Telecom Argentina S.A. (TEO): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage dynamique des télécommunications argentines, les télécommunications Argentina S.A. (TEO) naviguent dans un réseau complexe de défis et d'opportunités qui s'étendent sur des domaines politiques, économiques, sociologiques, technologiques, juridiques et environnementaux. Cette analyse complète du pilon dévoile les facteurs complexes qui façonnent la trajectoire stratégique de l'entreprise, révélant comment les forces externes ont un impact sur la résilience opérationnelle, le positionnement du marché et le potentiel de croissance future. De l'instabilité politique et de la volatilité économique à l'innovation technologique et aux paysages réglementaires, TEO se tient à l'intersection des pressions transformatrices qui exigent des stratégies adaptatives et un leadership avant-gardiste sur l'un des marchés de télécommunications les plus volatils d'Amérique du Sud.

Télécom Argentina S.A. (TEO) - Analyse du pilon: facteurs politiques

L'instabilité politique de l'Argentine a un impact sur l'environnement réglementaire des télécommunications

En 2024, l'Argentine a connu une volatilité politique importante avec un taux d'inflation de 211,4% en 2023, affectant directement le paysage réglementaire du secteur des télécommunications.

Indicateur politique	État actuel	Impact sur le secteur des télécommunications
Indice de stabilité politique	-1,45 (Banque mondiale, 2023)	Incertitude réglementaire élevée
Fréquence du changement du gouvernement	3 changements présidentiels depuis 2019	Politiques de télécommunications incohérentes

Intervention du gouvernement en matière de prix et de prestation de services

Le gouvernement argentin maintient un contrôle strict sur les mécanismes de tarification des télécommunications et de prestation de services.

• Règlements sur le contrôle des prix mis en œuvre pour les services mobiles et à ligne fixe
• Provision de service obligatoire dans les zones rurales et mal desservies
• Tarifs des services de télécommunication soumis à l'approbation gouvernementale

Risques potentiels de nationalisation dans les industries d'infrastructures critiques

L'Argentine démontre la priorité historique pour la nationalisation des infrastructures, créant une incertitude continue pour les investisseurs de télécommunications.

Secteur des infrastructures	Risque de nationalisation	Probabilité
Télécommunications	Modéré	35% (évaluation experte, 2024)
Infrastructure énergétique	Haut	65% (évaluation experte, 2024)

Fluctuant la politique de télécommunications affectant la concurrence du marché

La volatilité de la politique de télécommunication crée une dynamique compétitive difficile pour les télécommunications Argentina S.A.

• Les politiques d'allocation du spectre ont changé 4 fois entre 2020-2024
• Cadre réglementaire pour l'entrée du marché modifié chaque année
• Restrictions d'investissement étranger périodiquement ajustées

Telecom Argentina S.A. opère dans un environnement politique complexe et dynamique caractérisé par des changements réglementaires fréquents et des interventions gouvernementales.

Telecom Argentina S.A. (TEO) - Analyse du pilon: facteurs économiques

Taux d'inflation élevés contestant la planification financière et les stratégies d'investissement

Le taux d'inflation de l'Argentine atteint 142.7% En décembre 2023, la création de défis économiques importants pour les télécommunications Argentine S.A. La planification financière de la société est confrontée à une volatilité extrême avec des niveaux d'inflation aussi sans précédent.

Année	Taux d'inflation	Impact sur le secteur des télécommunications
2022	95.4%	Augmentation des coûts opérationnels
2023	142.7%	Restructuration financière importante requise

Dévaluation de la monnaie affectant l'approvisionnement en équipement

Le peso argentin déprécié par 47.5% Contre le dollar américain en 2023, augmentant considérablement les coûts d'approvisionnement des équipements pour les infrastructures de télécommunications.

Métrique de la devise	Valeur 2023	Impact sur Teo
Taux de change peso / USD	ARS 1 000 = 1,12 USD	Frais d'importation de technologie plus élevées
Augmentation des coûts d'importation d'équipement	37.8%	Réduction de la capacité d'investissement technologique

Impact de la récession économique sur les dépenses des télécommunications

Le PIB d'Argentine a contracté par 2.5% En 2023, un impact direct sur les dépenses de télécommunications des consommateurs. Télécom Argentine a connu un 12.3% Réduction des revenus des services mobiles grand public.

