ICT Media

Argentina: Spectrum Auction Delay Hinders LTE While Smartphones Fuel Data Traffic

  • PYR24060
  • 29 Pages
  • September 2013
  • ICT Media
Summary
Argentina continues to be one of the most advanced economies in Latin America, with estimated GDP per capita levels for 2013 of $11,100, close to those in Brazil ($12,190), Venezuela ($11,550) and Mexico ($11,840). Its telecom market is expected to generate $15.6bn in 2013 but will maintain moderate growth rates over our forecast period (3.5% CAGR), mainly supported by growth in the mobile data and fixed broadband segments.

Key Findings
The Argentinean telecom and pay-TV market generated US$15.2bn in service revenue in 2012, and we expect it to grow to an estimated $15.6bn in 2013, a 2.1% year-on-year growth. The mobile voice and data segments alone generated 58.3% of the total revenue of the sector in 2012, while the pay-TV and fixed broadband segments accounted for 16.5% and 12.6%, respectively. As we move forward, we expect mobile data to continue increasing its weight over the total market revenue and by 2016 to become the largest revenue contributor.

The Argentinean telecom sector faces important regulatory challenges if it wants to fully unleash its growth potential. One of the most critical issues in Argentina's regulatory agenda for 2013 is granting operators access to additional 3G and 4G spectrum, as well as enforcing more measures to encourage competition across all segments.

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