Argentina Telecom Market Size

Argentina Telecom Market Analysis

The Argentina Telecom Market revenue is expected to register a CAGR of 8.5% over the next five years. This growth is attributable to a robust mobile penetration in the market. Users' consumption habits are evolving due to the growing demands for more data, faster speeds, higher-quality content, and greater network capacity-or, in other words, connection everywhere.

• With widespread LTE coverage and high levels of mobile adoption, mobile broadband is still the go-to method for accessing the Internet. The first 5G service was launched in February 2021 using re-farmed LTE frequencies. To increase government revenue and combat the country's high inflation, Argentina would hold a 5G spectrum auction in February 2023. Mobile broadband service adoption is expected to increase more due to the next 5G spectrum auctions.
• According to the president of industry regulator Ente Nacional de Comunicaciones (ENACOM) (the National Communications Entity ) , the Argentine government is optimistic that the 5G spectrum auction scheduled for the first quarter of 2023 will succeed. The government is actively working to improve Internet access across the nation, even as different fixed, mobile, and cable companies fight to increase and enhance their offerings. Plan Conectar, its national connectivity strategy, which was unveiled in September2020, provides funding for a number of coverage-improving initiatives.
• While several fixed, mobile, and cable companies work to increase and improve their services, the government is also actively promoting broadband access across the nation. The forecast period is expected to witness a rise in fixed broadband revenue, driven by rising broadband penetration and rising aggregate broadband average revenue per user (ARPU). According to ENACOM, Argentina's fixed-line internet income reached its high in 2021, at around ARS 163.4 billion (USD 1.01). Compared to 2019, fixed-line internet revenue increased nearly two times in 2021.
• The government of Argentina implemented price freezes on more than a thousand consumer items last month to slow the rise in the cost of living, which caused annual inflation to soar. Since 2020, the Covid-19 pandemic and rising costs have worsened the nation's economic problems. The ongoing hyperinflation in Argentina continues to impact the performance of the telecom business. It exhibits substantial revenue increase but just slight annual subscription growth.
• When the COVID-19 epidemic first struck in 2020, Argentina had already entered a recession. However, the nation has been witnessing a stunning turnaround, with a 10.2% increase in GDP in 2021, following three years in a row of economic contraction. Just when the nation rebounded from the pandemic's effects, it started dealing with rampant inflation and declining financial credibility. Prices of commodities have risen more than anticipated, mostly due to high demand, thereby causing a reduction in purchasing power of people.