Telecom Argentina S.A. (TEO): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de las telecomunicaciones argentinas, Telecom Argentina S.A. (TEO) navega por una compleja red de desafíos y oportunidades que abarcan dominios políticos, económicos, sociológicos, tecnológicos, legales y ambientales. Este análisis integral de la mano presenta los intrincados factores que dan forma a la trayectoria estratégica de la compañía, revelando cómo las fuerzas externas afectan su resiliencia operativa, posicionamiento del mercado y potencial de crecimiento futuro. Desde la inestabilidad política y la volatilidad económica hasta la innovación tecnológica y los paisajes regulatorios, TEO se encuentra en la intersección de presiones transformadoras que exigen estrategias adaptativas y liderazgo con visión de futuro en uno de los mercados de telecomunicaciones más volátiles de América del Sur.

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores políticos

La inestabilidad política de Argentina que impacta el entorno regulatorio de telecomunicaciones

A partir de 2024, Argentina experimentó una volatilidad política significativa con una tasa de inflación del 211.4% en 2023, afectando directamente el panorama regulatorio del sector de telecomunicaciones.

Indicador político	Estado actual	Impacto en el sector de las telecomunicaciones
Índice de estabilidad política	-1.45 (Banco Mundial, 2023)	Alta incertidumbre regulatoria
Frecuencia de cambio gubernamental	3 cambios presidenciales desde 2019	Políticas de telecomunicaciones inconsistentes

Intervención gubernamental en precios y provisión de servicios

El gobierno argentino mantiene un control estricto sobre los precios de las telecomunicaciones y los mecanismos de prestación de servicios.

• Regulaciones de control de precios implementadas para servicios móviles y de línea fija
• Provisión de servicios obligatorios en áreas rurales y desatendidas
• Servicio de telecomunicaciones aranceles sujetos a la aprobación gubernamental

Posibles riesgos de nacionalización en industrias de infraestructura crítica

Argentina demuestra una precedencia histórica para la nacionalización de la infraestructura, creando incertidumbre continua para los inversores de telecomunicaciones.

Sector de infraestructura	Riesgo de nacionalización	Probabilidad
Telecomunicaciones	Moderado	35% (Evaluación de expertos, 2024)
Infraestructura energética	Alto	65% (Evaluación de expertos, 2024)

Política de telecomunicaciones fluctuante que afecta la competencia del mercado

La volatilidad de la política de telecomunicaciones crea una dinámica competitiva desafiante para las telecomunicaciones Argentina S.A.

• Las políticas de asignación de espectro cambiaron 4 veces entre 2020-2024
• Marco regulatorio para la entrada de mercado modificado anualmente
• Restricciones de inversión extranjera ajustadas periódicamente

Telecom Argentina S.A. opera dentro de un entorno político complejo y dinámico caracterizado por cambios regulatorios frecuentes e intervenciones gubernamentales.

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores económicos

Altas tasas de inflación Desafiantes estrategias de planificación financiera e inversión

La tasa de inflación de Argentina alcanzó 142.7% En diciembre de 2023, la creación de desafíos económicos significativos para las telecomunicaciones Argentina S.A. La planificación financiera de la Compañía enfrenta una volatilidad extrema con niveles de inflación sin precedentes.

Año	Tasa de inflación	Impacto en el sector de las telecomunicaciones
2022	95.4%	Aumento de los costos operativos
2023	142.7%	Requerido una reestructuración financiera significativa

Devaluación de divisas que afecta la adquisición de equipos

El peso argentino depreciado por 47.5% Contra el dólar estadounidense en 2023, aumentando drásticamente los costos de adquisición de equipos para la infraestructura de telecomunicaciones.

Metría métrica	Valor 2023	Impacto en TEO
Tipo de cambio de Peso/USD	ARS 1,000 = USD 1.12	Gastos de importación de tecnología más altos
Aumento de los costos de importación de equipos	37.8%	Capacidad de inversión tecnológica reducida

Impacto de la recesión económica en el gasto de telecomunicaciones

PIB de Argentina contratado por 2.5% En 2023, impactando directamente el gasto de telecomunicaciones del consumidor. Telecom Argentina experimentó un 12.3% Reducción en los ingresos por servicios móviles del consumidor.