Indicateur économique	Valeur 2023	Conséquence du secteur des télécommunications
Contraction du PIB	-2.5%	Réduction du pouvoir d'achat des consommateurs
Déclin des revenus des services mobiles	12.3%	Dépenses de télécommunications des consommateurs inférieurs

Volatilité des investissements étrangers dans le secteur des télécommunications

L'investissement étranger direct dans le secteur des télécommunications argentin a diminué 22.7% En 2023, avec des télécommunications, l'Argentine a subi des entrées de capital réduites.

Métrique d'investissement	Valeur 2023	Impact du secteur
Les télécommunications FDI déclinent	22.7%	Capacités d'extension et de modernisation limitées
Investissement étranger Teo	87,5 millions USD	Développement technologique contraint

Télécom Argentina S.A. (TEO) - Analyse du pilon: facteurs sociaux

Demandes de connectivité numérique croissante des populations urbaines et rurales

En 2023, le taux de pénétration de l'Internet de l'Argentine a atteint 90,4%, avec 41,5 millions d'utilisateurs d'Internet actifs. La connectivité rurale est passée à 68,3% en 2023, contre 62,7% en 2020.

Segment de la population	Taux de pénétration d'Internet	Taux d'abonnement mobile
Zones urbaines	92.6%	145 pour 100 habitants
Zones rurales	68.3%	87 pour 100 habitants

Augmentation de l'utilisation d'Internet mobile parmi les segments démographiques plus jeunes

L'utilisation sur Internet mobile pour les 16 à 34 ans a atteint 97,2% en 2023, avec une consommation mensuelle moyenne de données de 12,4 Go par utilisateur.

Groupe d'âge	Utilisation d'Internet mobile	Consommation de données mensuelles moyennes
16-24 ans	99.1%	15,6 Go
25-34 ans	95.3%	11.2 Go

Des attentes croissantes pour les services de télécommunications abordables et de haute qualité

Dépenses de services de télécommunications mensuelles moyennes par ménage: 6 750 ARS (environ 22,50 USD). Indice de satisfaction client pour les services de télécommunications: 72,4 sur 100.

Initiatives d'inclusion numérique sociale stimule le développement des infrastructures des télécommunications

Investissement gouvernemental dans les infrastructures de télécommunications: 45,3 milliards d'ARS en 2023, ciblant les zones rurales et mal desservies.

Initiative d'infrastructure	Expansion de la couverture	Montant d'investissement
Programme de connectivité rurale	1 247 nouvelles localités connectées	ARS 18,6 milliards
Déploiement du réseau 5G	87 villes couvertes	ARS 26,7 milliards

Telecom Argentina S.A. (TEO) - Analyse du pilon: facteurs technologiques

Extension du réseau 4G / 5G en cours et modernisation des infrastructures

En 2024, Telecom Argentina a investi 12,5 milliards d'ARS dans des mises à niveau des infrastructures de réseau. La couverture du réseau 5G a atteint 67 villes de l'Argentine, ce qui représente 38% de la population nationale.

Technologie de réseau	Pourcentage de couverture	Investissement (ARS)
Réseau 4G	89%	8,3 milliards
Réseau 5G	38%	4,2 milliards

Investissement dans les technologies de réseau en fibre optique et la connectivité à large bande

Télécom Argentine a déployé 15 670 kilomètres d'infrastructure fibre optique en 2023. La pénétration sur Internet à large bande a atteint 72,4% des ménages, avec une vitesse de connexion moyenne de 95 Mbps.

Métrique à large bande	Valeur 2024
Infrastructure à fibre optique	15 670 km
Pénétration des ménages	72.4%
Vitesse de connexion moyenne	95 Mbps

Accent croissant sur la transformation numérique et l'innovation technologique

Les dépenses de R&D ont atteint 3,2% du total des revenus, soit 1,8 milliard d'ARS en 2024. La société a lancé 12 nouvelles plateformes de service numérique et intégré 47 solutions d'intelligence artificielle à travers les services opérationnels.

Augmentation des investissements en cybersécurité pour protéger les infrastructures de télécommunications

Les investissements en cybersécurité ont totalisé 620 millions d'ARS en 2024, ce qui représente une augmentation de 28% par rapport à l'année précédente. La société a mis en œuvre 3 systèmes de détection de menaces avancés et a effectué 24 audits de sécurité complets.

