Telecom Argentina S.A. (TEO): Business Model Canvas [Dec-2025 Updated]

You're digging into how a major player like Telecom Argentina S.A. manages its strategy after a huge acquisition and during a massive 5G rollout, and honestly, the nine blocks tell a compelling story. As an analyst who's seen these transformations up close, I can tell you their late 2025 model is all about aggressive infrastructure expansion-think FTTH and 5G-funded by $\mathbf{\$5.60 \text{ Billion USD}}$ in TTM revenue, all while managing the costs of servicing debt. They are balancing $\sim 40.2$ million mobile accesses with the push into fintech via Personal Pay. See the full, data-driven canvas below to understand exactly where their $\mathbf{14.3\%}$ CapEx is going and how they plan to keep the lights on.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Telecom Argentina S.A.'s (TEO) strategy following the massive consolidation move in early 2025. The key partnerships here are about infrastructure, technology, and digital expansion.

Strategic infrastructure sharing with Telefónica in Argentina

The biggest partnership move was the acquisition of Telefónica Móviles Argentina (TMA) on February 24, 2025, for a total consideration of US$1.245 billion. This wasn't just a purchase; it was an immediate infrastructure combination, merging TEO's leading mobile network with TMA's dominant fixed and fiber-to-the-home assets. The result of this integration instantly positioned Telecom Argentina S.A. with significant market share:

As of June 30, 2025, the combined mobile base in Argentina and Paraguay reached 42.9 million subscribers (Telecom excluding TMA: 23.6 million; TMA: 19.3 million).

Key equipment suppliers: Huawei, Nokia, and Ericsson for 5G deployment

Deploying the next generation of network capacity relies heavily on vendor relationships. Telecom Argentina S.A. is actively working with major global suppliers to accelerate its 5G rollout, which is a major focus for 2025 capital expenditure. The company is trialing 5G Standalone (SA) technology together with Ericsson. Huawei and Nokia were noted as technology partners in earlier 5G steps. To fuel this, Telecom Argentina S.A. acquired 100 megahertz of 3.5GHz spectrum for over $350 million. The goal is aggressive: Telecom Argentina S.A. plans to triple its 5G sites by the end of 2025, targeting nearly 900 active sites, up from 300 sites in the first quarter of 2025.

Content providers like Netflix and Disney+ for integrated bundles

Telecom Argentina S.A. provides its customers with 'quadruple play' services, which means combining mobile telephony, cable television, internet, and fixed telephony. The specific financial arrangements or subscriber uptake numbers related to content providers like Netflix and Disney+ within these bundles for late 2025 aren't publicly detailed in the latest filings, so we can only confirm the service structure. That's the framework for bundling, you see.

Financial institutions for debt financing, including BBVA and Deutsche Bank

Financing the TMA acquisition required substantial external capital, secured through a mix of syndicated and bilateral loans. You should note the key players involved in the initial bridge financing:

• US$970 million syndicated term loan structured by lead banks including BBVA, Deutsche Bank AG London Branch, and Banco Santander, S.A.
• This initial loan carried a margin starting at 4.5% over the quarterly SOFR rate.
• The total acquisition financing package, including a bilateral loan from ICBC, totaled US$1.170 billion.

Later in 2025, Telecom Argentina S.A. moved to refinance this debt. In May 2025, the company issued $800 million in senior amortizing notes due 2033, with proceeds earmarked to prepay these existing acquisition loans. The orderbook for this bond issuance peaked at $1.3 billion.

Intraway for the Openxpand digital platform development

The partnership with Intraway resulted in the joint digital company, Openxpand, launched to help regional operators monetize their networks using standardized APIs under the GSMA Open Gateway standard. Intraway brings experience from projects in over 25 countries. Openxpand's initial commercial focus is on security and anti-fraud solutions.

The platform offers specific API functionalities ready for integration:

• SIM Swap verification to protect against fraud.
• Number verification for password-less authentication.
• Device status detection (e.g., if a SIM is in roaming).
• Device location validation to counter GPS spoofing.

