The Argentine government and the Competition Defense Tribunal have ordered Telecom Argentina to divest more than six million mobile customers [1].

This mandate follows the acquisition of Telefónica Móviles Argentina, known as Movistar, by Telecom Argentina. The order aims to prevent an excessive concentration of power within the national telecommunications market, ensuring that a single entity does not dominate the sector to the detriment of consumers.

According to the ruling, the divestiture requirement extends beyond mobile phone users to include broadband subscribers and radio spectrum assets [1]. The Tribunal said that these measures are necessary to comply with the Competition Defense Law, which is designed to maintain fair market competition and prevent monopolies.

Telecom Argentina's acquisition of Movistar created a significant shift in the market landscape. By requiring the company to shed more than six million customers [1], the government seeks to create space for other competitors to operate and maintain service quality for the public.

The order focuses on the structural balance of the industry. The Competition Defense Tribunal said that the current scale of the merged entity would likely stifle competition if the assets were not redistributed. The government is now overseeing the process to ensure the divestiture meets the legal requirements for market plurality.

While the specific timeline for the divestiture was not detailed in the initial order, the requirement is a direct condition of the merger's approval. The company must now identify which segments of its mobile and broadband portfolio will be sold or transferred to meet the quota of more than six million customers [1].

“The government and the Competition Defense Tribunal have ordered Telecom Argentina to divest more than six million mobile customers.”

This ruling signals a strict regulatory approach by the Argentine government toward the telecommunications sector. By forcing a divestiture of millions of users and radio spectrum, the state is prioritizing market competition over the corporate growth of the country's largest providers. This may lead to the emergence of new mid-sized players or the strengthening of existing smaller competitors, potentially altering pricing and service quality for Argentine consumers.