<strong>Convergencialatina: What balance do you make on Sion performance in 2020-21 with the changes in the demand for connectivity triggered by the pandemic?

Luis Quinelli (LQ): The final average is positive. For the company, it was growth. At first we had high expectations because it was a new situation that we didn't know how it was going to develop, but we quickly saw that the Internet was a fundamental element.

It allowed us to continue with our activities and we had a sustained and increased level of demand. We operate in the interior of the country and in those areas we receive greater demand for connections.

Convergencialatina: What are, in your opinion, the singularities of the agreement with Telefónica for the sharing of infrastructure?

LQ: The agreement with Telefónica is at the forefront of collaboration in the industry at a global level. The word collaboration is sounding very strong in the industry. It is necessary for two reasons: we must rewire the world with fiber optics and prepare for 5G. The reality is that the adaptations that were made to the networks have a limit. 5G means a new wave of investment and development, in a context where operators are not clear about what the new sources of income are.

In terms of efficiency, the industry identified that, if revenues do not increase, it is necessary to work on costs and collaboration is ideal to achieve this goal, it became a central axis.

We are cooperating in building an infrastructure, which is not passive, as if it were a pole. We build an end-to-end network that we are going to use both. The degree of efficiency is maximum and requires a very deep agreement on the capacities that each one can carry out.

Convergencialatina: The focus they announced is in Tierra del Fuego and Comodoro Rivadavia. Why that area? What is the goal? Are there similar projects in another area?

LQ: Yes, we are working with Telefónica in the interior. We started there in Tierra del Fuego and Comodoro, but we are talking about the entire interior in different stages. The second stage is Chubut, and the provinces where Telefónica is located. It is for cities, not for entire provinces. We initially go where the network requires the most urgent update.

Convergencialatina: You planned to do a pilot test of this alliance in Río Grande in October. What conclusions can you share with us?

LQ: It was done successfully. We are setting up clients of the Telefónica network, sharing a network that originally belongs to a cable operator. It's not your typical infrastructure deal. It is a single network running. Infrastructure sharing is always talked about, but it is partial. When one does an economic and financial analysis, it is optimal to have a single infrastructure. This requires other types of agreements and a much greater commitment.

Convergencialatina: What evaluation do you make of the country's regulatory scenario, thinking in terms of future investments?

LQ: I think there is an interesting global context because today all the regulators worldwide are analyzing how to accompany this process of change in the industry. We are at a time when the industry is being refounded, where other variables are beginning to appear. Collaboration is the keyword. It is not just renting the pole, it is directly operating together, something deeper collaborative. We are in a process of change at a global level and the Argentine government is seeing how to accompany this situation.

The interesting thing that is happening is that we are the operators who build these alliances and not the regulator. Nothing better than the industry itself in assuming the commitment of its development. We are entering a phase of maturity, like the oil industry many years ago, which shares investments. The industry is entering a less glamorous process, where operators move in that direction due to maturity and the need of the players to increase efficiency. We are in the era of sustainability. There is no such thing as making a lot of money and creating destruction somewhere else. It is not sustainable over time. It will go bad for you in the long run. Telecommunications do not escape this process at a global level. Sustainability is another key variable.

Convergencialatina: What actions and investments do you project in the short term?

LQ: Beyond the agreement with Telefónica… We are going to 2022 very focused on the development of the agreement with Telefónica and on continuing to expand territory and preaching about the benefits of this model that does not go against anyone. It's a new, different way of operating that takes time to process, even emotionally. The one who was your enemy, your competitor, now is your partner. It is a new model that we are spreading with Telefónica and it is well accepted.

I see that the current challenge is 5G and for this new technology fiber optic networks are needed. That is not in the hands of a single operator and that is why it is necessary to generate instances of collaborative work. It is a matter of social responsibility. This matters a lot to us. It is the backbone of our business.