Telefonica de Argentina S.A.

Argentina · www.telefonica.com.ar · 4 vendors

Telefónica de Argentina S.A. is an Argentine telecommunications company and a subsidiary of the Spanish Telefónica Group. It provides fixed national and international telephony, residential and corporate broadband services, and internet access. The company operates under the Movistar brand in Argentina.

Resilience scores

Technology vendors

Services catalogue

2 services in catalogue across 2 categories; runs on 4 sub-vendors.

Insights

Last updated 2026-08-02 · revision 3

4 direct vendors, 88 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Migration Readiness: 3/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Telefonica de Argentina S.A.'s migration readiness is difficult to assess due to a critical lack of information across several key areas. Most significantly, there is no data available regarding the company's internal tech stack, including whether it is cloud-native, utilizes containerization, or employs microservices. This absence of information on the foundational technology makes it impossible to determine the complexity and feasibility of any potential migration efforts. Furthermore, details on the regulatory environment, data residency requirements, and financial stability (ability to fund migration) are also missing. Regarding vendor relationships, the data presents a contradiction with "Total Vendors: 0" while simultaneously listing "Total Services: 6" with vendors from 4 unique countries. Assuming there are vendors for these 6 services, the "Vendor Lock-in Risk" is unknown, which is a significant factor in migration planning. The geographic diversity of vendors (4 countries) could introduce complexity in managing contracts and and compliance during a migration. Given the overwhelming lack of critical data, particularly concerning the internal technology landscape, the company's migration readiness is assessed as low, as potential challenges related to legacy systems, complex compliance, or unforeseen vendor dependencies cannot be ruled out.

Financials

Three-year financials

Financial Resilience Score: 5/10

Telefónica de Argentina S.A. operates in a structurally challenging macroeconomic environment characterized by chronic high inflation (>100% YoY through 2023-2024), repeated peso devaluations, and capital controls that restrict dividend upstreaming and equipment imports. Financial statements are prepared under IFRS with IAS 29 hyperinflationary adjustments, which materially distorts nominal ARS comparability. The December 2023 Milei devaluation (ARS ~360 to ~800 per USD) severely impacted hard-currency debt service and real-terms EBITDA. On the strength side, the company benefits from incumbent status with a large FTTH footprint, an installed customer base across fixed voice, broadband, and pay-TV, strong Movistar brand recognition, and integrated fixed-mobile convergent offerings. Until the closing of the pending sale to Telecom Argentina, it had backing from a large multinational parent (Telefónica S.A.) providing access to group financing, technology, and procurement scale. Argentine telecom demand is relatively defensive as connectivity is near-essential. However, regulatory risk is significant — DNU 690/2020 designated telecoms as a public service and froze/capped tariffs below inflation for several years, materially compressing margins. Ownership uncertainty from the pending USD 1.245 billion sale to Telecom Argentina (subject to CNDC antitrust review) creates strategic limbo. Capex intensity for 5G rollout and FTTH expansion under FX restrictions, combined with a strongly unionized labor environment with wage negotiations tied to inflation, further pressure resilience. Overall a mid-range resilience score reflects the tension between defensive demand and severe macro/regulatory headwinds.

Key strengths: Incumbent status with large FTTH footprint and installed customer base, Strong Movistar brand recognition and integrated fixed-mobile convergent offering, Backing of multinational parent Telefónica S.A. (pending sale close), Defensive telecom demand as connectivity is near-essential, ARPU-resilient in real USD terms once tariffs adjust

Risk factors: Chronic high inflation (>100% YoY 2023-2024) and repeated peso devaluations, December 2023 Milei devaluation (ARS ~360 to ~800 per USD) stressing hard-currency debt service, Regulatory risk from DNU 690/2020 public service designation and tariff freezes, Capital controls (cepo cambiario) restricting dividend upstreaming and equipment imports, Ownership uncertainty from pending USD 1.245B sale to Telecom Argentina, subject to CNDC approval, Competitive intensity in three-player mobile market (Movistar, Personal/Telecom, Claro), High capex intensity for 5G rollout and FTTH expansion under FX restrictions, Strongly unionized labor environment (FOEESITRA, FATEL) with inflation-linked wages

Revenue by geography

Workforce by country

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