Grupo Clarin Invests ARS150 Million In Argentina Broadband Service
September 15 2011 - 1:42PM
Dow Jones News
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