This joint venture is designed to be a cloud native, multi-tenant solution.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Key Activities

Integrating Telefónica Móviles Argentina (TMA) operations after the US$1,245 million acquisition

The consolidation of Telefónica Móviles Argentina (TMA) significantly impacted the scale and financial reporting of Telecom Argentina S.A. The total mobile accesses, including M2M, reached 19.1 million as of September 30, 2025, representing a growth of 305 thousand or 1.6% versus the nine months of 2024 (9M24).

Financial metrics reflecting the integration as of September 30, 2025, for the nine-month period (9M25) include:

The increase in Consolidated Net Financial Debt was mainly driven by the financing obtained for the acquisition of TMA. For the first half of 2025 (1H25), the consolidated net loss was AR$75.6B.

Expanding Fiber-to-the-Home (FTTH) and 5G mobile network infrastructure

Investment activity prioritized the rollout of the fiber to the home network and 5G infrastructure. Consolidated CAPEX (excluding rights of use) for the nine months of 2025 amounted to approximately $615 million, which is a 73% real increase in pesos versus the nine months of 2024. This CAPEX represented 15.1% of consolidated revenues in 9M25. The infrastructure investment level in 1H25 was equivalent to 14% of revenues.

Subscriber base figures related to fixed access as of September 30, 2025, show:

• Fixed broadband accesses (consolidated): 1.6 million accesses, up 92 thousand or 6.0% versus 9M24.
• Fixed internet accesses for Telecom (excluding TMA) in 1Q25: 4.1 million accesses.
• Fixed internet accesses for TMA in 1Q25: 1.6 million accesses.

The company generated an operating cash flow of nearly ARS 687B in H1 2025.

Developing and monetizing digital services via the Openxpand API platform

Telecom Argentina S.A. is a champion operator for the GSMA Open Gateway initiative in both Argentina and Paraguay. The company, in a joint venture with Intraway, is developing a cloud-native, multi-tenant Open Gateway platform called Openxpand.

The platform offers CAMARA-certified APIs, with the following portfolio of services available:

• Subscriber Identity / Anti-Fraud: SIM Swap, Number Verification, Device Status, IMEI Fraud, Know your Customer, One-Time Password.
• Mobile Connectivity / Location: Device Location, Quality on Demand, Geofencing, Connectivity Insights.

Key APIs officially launched in 2024 include SIM Swap, Device Location, Device Status, and Number Verification.

Executing liability management transactions for debt restructuring

The company has actively engaged in liability management to refinance debt and manage its financial position, which is heavily denominated in foreign currency.

Significant transactions include:

• In July 2024, a US$500 million bond offering (2031 notes, 9.5% coupon).
• This was upsized by another $200 million in October 2024.
• Proceeds were used to prepay multilateral debt and fund a tender offer for up to US$100 million of 8.5% senior notes due in 2025.
• The July 2024 transaction also included an exchange offer for up to US$200 million of 8.000% Notes due 2026.
• In 2025, two liability management transactions were executed: a tender offer for 2025 notes and an exchange offer for 2026 notes.
• A potential $200 million reopening of 9.25% Senior Unsecured Amortizing Notes due 2033 was mandated in July 2025, with proceeds intended to repay loans connected to the TMA acquisition.

Net Financial Debt stood at P$2,524,923 million as of December 31, 2024.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Key Resources

You're looking at the core assets that make Telecom Argentina S.A. a major player in the Argentine and Paraguayan markets. These aren't just line items on a balance sheet; they are the physical and intangible foundations supporting every service they sell.

The company's physical network is massive. It includes an extensive fixed and mobile network infrastructure across Argentina and Paraguay. This footprint is critical for delivering their quadruple-play offering, which combines mobile, cable television, Internet, and fixed telephony services.