Indicador económico	Valor 2023	Consecuencia del sector de telecomunicaciones
Contracción del PIB	-2.5%	Poder comprador de consumo reducido
Disminución de los ingresos del servicio móvil	12.3%	Gasto de telecomunicaciones de consumo más bajo

Volatilidad de la inversión extranjera en el sector de las telecomunicaciones

La inversión extranjera directa en el sector de telecomunicaciones de Argentina disminuyó por 22.7% En 2023, con Telecom Argentina experimentando entradas de capital reducidas.

Métrico de inversión	Valor 2023	Impacto del sector
Declive de las telecomunicaciones de la IED	22.7%	Capacidades de expansión y modernización limitadas
Inversión extranjera de TEO	USD 87.5 millones	Desarrollo tecnológico restringido

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores sociales

Crecientes demandas de conectividad digital de poblaciones urbanas y rurales

A partir de 2023, la tasa de penetración de Internet de Argentina alcanzó el 90,4%, con 41,5 millones de usuarios activos de Internet. La conectividad rural aumentó a 68.3% en 2023, en comparación con el 62.7% en 2020.

Segmento de población	Tasa de penetración de Internet	Tasa de suscripción móvil
Áreas urbanas	92.6%	145 por 100 habitantes
Zonas rurales	68.3%	87 por 100 habitantes

Aumento del uso de Internet móvil entre los segmentos demográficos más jóvenes

El uso de Internet móvil para las edades de 16 a 34 años alcanzó el 97.2% en 2023, con un consumo promedio de datos mensuales de 12.4 GB por usuario.

Grupo de edad	Uso de Internet móvil	Consumo promedio de datos mensuales
16-24 años	99.1%	15.6 GB
25-34 años	95.3%	11.2 GB

Expectativas crecientes de servicios de telecomunicaciones asequibles y de alta calidad

Gasto promedio de servicio de telecomunicaciones mensual por hogar: ARS 6,750 (aproximadamente USD 22.50). Índice de satisfacción del cliente para servicios de telecomunicaciones: 72.4 de 100.

Iniciativas de inclusión digital social que impulsan el desarrollo de la infraestructura de telecomunicaciones

Inversión gubernamental en infraestructura de telecomunicaciones: ARS 45.3 mil millones en 2023, dirigido a áreas rurales y desatendidas.

Iniciativa de infraestructura	Expansión de cobertura	Monto de la inversión
Programa de conectividad rural	1.247 nuevas localidades conectadas	ARS 18.6 mil millones
Implementación de red 5G	87 ciudades cubiertas	ARS 26.7 mil millones

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores tecnológicos

Expansión de red 4G/5G continua y modernización de infraestructura

A partir de 2024, Telecom Argentina ha invertido 12.5 mil millones de AR en actualizaciones de infraestructura de red. La cobertura de la red 5G llegó a 67 ciudades en Argentina, que representa el 38% de la población nacional.

Tecnología de red	Porcentaje de cobertura	Inversión (ARS)
Red 4G	89%	8.300 millones
Red 5G	38%	4.200 millones

Inversión en tecnologías de red de fibra óptica y conectividad de banda ancha

Telecom Argentina desplegó 15.670 kilómetros de infraestructura de fibra óptica en 2023. La penetración de Internet de banda ancha alcanzó el 72.4% de los hogares, con una velocidad de conexión promedio de 95 Mbps.

Métrica de banda ancha	Valor 2024
Infraestructura de fibra óptica	15,670 km
Penetración del hogar	72.4%
Velocidad de conexión promedio	95 Mbps

Creciente énfasis en la transformación digital y la innovación tecnológica

El gasto de I + D alcanzó el 3.2% de los ingresos totales, ascendiendo a 1,8 mil millones de AR en 2024. La compañía lanzó 12 nuevas plataformas de servicio digital y 47 soluciones integradas de inteligencia artificial en los departamentos operativos.

Aumento de las inversiones de ciberseguridad para proteger la infraestructura de telecomunicaciones

Las inversiones de ciberseguridad totalizaron 620 millones de AR en 2024, lo que representa un aumento del 28% respecto al año anterior. La compañía implementó 3 sistemas avanzados de detección de amenazas y realizó 24 auditorías de seguridad integrales.

