What to expect from Argentina's upcoming ICT regulations

Deregulation, simplification of procedures and processes, modernization of the regulator and the delivery of spectrum licenses are some of the topics that were behind the government intervention in Argentine telecom watchdog Enacom. 

In January, President Javier Milei decided to intervene in Enacom with the aim of making a detailed report on the situation of the regulator and its structure and proposing necessary changes. All of the regulations that affect the telecommunications and audiovisual services sectors are being reviewed.  

“Due to the nature of technological advances, an important part of the rules that regulate the activity became obsolete, contradictory or juxtaposed with each other,” said Juan Martín Ozores, the official carrying out the intervention, in a meeting with journalists. There are even regulations that were never applied due to their complexity. 

Enacom's intervention is due to end in a week but is expected to be renewed for one more period to complete the work begun. The intervention allows for greater agility to make the changes that the administration sees as necessary. 

The regulatory review is being carried out with the collaboration of different industry players and specialists, Enacom said. 

Some of the regulations that could be modified because they are obsolete are quality regulations, the sanctioning regime and virtual mobile operator regulations, among others. Others, such as those relating to public telephony, are likely to be repealed outright. 

Enacom has started making some changes, such as the authorization for the operation of low orbit satellite companies – which allowed the entry of Starlink – and is moving forward with a new satellite regulation. 

THE ISSUES 

Newspaper La Nación published an article recently with an Enacom audit report that warned of overpricing in some of the projects financed by the universal service fund (FSU). 

“In the case of the FSU, deviations were detected in the implementation and execution deadlines, inefficiencies in the use of resources, delays in the closure and completion processes of the projects,” said Ozores. 

Enacom is preparing a new model to use this fund, which reaches nearly 110bn pesos (about US$119mn). The FSU, which is financed with 1% of operators' income, until now was used to provide non-refundable contributions for infrastructure projects but could incorporate demand subsidies and credits. 

In recent years, the fund was 50% foreclosed, according to the regulator. The audit carried out at Enacom revealed that there was not enough record of the compliance status of the projects financed by the fund. 

Currently, the regulator is in the notification process to verify compliance. It estimates that between 2.5bn and 3bn pesos must be paid as pending contributions to approved and completed projects, but to which the last payments are owed. Spectrum management and its control is another of the issues that the regulator proposed to resolve in a future stage. 

Work is underway on a spectrum plan and upcoming tenders to make available frequencies that are currently unused. The licensing of new spectrum could include the frequencies that are currently reserved for state company Arsat. Arsat has frequencies for both 4G and 5G technologies. 

Enacom is evaluating a so-called beauty contest to prioritize infrastructure development over revenue collection. The regulator also plans to work on modernizing spectrum control technology, in which the last major investment was made more than 20 years ago. Enacom has US$40mn available from an IDB program that will allow it to modernize the technology. 

CONNECTING SCHOOLS 

The regulator also announced that it is working on an agreement with the education ministry to provide connectivity and digital classrooms to schools. Enacom would collaborate with the delivery of tablets and articulating the connectivity work. 

The program will not end in connectivity but will also seek to deliver education applications and collaborate with the literacy objective announced by the national government. 

CHANGES AT THE INNOVATION DEPARTMENT 

The government made changes to the composition of the innovation, science and technology ministry, eliminating the role of deputy secretary of communications and connectivity. 

Thus, the new structure will have four departments: administrative management of innovation, science and technology; information and communication technologies; innovation; and science and technology. 

Héctor Huici, who was appointed in April as deputy secretary of communications and connectivity, will continue as an advisor to the government.