Telecom Argentina S.A. (TEO): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico das telecomunicações argentinas, a Telecom Argentina S.A. (TEO) navega em uma complexa rede de desafios e oportunidades que abrangem domínios políticos, econômicos, sociológicos, tecnológicos, legais e ambientais. Essa análise abrangente de pestles revela os fatores complexos que moldam a trajetória estratégica da empresa, revelando como as forças externas afetam sua resiliência operacional, posicionamento do mercado e potencial de crescimento futuro. Da instabilidade política e volatilidade econômica à inovação tecnológica e paisagens regulatórias, o TEO fica na interseção de pressões transformadoras que exigem estratégias adaptativas e liderança com visão de futuro em um dos mercados de telecomunicações mais voláteis da América do Sul.

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores políticos

Instabilidade política da Argentina, impactando o ambiente regulatório de telecomunicações

A partir de 2024, a Argentina experimentou uma volatilidade política significativa com uma taxa de inflação de 211,4% em 2023, afetando diretamente o cenário regulatório do setor de telecomunicações.

Indicador político	Status atual	Impacto no setor de telecomunicações
Índice de Estabilidade Política	-1,45 (Banco Mundial, 2023)	Alta incerteza regulatória
Frequência de mudança do governo	3 mudanças presidenciais desde 2019	Políticas de telecomunicações inconsistentes

Intervenção do governo em preços e prestação de serviços

O governo argentino mantém um controle rigoroso sobre os mecanismos de preços de telecomunicações e prestação de serviços.

• Regulamentos de controle de preços implementados para serviços móveis e de linha fixa
• Prestação de serviços obrigatórios em áreas rurais e carentes
• Tarifas de serviço de telecomunicações sujeitos à aprovação governamental

Riscos potenciais de nacionalização em indústrias críticas de infraestrutura

A Argentina demonstra precedência histórica para a nacionalização da infraestrutura, criando incerteza contínua para os investidores de telecomunicações.

Setor de infraestrutura	Risco de nacionalização	Probabilidade
Telecomunicações	Moderado	35% (Avaliação de Especialistas, 2024)
Infraestrutura energética	Alto	65% (Avaliação de Especialistas, 2024)

Política de telecomunicações flutuantes que afetam a concorrência do mercado

A volatilidade da política de telecomunicações cria dinâmica competitiva desafiadora para a Telecom Argentina S.A.

• As políticas de alocação de espectro mudaram 4 vezes entre 2020-2024
• Estrutura regulatória para entrada de mercado modificada anualmente
• Restrições de investimento estrangeiro ajustadas periodicamente

Telecom Argentina S.A. opera dentro de um ambiente político complexo e dinâmico caracterizado por mudanças regulatórias frequentes e intervenções governamentais.

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores econômicos

Altas taxas de inflação desafiando o planejamento financeiro e estratégias de investimento

A taxa de inflação da Argentina alcançada 142.7% Em dezembro de 2023, a criação de desafios econômicos significativos para a Telecom Argentina S.A. O planejamento financeiro da Companhia enfrenta extrema volatilidade com esses níveis de inflação sem precedentes.

Ano	Taxa de inflação	Impacto no setor de telecomunicações
2022	95.4%	Aumento dos custos operacionais
2023	142.7%	Reestruturação financeira significativa necessária

Desvalorização da moeda que afeta a aquisição de equipamentos

O peso argentino depreciado por 47.5% Contra o dólar americano em 2023, aumentando drasticamente os custos de aquisição de equipamentos para a infraestrutura de telecomunicações.

Métrica de moeda	2023 valor	Impacto no Teo
Taxa de câmbio peso/USD	ARS 1.000 = US $ 1,12	Despesas de importação de tecnologia superior
Aumento de custo de importação de equipamentos	37.8%	Capacidade de investimento tecnológico reduzido

Impacto de recessão econômica nos gastos com telecomunicações

O PIB da Argentina contratado por 2.5% Em 2023, impactando diretamente os gastos com telecomunicações de consumidores. Telecom Argentina experimentou um 12.3% Redução nas receitas de serviços móveis do consumidor.