The scale of their customer base is a direct reflection of this infrastructure strength. Telecom Argentina S.A. (TEO) maintains a consolidated mobile subscriber base of approximately 40.2 million accesses as of mid-2025, a figure that reflects the successful integration of recent acquisitions. This scale provides significant operating leverage.

Financially, the balance sheet shows substantial backing. As of September 2025, the company reported total assets of 15,630 million Argentine pesos. This figure represents growth from 13,345 million Argentine pesos at the end of 2024, driven by increased investments and trade receivables.

Intangible assets, particularly regulatory permissions, are also vital. Telecom Argentina S.A. holds licensed radio spectrum for mobile and 5G services. Specifically, they secured 100MHz in the 3.400MHz-3.500MHz band during the October 2023 5G auction, paying $350 million for the 20-year license. The company is the only operator to have officially launched 5G services, planning to end 2025 with a total of 260 5G sites across the country.

Finally, the human capital driving these operations is significant. The company relies on over 19,900 employees driving the digital transformation. For context, the headcount was reported as 19,900 in 2025.

Here's a quick look at the key quantitative resources as of late 2025:

The network itself is a composite asset. You can see the breakdown of the mobile customer base from the latest reported quarter, which shows the integration of the acquired entity:

• Telecom (excluding TMA) Mobile Accesses in Argentina and Paraguay: 23.0 million accesses as of September 30, 2025.
• TMA Subscribers: 19.1 million accesses as of September 30, 2025.
• Total Consolidated Mobile Accesses: 42.1 million as of September 30, 2025.

Also, remember the fixed assets that support the fixed-line and broadband services. For instance, as of 9M25, Consolidated CAPEX (excluding rights of use) was 15.1% of consolidated revenues.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Value Propositions

The Value Propositions for Telecom Argentina S.A. (TEO) center on delivering a comprehensive suite of connectivity and digital services across its consumer and business segments, heavily influenced by the recent consolidation of Telefónica Móviles Argentina (TMA).

Quadruple play offering: mobile, fixed telephony, internet, and cable TV

Telecom Argentina provides a bundled approach, aiming to capture the entire household and individual connectivity spend. As of the latest reported figures for 2025, the scale of the underlying services is substantial:

• Subscribers for mobile services (Telecom excl. TMA + TMA) totaled approximately 42.1 million as of September 30, 2025 (23.0 million + 19.1 million).
• Fixed telephony customers (Telecom excl. TMA + TMA) reached about 4.8 million accesses in 1Q25 (2.7 million + 2.1 million).
• Fixed internet accesses totaled approximately 5.7 million in 2025 (4.1 million + 1.6 million).
• Pay TV subscribers for Telecom (excluding TMA) stood at 3.1 million as of March 31, 2025.

Here's a quick look at the service penetration based on the most recent subscriber data:

High-speed broadband via fiber optics with 99.7% network reliability

While the specific 99.7% network reliability figure for fiber optics wasn't confirmed in the latest reports, the focus on network quality is evident through 5G deployment and performance metrics. The value proposition here is speed and experience.

• Mobile subscribers on the 4G network perceived average speeds of 76Mbps as of March 2025, up from 40Mbps in the same period in 2024.
• The company continued expanding its 5G network, adding 31 sites in the first months of 2025.
• Capital expenditure (CAPEX) represented 15.1% of consolidated revenues in the nine-month period ending September 30, 2025.

Digital financial services through the Personal Pay fintech application

Personal Pay is highlighted as successfully established in the digital wallet space. Although specific user numbers for Personal Pay in 2025 weren't detailed, the broader Argentine fintech market context shows significant growth, suggesting a fertile ground for the service:

• Banking and digital payment accounts in Argentina grew by approximately 21% between April 2024 and August 2024.
• Fintech accounts held 5.2% of private sector deposits by November 2024.

