Media conglomerate Grupo Clarin SA (GCLA.BA) has invested ARS150 million ($35.7 million) to launch Argentina's fastest residential Internet service, giving it an edge over competing broadband providers.

The service, dubbed Fibertel Evolution, will initially provide Internet downloads speeds of up to 30 megabits.

That's much faster than any other widely available service offered by competitors such as Telefonica de Argentina, the local unit of Spain's Telefonica SA (TEF, TEF.MC), or Telecom Argentina SA (TEO, TECO2.BA).

"We expect that around 60,000 people will sign up for the service within the next year," Gonzalo Hita, sales and marketing manager for Clarin's cable TV unit, Cablevision, said at a press conference late Wednesday.

Grupo Clarin offers broadband access to around 1.25 million subscribers through its popular Fibertel brand, Hita said.

Net cable TV and Internet sales were up 28% to almost ARS1.5 billion from ARS1.16 billion a year earlier, according to Grupo Clarin's second quarter earnings report.

Grupo Clarin has been engaged in a prickly dispute with the Argentine government in recent years.

A year ago, the government set its sights on the group's lucrative broadband service when Planning Minister Julio de Vido said that Fibertel was operating without a proper license.

Grupo Clarin disputed the allegations.

De Vido gave the company 90 days to wind up operations and said Fibertel "doesn't exist anymore."

When asked about this at the press conference, Hita said Fibertel "is going to exist for many years."

-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com