ATVC Conference: the impact of State intervention in Telecommunications

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During the second day of the 31st edition of the International Conference organized by ATVC and CAPPSA, the speakers spoke of the negative impact generated by the intervention of the State in the Telecommunications. Tuesday, during the first of the days of activities, associations bringing together cable television services and representatives of the sector once again expressed their rejection of the DNU, suspended by the courts in May.

One of the representatives of the event was the consultant Enrique Carrier who noted that the State was intervening “in a sector which had a great competitive performance, resulting in only a demand-side subsidy in charge of the private sector”.

More precisely, he underlined the negative impact generated by the DNU 690. “The intervention of the State had an absolutely negative impact, with a notable reduction in investments in fiber and in deployment. The modification of the Statute of an investment industry, through the declaration of Public Service, only resulted in a subsidy at the request of the private sector. Grant that has undoubtedly repercussions and will have repercussions on investments, ”he said.

The consultant argued that “eliminating price freedom and keeping it below inflation can only have a negative effect on the whole of society.” He also explained that “on the other hand, if we analyze the situation of the penetration of other public services, we clearly see that declamation does not solve the problems. These remain there until the investments resolve them ”.

He also said that “it is necessary that the participation of the state is to foster investments that eliminate the digital divide. A gap which has become evident in the face of the pandemic and which will not be filled with the 1% represented by the Universal Service Fund, but rather requires a real and competitive investment ”.

For its part, Roberto Nobile, CEO of Telecom, expressed that connectivity is essential to enable businesses to go digital.

“Today we face a huge challenge as operators, so that the future is possible. If we don’t lack the connection we need. For that, we need sustainable regulations that provide predictability. It generates incentives to invest, all of these leaps in digital and connectivity services require a lot more investment than we have made so far. The industry is a machine to continue to invest in order to be a catalyst for all these technologies, ”Nobile said.

Tomas Karagozian, UIA President Joven He said digitization is a necessity and said “it is essential to bring the world closer to the industry of education, technology and science. We have to open our factories and work together to change the educational programs, to generate the necessary skills ”.

According to Karagozian, “The changes have accelerated, there are no old industries, there are old technologies. One of the clearest examples of the impact of connectivity is that during the year-and-a-half pandemic, we are running our factories remotely, without visiting them. And they worked perfectly, and I felt closer to my teams. It is also a way of decentralizing in order to federalize. At the start of the pandemic we were asking for asphalt, today we are asking for fiber optic connections. Industry 4.0 is underway and must increase connection capacity ”.

The pandemic has accelerated digital transformation

CEOs agreed the COVID-19 pandemic was a digital transformation process accelerator. “The three-year transformation plans unfolded in a matter of months, and talking a bit about this technology, I think a good enabler is, before digital transformation processes were framed only for large companies that could make an appropriate investment To make this transformation, today this has also been transferred to SMEs ”, analyzed Marcelo Tarraquian, CEO of Telefónica Movistar Argentina.

For his part, Roberto Alexander, CEO of IBM Argentina, focused on digital talents in relation to human resources: “It is necessary and we are in a situation where there is a little more demand than of talent supply. We must work a lot on this topic of digital talents, of the whole subject of knowledge, which is essential for all this digital transformation which is taking place ”.

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