Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world’s wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. The telecommunication infrastructure in Argentina is one of the most developed in the Latin American area, although rural areas are still inadequately served.
The Internet penetration rate reached 72% of the population in 2020. As in other countries, fixed-to-mobile substitution has adversely affected the Argentinean fixed-line market. Argentina has one of the highest broadband penetration rates in Latin America. The country’s economic and political difficulties during the last decade have impacted on sector investments, though there have been steady improvements in recent quarters. A large tranch of investment has been earmarked to expand fibre networks beyond certain areas of the main cities. This work has had a positive effect on the delivery of services, with the average download speed having increased from 5.3Mb/s in the first quarter of 2016 to 13.2Mb/s by the second quarter of 2018.
The local fixed-line market is dominated by 2 major companies, while over 400 smaller telecom SMBs and cooperatives share the rest. Mobile revenues account for more than two thirds of total telecom revenues, and this proportion continues to rise at the expense of fixed-line sales. Argentina has an advanced telecom infrastructure though considerable investment is still required to update services in rural areas. To meet pent up demand for telecom services the government has embarked on a large-scale National Broadband Plan. In August 2016 the state-owned infrastructure operator ARSAT launched a project to extend broadband services to some 1,200 rural communities. By mid-2018 this project was about 75% complete. The Ente Nacional de Comunicación (ENACOM) is the result of the merger of two previous agencies (AFSCA and AFTIC), aimed at moving the process of technological convergence forward and regulate the market by creating stable conditions for fair competition.
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world’s wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country’s turbulent history. After reaching a bottom line in 2002, the economy rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies.
in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors, continued working with the IMF to shore up its finances, and returned to international capital markets in April 2016. In 2017, Argentina’s economy emerged from recession with GDP growth of nearly 3.0%. The government passed important pension, tax, and fiscal reforms. However, the country is still struggling to build a solid economy that allows for long-term sustained growth.
There are two major incumbents in Argentina. Telecom Argentina is the major local telephone company for the northern part of Argentina, including the whole of the city of Buenos Aires. Telecom Argentina’s local telephone market, together with Telefónica de Argentina in the southern part of the country, was part of a duopoly until October 8, 1999. Telecom also operates Personal, a mobile phone service, and Arnet, an Internet service provider. The Spanish telecom giant, Telefónica, owns Telefónica de Argentina, the other incumbent which is the largest fixed-line operator in the country. It provides broadband, local and long distance telephone services in southern part of the country as well as the Greater Buenos Aires area. The mobile business is run by Telefónica Móviles through Movistar, a local subsidiary.
RELEVANT INTERNET EXCHANGE POINTS
NAP-Cabase – Network Access Point Cabase