with 70.2% subscriber penetration. It is expected to increase to 72.1 million (subscriber penetration level of 70.6%) by 2021 due to higher adoption of mobile phones.
Fast growing LTE market
In terms of 4G adoption, Argentina is one of the fastest growing markets in Latin America. LTE services were immediately launched within days of the 4G spectrum auction in October 2014. In around six months it attained one million users, at a rate of almost one new 4G user every 10 seconds, which resulted in a rising CAGR of 931.7% during 2014-16. Also, according to the industry estimates, Argentinians have consumed 24.2 PB (Petabyte) of mobile data per month in 2015, with the 3G and 4G subscriber penetration expected to reach approximately 55% by 2021.
Increasing telecom investments in Argentina
Increasing investments by telecom operators, particularly in mobile internet network expansion, are expected to have a positive impact on market growth. Telefonica, Telecom Personal, and America Movil have announced intentions to invest US$2.6 billion, US$2.1 billion, and US$2.7 billion respectively by 2020. In February 2017, Telecom Argentina completed the construction of the basic ICT converged telecom service over cloud infrastructure. This allows it to put all-cloud core networks into commercial use by utilizing Huawei’s DWDM as a means of offering voice and data services to 2G/3G/4G subscribers.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook