Seeking Alpha

Argentina sees telecom reform bringing $20B in investment

|About: AT&T Inc. (T)|By: , SA News Editor

Argentina's government expects upcoming telecom reforms to draw $20B in investment over four years, with a number of multinational players making preparations for the shifting market.

A strategy of openness pledged by recently elected president Mauricio Macri is causing investment rethinking across industries. AT&T (NYSE:T) and Motorola Mobility have expressed interest in investing there, Communications Minister Oscar Aguad told Reuters.

"As long as we are able to dictate a norm with clear rules, I think the figure of $5 billion a year is possible," Aguad says of the regulations set to take effect in 2018.

In local firms, Telecom Argentina (TEO -0.5%) has said it plans to invest $2.6B through 2018, and Telefonica Argentina (TEF -0.5%) has invested $330M in the first six months of this year. Those firms run at a disadvantage in the TV market to Groupo Clarin's Cablevisión, which offers Internet and TV via fiber, and its cable peers (and also compete with satellite distributors like DirecTV and Supercanal).