The Clarín Group is celebrating thanks to the government’s approval of the merger between Cablevisión and Telecom through the National Commission for the Defense of Competition (CNDC). This implies that in many areas of the country, instead of two suppliers there will be only one. Logically, this merger changes the map of telecommunications in Argentina.
This new telecommunications giant was born after the merger between cable operator Cablevisión, almost entirely in the hands of Grupo Clarín, and Telecom. The new company will be able to run businesses ranging from the transmission of audiovisual content and data to mobile and fixed telephony. As of the approval, the merged companies will have the obligation to make certain divestments to maintain the competition. For example, Telecom will have to return 80 Mhz of radio spectrum, so as not to have the closest thing to a monopoly in the mobile phone business and must divest its assets in 28 locations, according to the statement issued by the CNDC. For its part, the Clarin Group will also have to make several divestments.
“The ruling of the CNDC imposes obligations and makes recommendations on four levels: Disinvestment, Commercial offers, Network availability and Spectrum,” according to a statement released by the Ministry of Production, in charge of Dante Sica. Now, the new company will compete in the business of quadruple play, which consists of bringing fixed telephony, mobile, Internet and television to consumers through the same provider.
The president of the CNDC, Esteban Greco, said that “we are convinced that this opinion ensures conditions in the communications market so that different quad-play operators and various providers of some of these services at the national, regional and local levels can compete effectively to offer businesses and people the best possible options.”