Financial news
Yesterday, February 24, 2025, Telecom announced the acquisition of its rival Telefónica Argentina for US$$ 1.25 billion. Is Entel coming back? We'll tell you the details.
Telecom's recent acquisition of Telefónica has shaken up the telecommunications market in Argentina. This move consolidates a giant that could have absolute control of the sector, raising fears of a monopoly that would reduce competition and harm users. The transaction, valued at more than $5 billion, includes the acquisition of Telefónica's entire infrastructure in the country, as well as its customer base and spectrum rights. Telecom has announced that the integration will be carried out gradually and will guarantee uninterrupted service continuity.
But, amid this reconfiguration of the business landscape, a ghost from the past has emerged and returned with force: the possible intervention of a single monopoly company, as it was in the past, and the unexpected return of ENTEL, but in a private capacity.
What happened with Entel
More than 30 years ago, the National Telecommunications Company (ENTEL) was privatized and divided, giving rise to the arrival of Telefónica and Telecom. Now, with the acquisition of Telefónica, the balance is tipped toward a single dominant company. In this context, various sources indicate that the government could be considering measures to prevent a total market concentration, including a possible partial renationalization or the creation of a state-owned company to level the playing field.
The government has issued a statement expressing its concern about the potential lack of competition and the impact this could have on consumers. The document states that it is evaluating the possibility of imposing stricter regulations to prevent abuses of dominant positions and that it has not ruled out state participation in the sector as a guarantee of fair access to telecommunications services.
The fear of consumers and other industry players is understandable. The lack of competition could lead to higher rates, lower service quality, and slowed innovation. Given this scenario, government intervention is a possibility that raises divided opinions: Would it be a solution to guarantee a fairer market, or is it a return to an outdated model?
What will happen to the new company?
While analysts discuss the economic and political implications of this move, end users face an uncertain outlook. What is clear is that the telecommunications market in Argentina is undergoing a transformation, and ENTEL's "triumphant return" could become an unexpected reality.
Will we witness a new era in Argentine telecommunications, or is this just another move by a sector that never stops reinventing itself? Time will tell.
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