Argentina's phone company watchdog blocked a major business deal that would shake up the telecom world. Telecom Argentina wanted to buy out Telefónica Móviles Argentina and take complete control of the smaller rival. Officials worried the merger would hurt customers and create unfair market conditions across the country.
The deal would wipe out one of three main mobile carriers and leave just two giants fighting for customers. Telecom would grab about 58 percent of all mobile users and AMX would control the remaining 42 percent. Competition authorities fear this setup gives both companies dangerous power over pricing and service quality.
Radio spectrum limits also cause major headaches for regulators reviewing the proposed takeover. The combined company would exceed legal frequency limits by huge amounts in many areas. Some locations would see spectrum overages reaching 130 MHz above the 140 MHz ceiling set by communications regulators.
Home internet and phone services face serious disruption in 186 towns and cities nationwide. Telecom could dominate over 40 percent of customers in 114 internet markets and 143 landline areas. Major population centers like Buenos Aires would see the worst concentration problems under the proposed arrangement.
Business phone services present another troubling scenario where the merged company would control more than half the corporate market. Officials must hold special hearings with both companies to explore ways of reducing competitive harm. The firms can suggest changes to save their deal from complete rejection.
The deal would wipe out one of three main mobile carriers and leave just two giants fighting for customers. Telecom would grab about 58 percent of all mobile users and AMX would control the remaining 42 percent. Competition authorities fear this setup gives both companies dangerous power over pricing and service quality.
Radio spectrum limits also cause major headaches for regulators reviewing the proposed takeover. The combined company would exceed legal frequency limits by huge amounts in many areas. Some locations would see spectrum overages reaching 130 MHz above the 140 MHz ceiling set by communications regulators.
Home internet and phone services face serious disruption in 186 towns and cities nationwide. Telecom could dominate over 40 percent of customers in 114 internet markets and 143 landline areas. Major population centers like Buenos Aires would see the worst concentration problems under the proposed arrangement.
Business phone services present another troubling scenario where the merged company would control more than half the corporate market. Officials must hold special hearings with both companies to explore ways of reducing competitive harm. The firms can suggest changes to save their deal from complete rejection.
