 Argentina: Telecoms and technology background
FROM THE ECONOMIST INTELLIGENCE UNIT
Telecommunications were privatised in the early 1990s, and liberalised in 2000, leading to a doubling in the number of fixed lines on a per head basis between 1990 and 2001, and an improvement in the range and quality of services offered.
The telecoms industry employs well over 20,000 people at a conservative estimate, not including distribution and sales personnel. According to Pyramid Research, Argentina's penetration rate for fixed lines in 2004 was 22.1 lines per 100 people, compared with 21.6 in Chile and 20.5 in Brazil. Mobile penetration was 35 per 100 people in 2004, compared with 36.7 per 100 in Brazil and 59 per 100 in Chile.
Argentina missed out on the rapid growth in mobile penetration that took place in most telecoms markets in 2000-02. Where the number of mobile subscribers grew by between 25% and 99% in other Latin American countries ( Venezuela aside), in Argentina it grew by just 5% as the economy was engulfed by recession and a maxi-devaluation. From 2003, demand for telecoms services has rebounded strongly, turning Argentinainto one of the fastest-growing telecoms markets. As in other markets in the region, recent growth has been in mobile telephony rather than in fixed lines.
A number of the main mobile telecoms operators have changed ownership since 2002 and the market is competitive. In our 2005 e-readiness rankings, which measure the development of markets for e-business by looking at the legal environment and rates of connectivity, among other indicators, Argentina ranked 39th among the 65 countries rated, and was just behind Mexico and Brazil among the eight largest Latin American economies. In terms of personal computer (PC) ownership, with 111 PCs per 1,000 people in 2004, it lies just behind Chile, which has 113, and Brazil, which has 120.
To obtain full coverage of this market, please click here.
Useful Links:
SOURCE: The Economist Intelligence Unit
|
