April 20, 2014
To improve data networksFriday, December 13, 2013
Telefónica to invest 11.7B in 2 years
Telefónica Argentina said yesterday it plans to invest up to 11.700 billion pesos in the country over the next two years, using most of the money to increase the speed of Internet connections by creating a wider data network.
“Reassuring our commitment with Argentina, Telefónica Group will invest in 11.7 billion pesos 2014/2015,” Luis Blasco, Telefónica Argentina CEO, said yesterday. “Up to 5.2 billion will be spent in 2014 mainly to increase the speed of Internet connections and create a wider network of optical-fiber.”
Telefónica had planned investments of up to 4.1 billion pesos for this year. The company increased its profits this year by 4.8 percent, collecting 458 million euros in Argentina.
“Data consumption is the engine of growth. In 2013 data consumption increased by 90 percent, while we expect 60 percent growth for 2014,” Blasco said.
Telefónica and Telecom hold between 90 and 95 percent of the landline phone network in Argentina and control more than 60 percent of the mobile phone market through its operators Movistar (Telefónica) and Personal (Telecom). A similar situation is evident in the Internet market, where Telefónica and Telecom own 60 percent of the broadband connections.
Telefónica reached an agreement in September to raise its stake in Telco, Telecom Italia’s holding company, from 46 percent to 66 percent, in a complex deal that strengthens its influence over a key rival in South America, while allowing Italian investor partners to offload an unprofitable bet.
The agreement was questioned by the federal government over anti-trust policies, but in November Telecom Italia’s board of directors received an offer from Fintech for its direct and indirect stake in Telecom Argentina, which was later approved.
Herald with Télam