Telecom Argentina’s license might be scrapped by Argentina Congress
www.WirelessFederation.com/news: The operating license of telephone company Telecom Argentina might be scrapped by the Congress of the country if an antitrust dispute gets embroiled in the courts. The warning was issued by Argentina’s government which plans to appeal an injunction issued last week by an Argentine court, which suspended the timetable which the government set for some of the firm’s shareholders to sell their stakes.
The government also claims that after Spain’s Telefonica bought a stake in Telecom Italia, it created a kind of monopoly of the company on the telecom market. Telecom Italia had been given a deadline until August 25 last year to sell their stakes in Telecom Argentina. The government now will take a more active role in the sale process if there’s no news by February 25.
Deadline for TI to sell Telecom Argentina stake scraped by Argentina court
www.WirelessFederation.com/news: Government’s deadline of February 25, 2010 by which Telecom Italia (TI) had been ordered to sell its 50% stake in Sofora, the holding company that controls Argentine fixed line incumbent Telecom Argentina, has been suspended by an appeals court in Argentina. TI’s chief executive, Franco Bernabe hailed the decision as the victory of justice system in Argentina.
An appeal was made by TI in an Argentina court against Argentine government’s decision ordering it to sell its stake in Sofora by February 25 or face intervention in the process.
In august 2009, it was ruled by Argentina that the antitrust legislation has been violated by TI’s shareholding in Telecom Argentina and ordered the company to sell the 50% stake, as Spain’s Telefonica.
Argentine antitrust body’s ruling appealed by Telco shareholders
www.WirelessFederation.com/news: An appeal has been filed by the Telco consortium shareholders against Argentinae government’s recent decision forcing them to sell their indirect stakes in Telecom Argentina. 23.6 percent of Telecom Italia is owned by Telco consortium which in turn owns about half of Telecom Argentina.
Spain’s Telefonica, Pirelli, Mediobanca, Intesa Sanpaolo, Assicurazioni Generali and Sintonia are the other partners involved with Telco. Telecom Italia was ordered by Argentina’s National Commission for the Defence of Competition (CNDC) to sell its stake in Telecom Argentina to avoid a telecommunications monopoly.
As per the decision, Telecom Italia will have to divest holdings by February 25 or face government intervention in the sale of its stake in Telecom Argentina. According to Telecom Italia, each and every ruling reached thus far by the Argentine authorities concerning the divestment of assets is illegitimate and unjust.
Deadline given to Telecom Italia to leave Argentina
www.WirelessFederation.com/news: Telecom Italia will have to leave Argentina by February 25 in order to avoid the government intervention in the sale of its stake in Telecom Argentina. A local newspaper published the deadline after the government’s announcement that it will get into the matter to protect competition on Wednesday.
The government’s intervention will lead to imposing concrete measures on the sale process, imposing sanctions or involving antitrust bodies. Argentine court had ordered Telecom Italia to sell 50% stake in Sofora, the holding company which controls Telecom Italia to avoid contravening of the cross-ownership rules among its shareholders.
Telecom Italia acquired Telefonica’s stake in October 2007 through Telco consortium. It gives Spanish operator an indirect, albeit small, stake in Telecom Argentina. Telefonica also offers telecoms services in Argentina in competition with Telecom Argentina.
Telefonica and the other members of Telco were fined by the Argentine government for violations. The companies had failed to timely inform the relevant authorities about the change in the ownership. The company has been provided ten days to pay the fine.
SEC to investigate Telecom Argentina sale
www.WirelessFederation.com/news: US Securities and Exchange Commission (SEC) has asked Telecom Italia (TI) to provide documents about the forced sale of its 50% stake in Sofora. Sofora is the holding company that controls TI’s Argentine unit, Telecom Argentina.
According to the chief executive of Telecom Italia (TI), Franco Bernabe, SEC asks for documents the moment it starts an investigation and he also believes that investigation will not delay the sale of Telecom Argentina.
Information of communication between TI and the government of Argentina has been asked by SEC. Besides, it has also requested information on potential buyers and sanctions that the government has applied to TI in Argentina.
Spain’s Telefonica has taken 24.7% stake in the Italian firm and already owns fixed line operator Telefonica de Argentina and because of this TI’s 50% stake in Sofora violates antitrust legislation.
Telecom Argentina increases subscriber base
Buenos Aires based operator Telecom Argentina (TA) has posted it results for the first nine months of 2006. They show net revenues increased by 30% compared to the same period last year to ARS5.26 billion (USD1.7 billion), driven by expansion in the broadband and cellular markets, as well as moderate growth in the wireline sector. ADSL subscribers have doubled in the last twelve months to 375,000, while fixed-line customers have increased 4% to 4.05 million. TA’s cellular subsidiary Personal reported 7.7 million subscribers at the end of September, of which 65% were prepaid. Monthly ARPU was reported to be ARS39, up 11% from a year ago.
Meanwhile BNamericas reports that TA is planning to invest ARS500 million in offering 3G services, in addition to the ARS1 billion it recently announced it intends to invest in broadband infrastructure.
Source- telegeography Wireless Mobile Telecom
