Wednesday, May 9th 2012 - 07:39 UTC

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.

Minister De Vido: outages are not tolerated

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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1 GreekYoghurt (#) May 09th, 2012 - 08:05 am Report abuse
Here we go, Danny de Vito and Leather-Tracksuit Boy trying to expropriate Spanish companies... again.

“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.
2 The Cestrian (#) May 09th, 2012 - 09:00 am Report abuse
Yip, this company is the next one.
3 Idlehands (#) May 09th, 2012 - 09:24 am Report abuse
Are they demanding payment in pesos or the $US
4 LEPRecon (#) May 09th, 2012 - 10:14 am Report abuse
Yes this company is next on the agenda. Of course the won't 'nationalise' it until they have to distract the population from some truly bad news, then it'll be a repeat of YPF.

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.
5 Teaboy2 (#) May 09th, 2012 - 10:36 am Report abuse
Would love to know how on earth they can justify such a massive fine for what was only a temporary disruption to service, that was out of the control of the phone company to start with. It's not the phone companies fault they have to export in order to import parts needed for maintain the phone network now is it!!

If i owned that company i would simply pull the plug and pull out of argentina leaving them in the telecommunications dark ages.
6 PirateLove (#) May 09th, 2012 - 10:59 am Report abuse
Its All Good!

nothing more i like to see than Argenweener heading for Oblivion, Ill drink to that.
7 GreekYoghurt (#) May 09th, 2012 - 11:00 am Report abuse
KFC: “Our continuous theft-nationalisation of mainly Spanish investments is nothing to do with ideology”
*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.
8 Be serious (#) May 09th, 2012 - 11:05 am Report abuse
Just pleased Vodafone decided to give Argentina a wide berth.
9 GreekYoghurt (#) May 09th, 2012 - 11:31 am Report abuse
@8 Hell yeh.
10 Simon68 (#) May 09th, 2012 - 01:08 pm Report abuse
As a client of Movistar (Telefónica Argentina) I can tell you that I suffered no service cut on 2nd April.

Now doesn't that date remind me of something?
11 A.J.Rimmer (#) May 09th, 2012 - 01:27 pm Report abuse
to sum up: You have money, and we're broke, so we will take what we want with a pitiful excuse.............

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”
12 GreekYoghurt (#) May 09th, 2012 - 01:32 pm Report abuse
@11 It's just a terrible place with it's priorities all upside-down. There's not need to fine Movistar unless they wanted to start to reduce the share price of another business.

I guess they'll be fining them a lot more in the next few weeks.
13 British_Kirchnerist (#) May 09th, 2012 - 02:13 pm Report abuse
Go go my Queen, whether you want to nationalise these slackers or just kick them into shape, we are with you =) Ti amo mi dama de hierro!
14 Simon68 (#) May 09th, 2012 - 02:18 pm Report abuse
12 GreekYoghurt (#)
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!!!
15 briton (#) May 09th, 2012 - 02:53 pm Report abuse
we think the spannish navy should sail,
[just sail ?]
16 GreekYoghurt (#) May 09th, 2012 - 02:56 pm Report abuse
@14 Until Peronism dies, your country will suffer a cyclical death of nonsense. That's just a fact.
17 Idlehands (#) May 09th, 2012 - 03:11 pm Report abuse
I assume Peronism has only entered Argentine folklore because Argentines muddle it up with the deeds of Eva Peron? I can't think of anything good to say about it or why it has endured so long otherwise.
18 Simon68 (#) May 09th, 2012 - 04:23 pm Report abuse
17 Idlehands (#)

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!!!
19 GreekYoghurt (#) May 09th, 2012 - 06:03 pm Report abuse
@18 Seems they didn't invest much in the railways since that point either.
20 Brit Bob (#) May 10th, 2012 - 12:55 pm Report abuse
Argentina. It proves that even if you speak the lingo and act in a friendly way, trying to do business, they will still shi*te on you. This is why they can't be trusted be the rest of the World and lie at 100th place in the World's Corruption Index of Nations. A dead duck economy...
21 Truth_Telling_Troll (#) May 10th, 2012 - 03:05 pm Report abuse
@20

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.
22 reality check (#) May 10th, 2012 - 04:01 pm Report abuse
Argentina and trust! not two words I would put together in the same sentence.
23 tobias (#) May 10th, 2012 - 06:43 pm Report abuse
@22

Keep believing that you or the EU/USA are to be trusted. Poor thing.
24 reality check (#) May 10th, 2012 - 08:15 pm Report abuse
$100 billion dollar default, scheming to avoid, lessen or cheat on your debts. Would not by a second hand car from you without first checking with interpol to make sure it wasn't stolen from a Spaniard. Trust is earned, you haven't done the slighest thing in decades to earn it.
25 tobias (#) May 11th, 2012 - 12:12 am Report abuse
@24

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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