BMI View : A fragile Argentine economy had a hugely negative impact on the telecoms sector in 2014, as high inflation and concerns about currency stability affected purchasing power. Inactive mobile number discounting added to the contraction of the mobile subscriber base in 2014. High penetration rate suggests that Argentinean market is close to the saturation point, BMI believes that this will be reached in 2018. On the upside, BMI upgraded its 3G/4G outlook after successful spectrum auction and the launch of the country's first 4G networks. Operators have also launched extensive capital expenditure programmes to expand their LTE networks. Meanwhile, NII Holdings divesting Nextel Argentina can change the competitive landscape in the country.
Mobile connections contracted by 727,000 in 2014, bringing the total by the end of Q414 to 63.557mn. Growth is expected to slow significantly as operators upgrade existing subscribers to next generation networks.
There were 9.241mn lines in service at the end of September 2014, with INDEC data showing this rising slightly from 9.142mn at the end of the same period in 2013. The broadband market continues to be the market's most dynamic, with connections on the rise. Some 18.5mn are forecast to be in service in 2014.
Key Trends & Developments
The government of Argentina auctioned national 4G spectrum in the 700MHz and 1,700MHz/2,100MHz advanced wireless services frequency bands and also regional 3G spectrum in the 850MHz SRMC and 1,900MHz personal communications service ranges on October 31 2014. Five companies pre-qualified for the auction - Claro Argentina, Telecom Personal, Telefonica Moviles (Movistar), Nextel and Grupo Uno, but three companies have thus far been awarded spectrum - Movistar, Claro and Telecom Personal. Under the 15-year licences, the winning bidders of the 4G spectrum will be required to increase population coverage to 98% in five years. Following the auctions, both Movistar and...
The Argentina Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Argentina's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Argentina Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Argentina.
- Benchmark BMI's independent telecoms industry forecasts for Argentina to test other views - a key input for successful budgeting and strategic business planning in the Argentinian telecoms market.
- Target business opportunities and risks in Argentina's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Argentina.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.