Argentine govt overturns price controls on telecommunications

Argentine President Javier Milei repealed decree 690 issued by former president Alberto Fernández, which declared telecommunications to be public services and imposed strict price controls on them.

Milei also amended articles 48 and 54 of the Argentine digital law.

Decree 690 was already not being applied to the major telecoms operators because the courts had quickly approved injunctions to prevent them from being subject to the changes made. In November 2023, the first substantive ruling in the case was announced, declarig decree 690 null and void.

With the new amendments, article 48 of the Argentine Digital law will be worded as follows: “ICT services licensees will set their prices, which must be fair and reasonable, cover the costs of operation and enable efficient provision and a reasonable operating margin.”

Article 15, which declares telecommunications to be a competitive public service, is repealed. Article 54 was also amended, maintaining basic telephone services as a public service.

Specifically, the changes made by Fernández to the laws enacted by the administration of previous president Mauricio Macri have now been overturned.

The price controls established by the Fernández government immediately drew the ire of operators, leading them to halt investments, blocking government plans to boost the sector and producing asymmetries between operators who were able to win injunctions against the measures and those who were obliged to adhere to price controls set by the regulator. Enacom, which prevented them from raising them by more than inflation.