Telefónica has officially confirmed the sale of its operations in Argentina to Telecom Argentina for $1.25 billion. The company aims to reduce its exposure in the region while maintaining sustainable growth for its shareholders. This strategic divestment is part of a broader plan to streamline operations and address Telefónica’s significant €26 billion debt, accumulated through its global ventures.
Meanwhile, Telecom Argentina envisions extensive development of digital infrastructure, further bolstering fixed and mobile broadband coverage. In addition, the company plans to expedite fiber optic deployment and expand 5G coverage. This move is expected to elevate Argentina’s digital infrastructure to international standards, consequently driving growth in key economic sectors.
Concerns surface as Argentinian President Javier Milei expresses apprehension over the impending acquisition. The deal may centralize 70% of the country’s telecommunications services under a single entity, raising competition and regulatory issues. To mitigate this, the state is contemplating necessary measures to ensure healthy market dynamics.
The sale aligns with Telefónica’s broader global strategy, which includes liquidating non-core assets like tower businesses and shares in fiber ventures across Europe and Latin America. By doing so, the company intends to refocus its investments toward more lucrative opportunities in key markets such as Spain, Brazil, and Germany, particularly in advancing their 5G and digital infrastructure.
