Argentina’s mobile market (Argentina)Argentina’s mobile market is the third largest in Latin America, after Brazil and Mexico and in terms of penetration, Argentina is the regional leader. The telecom sector has been growing rapidly, with a penetration of 75% mobile telephony. The three operators, Movistar, Claro, and Telecom Personal, run a close competition for market share. Besides the three main cellular providers, Nextel operates an iDEN network with a small but profitable slice of the market. GSM is the main technology in Argentina, with TDMA and CDMA slated to disappear after June 2008.
All three companies launched 3G services over HSDPA networks in 2007. Approximately 136,000 subscribers use 3G services in Argentina.
Country No. of 3G Users
Telecom Personal 75,000
Claro 50,500
Movistar 10,500
*Total subscribers in Argentina will increase from 38.03 million in 2007 to 44 million in 2010.
* The two largest operators - Movistar Argentina and CTI - will continue to have very similar market shares (by subscribers). It is forecasted that Movistar will increase its current market share from a projected 35.6% in 2007 to 36.8% in 2010 while CTI’s market share will drop slightly to 32.8% in 2010.
* Telecom Argentina will continue to suffer from the highest churn rate in the country at 3% monthly churn rate from 2007 to 2010.
*It is forecasted that Movistar Argentina will have the lowest EBITDA margin of 30.4% in 2010 in Argentina. On the other hand, Telecom Argentina, CTI, and Nextel will enjoy higher EBITDA margins at around 35% - 40% in 2010.
*In 2010 Nextel, will provide services to 2.9% of total subscribers, will receive the highest ARPU of $48.2 per month. It is noted that this is 3 times higher than the closest competitor, Telecom Argentina.
