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ATVC rejects flexibility for new bidders

A new controversy appeared in Argentina that re-sells tender specifications for cable television after an extended period, in a framework of flexibility that would allow, among other things, cooperatives to offer cable service, and the possibility of participating to small suppliers in localities of up to 20,000 inhabitants.

The television and media business in Argentina remains in turmoil. While there are still no negotiating points for the new Broadcasting Law, a new controversy appeared: resolution 275/2009, of the COMFER (Federal Broadcasting Committee), which again sells tender specifications for cable television after an extended period, in a framework of flexibility that would allow, among other things, cooperatives to offer cable service, and the possibility of involving small suppliers in localities of up to 20,000 inhabitants.

ATVC (Argentine Association of Cable Television) released a statement in which it warns that the provisions now establish the possibility of using third-party infrastructure because it would allow large "companies to provide service through front men or anomalous companies constituted for this purpose." The entity explained that telephone companies, utilities or companies with more than 30% foreign capital, all inhibited from providing cable television, could take advantage of this legal device to enter the market through the back door. In addition, ATVC considers that, contrary to what is proposed, this resolution would mainly affect SME suppliers, "since the low level of demand and price of the specifications, constitutes an invitation to attack places occupied by them through an existing public network", without prior investment or need for infrastructure.

In the COMFER disclaimer, sources from the government entity said that the telephone companies will continue to be prevented from providing the service and that the measure aims to end the "aberration" that meant the suspension of the sale of sheets. In addition, the comptroller Gabriel Mariotto stressed that from the resolution the consultations that came were mainly from civil associations, cooperatives and some individuals.

The directors of ATVC maintain that this rule "establishes undue benefits and discriminatory conditions that threaten an industry with more than forty years of investment at risk." The entity considers that "the obligation to prove ownership of all the infrastructure and equipment necessary for the installation of the service must be maintained", since, otherwise, "all the technical-legal scaffolding taken into account in the Regulation for the award of licenses would crumble". The entity, therefore, "rejects this hastily dictated measure, which aborts the development and national investment in a true alternative network."

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