New Fixed Networks market report from Business Monitor International: "Argentina Telecommunications Report Q2 2014"
Boston, MA -- (SBWIRE) -- 03/21/2014 -- Argentina's telecoms market continues to offer potential although the threats from increasing government intervention offer considerable downside to the long-term picture. Nevertheless, there are several bright spots including growing interest in pay-TV as operators increase the availability of multiplay options. Merging operations to offer converged services also supports this trend, and enables operators to lower their costs supporting the market's long term growth potential. New entrants in the mobile sector in the form of MVNOs will boost growth, even as the penetration rate passes 150%. Operators have bucked the trend of falling ARPU, leading BMI to revise forecasts upwards over the 2014-2018 period seeing a slow continued increase.
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- Mobile connections jumped by over 2mn in Q313, leading to a revision of forecasts. However, growth is still expected to low significantly as operators upgrade existing subscribers to next generation networks.
- Fixed voice subscriptions increased in 2013, but we expect longer term growth to be minimal and decline to set in before the end of our forecast period.
- The broadband market continues to be the market's most dynamic, connections are on the rise, with 18.5mn forecast to be in service in 2014.
Key Trends & Developments
Following several years of scrutiny by the government, Telecom Italia confirmed plans to sell its stake in Telecom Argentina in November 2013. The company received an unsolicited bid for its 22.7% share in Telecom Argentina from investment firm Fintech Advisory and this is expected to be completed in mid-2014. BMI believes Telecom Argentina's strong growth over the past year encouraged Telecom Italia to get out of the market at the top, with an uncertain regulatory environment looming over the telecoms sector offering long-term growth concerns.
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