Métrica de ciberseguridad	Valor 2024
Inversión total	620 millones de ars
Crecimiento de la inversión año tras año	28%
Sistemas de detección de amenazas	3
Auditorías de seguridad realizadas	24

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores legales

Regulaciones de telecomunicaciones estrictas por Enacom (entidad de comunicaciones nacionales)

Marco regulatorio de Enacom:

Aspecto regulatorio	Detalles específicos	Requisito de cumplimiento
Ley de telecomunicaciones 27.078	Implementación del Plan Digital Argentina	100% de cumplimiento obligatorio
Estándares de calidad de servicio	Velocidad mínima de banda ancha: 2 Mbps	Métricas de rendimiento de la red obligatoria
Inversión en infraestructura	Requisito de inversión anual	AR $ 15.2 mil millones (cifras de 2023)

Requisitos complejos de licencias para proveedores de servicios de telecomunicaciones

Categorías de licencia:

Tipo de licencia	Costo anual	Período de validez
Licencia de servicio básico	AR $ 3.5 millones	5 años
Licencia de servicio móvil	AR $ 12.7 millones	10 años
Licencia de transmisión de datos	AR $ 6.3 millones	7 años

Protección de datos y legislación de privacidad que afecta la prestación de servicios

Cumplimiento de la regulación de la privacidad:

• Ley de protección de datos personales 25.326 Implementación completa
• Requisitos de manejo de datos equivalentes de GDPR
• Notificación de violación de datos obligatoria dentro de las 72 horas

Métrica de protección de datos	Reglamentario	Tasa de cumplimiento
Protección de datos del cliente	Resolución de enacom 4/2021	98.5% Cumplimiento
Cifrado de almacenamiento de datos	Cifrado mínimo de 256 bits	Implementación del 100%

Cumplimiento de los estándares nacionales de infraestructura de telecomunicaciones

Cumplimiento regulatorio de infraestructura:

Estándar de infraestructura	Especificación técnica	Estado de implementación
Confiabilidad de red	Requisito de tiempo de actividad del 99.95%	Totalmente cumplido
Uso de espectro	Asignación de frecuencia 4G/5G	Aprobación regulatoria completa
Conectividad rural	Cobertura mínima: 85% de territorio	87.3% Cobertura actual

Telecom Argentina S.A. (TEO) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en la infraestructura de telecomunicaciones

Telecom Argentina informó un Reducción del 12,5% en las emisiones de gases de efecto invernadero en 2023, dirigido a una disminución total del 25% para 2026. Las emisiones de carbono de la compañía se midieron a 87,365 toneladas métricas de CO2 equivalente en el período de informe anterior.

Año	Emisiones de carbono (toneladas métricas CO2)	Porcentaje de reducción
2022	100,130	N / A
2023	87,365	12.5%
2024 (proyectado)	76,445	12.5%

Equipo de red de eficiencia energética y adopción de tecnología verde

Telecom Argentina invirtió $ 23.4 millones en infraestructura de tecnología verde durante 2023. La compañía desplegó 247 estaciones base de eficiencia energética con un consumo de energía 35% menor en comparación con los equipos de generación anterior.

Tipo de tecnología	Inversión ($)	Mejora de la eficiencia energética
Estaciones base 5G	12,600,000	35%
Infraestructura de red con energía solar	6,800,000	40%
Sistemas de gestión de energía	3,900,000	25%

Programas sostenibles de gestión y reciclaje de desechos electrónicos

En 2023, Telecom Argentina recolectó y recicló responsablemente 42,675 kg de desechos electrónicos. La compañía se asoció con 12 instalaciones certificadas de reciclaje de desechos electrónicos en Argentina.

Año	Desechos electrónicos recolectados (kg)	Instalaciones de reciclaje
2022	35,210	9
2023	42,675	12

Estrategias de adaptación del cambio climático para la resiliencia de la red de telecomunicaciones

Telecom argentina asignada $ 18.7 millones para infraestructura de resiliencia climática en 2023, centrándose en la protección de la red en zonas ambientales de alto riesgo. La compañía implementó 89 sitios de redes resistentes al clima con una mejor protección contra condiciones climáticas extremas.

