Telecom Argentina plans 40% increase in Capex in 2013

Telecom Lead America:
Telecom Argentina is planning 40 percent increase in Capex (capital expenditure) to ARS4.7 billion in 2013.

The increased Capex will represent 70 percent of revenues.

In 2012, capital expenditure increased 2 percent year-on-year to $3.3 billion.

Telecom Argentina’s investment focus in 2013 will be on improving customer experience and hence will invest in service quality and network – for both wireline and wireless services.

Telecom Argentina

The 3G device for mobile Internet and fixed network will attract significant investments in the next two years.

It will also invest in the existing hardware and software of the network for 3G technology.

Telecom Argentina officials — addressing analyst meet — said that its
value-added services contributed 53 percent to service revenues.

In 2012, its mobile revenues increased 22 percent year-on-year to 16.1 billion pesos.

Mobile Internet posted the highest year-on-year growth rate of 61 percent followed by Data revenue at 29 percent increase.

Prepaid and postpaid services were up 11 percent and 6 percent respectively while – rose by 30 percent. The data line operation posted 21 percent growth – accounts were 5 percent on consolidated mobile revenue.

Wireline broadband subscribers rose to 5 percent while full quarter ARPU rose 22 percent year-on-year increasing wireline broadband revenues by 21 percent in the book. Broadband penetration or wireline base reach 39 percent.

Internet and data service represents 45 percent of the wireline service revenues and are the main drivers of growth for the business, both seen at 28 and 26 year-on-year growth rates respectively.

In 2012, revenues reached ARS22.1 billion, up 20 percent compared to the 2011.

Telecom Argentina reported 24 percent rise in Q4 net profit to $164 million.

In full-year 2012, Telecom Argentina said net profit rose 7 percent from 2011 to reach $555 million, while consolidated sales climbed 20 percent.

Arvind Krishna
[email protected]