This week, Telecom launched in the Tucuman province- north of the country- its new generation IP telephony network. Four towns of that province, adding 1,000 lines, will stop connecting through the traditional central and connected on the NGN network through a softswitch that will cost US$ 2 million- that amount will include a back up softswitch. According to Edmundo Poggio, fixed telephone executive director, Telecom Argentina is the second biggest operator throughout Latin America to migrate to this type of voice service. In 2006, they will connect 100,000 lines, which will demand an investment of US$ 120 million. The payments will be designated to expanding their backbone and modifying their external plant to be able to reach 20 Mbps, installing last generation nodes, reaching them with fiber optics stated Poggio.

Telecom will invest large amounts within the next few years to migrate its network to an FTTx model with MetroEthernet and ADSL 2+ that will allow them reach residential clients with speeds of 20 Mbps. Currently, according to Poggio, Telecom is the only Latin American telephony that offers 5 Mbps of Internet access. The company’s objective is to multiply its bandwidth by four reaching 20 Mbps by 2007. The network will allow video, voice and data, among other services.

Poggio commented that Telecom’s fiber optic network allows them to transmit high-quality video signals. Likewise, Carlos Felices, CEO at Telecom, also added that the company has already obtained a contract to transmit the Soccer World Cup to be played in Germany next year, through Telecom’s FO network. When asked about the launching date of TV services, Poggio said, “We are not in the TV business”, but assured that “we will lend video on demand and IPTV- starting 2007, he commented to Convergencialatina- which is not television”.

The plan is to migrate their 3.3 million subscribers that are currently on the traditional network within the next 5-8 years. Moreover, The company’s priority will be to those areas where technology is obsolete. The first users` that will be migrated belong to the northern area of the country. The new network model will allow Telecom offer two types of telephone service. The Servicio Básico Telefónico (SBT) will have new services like message, group collaboration and videoconference, as well as another scheme of prices. Just as the company is presently carrying out with telephone on ADSL, its new ToIP service that will have minute packages at better rates than SBT.

Poggio pointed out “what we are offering is IP telephony and not voice on IP, which pertains to Telephony Laws and not Internet”. He also highlighted that “we will not leave the pulse and rate schemes”, and stated, “we will offer minute packages on ADSL. Telecom will also offer services in cities where Telefónica originally was the incumbent like Mendoza, Mar del Plata, Neuquen and Bariloche, among others.