According to reports, the country’s Prime Minister Julio de Vido cancelled an auction for 25% of 3G spectrum, controlled by the government. It will now launch 3G through ARSAT, a state-owned satellite company.
ARSAT is building three new satellites, aimed at providing 3G access to consumers that have limited choice in accessing different networks through mobile phones.
Argentina’s increasingly lucrative mobile phone market is worth approximately $14 billion, and controlled largely by América Móvil’s Claro, Telecom Italia-owned Personal and Telefónica’s Movistar.
Claro, owned by billionaire Carlos Slim, was reportedly the only company involved that had the resources to manage a spectrum win, but this result would have led to increased concentration in the Argentinean market.
The government is also looking at different ways to reduce monopoly control in telecoms because of the dominance of the larger players. The moves will give consumers more choice when 4G devices are rolled out.
