Doing Business In Argentina

Telecommunications Equipment and Services
Overview Return to top
2005 2006 2007 (estimated)
Total Imports 1,630 1,756 1,956
Total Local Production 80 82 87
Total Exports 41 46 50
Total Market Revenues 1,669 1,792 2,190
Imports from the U.S. 72 66 66
Exchange Rates 3.1 3.1 3.1
Millions of USD. Exchange Rate 1USD=3 Argentine Pesos.
Sources: The above statistics are unofficial estimates, based on Argentine Customs data (Nosis).
The Argentine telecommunications sector has shown significant investments and growth
since 2004. The sector as a whole grew 20% in 2006 and 22.5% in 2007. Total sector
revenues, including equipment and services, reached approximately US$ 7.5 billion in
2007. The market is expected to continue growing by 20% in 2008 and 19% in 2009.
The highlight of 2007 was the launching of 2.5G services by cellular operators.
Statistics from December 2007 show a 22% telephone line penetration rate (9 million
telephone lines installed); 36 million cellular subscribers (85% penetration --projections
for 2008 are for a 20% increase) and 16 million Internet users (42% penetration).
Argentina has the highest cable TV penetration in Latin America -- 70 percent in the
Buenos Aires Metropolitan Area and 45 percent nationwide.
According to Prince & Cooke, Internet access services as a whole (broadband, dial-up,
and free Internet access) represented 40% of the growth from 2006-07. Broadband
access increased 100% in 2006 and 95% in 2007, reaching 2.8 million users – growth
projections estimate an additional 80-100% in 2008. The cellular market followed with a
42% increase in number of subscribers (approximately 60% of users are pre-paid).
International voice traffic increased by 20%, while local phone calls increased by 6%.
Telecom equipment/infrastructure increased 12% in 2007 reaching $1.9 billion and
accounted for approximately 20% of total sector revenues. An investment increase of
20% is expected for 2008, mainly in 3G services for the GSM network.
Best Products/Services Return to top
Best prospects for 2008/9 are broadband Internet access; broadband wireless access
networks (including point-to-point, point-to-multipoint, Wi-fi, Wireless LANs and Wi-Max),
cellular services, data transmission, SMS (short messaging services), broadband and
multimedia applications for cellular services, cellular phones, IP Phones, VoIP networks,
VPNs and IP VPNs., NGN and internet and network security products.
3/4/2008