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| Broadcast
4th September 2000 |
ARGENTINA TO LIBERALISE TELECOM INDUSTRY
Argentina president Fernando de la Rua has signed into law a decree
that should open Argentina's $11 billion telecoms market to foreign
competition and bring billions of dollars of foreign investment
into the country.
It
is also expected to bring extra benefits, such as new jobs and lower
phone charges. But the new rules have also attracted criticism from
the two dominant players in the industry, as Alison Gee reports:
"President Fernando de la Rua has finally signed the long-awaited
decree which will open up Argentina's telecoms industry to competition
in November.
"He
said the move will provide new horizons and produce a radical change
in the country's capacity for communication. In addition, Sr de
la Rua said he wanted to be the president of the Internet era and
these measures would help the electronics market grow.
"The decree slashes the fee companies pay to connect to other firm's
networks, from 2.35 cents a minute, to less than half that: just
1.1 cent a minute.
"Phone companies will be able to obtain single licences allowing
them to offer a whole range of services such as fixed line and mobile
telephony, along with cable television and internet services. at
present all these facilities need separate authorisation.
"Companies which are keen to move into Argentina include Bell South,
Movicom and Verizon. Under the revised rules new entrants into the
market will have to guarantee investment of at least $2 per inhabitant
in each region of the country they intend to serve.
"But the move was hotly contested by Telefonica de Argentina and
Telecom Argentina, which have dominated the market since it was
privatised ten years ago. They say the new rules are unfair to established
players as they are obliged to provide services to unprofitable
areas while new rivals will be able to focus exclusively on lucrative
markets."
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It Is hoped the move will attract $5.5 billion in foreign
investment by the end of next year and create thousands of jobs
in a country of 36 million people. Alison Gee |
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