<strong>Have you been consulted for the regulation of DNU 690?

We only had conversations about the universal basic benefit for the most vulnerable sectors. DNU 690 occurred in a particular context in Argentina, as a consequence of Covid-19 and pre-existing situations. The pandemic was a true tsunami and totally changed the perspective of 2020 for all actors.

The DNU regulation is not sustainable. These are structural measures that were taken unilaterally, and that do not coincide with what had been discussed. We have two options: a consensus model with technical sustainability or a permanent conflict scenario. We ask to understand what the model for a constructive agenda is. If the idea with basic benefits is to reach vulnerable sectors, it will be with State subsidies, because we do not have funds for it.

The decree does not go in line with the possibility of providing better services. Tools must be instrumental to an end. That is what we talked about to the government: we want to understand what they want to do. It is a reaction to a special situation in 2020 and not a tool for Argentina's new normal and economic recovery.

We have worked a lot on mobile service provision. But not yet in broadband, because there are multiple actors and the request is that everyone participate. We understand that there were conversations with Cabase and cooperatives after the publication of the decree. We still need to advance in options that can be managed, diverse by size of localities, among other variables.

What analysis do you make of the macroeconomic conditions to develop your business locally in the short term?

Argentina ended 2019 with unique conditions, due to inflation and the fall in economic activity, which gave rise to situations of structural poverty and a very delicate situation. It is necessary to consider how a sustainable business framework of the industry will recover, what are the rules of the game for the sustainability of investments. We agree on many of the implicit messages in DNU 690: that telecommunications services are the most important of the current era, but it must be provided with a framework of adequate tools.

A country-style policy must be addressed, regardless of political colors, because networks are built slowly and must be maintained with investments. They are long processes that require strategic approaches. The DNU addresses specific issues, weakens the industry and its ability to expand services and improve their quality.

Current conditions do not make the operation sustainable in 2021. We aspire to move forward with our fiber network, among other things, but it will depend on macroeconomic conditions.

In this context, what is the company's investment plan for the next three years?

The company’s investment plan is not yet closed for 2021. We will make the best and largest investment based on income. In 2019 they were affected by inflation of more than 50% and a strong devaluation of the currency. In 2020, although inflation fell to 37% or 38%, there was a very pronounced loss of income due to the freezing of service rates for nine months.

In prepaid, the freeze comes from November 2019. This generates enormous damage to the industry. And it strongly conditions investments for 2021.

By 2020 Claro's aspiration with its fiber network was to reach the last 2 million homes. What is your goal for 2021?

We have two main avenues of projects. On the one hand, the expansion of the mobile network. On the other, the fiber network to the home. In 2020 we surpassed 2.2 million homes passed, and our idea is to continue investing in fiber during 2021. But we have fewer resources. More and more Internet connections are required, both fixed and mobile, but the income is not sustainable.

Then, 2021 will be a bet on the imagination, on the search for specific solutions to respond to the demand for deployments.

In terms of spectrum allocation, what was left pending in 4G in Argentina?

There is a pending return from another operator, which should have been fulfilled in the middle of 2020. On the other hand, there are a number of frequencies available for 4G, and the smartest thing would be for it to be used during 2021, at 2.6 Ghz and 700 Mhz. Argentina has only 30% of the assigned spectrum recommended by the ITU. It is an important area of ??work and the challenge is to take concrete actions on it.

What expectations do you have for 5G technology in terms of implementation times, investment and spectrum allocation?

We have worked in the core of the network, adapting it and preparing it for 5G tests, which we will do in 2021. We need to prepare for access to different spectrum bands. It is a completely different scenario: the work of identifying bands, organizing the process to make them available, cleaning or ordering, takes at least a year. For this reason, only in 2022 or 2023 Argentina could be in a condition of massive deployments of 5G.

The Covid-19 delayed the plans for the fifth generation in Latin America, but in 2021 it will advance regionally and Argentina must be aligned. It is essential that the country does not “disengage” from the global train of technology evolution, because 5G is a leap that allows changes in economic efficiency.

This article was published in the 2020 Communications Atlas and Yearbook on Convergencia’s 25th anniversary.