The Government confirmed that Enacom will intervene

A mobile phone antenna, one of the strongest telco sectors
A mobile phone antenna, one of the strongest telco sectors

After several versions that circulated in the last hours, the Government of Javier Milei confirmed this Saturday that the National Communications Entity (Enacom), the state agency in charge of regulating and guaranteeing communication services in Argentina, will be intervened.

The decision was announced through a statement from the Chief of Staff, under whose orbit the agency had been operating since the assumption of the libertarian administration. As indicated, it will be made official this Monday with a publication in the Official bulletin.

In the document issued by the area headed by Nicolás Posse, they reported the reasons why their intervention was decided and the new appointee was appointed, who will be the consultant and former Movistar employee, Juan Martín Ozores. He will be accompanied by two deputies, who will be Patricia Roldan, a lawyer with 30 years of career in state organizations, and the former director of Enacom during the administration of President Mauricio Macri, Alejandro Pereyra.

”Enacom’s intervention is a transitory stage, but necessary for the reorganization of the organism“, they pointed out from the Secretariat of Innovation, Science and Technology, led by Alejandro Cosentino, which is dependent on the Chief of Staff.

Alejandro Cosentino
Alejandro Cosentino

In the text they detailed that the intervention will “an audit of the destination of public funds for the promotion and promotion of the activity in the search for a rational and transparent use.”

Likewise, they indicated that all current regulations and the different judicial processes in which the organization is involved will be reviewed. Furthermore, they announced: “After the intervention, Enacom It will continue with the same mission for which it was created: to promote quality communications among all users in the country, generating greater balance and competition between the different market players.”.

The telecommunications industry is a key area and its regulator, the National Communications Agency (Enacom), is a position that usually has a low profile – at least compared to other departments – but is highly coveted. Now, whoever influences that segment will have direct control in regulation, investments, tariffs and bidding for licenses for vital businesses, such as the provision of internet and mobile telephony.

In the country, there are three companies that compete at the top of the industry: the Spanish Telefónica-Movistar; Telecom-Personal, from the Clarín group; and of course, from the tycoon Carlos Slim. The Mexican, who has a net worth of USD 94 billion, according to Forbes, would have had a strong presence in Milei’s campaign. That support would now play a strong role and would tip the balance when it comes to digital designations for the sector.

Enacom was born in the Government of Cristina Kirchner; was in charge of Miguel de Godoy in the Government of Mauricio Macri; and was commanded by the massista Claudio Ambrosinicon Alberto Fernandez in the Pink House. The entity replaced the old Ministry of Communications, which functioned in tandem with the body that regulated the sector, the National Communications Commission (CNC).

Arsat is the satellite company of the Argentine state
Arsat is the satellite company of the Argentine state

When Milei took office, he chose Alejandro Cosentino to lead the Secretariat of Innovation, Science and Technology, on which the organization depends. The official is a fintech expert – he was vice president of the local chamber – and has been part of the President’s technical teams for several months. Even in recent times he participated in meetings with companies in the sector.

Cosentino was founder of Afluenta, one of the first fintech companies in Argentina that offers online collaborative loans. And he has ties to the financial world, where he worked for several years at American Express, Santander Río and The Exxel Group, among other companies. This year he announced that he was retiring from the operational management of Afluenta – he is now only a shareholder –, a decision that coincided with the beginning of his work with the libertarian.

Given that Enacom was born from a law of Congress, its eventual dissolution would have to be resolved there.

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