Argentina: Telefonica Challenges Cablevisión-Telecom Merger

The Argentine branch of Spanish telecommunications company Telefonica announced that it has taken legal action against the merger between Cablevisión (Fibertel) and Telecom Argentina, approved in December by Enacom, Argentina’s telecom regulator, which was followed shortly by the approval of the CNDC of the Ministry of Commerce.

According to the telecommunications operator, the resolution “endangers the investments required by the sector,” and will cause “very serious consequences for the future of telecommunications in Argentina,” as the merger makes Telecom Argentina the most powerful company in the sector, and the only one capable of offering quadruple play (fixed and mobile telephony, pay TV, and Internet) in the country.

As reported by Telefonica in a press release, the operation “involves the main provider of paid television in the country, which will account for almost 60% of the fixed broadband market at a national level and up to 90% in certain cities.” Telefónica went on to assure it is prepared to go to international bodies in order to defend their competitive rights.

Full Content: Todo TV News

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