Telecom Argentina S.A. (TEO): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to cut through the noise on Telecom Argentina S.A.'s strategy, especially given the wild Argentine economy. Honestly, what they've pulled off through September 2025 is a masterclass in navigating hyperinflation: they grew consolidated revenues to P$5.6 trillion year-over-year, largely by flexing their pricing power, even while managing subscriber losses. We see this play out across their massive 20.3 million mobile accesses and the push of their digital wallet, Personal Pay, to 4.4 million clients. I've broken down exactly how their Product, Place, Promotion, and Price mix is engineered to keep the lights on and grow in real terms; you'll want to see the details on their ARPU strategy below.

Telecom Argentina S.A. (TEO) - Marketing Mix: Product

The product element for Telecom Argentina S.A. centers on a converged portfolio designed to capture value across the entire digital service chain. This is not just about connectivity; it's about bundling essential and value-added digital experiences for the consumer base.

The core of the offering is the quad-play structure, which combines mobile telephony services, fixed broadband, Pay TV (branded as Flow), and fixed telephony services into integrated packages. This bundling strategy is key to customer retention and increasing the average revenue per user (ARPU) across the installed base.

Mobile services remain a primary driver of scale. As of September 2025, Telecom Argentina S.A. reported its mobile accesses in Argentina (excluding TMA) at 20.3 million accesses. The recently integrated TMA accesses stood at 19.1 million as of the same date. This combined footprint positions the company as a major player in the mobile space.

For fixed services, the strategic focus is clearly on next-generation infrastructure. The company is heavily pushing Fiber-to-the-Home (FTTH) technology, which is central to delivering superior broadband quality. The product strategy emphasizes this upgrade path, with the goal that FTTH comprises 28% of the total broadband base.

The Pay TV component is evolving digitally. The product development here is exemplified by Flow Flex, a fully digital offering that specifically removes the requirement for a set-top box, simplifying installation and driving new subscriber additions to the TV base. This digital-first approach is also seen in the fintech vertical.

Digital financial services are a significant product extension via Personal Pay. This digital wallet has seen rapid adoption, reaching 4.7 million onboarded clients as of August 2025, which is a substantial increase from earlier periods. This product is designed to integrate seamlessly with the core telecom services, offering benefits and reimbursements to users who are also Telecom customers.

Here is a snapshot of the key access and subscriber metrics as of September 2025, illustrating the scale of the product deployment:

The product portfolio is structured to maximize cross-selling opportunities through its integrated nature. You see this in the digital ecosystem:

• Mobile services under the Personal brand.
• Content delivery via Flow for Pay TV.
• High-speed connectivity driven by FTTH deployment.
• Financial utility through the Personal Pay digital wallet.

The company is defintely moving beyond being just a network provider.

Telecom Argentina S.A. (TEO) - Marketing Mix: Place

The Place strategy for Telecom Argentina S.A. centers on its primary operational footprint in Argentina, supplemented by a strategic presence in Paraguay. As of March 31, 2025, the combined subscriber base across Argentina and Paraguay for Telecom (excluding the recently acquired TMA operations) reached 24.0 million total subscribers. This dual-country approach ensures market reach beyond the core Argentine market. The delivery of services relies heavily on the underlying network infrastructure, which is the ultimate distribution channel for all fixed and mobile offerings.

The distribution network is a hybrid of physical points of presence and an expanding digital ecosystem designed for service activation and sales. While the physical footprint remains important for complex sales and support, the trend clearly favors digital channels for customer acquisition and service management. The company's fintech platform, Personal Pay, shows significant digital adoption, reaching 4.4 million onboarded clients as of September 2025.

Investment in the core delivery mechanism-the network-is substantial, underscoring the importance of infrastructure as the primary means of product placement. Consolidated Capital Expenditure for the first nine months of 2025 totaled approximately US$615 million, with investment prioritizing network expansion. This level of spending represents a consolidated intensity over revenues of 15.1% for the period. The focus areas for this capital deployment are the fiber-to-the-home network and the ongoing 5G infrastructure rollout.

The 5G rollout is central to future service distribution capabilities, enabling high-speed mobile data and new enterprise solutions. Telecom Argentina S.A. is actively expanding its 5G footprint across key areas. The company operates its 5G network under the Personal brand.

• Telecom Argentina S.A. operates 550 active 5G sites as of late 2025.
• The target for the end of 2025 is to reach at least 750 active 5G sites.
• The company launched its standalone 5G core, enabling services like network slicing.
• Approximately 25 private networks using 5G technology are already deployed across sectors like mining and agriculture.
• The company operates 16 data centers nationwide, with plans to upgrade all to 10MW capacity.

Digital distribution channels are gaining prominence, particularly for digital-first products. The company is leveraging online platforms for service activation, account management, and the promotion of digital services like the Personal Pay wallet, which has onboarded 4.4 million clients by September 2025. This digital shift helps bypass traditional retail bottlenecks for high-volume, lower-complexity service provisioning.

