TELECOMMUNICATIONS IN ARGENTINA

In late 2014 a new regulatory framework for the telecoms market was introduced (Digital
Law 27,078). The law‟s main aims are to promote information and communication
technologies (ICT), and foster the convergence between the telecoms and media industries,
which has been a pending issue for several years.

The most important change under the new law is that telecoms companies can offer audio-
visual communication services, including traditional television broadcasting, cable TV and
radio broadcasting, with the exception of satellite TV.

In December 2015, the telecoms regulatory framework was reshaped by introducing further
amendments to the Digital Law and the Broadcast Media Law. Under the new measures,
cable television was excluded from the scope of the Broadcast Media Law and is now
considered an ICT service that is regulated by the Digital Law.

However, one of the new regulatory framework‟s policy goals has yet to be accomplished,
but the convergent law for telecoms and media is expected to be enacted in the next years.

The most important 2017 deal in the telecoms market was the merger between Telecom
Argentina (one of the two major fixed and mobile phone companies) and Cablevision, the
leading cable television provider which constitutes 40% of the national market. The
transaction is under review by the antitrust and telecoms authorities.

Digital Law No. 27,078 (“Argentina Digital”)

Digital Law No. 27,078 is the primary legislation governing the telecoms market. It covers:

 Communications infrastructure;
 Satellite services;
 Telephone networks;
 Mobile services;
 Broadband connections; and
 Cable television.

The law does not regulate content and establishes „net neutrality‟, meaning the non-
discrimination of any type of content. Further, in December 2015 the Executive Branch
issued Decree-Law 267/2015, which established the National Communications Agency, the
regulatory body for the telecoms and media industries.

New licensing, interconnection and satellite regulations are being discussed at present to
implement the Digital Law fully. These rules are expected to be enacted in late 2017 or
early 2018. Further, a Ministry of Modernisation special committee is drafting a new bill
which aims to replace the Digital Law and the Broadcast Media Law with unified
convergent legislation. It is unclear when the final draft will be finalised and sent to the
Federal Congress for consideration.

1. Restrictions

There are no restrictions on investments by foreign investors in the telecoms market.

Foreign companies can establish a local subsidiary or branch or acquire a participation in an
existing domestic company. Further, Argentina has entered into bilateral investment
agreements with several countries in order to protect and foster foreign investments.

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However, in order for foreign satellites to provide satellite facilities in Argentina, their
principal jurisdiction (i.e., the notifying foreign country before the International
Telecommunications Union) must execute a reciprocity agreement with Argentina.

2. Licensing and authorisation

The provision of telecoms services requires an information and communications technology

(ICT) licence granted by the National Communications Agency. This is a single licence
which authorises the provider to offer any kind of ICT service (e.g., fixed or mobile, wired
or wireless or domestic or international services) with or without its own infrastructure.
Each service to be provided must be registered in the registry on the submission of
technical and economic information.

ICT licences have a nationwide scope. Further, there are no mandatory investment
obligations and providers are free to choose the technology and network architecture that
they consider the most appropriate for the efficient provision of services. An ICT licence
does not include the award of a spectrum, which is subject to a separate procedure.

The existing licence regulation (which has been in force since 2000) is in the process of
being replaced and updated by a new regime, which is meant to relax further the
requirements to obtain a licence. The transfer of licences and the controlling stock of
operators are subject to regulatory approval.

3. Network access and interconnection

Regulation: The following principles govern interconnection:

Agreement between the parties – providers are entitled to negotiate the price, terms and
conditions of interconnection. Agreements should not be discriminatory or establish
technical conditions that prevent, delay or hinder interconnection and should be registered
with the National Communications Agency;

 Mandatory – all operators must be directly or indirectly interconnected;

 Non-discrimination – operators have the right to obtain the same technical or
economic conditions as those offered to other operators that require similar
facilities, regardless of the service that they provide;
 Reciprocal compensation – operators have the right to establish reciprocal
compensation for the origin, transportation and termination of communications;
 Efficiency – no operator may impose interconnection terms and conditions which
result in the inefficient use of networks and equipment of interconnected providers;
 Open architecture.

Although parties are free to negotiate interconnection agreements, they are subject to
material restrictions imposed by the regulatory framework and the National
Communications Agency. The Ministry of Modernisation and the secretary of information
and communications technologies are discussing new interconnection rules.

Pricing: Prices may be freely negotiated between the parties, but should be cost oriented.
Nonetheless, the National Communications Agency establishes referential prices for those
components that it considers to be essential facilities. The agency can also establish
interconnection prices in the case of a lack of agreement between operators, for which the
benchmarking of regional prices may be considered.

Disputes: All interconnection-related disputes should be submitted to the National

Communications Agency, which has primary administrative jurisdiction. National
Communications Agency decisions can be appealed with the Ministry of Modernisation
and challenged before the judicial courts.

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 4. Competition

There are no relevant competition issues in the domestic telecoms market at present other
than the Telecom Argentina-Cablevision merger, which is under review by the antitrust and
telecoms authorities. The Ministry of Modernisation is expected to revise the spectrum cap
for mobile services. Dominant market operators are subject to specific obligations
concerning interconnection, including: maintaining an updated public interconnection offer;
and guaranteeing to unbundle the local access network.

Telecoms and mobile operators are subject to accounting separation for cable television
services. Further, dominant operators must have separate accounting for interconnection-
related activities.

5. Spectrum

Allocation: Spectrum allocation is subject to a specific authorisation from the National

Communications Agency, which may replace, modify or cancel authorisation, in whole or
in part, for public interest reasons. This power is used to incorporate new technologies
which require migration from previous operators. The spectrum for mobile and broadband
services is usually granted through a public tender process, for which specific conditions
and expiration terms are established on a case-by-case basis.

Fees: Public tenders for spectrum allocation are usually subject to auctions or economic
bids. Spectrum use is charged by recurrent administrative fees according to the specific
service or system used.

Transferral: Spectrum licences can be transferred with prior approval from the National
Communications Agency.