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ARGENTINA | 27-06-2024 16:49

Argentina's government removes price caps on cable, mobile phone and Internet rates

Companies may now set uncapped increases, measure taken by ENACOM is effective immediately; Recent study showed that 67.5 percent of Argentine homes took steps to reduce the costs of telecommunications services.

The ENACOM National Telecommunications Entity has eliminated the regulations limiting Internet, mobile phone and cable TV rate increases, via Resolution 13/2024, published on Thursday in the Official Gazette.

The statute sets aside a series of regulations which established caps on rises in telecommunications services, which included the prohibition to apply increases above 10 percent monthly. Now companies will be free to stipulate the adjustment of their values.

The decision by the body placed under trusteeship earlier this year will come into effect upon publication, which is why the impact on cable, mobile phone and Internet rates could already be reflected starting in July.
The measure is protected by Emergency Decree 302 of April 9, 2024, which repealed  Emergency Decree 690/2020, as well as Article 15 of Law 27,078, as amended, and included changes to Articles 48 and 54.
In its amended version, Article 48 provides that “ICT Service licencees shall set their prices, which must be fair and reasonable, cover operating costs and tend towards an efficient service and a reasonable operating margin.”

In addition, the official text reminded that Emergency Decree 302/2024 stated that “…ICT services have been created to compete, as well as mobile communication services, it being an essential power for their development and growth the possibility that licencees can set their prices freely.”

Along those lines, it also mentioned that “… Emergency Decree 690/2020 establishes an essential modification of the legal framework of the sector, which must be corrected in order to safeguard the rules which allow for the development of a competing market and the free fixing of prices of services rendered.”

The deregulation of telecommunications comes amid the impact the sector is experiencing due to the recession, which was reflected in a report by the CABASE Argentine Internet Chamber, which revealed that Argentine families are seeking to reduce the impact of connectivity costs in their budgets.

The study showed that 67.5 percent of Argentine homes implemented measures to reduce the costs of their fixed Internet service, in response to the complex economic outlook of the last few months, while 65.3 percent of households also adjusted their expenses in paid TV services.

– TIMES/NA

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