Telecom Argentina S.A. (TEO): ANSOFF MATRIX [Dec-2025 Updated]

As a financial analyst who's seen a few market cycles, you need a clear map for Telecom Argentina S.A.'s growth, so I've distilled their strategy using the Ansoff Matrix based on their latest 2025 figures. Honestly, the near-term focus is intense market penetration: driving mobile ARPU up 12.6% in real terms and boosting consolidated revenues by 50.7% through service bundling in 9M25. Still, they are simultaneously funding a $500 million investment in new 5G products and eyeing new markets like regional cloud computing, all supported by a strong 30.5% EBITDA margin as of 9M25. Keep reading to see the exact steps they are taking in each quadrant to turn these numbers into market reality.

Telecom Argentina S.A. (TEO) - Ansoff Matrix: Market Penetration

You're looking at how Telecom Argentina S.A. (TEO) can squeeze more revenue from its current customer base, which is the Market Penetration strategy. This is often the safest growth path, but in a tough economy like Argentina's, it means getting more value from every existing connection.

The immediate action here is to accelerate the integration of Telefónica Móviles Argentina (TMA) to realize synergies and capture market share across the combined footprint. This push is already showing up in the top line; for the nine-month period ending September 30, 2025 (9M25), consolidated revenues grew by 50.7% compared to the previous year, largely due to including seven months of TMA results.

Driving up the mobile Average Revenue Per User (ARPU) is key. For Telecom's standalone operation, mobile ARPU increased by 12.6% in real terms for the first half of 2025 (1H25). That pricing power is essential when subscriber numbers might be flat or declining due to economic pressures.

A major focus within this is shifting customers from lower-value prepaid plans to higher-value postpaid contracts. This conversion effort is working at the acquired entity; TMA saw its postpaid base increase by 4.0% year-over-year in 9M25, while its prepaid base actually decreased by 0.6%.

Also, offering bundled services-mobile, broadband, and TV-is a direct tactic to reduce customer churn and boost overall spending. The result of these efforts across the board is evident in the consolidated revenue growth of 50.7% in 9M25.

The total addressable base for retention efforts is substantial. As of September 30, 2025, the combined mobile access base for Telecom (excluding TMA) and TMA totaled approximately 39.4 million mobile accesses (20.3 million for Telecom excl. TMA and 19.1 million for TMA). Targeting these existing 39.4 million mobile accesses with specific retention campaigns is the core of this quadrant's execution.

Here is a look at the mobile customer mix evolution at TMA, which shows the success of the postpaid migration strategy:

You can see the dual focus on ARPU improvement and plan migration in the following operational highlights:

• Mobile ARPU for Telecom increased by 12.6% in real terms for 1H25.
• TMA postpaid base grew 4.0% year-over-year in 9M25.
• Consolidated revenues grew 50.7% in 9M25.
• Retention campaigns target 39.4 million existing mobile accesses.

If onboarding for bundled services takes longer than 14 days, churn risk rises, especially for the higher-value postpaid segment.

Finance: draft 13-week cash view by Friday.

Telecom Argentina S.A. (TEO) - Ansoff Matrix: Market Development

Expand fixed broadband in Uruguay, building upon the existing Pay TV subscriber base. As of December 31, 2023, Cable TV subscribers across Uruguay and Paraguay totaled approximately 3.4 million accesses. By the first quarter of 2025 (1Q25), the combined Pay TV subscribers for Telecom (excluding TMA) in Argentina and Uruguay/Paraguay reached 3.4 million.

Scale Personal Pay's fintech services beyond Argentina. In Argentina, Personal Pay connects over 3 million clients as of December 2024. The platform achieved more than 2 million users in Argentina in less than two years. The plan targeted launching Personal Pay in Paraguay starting in July 2025.

Explore strategic partnerships for entry into other neighboring Latin American markets. Telecom Argentina maintains a presence with digital services in Chile.

Roll out high-speed fiber-to-the-home (FTTH) infrastructure in underserved Argentine provinces. Telecom Argentina intends to invest around USD 8 million for network upgrades in the province of Entre Rios. This investment targets expanding the FTTH network to more than 50,000 homes in that province. The operator aimed to double its fiber base from approximately 500,000 clients to 1 million by the end of 2024.

Use the consolidated revenue of 9M25 to finance measured regional expansion. Consolidated revenues for the nine-month period ending September 2025 (9M25) reached P$5,622,561 million.

Here's a quick look at some relevant operational and financial scale points:

The Market Development focus includes specific geographic targets:

• Expand fixed broadband in Uruguay.
• Scale fintech services in Paraguay.
• Explore entry into Bolivia or Chile.
• Roll out FTTH in underserved Argentine provinces.

Telecom Argentina S.A. (TEO) - Ansoff Matrix: Product Development

You're looking at how Telecom Argentina S.A. (TEO) is pushing new offerings into its existing customer base-that's Product Development in the Ansoff sense. This strategy relies on making their current customers buy newer, better, or different services.

The aggressive deployment of new 5G services is a core focus, building on the stated $500 million investment plan for all operator sectors. As of August 2025, the company had deployed 300 5G sites, with plans to triple this number by year-end 2025, aiming for nearly 900 active sites across the country. This standalone 5G core enables advanced capabilities like network slicing for enterprise use.

