New Argentinean Government freezes out telcos from pay-TV


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Juan Fernandez Gonzalez

| 13 January 2016




Argentina's new government has set a new route to convergence, which for two years leaves telcos out of the pay-TV market.



While the previous regulations allowed telcos to immediately enter the pay-TV market, the newly formed government has postponed the market's convergence in a move which gives more time to service providers to get ready for stronger competition. However, this hasn't yet convinced the industry.

Analysing the situation, the telco association of Latin America, TEPAL, says that the new regulation pushes Argentina towards convergence and telecom development, as has been experienced in other countries.

“The former regulatory division between sectors and industries limited the development of competition and the broadband democratisation for the entire society,” explained TEPAL in a note.

“But the two-year margin for both telcos and cablecos to equal their power within the market is not enough. A temporary condition cannot bring symmetry by itself, it needs to be complemented by other measures aiming to balance the inequalities inside each market,” said the association.

Telcos such as Telecom Argentina and Telefónica were preparing to enter the pay-TV market and start offering convergent packages.

The new law doesn’t offer a solution for the cablecos either. They have traditionally owned the pay-TV business in Argentina and now face challenges like the emergence of OTT.