MercoPress. South Atlantic News Agency
Argentina announced heavy fine for mobile phone provider that left 16 million clients out of service
The Argentine government said on Tuesday it will sanction heavily the local unit of Spanish Telecommunications Company Telefonica SA mobile phone service provider after a service disruption left more than 16 million clients without phone and data service for several hours. Read full article
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Disclaimer & comment rulesI wonder if this is the first step in the CFK governmet trying to take over the cell telephone service. I have heard that cell service is a VERY LARGE business in Argentina.
Apr 04th, 2012 - 05:28 am - Link - Report abuse 0Pathetic.
Apr 04th, 2012 - 05:54 am - Link - Report abuse 0The very fact that this fine has been announced so rapidly, without any time to conduct a proper investigation of facts and liability, makes it so obvious to the whole world that this is a politically motivated fine against yet another Spanish company. Yet more shame of Argentina and yet another sterling effort by the current government to dissuade any international company with any sense from investing in Argentina.
Yet again David Cameron's warning to Mariano Rajoy is vindicated.
Obvious attempt to nationalist telephone service is obvious.
Apr 04th, 2012 - 07:04 am - Link - Report abuse 0It's not the first time this happens, Movistar has left many people without service before and got unharmed.
Apr 04th, 2012 - 10:11 am - Link - Report abuse 0Abandon ship!!! The pirates are coming!!!!!
Apr 04th, 2012 - 10:51 am - Link - Report abuse 0#4
Apr 04th, 2012 - 10:52 am - Link - Report abuse 0So why the sudden fine this time, without a proper investigation?
@4 JuanStanic
Apr 04th, 2012 - 10:59 am - Link - Report abuse 0FACT: there isn't a telecommunications network anywhere in the world that doesn't suffer occasional failures. Attributing blame in the manner done in this instance very clearly just a convenient excuse in order to make a political point and has basis in actual fault.
Look at the other utilities in Argentina and how they have amongst the worst reliability records anywhere in the world. Where are the massive fines for their failings?
Look at the rail systems in Argentina. When has a fine ever been announced with 24 hours of a fatal train crash?
Hmm, a company which has a high profit margin is now going to be fined heavily by a corrupt government, for a disruption of service??
Apr 04th, 2012 - 11:11 am - Link - Report abuse 0what's next? the local bus was 10 minutes late, therefor it shall be fined heavily for disruption of service? Or, my Doctors appointment was at 4pm, it is now 4:30pm, and he still hasn't seen me? pitiful in all honesty.
This act reeks of gold digging opportunists, trying desperately to grab what they can, when they can before there economy shrivels into nothingness.
So businesses can just do what they like and tke their customers for granted in your world then? Great move by my Queen, fighting as ever for the people =)
Apr 04th, 2012 - 12:31 pm - Link - Report abuse 0@9 British_Kirchnerist
Apr 04th, 2012 - 12:41 pm - Link - Report abuse 0Fighting for the people? Are you having a laugh? The chances of that 'fine' ending up anywhere other than her personal Swiss bank account are exactly zero.
Another conflict between a Spannish company and the govenment of Argentina. This is another big squeeze for quick and easy money by the failing regime. It goes to prove that Argentina is not a good place to do business.
Apr 04th, 2012 - 12:48 pm - Link - Report abuse 0Argentina's next target has fallen onto a telecoms outfit. Whatever next I hear you all cry?
Apr 04th, 2012 - 01:55 pm - Link - Report abuse 0This is a warning shot to Spain. Screw with us over YPF and EVERY Spanish company is going to have problems.
Apr 04th, 2012 - 03:05 pm - Link - Report abuse 0Any company with a significant balance sheet and a weak foreign gov't is gong to be in trouble shortly.
You will start to see that companies will start to shut down as they refuse to make capital improvements and their lines etc start to fail.
The wheels are flying off now and CFK is cornered, when animals get panicked and cornered they start biting and lashing out.
Watch what happens when the IDB and WB funds are shut off and/or the US Supreme Court declares the BCRA reserves are truly an RG piggy bank.
Gonna get ugly.
@13 When is the six monthly update on US Supreme court assessment on whether to attach the BCRA as a part of the Government of Argentina?
Apr 04th, 2012 - 04:31 pm - Link - Report abuse 0This says it all: “It worries us a lot at a time when companies, especially Movistar [Telefonica], are very profitable ...” Yeah, this country does not want any business to make a profit, now or in the future. Private business is on the way out in Argentina.
Apr 04th, 2012 - 04:33 pm - Link - Report abuse 0The Argentine government wants a state capitalist country where all profits go directly into the hands of corrupt government officials and into their own personal bank accounts.