Integrated entertainment bundles with major content providers like Disney+

The entertainment offering, primarily through the Flow platform, is bundled with content. The company saw its Pay TV churn rate for its core base stand at 1.5% as of March 31, 2025. The real-term growth in Pay TV ARPU was 5.3% in Q2 2025. Specific financial data tied directly to Disney+ bundles isn't public, so we focus on the core Pay TV performance.

Corporate services (B2B) providing ICT and cybersecurity solutions

Telecom Argentina offers ICT and cybersecurity solutions to its corporate segment. While a specific revenue stream for B2B ICT/cybersecurity isn't isolated in the top-line results, the overall service revenue growth reflects the health of all segments. The company's consolidated Operating Income Before Depreciation, Amortization and Impairment (Operating Income before D, A & I) margin was 30.5% in 9M25, a 170 basis point improvement. This operational efficiency helps support specialized B2B value delivery.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Customer Relationships

Telecom Argentina S.A. focuses its customer relationships on digital channels for mass-market segments and dedicated service for larger clients. The company reports subscriber evolution across its core services, which informs relationship strategies.

Automated and personalized customer service using data interpretation is implied through the focus on digital channels and ARPU improvements, though specific data on data interpretation models is not publicly quantified in the latest reports. The overall digital penetration in Argentina suggests a high expectation for automated support.

Digital self-service and account management via mobile applications is evidenced by the growth of fully digital offerings. For instance, the Flow Flex product, which requires no set-top box or installation, is a key digital offering. In 2024, Flow unique customers reached almost $\mathbf{1,500,000}$, marking an $\mathbf{11\%}$ increase over the prior year, with Flowflex representing around $\mathbf{6\%}$ of the Pay TV subscriber base as of Q2 2025 context.

Dedicated account managers for corporate and enterprise clients is a stated focus area, although specific metrics detailing the size of this segment or service level agreements are not disclosed in the public financial releases. The company continues to invest in its network, with CapEx in 2024 representing $\mathbf{19.5\%}$ of consolidated revenues, supporting enterprise connectivity needs.

Customer retention strategies focused on the postpaid mobile base are critical, given the focus on this segment's growth relative to prepaid. The data below highlights the composition and churn performance as of mid-2025.

The overall mobile customer base in Argentina (Telecom excl. TMA) stood at $\mathbf{21.3}$ million as of March 31, 2025, with postpaid accesses representing $\mathbf{39\%}$ of that total base. For the consolidated TMA base as of March 31, 2025, postpaid accesses were $\mathbf{49\%}$ of its total mobile accesses.

Community engagement through digital inclusion programs is a stated commitment in annual reports, emphasizing the transformation to a digital company. However, specific financial allocations or participation numbers for these programs for 2025 are not detailed in the available earnings data.

• Pay TV churn for Telecom (excluding TMA) was $\mathbf{1.5\%}$ as of March 31, 2025.
• TMA cable TV churn was $\mathbf{4.0\%}$ as of March 31, 2025.
• The general mobile customer base participation on postpaid plans was $\mathbf{38\%}$ in Q2 2025 context.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Channels

You're looking at how Telecom Argentina S.A. (TEO) gets its services to the customer base as of mid-2025. The channels are a mix of physical presence and heavy digital adoption, especially following the consolidation of Telefónica Móviles Argentina (TMA).

Physical retail stores and authorized sales centers nationwide

Specific figures for the total count of physical retail stores and authorized sales centers nationwide are not explicitly detailed in the latest public financial releases for late 2025. However, the company maintains a physical footprint to support its customer base across Argentina and Paraguay.

Digital channels: websites, mobile apps (Personal, Flow, Personal Pay)

Digital channels are central to service delivery and management for Telecom Argentina S.A. (TEO). The Flow platform is a key digital touchpoint for Pay TV services. As of the first quarter of 2025, 1.6 million customers were subscribed to Flow in Argentina (excluding TMA). Furthermore, the Flowflex product, which is fully digital, represents around 6% of the total pay TV subscriber base as of Q2 2025. For mobile services, mobile internet revenues accounted for 98% of total mobile service revenues in Q1 2025. The Personal Pay virtual wallet service generated USD 29 million in revenue in the first nine months of 2024, serving 3.3 million customers as of that period.

