Wednesday, July 2, 2008

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Prevent the entry of Spain's Telefónica Telecom Argentina

A note from the Ministry of Communications requested to Italian businessmen to maintain the current state share of Telecom Argentina and will not change without permission

The government began concerned about the situation between Telecom and Telefonica shares, and recalled that without their permission is impossible to make changes in the telecommunications company, as stated in footnote 1004-1008 signed on Thursday of the week pass.

Secretary for Communication, Lisandro Salas went to the authorities of Telecom Italia to let them know that the Argentine government is analyzing in detail the impact on the sector's income Telefónica of Spain to the market. In fact, it also would prevent Telecom Italia to exercise the call option it has on the actions that are currently held by the Group Werthein.

The Secretariat argued the measure in the report of the seer, who was appointed by the judge hearing the case, noting that the performance of Telecom Argentina has not been affected by the alleged problem between shareholders.

The note is eight pages and in it there is a specific request to the Italians to refrain from entering into any contract involving an increase in its direct or indirect shareholding in Sofora Telecommunications (the parent company of Telecom Argentina).

may not assign contracts involving Sofora shares in favor of another, and "should refrain from signing contracts that aim to restrict competition or market access for Argentine telecommunications and / or constitute an abuse of dominant position, "concludes the text of the standard. Alert


Given the monopoly Telecom Italia's shareholding in the subsidiary in Argentina and Telefónica acquired the portion of Spain, which lets you take the most important company, originated a claim both the local shareholders of Telecom Argentina and civic associations and other telecommunications providers with a presence in the country, who warned of the possibility of a private monopoly.

telecommunications specialist Henoch Aguiar had warned days earlier that the Government "is a time to prevent a concentration of death may hurt future competition in Argentina."

The specialist said that, of the merger of Telefonica of Spain and Telecom Argentina, would be "the largest concentration business has ever known, because both companies control 95% of fixed telephony, 70% of mobile phones and broadband, "in Argentina.

The professor at the UBA and former communications secretary also highlighted that the unification of both companies in Argentina, stage left as "an open-air media conglomerate headed by Channel 11" or its current name, Telefe.

"It is very worrying" situation, because it would "consolidate a monopoly which we will regret later, "finalized.

Source: Professional InfoBae

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