Argentina: ENACOM sets new conditions on Telecom-Cablevisión Merger — taking back broadcast spectrum

Telecom Argentina and Cablevisión announced last Friday an agreement that will allow them to integrate their fixed and mobile telephony, internet and cable pay TV businesses, creating a new company that will be one of the largest in the local stock market.

However, the company resulting from the merger between Telecom Argentina and Cablevisión will have shed part of its radio spectrum if it wants the authorities to approve the operation, as it would exceed the regulatory limit, said telecommunications regulator ENACOM.

The Ministry of Communications plans to increase the maximum allowed spectrum to a range of between 160 and 180 Megahertz per lender, but the new company would likely control up to 220 Megahertz.

The merger must be approved by both the ENACOM and by the National Commission for the Defense of Competition, CNDC, which could eventually ask the new company to disengage from one of its telephone companies or pay-TV companies .

According to a report by Itaú BBA, a unit of Banco Itaú, the merged company will control 54% of the country’s broadband internet access market, 53% of cable television, 49% of the fixed telephony market and 32% of the mobile phone.

Full Content: El Economista

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