Argentina - Information and Communications Technology Information & Comms. Technology
The Government of Argentina is proposing a new telecom convergence law to increase competition and accelerate technology uptake. The government estimates a $20B telecom investment over 4 years. The expansion of Argentina’s fiber optics network is estimated to further reach 1200 localities over the next 2 years, this represents a USD307 million investment opportunity: USD 240 Million in fiber optic deployment and USD 67 Million in fiber optic enabling equipment.
The plan aims to ensure access to quality broadband to a total of 29 Million Argentines within two years, lowering the cost of internet access. As of early 2019, 500 are connected. The current fiber optic network covers more than 32,000 km but 85% of the fiber is “lit” (active) and many localities are still in the dark. The Federal Internet Plan network will use ARSAT’s fiber optic network as a provider of data transport services at wholesale level and provide access to local internet service providers, coops, municipalities and SMEs.
IT Hardware and Consumables Unit: Millions of USD
| 2015 | 2016 | 2017 (estimated) | 2018 | 2019 (estimated) | |
| Total Market Size | 4411.00 | 5294.00 | 6088.00 | 7001 | 8050 |
| Total Local Production | 990.90 | 1189.00 | 1367.00 | 1809 | 2000 |
| Total Exports | 36.60 | 43.90 | 50.50 | 55 | 75 |
| Total Imports | 3457.00 | 4148.00 | 4770.00 | 5247 | 6125 |
| Imports from the US* | 21% | 22% | 15% | 18% | 20% |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: Total Local Production: Unofficial estimates based on industry reports;
Total Imports & Exports: Nosis/Exi-Net export/import database ;
Imports from U.S.: Unofficial estimates based on Nosis/Exi-Net export/import database
Argentina has a large nationwide telecom infrastructure and many companies are involved in the provision of services. The government has defined a program for the telecom sector centered around five priorities:
- To build a modern high-speed broadband infrastructure,
- To improve 3G and 4G mobile network quality;
- To develop a modern framework for the digital era,
- To stimulate demand for advanced services; and
- To eliminate Argentina’s digital gap.
- A majority of the systems installed need upgrading.
- The increasing complexity and convergence of technologies.
- A highly educated and tech-savvy population is on the rise.
- The increasing demand for cyber security platforms.
- Only 38% of companies are content with their performance in the digital world.
IT Services offer major opportunities for U.S. companies in network implementation, management and maintenance, legacy applications, wireless LANs, RTE (real-time infrastructure) implementations, remote operation processing, back-up, critical mission services, disaster recovery systems, Internet and network security systems, document digitalization, digital asset management, storage, utility computing, and information systems for rural areas. Cloud computing and virtualization-related services continue to have high demand in 2019. The outsourcing of software development and call/contact centers continues to see new investments, exports, and increased sales in the domestic market.
Other market conditions will foster growth in IT services, such as the increased use of e-banking, electronic commerce, and e-government, which have increased awareness related to information technology security. Regarding software, large projects in the areas of security solutions and business intelligence also present opportunities for investment in 2019. (See Cybersecurity subsector in the Security best prospect description).
In the telecom sector, investments focus on four areas: deployment and enhancement of the cellular GSM network (4G+LTE); expansion of broadband Internet access; expansion of data transmission/broadband and content over cellular networks; satellite services (especially for remote and rural areas of the country).
Opportunities
The Argentine government will continue investing in infrastructure and improving the country’s long delayed implementation of FTTH (Fiber To The Home), which currently has 8.5% of homes connected (the goal is to have 20% of all homes covered by 2019). State owned company, Arsat, continues to connect over 1,400 towns in the country with their main fiber network. The Government of Argentina will rely on private investment to provide connectivity for the rest.
According to the Argentine Investment Agency, the expansion of cell and broadband Internet coverage in Argentina represents an investment opportunity of US$8 Billion. According to the Argentine Secretary of Modernization, mobile phone penetration is high (141%- the number of sim cards exceeds the actual Argentine population number), but coverage is not uniform across the country and is often poor due to insufficient cell tower coverage (15,000 active cell sites). The current fiber optic network covers more than 32,000 km but 45% of the fiber is “lit” (active) and Internet speed is 15% lower than in its regional peers.
Web Resources
Argentine Chamber of Software and IT Services Companies (CESSI) (Spanish)
For additional information, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact Marina Millet, Industry Specialist. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.