Telecom Argentina gets green light for pay-TV


Juan Fernandez Gonzalez

| 08 August 2015

Telecom Argentina has gained permission to enter the pay-TV market from the governing body AFTIC, starting a new era of tighter competition in Argentina's audiovisual industry.

As Telecom Argentina is not the only one having shown interest in entering the pay-TV market - Telefónica did it last May last May - the decision confirms what traditional cable operators were fearing: although the competition is stepping up, cable infrastructures are remaining the same.

But Telecom's permission is only the first step, as the company needed to fulfil the requirements of Argentina's digital law law. Now, the real process is to start, as no details about when, where and, most importantly, how Telecom's entry into pay-TV is going to happen.

According to Carrier y Asociados analysts, Telecom Argentina is the best placed telco to deploy TV services, as it has the permission, a tested technological platform and is already negotiating for content, but it still lacks a distribution network. It owns an ADSL network, which doesn't guarantee the average 10Mbps to distribute HD TV and still offer a stable broadband connection.

Another issue within the Argentinian market is saturation, meaning telcos would think twice before entering a market with over 80% penetration.