Argentina Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

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Last updated: 14 Feb 2025 Update History

Report Status: Current

Report Pages: 214

Argentina’s telcos reduce investment in response to public service commitments

Argentina’s ongoing problem with hyperinflation continues to distort the telecom market’s performance, which shows strong growth in revenue but only modest gains in subscriber numbers each year. The country’s economic challenges are being met in part by a program which involves the dollarization of the economy, allowing Argentinians to make use of the local currency in tandem with the US dollar.

Fixed-line teledensity continues on its slow, gradual decline year upon year. The fixed broadband segment has a relatively moderate penetration level, approaching 25% in early 2025. The number of subscribers to DSL has fallen considerably in recent years as subscribers are migrated to fibre. Cable remains the dominant platform, accounting for just under half of all connections, but the number of connections has fallen year-on-year since 2021.

Mobile broadband continues to be the preferred platform for internet access, supported by high mobile penetration levels and nationwide LTE coverage. The first 5G service was launched in February 2021 using re-farmed LTE frequencies. The 5G spectrum auction held in October 2023 provided an additional 250MHz of spectrum in the 3.5GHz range, and this has helped the three licensees to improve service offerings and widen the reach of 5G beyond the main cities. Nevertheless, access to 5G remains relatively low.

While the various fixed, mobile, and cable operators push to expand and enhance their services, the government is also making an active contribution towards boosting broadband connectivity around the country. Its national connectivity plan ‘Plan Conectar’, launched in September 2020, provides funding for a range of programs to increase coverage. This was complemented in the same year by a government decree which declared that ICT services and access to telecom networks were essential for citizens. Although the government intended for the telcos to thereby support the provision of services to poorly served areas of the country, the immediate effect was to discourage their investment on the grounds that these new obligations substantially modified the conditions of their spectrum concessions as well as their freedom to charge rates which provided a healthy commercial return.

To address connectivity in rural areas, the regulator has turned to satellite technology: in May 2023 it authorised Amazon’s Project Kuiper to provide broadband services across the country, while a deal was also struck with SpaceX’s Starlink’s satellite broadband service in late 2024.

Key developments:

  • EdgeUno announces plans to build the 2,550km Argentina-Chile Digital Bridge fibre cable connecting Santiago and Buenos Aires.
  • Telespazio Argentina signs a deal with Altec to deliver Starlink’s satellite broadband service to schools and government offices in Patagonia.
  • Telecom regulator completes auction of 5G-suitable spectrum in the 3.5GHz range, with Claro, Movistar, and Personal all securing concessions.
  • Amazon’s Project Kuiper satellite broadband services receives licence to operate in Argentina.
  • Telefónica hires investment bank JPMorgan to evaluate the sale of its Argentine business.
  • Report includes the regulator's market data to September 2024, telcos' financial and operating data updates to Q3 2024, updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Movistar, Telefónica de Argentina, Telecom Argentina, Grupo Clarín, Claro, Telmex, Telecom Personal, Nextel Argentina, IPLAN, ARSAT, Cablevisión, VeloCom, Fibrenet, Arnet, MercadoLibre.

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