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Argentina Blocks Telecom Monopoly: Must Divest 6 Million Customers to Buy Telefónica

18/06/2026 03:53 - Economia

competencia Telecom fusión ENACOM Telefónica

Torres de telecomunicaciones con señales inalámbricas azules sobre ciudad nocturna, representando fusión empresarial y regulación antimonopolio

Understanding This Landmark Decision

In a significant move for consumer protection and market competition, Argentina's Competition Defense Tribunal (TDC) — the decision-making body of the National Competition Authority (ANC) — has imposed strict conditions on Telecom Argentina's proposed acquisition of Telefónica Móviles Argentina.

The transaction, announced in February 2025 and valued at USD 1.25 billion, would have created an unprecedented concentration in Argentina's telecommunications sector. The tribunal's decision, based on a technical report from the National Communications Authority (ENACOM), aims to prevent a dominant market position that could harm consumers and competitors alike.

Context for International Readers: Telecom Argentina is owned by Grupo Clarín, Argentina's largest media conglomerate, comparable to companies like Comcast or Vivendi. The acquisition would have given one company dominant control over mobile and internet services across the entire country.

Why This Matters: Market Concentration Explained

Without Conditions

~70%

Market concentration in telecommunications under a single economic group

With Conditions

~50%

Maximum market share allowed, preserving competition

Conditions Imposed on Telecom

The tribunal has mandated structural and behavioral conditions that Telecom must meet before the acquisition can proceed:

Requirement	Details
Customer Divestment	Sale of 6 million mobile customers (50% of combined portfolio) including associated infrastructure
Geographic Distribution	Customers must be transferred to a new competitor across AMBA (Buenos Aires Metropolitan Area), Northern Region, and Southern Region
Infrastructure Access	Guaranteed 2-year access to infrastructure, spectrum, systems, and interconnection conditions
Radio Spectrum Return	Return of 130 MHz: 60 MHz immediately, plus additional amounts in high-concentration areas
Fixed Internet	Divest customers in areas where market share exceeds 50%

The Regulatory Framework

This decision reflects Argentina's commitment to maintaining competitive markets. The National Competition Authority (ANC), created in 2018 to replace the previous antitrust commission, has taken an increasingly active role in reviewing major corporate transactions.

The involvement of ENACOM (Ente Nacional de Comunicaciones), Argentina's telecommunications regulator similar to the FCC in the United States or Ofcom in the United Kingdom, ensured that technical aspects of spectrum allocation and network infrastructure were properly evaluated.

The Competition Defense Tribunal (TDC), the highest decision-making body within the ANC, determined that the acquisition will only be viable if all imposed conditions are implemented in full.