Here's a look at the scale of the subscriber base served through these platforms as of mid-2025:

Direct sales force for B2B and corporate accounts

While the specific size of the direct sales force dedicated to B2B and corporate accounts isn't quantified in the latest reports, the company's overall mobile services revenue in Argentina reached P$586,021 million in Q1 2025, showing a +51.2% increase versus Q1 2024. This segment relies on direct engagement for large contracts.

Third-party distributors and retailers for prepaid services and equipment

Third-party channels are critical for reaching the prepaid mobile segment. As of March 31, 2025, the prepaid mobile base for Telecom Argentina (excluding TMA) grew by 1.1% compared to Q1 2024. For TMA, the prepaid base grew by 1.9% versus 1H 2024.

Customer service call centers and online support defintely

Customer support is managed through traditional call centers and digital support channels integrated with the apps. The company's overall customer base across Telecom (excl. TMA) in Argentina and Paraguay reached 24.0 million total subscribers as of March 31, 2025. The average monthly churn for Telecom's internet services stood at 1.2% as of March 31, 2025.

• Mobile postpaid accesses represented 39% of total mobile accesses for Telecom (excluding TMA) as of March 31, 2025.
• Mobile postpaid accesses represented 49% of total mobile accesses for TMA as of March 31, 2025.
• The average monthly churn for Telecom's cable TV service was 1.5% as of March 31, 2025.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Customer Segments

Telecom Argentina S.A. (TEO) serves a diverse set of customers across Argentina, Paraguay, and Uruguay, spanning retail, enterprise, and digital finance users.

Mass market consumers in Argentina for mobile, broadband, and TV form the core base. As of September 30, 2025, the total mobile lines across Argentina and Paraguay reached 23 million, with 20.3 million lines attributed to Personal Argentina. For the standalone Argentine operation (excluding TMA), mobile accesses were 21.3 million as of March 31, 2025. The fixed broadband segment in Argentina (excluding TMA) stood at 4.1 million accesses as of September 30, 2025. Pay TV subscribers across Argentina, Uruguay, and Paraguay totaled 3.4 million as of September 30, 2025.

The composition of the mobile base shows a clear focus on prepaid, though postpaid is a significant portion. For Telecom Argentina standalone in Argentina, postpaid accesses represented 39% of total mobile accesses as of March 31, 2025. This aligns with the general base where postpaid participation was reported at 38% of the total mobile customer base around mid-2025.

The regional operations, primarily in Paraguay under the Núcleo brand, contribute substantially to the mobile base. As of September 2025, Núcleo accounted for approximately 2.7 million mobile lines, part of the consolidated 23 million total mobile lines (Argentina and Paraguay). For Núcleo specifically, as of March 31, 2025, the base was 2.6 million mobile accesses.

You can see the breakdown of key subscriber numbers from the first half of 2025 in the table below:

The fintech offering, Personal Pay, is a growing segment. As of September 30, 2025, Personal Pay reached 4.4 million clients. This marks growth from the approximately 3.9 million onboarded clients reported in the first quarter of 2025, and the 3.3 million customers reported at the end of the third quarter of 2024.

For Corporate and government clients (B2B), specific customer counts aren't as readily available in the latest reports, but revenue contribution gives a sense of scale. In fiscal year 2024, revenues in foreign currency, which the company noted mostly correspond to the B2B segment, accounted for 20% of total revenues.

The regional operations also include specific Pay TV numbers for Uruguay. As of June 2024, the Pay TV customer base in Uruguay was 117,000.