For the business-to-business (B2B) segment, Telecom Argentina S.A. is developing advanced cybersecurity and Information and Communications Technology (ICT) solutions. A key product in this space is Openxpand, a cloud-native, secure, and scalable platform launched in collaboration with Intraway, designed to let operators expose their networks via standardized APIs, aligning with global standards like the GSMA Open Gateway. The company also hosts the Telecom SUMMIT, its enterprise technology event.

Enhancing the Flow Flex digital TV product is clearly paying off in the Pay TV segment. For Telecom Argentina S.A. (excluding TMA), Pay TV subscribers reached 3.2 million accesses as of June 30, 2025, marking a 2.3% increase versus the first half of 2024. The Flow platform, which includes Flow Flex-the fully digital offering without a set-top box-is driving this. Over the first nine months of 2025, Flow unique customers surpassed 1.7 million, growing by more than 180,000 clients, or 12% compared to the same period in 2024.

The fintech arm, Personal Pay, is seeing significant traction, launching new value-added services for its established client base. As of September 2025, the platform had onboarded 4.4 million clients, maintaining a strong market position. This platform offers services like account access and a prepaid Visa card, with incentives for bundling with Personal mobile and Flow services.

The introduction of Fixed Wireless Access (FWA) using 5G technology is planned to offer broadband alternatives in areas where fiber optic infrastructure is not yet available. The company confirmed plans to test this 5G FWA technology specifically in the Buenos Aires metropolitan area (AMBA).

Here is a quick look at some key product-related metrics as of mid-to-late 2025:

These product development efforts are aimed at deepening engagement within the existing customer base, as shown by the growth in digital TV and fintech adoption. The expansion of the 5G network is foundational for future B2B and FWA product capabilities.

• Develop cybersecurity and ICT solutions for B2B clients.
• Enhance Flow Flex, driving Pay TV subscriber growth of +2.3% (1H25 vs 1H24).
• Launch new value-added services on Personal Pay, reaching 4.4 million clients.
• Introduce Fixed Wireless Access (FWA) using 5G for broadband coverage.

Finance: draft 13-week cash view by Friday.

Telecom Argentina S.A. (TEO) - Ansoff Matrix: Diversification

You're looking at how Telecom Argentina S.A. (TEO) can move beyond its core connectivity and mobile services, which is where the Diversification quadrant of the Ansoff Matrix comes into play. This is about chasing entirely new markets with entirely new offerings. It's aggressive, but the financial foundation might support it, given the strong performance in the core business.

Consider establishing a regional data center and cloud computing business. This is a definite new market area for Telecom Argentina S.A. (TEO) beyond just selling connectivity. The company already operates 16 data centers in Argentina, five of which currently serve enterprise clients. The main facility in Pacheco, Buenos Aires, already boasts a 10 MW capacity and is described as 'highly occupied'. The plan involves converting edge data centers to support artificial intelligence workloads, aiming for a total capacity of 10 MW at each location. For an internal AI operations project alone, Telecom Argentina S.A. (TEO) processes 3.8 TB of data every day using Google Cloud solutions. That kind of data handling capability is the backbone of a new cloud offering.

For a move into a different sector, look at the existing Internet of Things (IoT) business. While not a new market like Peru, it represents a new product line leveraging existing infrastructure. The IoT unit's ambition is to grow its contribution to 5% of the B2B income within perhaps three years, up from its current level of 2% of B2B income (where B2B itself represents 10% of total company income). They already have nearly 1 million IoT devices connected to their network. To fund such calculated ventures, you have the solid operational performance from the core business. The consolidated EBITDA margin in constant currency for the first 9 months of 2025 (9M25) reached 30.5%. That margin, which is a measure of operating profitability before interest, taxes, depreciation, and amortization, provides the cash flow cushion for these new, riskier bets.

Launching a digital media production house to create original content for the Flow platform and selling it regionally is another diversification path. Flow is already an established entertainment platform bringing together live and on-demand content, fiction, and music. The company is focused on evolving into a digital company with regional impact. This move leverages the existing digital distribution network and the company's stated goal of evolving its services not just in Argentina, Paraguay, Uruguay, and Chile, but across all of Latin America.

Investing in energy management or smart city solutions is a natural extension of the IoT work. Telecom Argentina S.A. (TEO) is already actively pursuing this, having signed a ten-year agreement with MSU Green Energy for the supply of 60,000 MWh of solar energy per year. This deal alone represents an annual investment close to US$14 million for sustainable electric power supply, which is 17.5% of the company's total energy expenditure. Furthermore, the company already operates 22 hybrid sites with a renewable energy generation capacity of 140 MWh/y.

Here's a quick look at the key financial and operational metrics supporting the funding of these diversification efforts:

The strategic moves into new areas are supported by existing technological capabilities and financial strength. You should track these specific areas for potential growth:

• Establish the regional data center footprint beyond the 10 MW Pacheco facility.
• Grow the IoT contribution from 2% of B2B income towards the 5% target.
• Secure contracts to utilize the new 60,000 MWh/y solar power supply.
• Leverage the 30.5% EBITDA margin to fund calculated ventures.

The company is actively using its financial position, evidenced by a consolidated Net Financial Debt of P$4,433,988 million as of September 30, 2025, which increased in real terms due to financing for the TMA acquisition. Still, the underlying operational margin is strong.

Finance: draft the projected cash flow impact of a US$15 million investment in a new cloud module by next Wednesday.