Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, November 26, 2025

Carriers face the latest snapshot with two incumbents

The Internet market in Argentina is awaiting a decision on the operation between Telecom and Telefónica, which is still pending approval from the National Commission for the Defense of Competition (CNDC) and the National Communications Entity (Enacom).

The Internet market in Argentina is awaiting a decision on the operation between Telecom and Telefónica, which is still pending approval from the National Commission for the Defense of Competition (CNDC) and the National Communications Entity (Enacom).

If authorization is granted without regulatory remedies for the wholesale market, more than 500 ISPs -out of nearly 900 tracked by the Internet Map- would become clients of a national giant with a network spanning the country from north to south. According to information provided by Telecom to the CNDC in response to information requests, the overlapping kilometers between the core networks of both companies amount to 23,008, as noted in the Operation Objection Report published by the CNDC in June 2025. In this context, Enacom -cited in the report- warns that in certain localities Telecom would become the only provider capable of offering wholesale services while also being the main retail provider, reinforcing Telecom’s vertical integration. The CNDC concludes that the merger would affect the network segment exchange equilibrium, increasing Telecom’s bargaining power and potentially raising costs for operators.

From north to south, Arsat, which plans to go public, would need to serve as the natural counterbalance to this concentration. Official data show that it currently serves 1,200 clients (ISPs, cooperatives, and provincial telecom companies) and is in the process of tendering to expand the route along the Patagonian coast and complete the Route 40 ring. Additionally, it aims to quadruple the core network capacity by the end of 2025 to close the quality gap.

While Arsat prepares for its IPO, Silica Networks (locally owned) and Cirion (backed by Stonepeak) are expected to maintain competition across their network routes. Silica Networks increased its commercialized volume by 47% compared to 2024, from 2,169 Gbps to 3,194 Gbps in 2025, serving nearly 250 Internet providers.

Cirion is strengthening interconnections between data centers and its regional connectivity ecosystem. In April 2025, the SAC-2 submarine route became operational over Google’s Firmina cable, with its southern segment running 2,500 km from Santos, Brazil, to Las Toninas. This allows Cirion to migrate clients from older submarine cables, improving latency and performance.

Regarding international networks, V.tal and Meta are developing a branch of the Malbec cable (linking Brazil and Argentina) to Porto Alegre, expected to begin operations in 2027, aimed in part at reducing traffic concentration in San Pablo and Rio de Janeiro. In addition, Argentina and the rest of the Southern Cone are expected to benefit from a new digital hub of data centers in Porto Alegre.

Claro dominates the residential market with aggressive pricing, challenging providers in AMBA and provincial capitals. Its presence in the wholesale segment is less visible, though its client base has grown steadily over the past two years, increasing by 15% in 2025 compared to 2024, from 122 to 144 ISPs.

Meanwhile, regional carriers continue to emerge, such as Solution Lan, Batcom, and Advantun, among others. Solution Lan connects more than 50 ISPs through 1,600 km of its own fiber optic network across 14 municipalities in Greater Buenos Aires; Advantun, with 16 clients, focuses its operations in Buenos Aires province; and Batcom, with 9 clients, operates in Córdoba. These companies leverage their agility to provide connectivity compared to larger players (such as Arsat) and to identify opportunities for additional business through expansion into the residential market and/or neutral network models.

Provincial companies remain active. Agencia Conectividad Córdoba (ACC), undergoing liquidation after its functions were absorbed by EPEC, grew from 50 to 60 clients in a year. San Juan Innova rose from 10 to 12, Empatel from 51 to 54, and Telco Corrientes Telecomunicaciones from 16 to 21.

Starlink’s entry expanded satellite broadband from corporate to residential markets. Elon Musk’s company has around 210,000 connections in Argentina, and traditional satellite service providers as well as large telcos have become authorized resellers of the constellation (including Telecom, Telefónica, Telecentro, Telespazio, Orbith- with an intermediary). Smaller ISPs also offer Starlink antennas, installation, and support in areas without fiber, although this model is not formally approved by SpaceX.

Eutelsat OneWeb, with its LEO-MEO fleet, targets corporate clients requiring mission-critical services and strict SLAs. Amazon Kuiper, with 129 satellites in orbit, plans to begin operations by late 2025, after previous launch delays.

IXPs, Cabase’s network now has 28 IXPs, 9,269 Tb of connected capacity, and 550 members. In 2025, infrastructure and power upgrades were completed in Jujuy and Resistencia, with investments also in Sáenz Peña, Corrientes, and Mar del Plata; the Rosario node switch was replaced.

Catel’s content distribution network (CDN) consists of 12 cooperatives via Telviso and 15 via the Luján Cooperative. Within this framework, Vicootel has grown, contracting 30 Gbps of transit from Telefónica and providing capacity to cooperatives in Camet, Sierra de los Padres, Laguna de los Padres, Dionisia, De la Riestra, and Unión del Sur.

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