Argentina Makes Telecom Shed 6 Million Customers to Buy Telefónica

Markets · Corporates

—The ruling. Argentina’s competition authority cleared Telecom’s purchase of Telefonica’s local arm only if the buyer sheds 6 million mobile customers.

—The buyer. Telecom is controlled by Grupo Clarin, Argentina’s most powerful media group, and the deal was announced in February 2025 for $1.245 billion.

—The split. Of the 6 million lines, 4 million sit in greater Buenos Aires, 1 million in the north and 1 million in the south, to be handed to a new rival within two years.

—Spectrum too. Telecom must also return 130 MHz of airwaves, 60 MHz of it immediately and nationwide, and give a new entrant guaranteed access for two years.

—Why it matters. Without the remedies, regulators say one group would have controlled about 70 percent of Argentine telecoms; with them, the share falls to roughly 50 percent.

—The catch. The watchdog was blunt that the takeover only goes ahead if every condition is met.

Argentina has set tough Telecom Argentina merger conditions, ordering the Clarin-owned group to give up roughly half its mobile base before it can absorb Telefonica’s local business.

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What the Telecom Argentina merger conditions actually require

Argentina’s competition watchdog has agreed to let Telecom buy the local arm of Spain’s Telefonica, but only after stripping out a large slice of the combined company. The body ruled that the deal can proceed solely if Telecom gives up about 6 million mobile customers.

Those lines, together with the network gear that serves them, must be transferred to a new competitor. The handover is spread across the country, with 4 million customers in greater Buenos Aires and 1 million each in the northern and southern regions.

The decision came from the Tribunal de Defensa de la Competencia, the deciding panel inside Argentina’s national competition authority. It leaned on a technical report from the telecoms regulator, which had already mapped out where the new group would be too dominant.

The conditions go beyond customers. Telecom must also return 130 megahertz of radio spectrum, the airwaves that carry mobile signals, freeing 60 megahertz of it at once and across the whole country.

Why Argentina drew the line at 70 percent

The core worry is concentration. Government technical teams calculated that, left untouched, the takeover would have parked close to 70 percent of the country’s telecom services inside a single economic group.

With the remedies applied, that share drops to about 50 percent. The watchdog framed the package as a mix of structural and behavioural fixes designed to keep several providers alive in the market.

There is a separate rule for home internet. In any town where the merged company would hold more than half of fixed broadband, Telecom must hand customers to other operators.

The authority also told Telecom to guarantee a new rival access to its network for two years. The stated goal is an open, competitive market free of the dominant positions that can squeeze consumers and shut out smaller challengers.

A deal that has fought through a year of resistance

The buyer is no ordinary telecom. Telecom is controlled by Grupo Clarin, the country’s most influential media and communications conglomerate, which makes any expansion of its reach politically sensitive.

Telefonica announced the sale of its Argentine unit in February 2025 for roughly one and a quarter billion dollars. The move was part of the Spanish group’s wider retreat from Latin America, where it has been shedding businesses to cut debt.

The path to approval has been rough. In June 2025 the previous competition commission objected to the deal, warning of significant risks to fair competition in one of the country’s most active sectors.

President Javier Milei‘s government then dissolved that commission in November 2025 and replaced it with the current authority. In June 2026 an appeals court lifted earlier preventive measures, clearing the way for this week’s final decision.

Why it matters for investors

For foreign investors, the ruling is a signal about how Argentina handles big mergers under Milei. The president has built his brand on deregulation, yet his competition authority has just imposed one of the heaviest remedy packages the local telecom market has seen.

That matters because it shows the government will let a deal through while still forcing structural change. The message to acquirers is that scale is allowed, but not at the cost of a near-monopoly.

There is also a clear opening. Six million orphaned mobile lines and a block of returned spectrum create a ready-made entry point for a fresh competitor, and the obvious candidate is a rival carrier with room to absorb them.

For now the ball sits with Telecom, which must decide whether the prize is worth giving up half its mobile base. The peso traded near 1,441 to the dollar as the decision landed, a reminder of the currency backdrop against which these billion-dollar bets are placed.

Frequently Asked Questions

What are the Telecom Argentina merger conditions?

Telecom must shed about 6 million mobile customers and the network behind them, return 130 megahertz of spectrum, and give a new rival guaranteed access for two years. It must also hand over home-internet customers in towns where it would top half the market.

Who is buying Telefonica’s Argentine business?

The buyer is Telecom, the carrier controlled by Grupo Clarin, Argentina’s largest media group. Telefonica agreed to sell its local unit in February 2025 for roughly one and a quarter billion dollars as part of its broader exit from Latin America.

Will the deal still go ahead?

It can, but only if Telecom meets every condition. The authority was explicit that the takeover is viable only with the full remedy package in place, so the next move is the buyer’s.

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