Telecom Argentina S.A. (TEO) - Marketing Mix: Promotion

Promotion activities for Telecom Argentina S.A. are closely tied to its overarching financial discipline and strategic focus on revenue quality over sheer volume.

Operational efficiency and cost discipline are central to the promotional messaging and internal strategy, aiming to improve margins. The consolidated EBITDA margin expanded to 30.5% in the first nine months of 2025 (9M25). A key component of this efficiency drive, particularly following the integration of Telefónica Móviles Argentina (TMA), involves specific cost-saving actions that directly impact promotional outlay, such as Lower advertising activity and costs.

The core strategy centers on boosting Average Revenue Per User (ARPU) rather than focusing solely on subscriber volume growth. This is evident in the performance metrics where service revenue growth outpaced volume changes in certain segments. For instance, Telecom Argentina (excluding TMA) registered a 10.6% increase in mobile service revenues, mainly driven by higher ARPU.

The integration of Telefónica Móviles Argentina (TMA) represents a significant promotional and market share play. Consolidated revenues for 9M25 increased by 50.7% year-over-year, largely due to the inclusion of seven months of TMA's results. This strategic move bolstered the total mobile subscriber base, with TMA adding approximately 19.1 million accesses as of September 30, 2025.

Customer retention efforts are critical, as the company has managed subscriber losses in its core mobile segments. Telecom Argentina's mobile subscribers in Argentina (excluding TMA) totaled approximately 20.3 million as of September 30, 2025, representing a decline of 1.1 million or 5.0% versus 9M24. This reduction was primarily attributed to the disconnection of lines showing no traffic, which management noted had no impact on mobile service revenues. For TMA, the average monthly churn stood at 1.8% in 9M25.

The brand actively promotes a comprehensive service ecosystem, heavily featuring its fintech platform, Personal Pay. This digital wallet has continued to scale its user base, reaching 4.4 million onboarded clients as of September 2025. The promotion of this platform is part of a broader push to increase customer engagement across all services.

Key operational and ARPU metrics as of September 30, 2025, for the nine-month period (9M25) are detailed below:

The promotional focus on the ecosystem is further supported by the growth in high-value fixed services. Flow unique customers increased by over 180,000 total clients, or 12%, during the first nine months of 2025 compared to the same period in 2024.

• TMA's postpaid base increased 4.0% vs. 9M24.
• Postpaid subscribers represented 39% of Telecom's total mobile base (excl. TMA) as of 9M25.
• TMA's postpaid accesses represented 50% of its total mobile base as of 9/30/2025.
• TMA's mobile churn stood at 1.8% in 9M25.
• The company's consolidated revenues grew by 50.7% in 9M25 due to TMA consolidation.

Telecom Argentina S.A. (TEO) - Marketing Mix: Price

Pricing strategy for Telecom Argentina S.A. is defintely shaped by the persistent hyperinflationary Argentine economic environment. This is clear when looking at the divergence between services where pricing power is maintained and those where it is constrained by regulation or market dynamics.

Real-term price increases are evident across key segments, showing the necessity of adjusting prices to keep pace with inflation, which reached an annual rate of 31.8% over the twelve months ending September 2025 for some metrics. For Telecom Argentina (excluding the TMA subsidiary), mobile ARPU (Average Revenue Per User) grew 5% in real terms for the nine months ended September 2025, while broadband ARPU saw a 10% increase in real terms over the same period. This ability to secure real-term price increases is crucial for revenue stability.

The company maintains pricing power, which is defintely crucial for revenue growth in real terms, although this power is not uniformly applied across the entire service portfolio. For instance, while mobile and broadband ARPU showed real-term growth, consolidated fixed voice and data revenues for Telecom (excluding TMA) actually decreased by 16.3% year-over-year, largely because price adjustments could not keep up with inflation in that specific area.

Consolidated revenues reached P$5,622,561 million in the first nine months of 2025, marking a 50.7% year-over-year increase. This top-line growth was driven by the combination of price adjustments and the consolidation of the acquired TMA subsidiary's results.

Separate pricing policies are maintained for the acquired TMA subsidiary. This separation is a key component of the overall pricing structure, as evidenced by the distinct ARPU performance metrics for TMA compared to the core Telecom business.

Here is a look at the real-term ARPU variations for the nine months ended September 2025 compared to the same period in 2024, illustrating the differential pricing success:

The strategy involves selective price increases where possible, as shown by the following service revenue growth figures (excluding TMA consolidation impact for Telecom):

• Telecom (Excluding TMA) Service Revenue Growth: +4.1% vs. 9M24.
• TMA Standalone Service Revenue Growth: +5.3% vs. 9M24.
• Mobile Service Revenue Growth (Telecom excl. TMA): +10.6% driven by ARPU.