• Mass market consumers in Argentina for mobile, broadband, and TV.
• Postpaid mobile users, representing around 39% of the consolidated mobile base in Argentina (Telecom standalone, as of Q1 2025).
• Corporate and government clients (B2B) for enterprise solutions.
• Consumers in regional operations, primarily Paraguay and Uruguay.
• Fintech users leveraging the Personal Pay digital wallet, reaching 4.4 million clients as of September 2025.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Telecom Argentina S.A.'s operations, especially after integrating Telefónica Móviles Argentina (TMA). Honestly, the cost side is where the macroeconomic pressures really show up, particularly with that big debt load.

Capital expenditure (CapEx) remains a significant outlay to keep the network competitive. For the first half of 2025 (1H25), consolidated CapEx, excluding additions from rights of use, represented 14.3% of consolidated revenues. This shows a commitment to network investment, like expanding the fixed FTTH (Fiber to the Home) network and 5G capabilities, even while managing other costs.

The weight of debt servicing costs is a major factor eroding the bottom line. The financing taken on for the TMA acquisition has clearly impacted the balance sheet. Consolidated net financial debt reached P$4,029,971 million as of June 30, 2025, which was a real-terms increase of 38.2% compared to December 31, 2024. This debt burden contributed to the consolidated net loss of AR$75.6B reported for 1H25, which was primarily explained by the negative net financial results.

Operational costs for running the infrastructure are substantial. For instance, in the first quarter of 2025 (1Q25), the figure reported for Fees for services, maintenance and materials-which covers network maintenance and operational needs for fixed and mobile infrastructure-was P$172,012 million.

The scale of the organization dictates high personnel and administrative expenses. Telecom Argentina S.A. supports its operations with a staff base reported at over 19,900 personnel in 2025. That's a lot of people keeping the network running across Argentina and Paraguay.

The costs associated with Pay TV services, specifically content acquisition and programming, are a necessary, though less detailed in public filings, component of the overall structure, especially given the competitive nature of the Flow brand.

Here's a quick look at some of the key cost-related metrics we have for the first half of 2025:

The operational margin improvement to 30.0% in 1H25 shows management is controlling direct operating costs, but the financial costs are the real drag right now. If onboarding takes 14+ days, churn risk rises, which means higher customer acquisition costs, though that's not explicitly in this cost bucket. Anyway, the focus has to be on managing that dollar-denominated debt.

Finance: draft 13-week cash view by Friday.

Telecom Argentina S.A. (TEO) - Canvas Business Model: Revenue Streams

You're looking at how Telecom Argentina S.A. (TEO) is pulling in cash as of late 2025. It's a mix of core connectivity services, which still drive the bulk, and newer digital plays. Honestly, the numbers shift a bit depending on the reporting period, especially with the integration of TMA (Telefónica Móviles Argentina) and the high inflation environment requiring IAS 29 restatements.

The big picture for the trailing twelve months ending in 2025 shows a total revenue of $5.60 Billion USD. For a more granular look at the most recent reported quarter, the third quarter of 2025 (3Q25), the breakdown of consolidated revenues gives us a clearer picture of the current mix, even if the percentages don't perfectly align with historical targets.

Here's the quick math on the revenue composition based on the 3Q25 reporting:

You can see that mobile services are the single largest component of the revenue pie, representing 49% of the total in the third quarter of 2025. Fixed broadband and Pay TV together made up another substantial chunk at around 33%. Equipment sales chipped in with about 7% of the total revenue in that period.

The company also generates revenue from its financial services arm, which is definitely a growth area to watch. This stream includes:

• Fintech transaction fees from Personal Pay.
• Interest income generated through Personal Pay operations.

We don't have the specific dollar amount for the Personal Pay contribution in the latest filings, but it's a distinct stream in the model. [No citation needed for this point as no figure was found]

To give you context on the overall top line in local currency for the nine-month period ending September 30, 2025 (9M25), consolidated revenues hit P$5,622,561 million, which was up 50.7% versus 9M24 when restated for inflation. That growth was heavily influenced by the consolidation of TMA results for seven months. Finance: draft 13-week cash view by Friday.