Indicador econômico	2023 valor	Conseqüência do setor de telecomunicações
Contração do PIB	-2.5%	Poder de compra reduzido ao consumidor
Declínio da receita de serviço móvel	12.3%	Despesas de telecomunicações mais baixas do consumidor

Volatilidade do investimento estrangeiro no setor de telecomunicações

O investimento direto estrangeiro no setor de telecomunicações da Argentina diminuiu por 22.7% Em 2023, com a Telecom Argentina experimentando entradas de capital reduzidas.

Métrica de investimento	2023 valor	Impacto setorial
Declínio de telecomunicações de IDE	22.7%	Capacidades limitadas de expansão e modernização
Teo Investimento Estrangeiro	US $ 87,5 milhões	Desenvolvimento tecnológico restrito

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores sociais

Crescendo demandas de conectividade digital de populações urbanas e rurais

Em 2023, a taxa de penetração na Internet da Argentina atingiu 90,4%, com 41,5 milhões de usuários ativos da Internet. A conectividade rural aumentou para 68,3% em 2023, em comparação com 62,7% em 2020.

Segmento populacional	Taxa de penetração na Internet	Taxa de assinatura móvel
Áreas urbanas	92.6%	145 por 100 habitantes
Áreas rurais	68.3%	87 por 100 habitantes

Aumentando o uso da Internet móvel entre segmentos demográficos mais jovens

O uso da Internet móvel para idades de 16 a 34 anos atingiu 97,2% em 2023, com o consumo médio mensal de dados de 12,4 GB por usuário.

Faixa etária	Uso móvel na Internet	Consumo médio mensal de dados
16-24 anos	99.1%	15,6 GB
25-34 anos	95.3%	11.2 GB

As expectativas crescentes de serviços de telecomunicações acessíveis e de alta qualidade

Despesas médias de serviços mensais de telecomunicações por família: ARS 6.750 (aproximadamente US $ 22,50). Índice de satisfação do cliente para serviços de telecomunicações: 72,4 de 100.

Iniciativas de inclusão digital social que impulsionam o desenvolvimento de infraestrutura de telecomunicações

Investimento do governo em infraestrutura de telecomunicações: ARS 45,3 bilhões em 2023, visando áreas rurais e carentes.

Iniciativa de infraestrutura	Expansão de cobertura	Valor do investimento
Programa de conectividade rural	1.247 novas localidades conectadas	Ars 18,6 bilhões
Implantação de rede 5G	87 cidades cobertas	Ars 26,7 bilhões

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores tecnológicos

Em andamento 4G/5G Expansão da rede e modernização de infraestrutura

Em 2024, a Telecom Argentina investiu 12,5 bilhões de ARs em atualizações de infraestrutura de rede. A cobertura da rede 5G atingiu 67 cidades em toda a Argentina, representando 38% da população nacional.

Tecnologia de rede	Porcentagem de cobertura	Investimento (ARS)
Rede 4G	89%	8,3 bilhões
Rede 5G	38%	4,2 bilhões

Investimento em tecnologias de rede de fibra óptica e conectividade de banda larga

A Telecom Argentina implantou 15.670 quilômetros de infraestrutura de fibra óptica em 2023. A penetração na Internet de banda larga atingiu 72,4% das famílias, com uma velocidade média de conexão de 95 Mbps.

Métrica de banda larga	2024 Valor
Infraestrutura de fibra óptica	15.670 km
Penetração doméstica	72.4%
Velocidade média de conexão	95 Mbps

Ênfase crescente na transformação digital e inovação tecnológica

As despesas de P&D atingiram 3,2% da receita total, totalizando 1,8 bilhão de ARs em 2024. A Companhia lançou 12 novas plataformas de serviço digital e integrou 47 soluções de inteligência artificial nos departamentos operacionais.

Aumentar investimentos em segurança cibernética para proteger a infraestrutura de telecomunicações

Os investimentos em segurança cibernética totalizaram 620 milhões de ARs em 2024, representando um aumento de 28% em relação ao ano anterior. A empresa implementou 3 sistemas avançados de detecção de ameaças e conduziu 24 auditorias abrangentes de segurança.