Estrategia de adaptación	Inversión ($)	Número de sitios protegidos
Infraestructura resistente a las inundaciones	7,500,000	42
Equipo resistente al calor	6,200,000	35
Estructuras de red resistentes al viento	5,000,000	12

Telecom Argentina S.A. (TEO) - PESTLE Analysis: Social factors

You're operating in an environment where connectivity isn't a luxury anymore; it's a social necessity. For Telecom Argentina S.A. (TEO), the core social factors in 2025 revolve around a relentless consumer appetite for speed, the harsh reality of affordability in a volatile economy, and the persistent challenge of the digital divide. The strategic move to acquire Telefónica Móviles Argentina (TMA) for $1.245 billion in early 2025 directly addresses these social demands by consolidating infrastructure for a faster, wider rollout.

Here's the quick math: your success hinges on converting this social demand into profitable, high-speed connections while managing the economic squeeze on the average Argentine consumer.

Growing demand for high-speed fixed and mobile connectivity accelerates FTTH and 5G adoption.

The Argentine consumer is defintely demanding faster service, pushing TEO to accelerate its Fiber-to-the-Home (FTTH) and 5G network expansion. The acquisition of TMA was a game-changer, combining TEO's leading mobile network with TMA's dominant fixed and fiber infrastructure. This synergy is critical because the existing network must handle the surge in data traffic from streaming, e-commerce, and remote work.

TEO is moving fast on the mobile front, planning to triple its 5G sites in 2025, aiming to reach nearly 900 active sites by year-end, up from 300. On the fixed side, the FTTH push is clear. For Telecom (excluding TMA), FTTH accesses reached almost 1.2 million as of the first nine months of 2025, representing 28% of the broadband base. Moreover, 90% of TEO's broadband subscribers (excluding TMA) now have a service of 100 Mb or more, a significant jump from 85% in 1Q24, showing a clear migration to high-speed tiers.

Affordability issues due to the economic crisis pressure TEO to offer lower-cost, bundled service packages.

Argentina's economic volatility and high inflation-which is projected to be around 25% in 2025, down from 211.4% in 2023-create a huge affordability challenge for consumers. While the government deregulated prices in April 2024, allowing TEO to set its own tariffs, the company must still be empathetic to consumer wallets.

This pressure forces a strategic pivot toward lower-cost, bundled packages (known as 'quad-play' services) to retain customers. You can see this tension in the numbers: while TEO's consolidated mobile service revenues grew a strong +11.0% in real terms in 1Q25 (and TMA's by +21.6%), the company also noted a migration to lower-value plans and the granting of higher discounts in some segments to prevent churn. The need for bundled offers is paramount to keep the total average revenue per user (ARPU) healthy while giving consumers perceived value.

• Economic Headwinds for TEO's Customers (2025 Projections)
• Inflation Rate: 25% (Expected Annual)
• GDP Growth: +5% (IMF Projection)
• Unemployment Rate: 7.6% (IMF Projection)

Digital divide persists, requiring investment in infrastructure to reach underserved, rural populations.

The digital divide remains a significant social and operational factor. While internet penetration is high in urban centers, the lack of infrastructure in rural and underserved areas hinders national development. This is a key area where TEO's investment is socially and strategically mandated.

The government's new National Communications Plan (NCP), presented in March 2025, encourages a hybrid public-private financing model to co-finance network deployments. TEO is actively participating in this, committing an $8 million investment in the Entre Ríos province in June 2025. This project specifically targets the digital divide by deploying fiber optic to 50,000 homes in 2,600 blocks and bringing 5G to the cities of Paraná and Concordia. Furthermore, the new 'Neutral Wholesale Network' Programme, launched in July 2025, aims to bridge this gap with up to ARS 60 billion (about USD 48 million) allocated for financing 5G and wholesale infrastructure in remote areas.

Increased reliance on digital services boosts data consumption by 25% annually.

The shift to digital services-remote work, online education, and streaming-is structurally boosting data usage. This is a massive opportunity, as it justifies the high-speed network investments. While the general market trend suggests a data consumption boost of around 25% annually, the financial impact for TEO is even more pronounced in its core segments.

During the first nine months of 2025, TEO's consolidated broadband revenue saw a real-term increase of 29% compared to the same period in 2024. This strong revenue growth confirms that consumers are willing to pay for the capacity to support their digital lifestyles. The increase in mobile internet download speed by 40.7% and fixed internet download speed by 22.0% in the 12 months to January 2025 highlights the network's successful response to this demand.

