Company Trend Analysis - Telecom Argentina-Cablevisi?n Merger To Force Rivals' Hands - 10 JULY 2017
BMI View : As Telecom Argentina absorbs the largest cable player nationally, rivals Telefon ica and Claro need to consider aggressive consolidation strategies if they want to keep pace in rolling out converged services from early 2018 . Nevertheless, a s the future of pay-TV shifts towards fibre and IPTV platforms , operators should avoid distracting themselves from the end target.
Telecom Argentina and cable broadband operator Cablevision plan to merge to become a converged services operator. Cablevision is currently owned by Clarin Group, the largest media conglomerate in Argentina. This is an important move, as it will be the first multi-media cross-sector deal since the regulator, Enacom, rescinded rules prohibiting companies from providing converged pay-TV, internet, wireline voice and mobile service packages ( see 'New Regulations A Good Start, But More To Be Done' January 4 2017).
The timing of the deal is significant because:
Cable Demand Stable, Broadband On The Rise Cablevision Cable TV and Internet Subscribers ('000) Source: Grupo Clarin
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