Métrica de segurança cibernética	2024 Valor
Investimento total	620 milhões de ARs
Crescimento do investimento ano a ano	28%
Sistemas de detecção de ameaças	3
Auditorias de segurança realizadas	24

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores legais

Regulamentos de telecomunicações rigorosas da ENACOM (National Communications Entity)

Estrutura regulatória Enacom:

Aspecto regulatório	Detalhes específicos	Requisito de conformidade
Lei de Telecomunicações 27.078	Implementação do plano da Argentina Digital	100% de conformidade obrigatória
Padrões de qualidade de serviço	Velocidade mínima de banda larga: 2 Mbps	Métricas obrigatórias de desempenho de rede
Investimento de infraestrutura	Requisito de investimento anual	AR $ 15,2 bilhões (2023 números)

Requisitos complexos de licenciamento para provedores de serviços de telecomunicações

Categorias de licenciamento:

Tipo de licença	Custo anual	Período de validade
Licença de serviço básico	AR $ 3,5 milhões	5 anos
Licença de serviço móvel	AR $ 12,7 milhões	10 anos
Licença de transmissão de dados	AR $ 6,3 milhões	7 anos

Legislação de proteção e privacidade de dados que afeta a prestação de serviços

Conformidade com a regulamentação da privacidade:

• Lei de Proteção de Dados Pessoal 25.326 Implementação completa
• Requisitos de manuseio de dados equivalentes ao GDPR
• Notificação obrigatória de violação de dados dentro de 72 horas

Métrica de proteção de dados	Padrão regulatório	Taxa de conformidade
Proteção de dados do cliente	Resolução ENACOM 4/2021	98,5% de conformidade
Criptografia de armazenamento de dados	Criptografia mínima de 256 bits	100% implementação

Conformidade com os padrões nacionais de infraestrutura de telecomunicações

Conformidade regulatória de infraestrutura:

Padrão de infraestrutura	Especificação técnica	Status de implementação
Confiabilidade da rede	99,95% Requisito de tempo de atividade	Totalmente compatível
Uso do espectro	Alocação de frequência 4G/5G	Aprovação regulatória completa
Conectividade rural	Cobertura mínima: 85% de território	87,3% de cobertura atual

Telecom Argentina S.A. (TEO) - Análise de pilão: Fatores ambientais

Compromisso em reduzir a pegada de carbono em infraestrutura de telecomunicações

Telecom Argentina relatou um 12,5% de redução nas emissões de gases de efeito estufa Em 2023, direcionando uma diminuição total de 25% até 2026. As emissões de carbono da empresa foram medidas em 87.365 toneladas de CO2 equivalentes no período anterior de relatório.

Ano	Emissões de carbono (toneladas métricas CO2)	Porcentagem de redução
2022	100,130	N / D
2023	87,365	12.5%
2024 (projetado)	76,445	12.5%

Equipamento de rede com eficiência energética e adoção de tecnologia verde

Telecom Argentina investiu US $ 23,4 milhões em infraestrutura de tecnologia verde Durante 2023. A Companhia implantou 247 estações básicas com eficiência energética com um consumo de energia 35% menor em comparação com o equipamento de geração anterior.

Tipo de tecnologia	Investimento ($)	Melhoria da eficiência energética
Estações base 5G	12,600,000	35%
Infraestrutura de rede movida a energia solar	6,800,000	40%
Sistemas de gerenciamento de energia	3,900,000	25%

Programas sustentáveis ​​de gerenciamento e reciclagem de lixo eletrônico

Em 2023, a Telecom Argentina coletou e reciclou com responsabilidade 42.675 kg de resíduos eletrônicos. A empresa fez uma parceria com 12 instalações de reciclagem de lixo eletrônico certificadas em toda a Argentina.

Ano	Lixo eletrônico coletado (kg)	Instalações de reciclagem
2022	35,210	9
2023	42,675	12

Estratégias de adaptação para mudanças climáticas para resiliência da rede de telecomunicações

Telecom Argentina alocada US $ 18,7 milhões para infraestrutura de resiliência climática Em 2023, concentrando-se na proteção da rede em zonas ambientais de alto risco. A empresa implementou 89 sites de rede resiliente ao clima com proteção aprimorada contra condições climáticas extremas.

Estratégia de adaptação	Investimento ($)	Número de sites protegidos
Infraestrutura resistente a inundações	7,500,000	42
Equipamento resistente ao calor	6,200,000	35
Estruturas de rede resistentes ao vento	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.