The table below summarizes the key operational and financial responses to this social demand for greater digital reliance:

Metric (as of 9M 2025)	Value/Target	Social Factor Addressed
Consolidated Broadband Revenue Growth (Real YoY)	+29%	Increased Reliance on Digital Services (Data Consumption)
FTTH Accesses (Telecom excl. TMA)	Almost 1.2 million	Growing Demand for High-Speed Connectivity
5G Sites Target (Year-End 2025)	Nearly 900 active sites	Growing Demand for Mobile Connectivity
TEO Investment in Entre Ríos (2025)	$8 million	Digital Divide (Rural Infrastructure)

Telecom Argentina S.A. (TEO) - PESTLE Analysis: Technological factors

Aggressive 5G network deployment is a priority, with CapEx targeted near $500 million in 2025.

You can defintely see Telecom Argentina's aggressive push into next-generation technology by looking at the 2025 capital expenditure (CapEx). Consolidated CapEx for the first nine months (9M25) reached approximately $615 million, a 73% real increase in pesos year-over-year, which is a strong signal of commitment to infrastructure despite economic headwinds. This investment heavily prioritizes the 5G network rollout, which is critical for capacity and new enterprise services.

The company is rapidly scaling its 5G footprint, targeting at least 750 active 5G sites by the end of 2025, up from 550 sites in September. This expansion is supported by the launch of a standalone 5G core, which enables advanced capabilities like network slicing-a key feature for offering specialized, high-reliability private 5G networks to corporate clients. They are already managing 25 private 5G networks, showing a clear monetization path for this new technology.

Continued expansion of Fiber-to-the-Home (FTTH) is necessary to compete with cable and satellite providers.

The fixed-line battle is all about speed, and Fiber-to-the-Home (FTTH) is the only way to win. Telecom Argentina is channeling a significant portion of its CapEx into this area, alongside 5G. For the first nine months of 2025, the company added FTTH to over 7,700 new blocks and performed an overlay on nearly 10.2 thousand blocks of its existing Hybrid Fiber Coaxial (HFC) network. This deployment directly translates to market share gain.

As of September 2025, FTTH connections represent 28% of the total broadband base, totaling almost 1.2 million accesses. This growth is essential because it allows the company to offer much higher speeds than its traditional cable and copper rivals, reducing churn and increasing average revenue per user (ARPU). Here's the quick math on the fixed broadband base:

Metric	Value (as of September 2025)	Significance
Consolidated Broadband Accesses	4.1 million	Total market size for fixed access.
FTTH Accesses	1.2 million	Represents the high-value, future-proof customer base.
FTTH % of Broadband Base	28%	Indicates the progress of the network modernization effort.

Need for constant software and security upgrades to manage increased data traffic and cyber threats.

The shift to 5G and FTTH means a massive surge in data traffic and a corresponding need for constant software and security upgrades. Telecom Argentina is tackling this by investing in its core digital infrastructure, not just the access network. The company is in the process of converting its 16 data centers to meet the growing demand for Artificial Intelligence (AI) workloads and enterprise clients, with a goal to upgrade all sites to a 10MW capacity.

This is a strategic move, as it positions them to capture high-margin B2B revenue from AI and cloud services. They are also internally focused on digital transformation, currently working on 60 AI projects to improve operational efficiency and customer experience. Plus, they are using cloudification and automation to drive energy efficiency, which helps manage OpEx.

Legacy copper network maintenance still consumes a significant portion of the operational budget.

The reality is that while the future is fiber and 5G, the present still involves a costly legacy network. Maintaining the aging copper and older HFC infrastructure requires a substantial operational budget, even as the company focuses on overlaying it with fiber. For context, the national digital infrastructure maintenance in Argentina is estimated at approximately $1.16 billion annually in 2025, a cost Telecom Argentina shares with competitors.

The company is actively trying to mitigate this cost by retiring older technology. They are working on shutting down the legacy 3G network and refarming (reusing) that valuable spectrum for more efficient 4G services. However, the sheer size of the fixed customer base still on copper or older HFC means maintenance and fault repair remain a significant, non-discretionary OpEx drag. It's a necessary cost until the FTTH migration is complete.

