According to a private study, 67.5% of Argentine households implemented measures to reduce the costs of their fixed internet service so far this year, in response to the complex economic context of recent months. Similarly, 65.3% of households also adjusted their spending on pay TV services.
The Argentine Internet Chamber (CABASE) presented the results of its latest report, the CABASE Internet Index, which analyzes the situation of Internet connectivity and infrastructure in Argentina. Ariel Graizer, president of CABASE, highlighted the collaboration of the sector’s suppliers, mostly SMEs and cooperatives, who offered discounts and special promotions to affected users.
Loss of services, sign of the crisis
The report detailed that, as a result of these measures, Requests for permanent cancellation of services remained low in categories such as landline telephony, landline internet and pay TV, with percentages of 1.2%, 1.9% and 3%, respectively. However, the streaming service showed a higher incidence of cancellations, with 10% of users requesting to cancel their subscription.
Among the strategies adopted by fixed internet users, 44% requested cancellation and obtained discounts, while 10.1% chose to change to a cheaper supplier. In the case of streaming, where price negotiations are limited, 41.9% sought palliative measures, and 10.3% opted for more affordable services.
The study also highlighted that the accessibility of connectivity services is important for economic and social development, reflecting the increasing importance of connectivity in areas such as education, work and entertainment. However, the average cost of fixed internet service in Argentina still represents approximately 4% of average household income, above the 2% threshold established by the UN for basic broadband services.
Graizer stressed the need for adjustments in macroeconomic conditions to improve the accessibility of connectivity services, which would not only facilitate greater penetration in low-income households, but would also support SMEs and cooperatives in the sector in their efforts to maintain and expand infrastructure networks.
The consequences of falling income and rising unemployment
Unemployment among people under 30 years of age doubles general unemployment, according to Indec. Last Monday, the organization published the latest unemployment data for the first quarter of the year.
According to the report, the unemployment rate increased to 7.7%, worsening compared to the 6.9% recorded in the same period last year. Among young people under 30 years of age, the situation is considerably more serious, far exceeding the general average. The situation of women between 14 and 29 years old is alarming, as they face an unemployment rate of 17.3%, more than double the general rate.
For their part, men under 30 years of age registered unemployment of 14.1%, also well above the national average. After the age of 30, the figures show a significant change. Women in this age group had an unemployment rate of 5.8%, while men reached 4.8%.
