BUENOS AIRES, Argentina-After a year of strong conflicts between newcomers and established players, the total liberalization of Argentina’s telecommunications market is finalized.
Early November found 21 companies licensed to offer basic local telephony, as well as international and national long-distance phone calls. Finally, Argentina has complied with its agreement with the World Trade Organization, which was signed in the late 1990s.
AT&T, Techtel, Impsat, Diveo, Comsat and Metrored were the first to offer services. In most cases, access technology for users is wireless, in the frequencies of 38 GHz, 23 GHz and 10.5 GHz, among others, over a fiber-optic backbone.
Although many newcomers provided data transmission services before the market opened, others arrived in Argentina during 2000, seduced by the liberalization process. AT&T and Telefonos de Mexico (Telmex), which bought local companies, are among those that began services in 2000 in Argentina.
AT&T acquired 100 percent of Keytech for US$30 million in June.
Alejandro Rossi, president of the AT&T branch in Argentina, confirmed the U.S.-based company will invest US$500 million in networks, marketing and call centers during the first four years. With tariffs one-third cheaper than those offered by Telefonica and Telecom Argentina for calls to the United States, and “with quality standards to match those of the AT&T Labs,” the North American company has chosen to compete with its best weapons.
Telmex’s entrance in Argentina was marked by the recent purchase of 60 percent of Techtel-a company of the Techint group-and the promise to invest US$400 million during the next five years. It is the first arrival of the Mexican giant in the Southern Cone, with the company deciding to focus on the corporate market.
The incumbents
The liberalization process in Argentina was gradual. It began a year ago, when telephony operators, basic and cellular, were allowed to offer all their services across the entire country. Telefonica began to operate in northern Argentina and Telecom Argentina in southern Argentina. Cellular telephony companies Movicom BellSouth and CTI M