Apr 04th, 2012 - 05:16 pm - Link - Report abuse 014. I think there will be a ruling by June of this year.
Apr 04th, 2012 - 05:19 pm - Link - Report abuse 0@6
Apr 04th, 2012 - 05:23 pm - Link - Report abuse 0Movistar people went today to the Radio and themselves said they will pay the fines because in the regulations it's estipulated they should, and that they always agreed to those. If they claimed they wouldn't pay and asked for an investigation then an investigation they should have.
@7
So what's your point? Never apply the fines?
I think it's for the better to apply fines, set a precedent and warn every company that if they fail to follow their contracts, legislation and codes, then they will be fined as well. And fine them, not let it go.
I believe huge fines should have been given to TBA. Truth is, they wouldn't be able to pay half, they wouldn't be able to have the trains going because of lack of funds and people would have been f*cking mad for not being able to use the trains.
18. Did the phone company do something illegal or was it a technological glitch that they fixed as soon as they could?
Apr 04th, 2012 - 05:43 pm - Link - Report abuse 0I think the later and no they should not be fined. How can you fine someone for a break down out of their control?
What a silly way to extort cash it is just thuggery.
RGs have been brainwashed from birth to think businessmen are evil and just out to extract $ for nothing. What a bunch of idiots.
Soon enough it won't matter because all the big business will either leave or be owned by CFK and/or her minions.
@18
Apr 04th, 2012 - 05:57 pm - Link - Report abuse 0It's not wheter it was illegal or not. It's up to the regulations they accepted when Movistar started doing business. Movistar themselves said they accept the highest fine because it has to be so. So difficult to understand?
It's not me, it's not CFK, it's not my neighbour. It's Movistar saying so.
It is a way for CFK to regulate business out of the country just like YPF, Aguas Argentina, Aerolinas Argentina etc etc etc.
Apr 04th, 2012 - 06:11 pm - Link - Report abuse 0Cap the fees they can charge and then keep raising salaries and expenses until they eventually go out of business and the state takes over “to protect the people” ooops like they did with Anses.
AND I wonder where the money collected from Movistar will eventually end up?
Apr 04th, 2012 - 06:28 pm - Link - Report abuse 0Le Camping by chance?
@21
Apr 04th, 2012 - 06:47 pm - Link - Report abuse 0Then TBA wouldn't be running the trains. And trains would be extremely gloryfing for any government who took them and get them just a bit better.
@22
If la Campora I wouldn't care that much. They would mismanage it and lost most of its juice. Now if Quebracho or one of those gets it...
Um same thing has happened with TBA, Ks have refused to allow tariff increases for 8 years but the cost of doing business has gone up tremendously, salaries are higher, peso is lower so all the imported parts are way more expensive. Why do you think they can't do maintenance? CFK doesn't want the trains that why they have not taken them over yet.
Apr 04th, 2012 - 07:04 pm - Link - Report abuse 0@22 Le Camping will definitely be running the telecom show, with Tracksuit Boy and Maximo at the wheel, burning through millions a day in losses.
Apr 04th, 2012 - 08:24 pm - Link - Report abuse 0CrisR and ElaineB - I am beginning to like you both more every day.
Apr 04th, 2012 - 08:28 pm - Link - Report abuse 0@24
Apr 04th, 2012 - 10:06 pm - Link - Report abuse 0The problem with TBA didn't start with the Ks. I can agree it got way worse but in no sense it started with them. It's all the result of a poor made concession and a powerless CNRT. Both come from the 90s.
Lovely: Kill 51 people and injure over 700, because the brakes don't work in a train, nothing happens.
Apr 05th, 2012 - 01:25 am - Link - Report abuse 0Leave 16 mill without cellphone for half a day and they have to pay a fine.
Honestly, I hate this bitch!
#24: They never let it go up, but they were getting 1 mill pesos PER DAY from the Goverment to do infrastructural crap (I know there are many missplelled words there, so... Sorry...)
#27: Ever wonder how it's never NOBODY'S fault? Or it's always Menem's fault...? ?Cause they had 8 years to fix it somehow, right? Just sayin'
@28 that's because the Argentinian Government don't care about 51 people dying due to under-investment in train rolling stock. They cannot get any money out of that situation.
Apr 05th, 2012 - 08:00 am - Link - Report abuse 0They do care about getting their hands on a telecommunications company because they can get personal money out of the company and use it to increase their own personal wealth.
Corrupt people rarely hide their intentions.
nationalize them quick! LMAO
Apr 05th, 2012 - 08:55 am - Link - Report abuse 0Commenting for this story is now closed.
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