Argentina was one of the spotlight nations at TowerXchange Meetup Americas, showcasing significant investments and strategic moves in the country. One of the key highlights discussed was Telecom Argentina’s acquisition of US$300 million worth of 5G spectrum in 2023. The company has been deploying 5G infrastructure, with a hundred sites already operational and plans to activate up to 200 more by the end of the year. This effort aims to align Argentina with the rest of the region in terms of 5G connectivity.
For the past three years, the Argentine telecom market has experienced stagnation, primarily due to capex limitations, resulting in minimal site development. The challenging macroeconomic environment, characterised by soaring inflation rates that surpassed 100% in March 2023 for the first time since the early 90s hyperinflation era, along with an unfavourable tax regime, has made operations difficult, particularly for international companies.
Argentina - telecom market statistics Q3 2024
Despite the low penetration of tower companies (towercos), Argentina is home to significant players such as American Tower and Phoenix Tower International, along with smaller build-to-suit (BTS) players like Innovattel/Torresec, GME Alliance, ATIS Group, and A1 Torres. However, SBA Communications exited the market in early 2024, selling its local towers to ATIS Group (Argentina Telecom Infrastructure Solutions).
Innovattel was a pioneer in securing the first BTS contract in 2015, but the company is currently scaling back its investments in Argentina. American Tower entered the market in December 2016 by acquiring CyCSA, initially operating 1,000 urban sites and 2,500 km of fibre. Following the acquisition of Telxius’ Argentinian tower portfolio in June 2021, American Tower’s site count increased to over 500 towers.
Argentina - estimated tower counts Q3 2024
Innovattel/Torresec ranks as the country’s second largest towerco with 500 sites, while several other towercos collectively own just over 2,000 sites. In 2022, América Móvil’s new towerco, formed from its tower carve-out Sites, began operating 4,097 sites in Argentina .
However, despite these promising developments, the tower market has yet to fully take off in Argentina. In 2021, regulator ENACOM imposed strict limits on consumer prices for telecommunication services, prompting operators to focus on efficiency and cost reduction, posing challenges for towercos. The long-awaited 5G spectrum auction in October saw Claro and Telefonica Argentina secure substantial spectrum allocations with a rollout plan targeting towns with over 30,000 inhabitants by October 2030.
Looking ahead, the government and ENACOM are optimistic about the future, setting ambitious targets for 2025 and beyond. This optimism is driven by the expectation that enhanced 5G deployment will boost the telecom sector and contribute to overall economic growth, despite the current challenges.
