The national government won a key showdown against Grupo Clarín and harshly conditioned the acquisition of Telefónica Móviles Argentina by Telecom. The operation, which could leave nearly 70% of telecommunications services in the hands of a single economic group, built on the historical state benefit, can only move forward if the company accepts a strong package of legal demands.
The decision was made by the Competition Defense Tribunal, the decision-making body of the National Competition Authority, based on a technical report prepared by ENACOM. The official goal is to prevent the formation of a monopoly that harms users, limits competition, and closes the market to new operators.
The main condition imposed on Telecom is the divestment of nearly 50% of its mobile portfolio. The company must relinquish 6 million customers, along with the associated infrastructure, distributed among AMBA, the Northern Region, and the Southern Region, to a new competitor in the sector.
Additionally, the government will require Telecom to guarantee that new operator access to infrastructure, spectrum, systems, and interconnection conditions for 2 years. The aim is for the transfer to be real and for the new player to provide service while developing its own network.
