Argentina slaps huge fine on Spanish mobile phone service
Argentina has fined Telefonica 43 million dollars for a mobile phone service interruption last month, which threatens to further exacerbate tensions between the two countries.
About 18 million clients of Movistar, Telefonica’s wireless unit, were without phone and data services for several hours on April 2 due to technical problems.
The penalty was announced Tuesday and comes after Argentina seized a majority control of domestic energy firm YPF from Spain’s Repsol.
The fine works out at the equivalent of 2.25 dollars to each customer and 6 million Pesos to the government (approx. 1.4 million dollars). Movistar has about 40% of Argentina's mobile phone market, as well as six million landline accounts.
Argentine Planning Minister Julio De Vido said the fine would send a strong message to other wireless providers that outages would not be tolerated.
“Cell-phone service quality has declined in recent months,” De Vido was quoted. “We need to have full service, not service that gets worse when you walk a few meters one way or another.”
De Vido also strongly recommended telecom companies to boost investment in land lines.
Argentina’s recent decision to seize control of YPF has generated strong reaction from Spain and upset European leaders. On Monday EU Trade Commissioner Karel De Gucht said the bloc would soon take action against Argentina.
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“Boost investment or else” adds uncertainty and risk to reduce the price of the shares, hence overall price of the company.
Then they steal it.
Then they claim it's not worth very much.
I'd expect this company to be stolen by the Argentinians within the next few months, and discussions already be going ahead with the Chinese, and some average Argtard being recruited as new CEO.
Argtards gonna tard.
If I was in charge of this company, I'd probably cut my loses and go. The Argentinan people would wake up one morning and realise that they have no phone network. That'd learn 'em.
If i owned that company i would simply pull the plug and pull out of argentina leaving them in the telecommunications dark ages.
nothing more i like to see than Argenweener heading for Oblivion, Ill drink to that.
*KFC signs bill to steal-nationalise telefonica*
Like seriously, who the furk believes anything she says?
@5 They can justify it insomuch as they need to drop the share price of the company, so after they've stolen it the tribunal can suggest it's cheaper than it really is.
Now doesn't that date remind me of something?
Meanwhile, the transport system with trains whose brakes don't work goes unpunished. Which is worse, Faulty transport system in major need of overhaul, or zero coverage for a few hours due to a non-lethal nor life-threatening technical glitch?
To quote my colleague Dave Lister “What a real Mickey Mouse operation”
I guess they'll be fining them a lot more in the next few weeks.
May 09th, 2012 - 01:32 pm
The other thing is that we, the clients, will now be scared we're going to lose our service. So we, theoretically will change over to another company thereby forcing down the share values. Kretina and her thugs have thought of everything, but in the end it will be us, the ordinary Argentines who will pay for Kretina's “fiesta”.
Well it wn't be the first time, we've been paying for the Government fiestas since bloody J. D. Perón, we're pretty used to it now, and from the last election results it seems that 36% of the Argentine voters like to be fucked by their Government!!!
[just sail ?]
Absolutely. The whole peronist thing is really creepy. Here's this nasty Nazi who married two whores. One managed to convert herself into a sort of angel to the proletariat by giving them ridiculous presents, motor scooters etc. and pissing away all the money that the country had made during WWII.
The only good thing Peron did was get the vote for women.
The nationalising of the railways was a real victory for peronism. He bought the railways from the Brits and thee French at an exorbitant price at a point in time where they, the railways had reached their useful life span and would have started losing money for the shareholders, brilliant!!!
All you hear is why the world can't trust Argentina. I accept that.
What is sad is that you never have asked “Why does Argentina not trust YOU?”
May you remain ignorant.
Keep believing that you or the EU/USA are to be trusted. Poor thing.
And when exactly did you guys have trust from anyone? Don't you read the news? No one in Europe trust each other.
Certainly no one trust the USA.
For obvious reasons, not the Chinese or Russians or middle easteners.
Argentina is not to be trusted but it is upfront about it, in your face, no games or dissembling. Most of your countries play both sides of the fence. It may work for a while, but when people discover the truth they will never trust again.
Argentina may some day be trusted because of a new form of governing. Europe/USA/Asia will never be trusted because they PRETENDED to be worthy of trust.
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