Fast Market Research recommends "Argentina Telecommunications Report Q3 2014" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 06/03/2014 -- Argentina's telecoms market continues to show potential, but the threat of increasing government intervention offers 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.
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- Mobile connections jumped by a further 1.4mn in Q413, but growth is still expected to slow 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, with connections on the rise. 18.5mn are 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 was 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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