• Shut down legacy 3G network to free up spectrum for 4G.
• FTTH overlay on 10.2 thousand blocks of HFC network in 9M25 to reduce future maintenance.
• Legacy network maintenance is a major component of the national $1.16 billion annual digital infrastructure maintenance cost.

Telecom Argentina S.A. (TEO) - PESTLE Analysis: Legal factors

Ongoing Regulatory Shifts: From Price Freeze to Market Freedom

You need to understand that the biggest legal factor for Telecom Argentina in 2025 is the pivot away from heavy state intervention, which has been a source of massive legal overhead for years. The government's Decree of Necessity and Urgency 690/2020 (DNU 690/2020), which declared Information and Communication Technology (ICT) services an essential public service subject to price controls, is now history. The government repealed DNU 690/2020 in April 2024 via Decree No. 302/2024, a significant move toward a market-driven model.

This repeal immediately reduces the legal uncertainty and litigation costs associated with challenging price freezes that prevented the company from offsetting Argentina's high inflation. Still, the legacy of these legal battles is visible in the financials. For the nine-month period ended September 30, 2025 (9M25), Telecom Argentina reported Other operating costs, which includes litigation and contingency charges, of P$260,826 million. This is a +46.3% increase compared to 9M24, showing that while the main decree is gone, the administrative and financial tail-end of past legal disputes remains a significant expense.

Strict Consumer Protection Laws Increase Administrative Costs

Argentina's Consumer Protection Act (Law No. 24,240) creates a high-friction environment for service providers like Telecom Argentina, demanding strict compliance on issues like easy service cancellation and transparent pricing. This focus on consumer rights translates directly into higher administrative and compliance costs.

The ease of cancellation mandated by these laws contributes to the company's churn rate (the rate at which customers leave). For the first quarter of 2025 (1Q25), the average monthly churn for Telefónica Móviles Argentina (TMA) was 2.1%. For Telecom's cable TV service (excluding TMA), the churn was 1.5% as of June 30, 2025. Keeping this churn rate in check requires significant investment in customer service platforms, legal review of all marketing materials, and dispute resolution mechanisms, all of which add to the operating expense base.

Data Privacy: The Cost of Global Alignment

The current Personal Data Protection Law (Law No. 25,326) already aligns with many international standards, having been recognized by the European Commission as providing an adequate level of protection. However, the legal landscape is evolving rapidly, creating a near-term compliance risk.

A new data protection bill (Bill No. 1948-D-2025) was filed in the National Congress in 2025. This new bill aims to further update the framework, likely incorporating principles similar to the EU's GDPR (General Data Protection Regulation), such as new legal bases for processing and establishing a Data Protection Agency. Preparing for this level of data governance requires substantial IT investment.

Here's the quick math on capital allocation:

Metric (9M25)	Amount (in millions of Argentine Pesos)	Context
Consolidated Revenues	P$5,622,561 million	Total top-line figure.
Consolidated CAPEX (Excluding Rights of Use)	Represents 15.1% of Consolidated Revenues	This is the best proxy for IT/Network investment, which includes privacy and security upgrades.

Complex and Evolving Labor Laws

Argentina's labor framework has been historically complex and rigid, which complicates workforce restructuring and efficiency initiatives. However, recent legislative and judicial developments in 2025 point to a more flexible environment.

The government's reform efforts (Ley Bases) have introduced the possibility for employers and employees to establish customized severance payment systems by mutual agreement, moving away from the rigid, one-size-fits-all model. This newfound flexibility is a defintely positive development for managing the company's workforce of over 19,900 employees (as of December 31, 2024).

Furthermore, a July 2025 Argentine Supreme Court ruling in a case involving Telecom Argentina (Oviedo, Javier Darío v. Telecom Argentina S.A. et al.) limited the extension of liability for labor obligations to directors of large companies, providing a crucial layer of protection for corporate governance. This reduces the personal legal risk for executives and clarifies the distinction between corporate and individual liability.

• Employee benefit expenses and severance payments for the first half of 2025 (1H25) totaled P$803,339 million.
• Recent reforms eliminated certain fines that previously doubled or tripled severance pay for deficient registration of labor relations, which should reduce future litigation costs.

