Argentine President Carlos Menem last week announced a telecommunications liberalization plan that would give American wireless companies broader access to the Argentine telecommunications market.
Under the president’s executive decree, Argentina’s two major telecom providers would begin competing in each other’s territory in October 1999, a year ahead of earlier plans.
Telefonica de Argentina SA now holds an exclusive operating license for local and long-distance phone service in the northern half of the country, while Telecom Argentina, partially owned by Stet of Italy and France Telecom Group, has an exclusive franchise in the southern half.
In November 1999, the federal government intends to offer licenses to two new competitors. All four would be able to compete for local and long-distance business. Officials said the new competitors also would be able to compete for the personal communications services market, where legal wrangling has delayed the government from auctioning licenses.
Leading contenders for the new slots opening up late next year are two local cellular companies, one operated by BellSouth Corp. and Motorola Inc., and the other by a GTE Corp.-led consortium. The consortia are expected to present their business plans by mid-year. The president’s executive decree last week lifted a ban on the consortia bidding for two new wireless phone licenses this year.
By November 2000, the Argentine government would offer at least three more operating licenses, Menem said.
The plan would increase the number of telephones in Argentina by nearly 50 percent, to 10 million, by 2000.
