Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Monday, April 12, 2021

NPlay Cono Sur 2021

Argentine ICT industry requested a subsidy to the demand in the opening of NPLAY Cono Sur 2021

The first panel discussion of Grupo Convergencia`s event brought together the vice president of Enacom, Gustavo López; the director of Strategic Affairs of Claro Argentina, Alejandro Quiroga López; and the president of the Argentine Internet Chamber (Cabase), Ariel Graizer. The last two agreed on a request for the State to subsidize demand in the context of the crisis. López replied that the possibility of doing so with Universal Service funds is being analyzed, but that he is studying the cost so as not to neglect investment in networks. 

Regarding the regulated price environment inaugurated as of DNU 690 -the focus of the inaugural discussion of NPLAY Southern Cone 2021-, the representative of the regulator admitted that Enacom proposed to the Chief of Staff of the Nation a definition of periodicity for rate adjustments of ICT services. It is currently awaiting approval from the office headed by Santiago Cafiero. Meanwhile, López clarified: "We can determine in advance when the increases will be, but not how much they will be". 

Quiroga López and Graizer also agreed in pointing out the impact of the DNU on the businesses of large companies on the one hand and SMEs and cooperatives on the other. The Claro Argentina executive indicated that the price freeze “hit us very hard” and added that “it is not a part of the DNU with which we agree; We argued that it would weaken the objective of deploying fiber optic networks from the start. Connectivity requires resources and predictability because the investments are long-term", he said.

In this context, Quiroga López asked that DNU 690 be an “exceptionality in a moment of exception” and advocated “reviewing the application after a while” because the industry, which came from a complex 2019 due to inflation and devaluation, passed to have the numbers in red after the pandemic. He also advised accompanying the decree in question with predictability measures on the adjustment of rates. 

Grazier reiterated Cabase's position contrary to the declaration of ICT services as competing public, one of the legs of the DNU. He also pointed out difficulties for SMEs and cooperatives to cover the Universal Basic Benefit (PBU) in a universe in which many providers have more competitive rates outside of this benefit. He also made a special request for the government to vaccinate the personnel of companies in the sector that work on public roads, to reduce the spread of Covid-19. The request was echoed by those attending the event, who supported the motion.

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