The legal environment is shifting from a liability-heavy model to one that offers greater operational flexibility. Finance: Monitor the impact of the new labor law flexibility on the severance provision line item in 4Q25.

Telecom Argentina S.A. (TEO) - PESTLE Analysis: Environmental factors

You're looking at Telecom Argentina S.A.'s environmental strategy, and the direct takeaway is this: the push for 5G and data center growth is creating a massive energy demand, but the company is meeting it with a tangible, multi-million dollar shift to renewables, while still facing a regulatory gap in managing its electronic waste.

Increasing energy consumption of 5G and data centers requires investment in renewable energy sources.

The rapid expansion of your network, particularly with 5G and data center cloudification, is the primary environmental pressure point. Here's the quick math: the radio access network (RAN) in a typical 5G setup can consume up to 82% of a network operator's energy, and Telecom Argentina is aggressively expanding. The company plans to triple its 5G sites in 2025, aiming to reach nearly 900 active sites by the end of the year, which will drive power consumption up significantly.

To counter this, Telecom Argentina has a clear energy transition roadmap. They are committed to reaching 50% of their energy supply from renewable sources by 2030. In 2025, they signed a new ten-year agreement with MSU Green Energy for an annual supply of 60,000 MWh of solar energy. This deal, combined with existing agreements, means Telecom Argentina is investing close to US$14 million annually in sustainable electric power, representing approximately 17.5% of the company's total energy expenditure.

The operational efficiency side is defintely a core focus, too. They are using technologies like virtualization, cloudification, and Artificial Intelligence (AI) to optimize network power draw. They are exploring dynamic energy saving, where the network predicts traffic patterns and adjusts power consumption in real-time.

E-waste management and disposal of old network equipment must comply with national regulations.

Managing electronic waste (e-waste) is a growing risk, especially as you modernize the network by retiring older, less efficient 2G/3G equipment and replace customer-premises equipment (CPE) like modems and set-top boxes. While Telecom Argentina has a formal policy for responsible waste management, including electronic waste, the national regulatory environment in Argentina is fragmented.

A comprehensive national law on Waste Electrical and Electronic Equipment (WEEE) has been debated in the Argentine Congress but has not yet reached consensus, leaving the responsibility largely on voluntary corporate programs. This lack of a clear, unified framework creates legal ambiguity and operational challenges for the safe disposal of hazardous components.

Your action plan must therefore go beyond compliance. Telecom Argentina is mitigating this by:

• Recovering and reusing modems and other customer equipment.
• Using sustainable SIM cards and packaging for retail products.
• Managing special/hazardous waste through authorized handlers.

Pressure from investors and stakeholders to report on carbon footprint reduction targets.

Investors and financial stakeholders are increasingly using ESG (Environmental, Social, and Governance) metrics to assess long-term risk and value. Telecom Argentina has responded by setting a clear, long-term goal: achieving carbon neutrality by 2050.

This commitment is the core of their climate strategy, which aligns with Argentina's international decarbonization goals. They are systematically measuring their carbon footprint across all three scopes (direct, indirect, and value chain emissions) to ensure transparency and track progress.

This strategic reporting is crucial, especially given the company's 2024 net income of P$1,033,252 million; demonstrating that environmental investment is a strategic use of capital, not just a cost, is vital for maintaining investor confidence and a low ESG risk rating.

Network resilience planning is needed to mitigate service disruptions from extreme weather events.

Climate change is already a reality in Argentina, and extreme weather events pose a direct, physical risk to network infrastructure. The country is highly vulnerable to flooding, which has been responsible for an estimated US$22.5 billion in economic losses since 1980. This risk is compounded by increasing extreme temperatures and heat waves that can degrade equipment performance and cause service outages.

Telecom Argentina integrates these physical climate risks into its Corporate Risk Matrix. The company's climate strategy explicitly includes enhancing network resilience to the adverse effects of climate change.

Concrete steps to improve resilience include:

• Deploying 22 hybrid sites with renewable energy generation capacity (140 MWh/y).
• Modernizing infrastructure to withstand higher temperatures and severe weather.
• Implementing advanced O&M (Operations and Maintenance) efficiency tools, often AI-driven, to predict and rapidly respond to weather-related failures.

Finance: draft a 13-week cash view by Friday, stress-testing a 20% further Peso devaluation scenario.