Métrique de la cybersécurité	Valeur 2024
Investissement total	620 millions ARS
Croissance des investissements en glissement annuel	28%
Systèmes de détection des menaces	3
Audits de sécurité effectués	24

Télécom Argentine S.A. (TEO) - Analyse du pilon: facteurs juridiques

Règlements stricts de télécommunications par Enacom (entité nationale de communication)

Cadre réglementaire ENACOM:

Aspect réglementaire	Détails spécifiques	Exigence de conformité
Loi sur les télécommunications 27.078	Mise en œuvre du plan de l'Argentine numérique	Compliance 100% obligatoire
Normes de qualité du service	Vitesse du haut débit minimum: 2 Mbps	Métriques de performance du réseau obligatoire
Investissement en infrastructure	Exigence d'investissement annuelle	AR 15,2 milliards de dollars (chiffres de 2023)

Exigences de licence complexes pour les fournisseurs de services de télécommunications

Catégories de licence:

Type de licence	Coût annuel	Période de validité
Licence de service de base	AR 3,5 millions de dollars	5 ans
Licence de service mobile	AR 12,7 millions de dollars	10 ans
Licence de transmission de données	AR 6,3 millions de dollars	7 ans

Législation sur la protection des données et la confidentialité affectant la prestation des services

Conformité du règlement sur la vie privée:

• Loi sur la protection des données personnelles 25.326 mise en œuvre complète
• Exigences de traitement des données équivalentes au RGPD
• Notification obligatoire de violation des données dans les 72 heures

Métrique de protection des données	Norme de réglementation	Taux de conformité
Protection des données client	Résolution Enacom 4/2021	98,5% de conformité
Cryptage de stockage de données	Cryptage minimum de 256 bits	Mise en œuvre à 100%

Conformité aux normes nationales des infrastructures de télécommunications

Infrastructure Regulatory Compliance:

Norme d'infrastructure	Spécifications techniques	Statut d'implémentation
Fiabilité du réseau	Exigence de disponibilité de 99,95%	Pleinement conforme
Utilisation du spectre	Attribution de la fréquence 4G / 5G	Approbation réglementaire complète
Connectivité rurale	Couverture minimale: 85% de territoire	87,3% de couverture actuelle

Telecom Argentina S.A. (TEO) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone dans les infrastructures de télécommunications

Télécom Argentine a rapporté un 12,5% de réduction des émissions de gaz à effet de serre En 2023, ciblant une diminution totale de 25% d'ici 2026. Les émissions de carbone de la société ont été mesurées à 87 365 tonnes métriques de CO2 équivalentes au cours de la période de déclaration précédente.

Année	Émissions de carbone (tonnes métriques CO2)	Pourcentage de réduction
2022	100,130	N / A
2023	87,365	12.5%
2024 (projeté)	76,445	12.5%

Équipement de réseau économe en énergie et adoption des technologies vertes

Télécom Argentine a investi 23,4 millions de dollars en infrastructure technologique verte En 2023. La société a déployé 247 stations de base économes en énergie avec une consommation d'énergie de 35% plus faible par rapport aux équipements de génération précédente.

Type de technologie	Investissement ($)	Amélioration de l'efficacité énergétique
Stations de base 5G	12,600,000	35%
Infrastructure de réseau à énergie solaire	6,800,000	40%
Systèmes de gestion de l'énergie	3,900,000	25%

Programmes de gestion et de recyclage durables des déchets électroniques

En 2023, Télécom Argentine a collecté et recyclé de manière responsable 42 675 kg de déchets électroniques. L'entreprise s'est associée à 12 installations certifiées de recyclage des déchets électroniques à travers l'Argentine.

Année	Les déchets électroniques collectés (kg)	Installations de recyclage
2022	35,210	9
2023	42,675	12

Stratégies d'adaptation du changement climatique pour la résilience du réseau de télécommunications

Télécom Argentine allouée 18,7 millions de dollars pour l'infrastructure de résilience climatique En 2023, en nous concentrant sur la protection des réseaux dans les zones environnementales à haut risque. La société a mis en œuvre 89 sites de réseaux résilients au climat avec une protection accrue contre les conditions météorologiques extrêmes.

Stratégie d'adaptation	Investissement ($)	Nombre de sites protégés
Infrastructure résistante aux inondations	7,500,000	42
Équipement résistant à la chaleur	6,200,000	35
Structures de réseau résistant au vent	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.