The Argentinean government has canceled an auction for the 25 percent of Argentina’s 3G spectrum still controlled by the government, and will now go into business itself through state-owned satellite company Arsat. The government says people are tired of monopolies and deserve more competition when using smartphones and other devices to access the internet, Associated Press reports.
Arsat is building three new satellites to provide the service, and with the government’s help, small companies and cooperatives are expected to find it much easier to become internet providers in parts of the country where consumers now have little or no choice when accessing the web or using mobile phones.
According to de Vido, there were five bidders, but Claro was the only company with the necessary resources to manage part of the spectrum, and letting Claro win ‘‘would have led to more concentration.’’
The government is also studying other ways of reducing monopoly control in the telecommunications business, de Vido said, citing the dominant positions of Telefonica and Telecom as a setback for consumers. “This is not a state takeover”, de Vido said, but an effort to bring consumer prices down through more competition. De Vido said the move also should give consumers more choices as 4G devices roll out
