Company: TCMFF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001104659-25-019133
Chunk: 25

Company: TELECOM ARGENTINA SA
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 25
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 operations and cash flows may be adversely affected. 
After the deregulation of Argentina’s telecommunications and media industries, the Broadcasting Law, No. 26,522, the LAD and their implementing regulations have been amended on several occasions, modifying requirements to hold or transfer broadcasting licenses.
In March 2020, in response to the COVID-19 outbreak, the Argentine government introduced emergency measures in the telecommunications sector in order to alleviate the financial burden of the pandemic on individuals and companies. Decree No. 311/20 issued by the PEN on March 24, 2020, determined that services related to fixed and mobile telephony, internet and cable television would not be interrupted for defaults in payment by a certain group of customers defined therein. In August 2020, Decree No. 690/20 declared ICT services as an essential public service and imposed tariff regulations on such services. During 2024 Decree No. 690/20 and related ENACOM resolutions were nullified and declared unconstitutional. See “Item 4—Information on the Company—Regulatory Authorities and Framework—Regulatory Framework—Decree No. 690/20 - Amendment to the LAD - Controversy” and “Item 4—Significant 2024 Events—Decree No. 690/20 - Amendment to the LAD”.
Although the current administration generally favors deregulation and limited state intervention in the private sector, we cannot guarantee that we will not be subject to similar regulations in the future. Such regulations could necessitate adjustments to our subscription service prices, potentially having a materially adverse impact on our revenues.
Moreover, in certain municipalities, regulations have been adopted requiring us to upgrade and/or modify our cable television systems. We will seek to continue to upgrade our existing cable systems, including any network upgrades or modifications required by regulatory or local authorities if we have sufficient cash flow and financing is available at commercially attractive rates. Although currently applicable local ordinances provide that certain penalties may be imposed, including the suspension of the right to use the air space, municipalities have generally not imposed penalties on non-compliant cable systems operators. As of the date of this Annual Report, no fines have been imposed on us in relation to this matter.
The laws related to the commitments to maintain certain coverage and quality of services require and may require significant capital expenditure from Telecom. Additionally, many municipal governments have issued regulations that, in our view, exceed their authority, which frequently limit, hinder or restrict the installation of the infrastructure required to comply with such commitments. Therefore