Argentina’s Telecom Ordered to Shed Assets After Movistar Deal
Argentina Competition Ruling
Key Facts
—Divestment order. Telecom Argentina must sell 6 million active mobile customers to an independent operator, not Claro.
—Spectrum transfer. A total of 130 MHz of radio spectrum must be returned, with 60 MHz released immediately nationwide.
—Fixed-line sale. 211,400 residential internet subscribers in 28 localities must be transferred, including fibre assets in Buenos Aires.
—18-month deadline. The divestiture must be completed within 18 months under the supervision of an independent monitoring agent.
—Market rebalancing. The remedies aim to cap the merged entity’s mobile share at roughly 50% and preserve three strong national competitors.
Argentina’s competition tribunal has ordered a sweeping Telecom Argentina divestment of customers, spectrum and fibre assets as the price for absorbing Telefónica’s Movistar unit, reshaping the nation’s telecom landscape for investors and consumers alike.
The Ruling That Reshapes Argentina’s Telecom Market
On 17 June 2026, the Competition Defence Tribunal (TDC) issued Resolution RESFC-2026-38-APN-TDC#ANC, conditionally approving Telecom Argentina’s acquisition of Telefónica Móviles Argentina. The approval came with a structural remedy package that ranks among the most significant antitrust interventions in Latin American telecoms this decade.
Without these conditions, the merged entity would have controlled roughly 70% of Argentina’s mobile market and up to 80% of residential internet in some areas. The tribunal moved decisively to prevent that level of concentration.
What Telecom Argentina Must Sell
The centrepiece of the Telecom Argentina divestment is the sale of 6 million active mobile customers to an independent operator. Four million of those customers are in the Buenos Aires metropolitan area, with the remaining two million spread across the country’s interior provinces.
This block represents roughly one-third of Movistar’s mobile base and about 9% of Argentina’s national mobile market. The buyer must be independent and cannot be Claro, the country’s second-largest mobile operator.
The customer transfer includes contracts, numbering and call history, all at no cost to users. Alongside the subscribers, Telecom must hand over the specific spectrum usage rights needed to support a viable competing mobile operation.
Spectrum and Fibre: The Infrastructure Piece
Beyond customers, the tribunal ordered a significant spectrum divestment totalling 130 MHz. Of this, 60 MHz must be returned immediately on a nationwide basis.
The remaining spectrum must be released in areas of high concentration, with portions routed to the secondary market so other operators can acquire it. This reallocation is designed to prevent the merged entity from hoarding the airwaves essential for mobile competition.
On the fixed-line side, 211,400 residential internet subscribers across 28 localities must be sold. These span Buenos Aires City, Buenos Aires Province, Mendoza, Neuquén and Río Negro.
In the capital, the transfer of Movistar’s fibre-to-the-home network is mandatory. Elsewhere, the acquirer may choose between taking only the customer base or customers plus network assets.
Timeline and Oversight of the Telecom Argentina Divestment
The clock is already ticking. Telecom Argentina must complete all asset divestments within 18 months of the tribunal’s conditional approval, placing the deadline in late 2027.
An independent monitoring agent will oversee compliance with milestones, working alongside the Secretariat for Economic Concentrations. The telecoms regulator ENACOM had recommended a maximum of 24 months, but the binding remedy follows the tribunal’s tighter 18-month window.
The process has been methodical. A preventive injunction in March 2025 suspended the deal’s effects for six months.
The formal 45-day statutory review under Section 14 of Law 27,442 began on 24 February 2026, culminating in the June resolution.
Building a Third Player: Network Access Guarantees
To ensure the new entrant can compete from day one, the tribunal imposed mandatory infrastructure access for at least two years. This includes RAN sharing, national and international roaming on Telecom’s network, and colocation of equipment at shared sites.
The access package also covers interconnection conditions and systems, giving the acquirer a running start while it builds its own network. Some technical analyses suggest the transition window may extend to three years in practice.
These obligations begin from the effective transfer of the divested customers and spectrum. They are temporary but binding, designed as a bridge to a genuinely independent third operator.
What This Means for Investors and the Market
For investors, the Telecom Argentina divestment introduces both near-term friction and long-term clarity. The forced sale of 6 million customers and 130 MHz of spectrum will weigh on the company’s business and credit metrics during the implementation window.
Yet the conditional approval also removes a major regulatory overhang. Telecom Argentina now has a defined path to closing the Movistar acquisition, with clear rules and a supervised timeline.
The remedies reshape the competitive landscape. The merged entity’s mobile share is capped at roughly 50%, down from the 70% it would have commanded without intervention.
Fixed internet concentration is similarly reduced below 50% in affected localities.
For the broader Latin American telecom sector, the ruling signals that Argentina’s competition authority is willing to impose muscular structural remedies rather than relying solely on behavioural conditions. That precedent matters for future cross-border deals in the region.
Consumer Impact: Prices, Choice and Service Continuity
The tribunal framed its decision squarely in consumer-protection terms. All customer transfers must be executed at no cost to users, with continuity of service guaranteed throughout the migration.
The authority’s official reasoning states that preserving three vigorous competitors will translate into better prices, higher service quality and more options for Argentine users. The infrastructure access obligations are explicitly designed to prevent service degradation while the new entrant builds its own network.
For expats and professionals relying on mobile and fixed connectivity in Buenos Aires and beyond, the short-term impact should be minimal. The monitoring agent and staged milestones over 18 months are structured to avoid abrupt disruption.
What to Watch Next
The identity of the acquirer for the divested assets is the next major question. The buyer must be independent and have the financial and operational capacity to become a credible third national operator.
Regional telecom groups and infrastructure funds are likely candidates. The package of 6 million customers, spectrum rights and fibre assets in prime urban markets represents a rare entry opportunity into Argentina’s telecom sector.
The monitoring agent’s appointment and the first compliance milestones will offer early signals on whether the 18-month timeline is realistic. Any delays or disputes over asset valuation could extend the process and create uncertainty for both the merged entity and the incoming competitor.
Frequently Asked Questions
Why did Argentina’s competition tribunal order Telecom Argentina to divest assets?
The tribunal found that without remedies, the Telecom-Movistar merger would control roughly 70% of the mobile market and up to 80% of residential internet in some areas. The divestment of 6 million customers, 130 MHz of spectrum and fixed-line subscribers is designed to preserve a market structure with three strong competitors and prevent excessive concentration.
Who can buy the divested mobile customers and spectrum from Telecom Argentina?
The acquirer must be an independent operator and cannot be Claro, Argentina’s second-largest mobile provider. The buyer needs the financial and operational capacity to become a credible third national competitor, with access to shared infrastructure and roaming for at least two years to support the transition.
Will the Telecom Argentina divestment affect current Movistar or Personal customers?
Affected customers will be transferred to the new operator at no cost, with their contracts, numbers and call history preserved. The tribunal’s infrastructure access obligations are designed to ensure service continuity and quality throughout the migration, which will be supervised by an independent monitoring agent over up to 18 months.
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