Market Trends of Argentina ICT Industry
This section covers the major market trends shaping the Argentina ICT Market according to our research experts:
Telecommunication is a Growing Sector
- Argentina will hold a 5G spectrum auction in February this year to bolster its government's finances after a year of high inflation. The deployment and improvement of the 4G+LTE network, the development of broadband Internet access, and the expansion of data transmission/broadband and content through cellular networks and satellite services are the four sectors where investments are concentrated in the telecom sector (for remote and rural areas of the country).
- Given the current state of the fibre optic network necessary for 5G operational implementation, 5G deployment in Argentina is still a mid-term reality even though the country's regulator, ENCOM, recently confirmed 5G spectrum allocation. Local internet service providers, co-ops, governments, and small and medium-sized enterprises (SMEs) would have access to the Federal Internet Plan network, which would use the fibre optic network of state-owned satellite and telecommunications company ARSAT as a wholesale provider of data transport services.
- Since the pandemic started, the internet has proven to be a crucial tool for the population's production, employment, and education. In metropolitan conglomerations in Argentina, two out of every three families have at least one computer, and nine out of ten homes have internet access. Internet usage is also rising in Argentina at the same time. It's estimated that more than 70% of citizens have internet access in the South America country.
- Approximately, there were over 36 million smartphone users in Argentina in 2021. By 2025, it is predicted that this figure will exceed 40 million. Moreover, there is still a possibility for expansion in this market. Less than 80% of Argentineans, according to estimates from 2021, were smartphone users, indicating that the country's mobile market is still expected to grow.
- Argentina's fixed broadband internet speed in August 2022 was faster than mobile in downloading and uploading. The median fixed broadband internet speed at that time was 19.65 Mbps for uploads and 47.19 Mbps for downloads.
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Robust Adoption of Cloud Computing
- When it comes to the use of cloud computing technology, Argentina is one of South America's most developed nations. Argentina and Chile were reportedly racing to host a new data centre for Amazon cloud computing services in South America last year. The use of cloud computing services might be crucial for the nation's economy since it allows for significant cost reductions in relation to IT infrastructure, offering users, particularly small and medium-sized businesses, a competitive edge.
- According to a cloud service provider VMware survey, using a hybrid cloud would save total IT costs by about 20 to 30%. A comprehensive regulatory framework that makes adoption easier goes hand in hand with the growth of cloud computing technology.
- A report claims that Argentina is one of the nations where the legal and regulatory framework for cloud computing has developed more quickly and in pace with current technology advancements. Argentina was ranked 17th out of 24 of the world's top information economies in the 2018 BSA Cloud Computing Scorecard for adopting an adequate regulatory framework for cloud computing and its legal issues, including data protection, cybercrime, and intellectual property protection.
- The government of Argentina is adopting a cloud-first policy for leveraging efficiency across various sectors in the country. The Governmental use of cloud computing technology might result in considerable cost and efficiency reductions for ICT budgets. City design and management sometimes called "Smart Cities," have also benefited from cloud computing.
- Argentina received a score of 50.22 out of 100 in the IMD World Digital Competitiveness Ranking, placing it 59th out of 64 nations. The research, released annually, evaluates the readiness of economies to accept and explore digital innovations that will revolutionize industry, government, and society at large.
