Argentinean GSM Network to Expand

Telefonica Moviles has confirmed reports in Cinco Dias that is is planning to spend upwards of US$348-US$464 million upgrading its mobile network in Argentina. The company is also considering a wide range increase in its investments in Latin America according to the newspaper. Any investment will be spread over four years to minimize any risks caused by Argentina's recent economic crisis.

The company will overlay its existing TDMA network with a national GSM network if the investment plan is approved.

Telefonica initiated its service in the South of the country in 1996 and entered the capital, Buenos Aires in 1999. The company was granted a national license in 2000, but has not significantly expanded its network, relying instead on a roaming agreement with the GSM operator, Personal Telecom.

Telefonica Moviles has 1.6 million clients in Argentina and in the first half had earnings before interest, tax, depreciation and amortisation (EBITDA) of US$38 million on revenue of around US$122 million."

Posted to the site on 17th October 2003