Consequences of the repeal of resolutions that regulated ICT prices in Argentina

Consequences of the repeal of resolutions that regulated ICT prices in Argentina
Consequences of the repeal of resolutions that regulated ICT prices in Argentina

The National Communications Entity (ENACOM), through Resolution 13/2024 published in the Official Gazette this Thursday, repealed a series of resolutions related to price regulation in Information and Communications Technology (ICT) services. This measure occurs in the context of the repeal of the Decree of Necessity and Urgency (DNU) 690/2020, which had established important changes in the regulatory framework of ICT services in Argentina.

ENACOM was created by Decree No. 267 of December 29, 2015, assuming the functions of the former Federal Authority for Information and Communications Technologies (AFTIC) and the former Federal Authority for Audiovisual Communication Services (AFSCA). . Since its creation, ENACOM was responsible for applying and supervising laws 27,078 and 26,522, and their amending and regulatory standards.

In 2020, through DNU 690, significant changes were introduced to the Argentine Digital Law No. 27,078. This decree declared ICT services and access to telecommunications networks as essential and strategic public services, with the objective of guaranteeing their effective availability and fair and reasonable prices. Likewise, it established that the enforcement authority would regulate the prices of these services, especially those considered essential and strategic.

However, in practice the official intention was limited by the different judicial resolutions obtained by the main providers, who appealed the measure.

On April 9, 2024, DNU 302/2024 repealed DNU 690/2020, eliminating the modifications introduced by the latter to the Argentine Digital Law. According to the recitals of the new DNU, it was argued that ICT services have been created in competition and that it is essential for their development that licensees can set their prices freely. The objective of this repeal is to correct what is considered an essential modification of the legal framework of the sector, allowing the development of a competitive market and the free setting of prices.

The repeal of these resolutions implies a significant change in the regulation of ICT services in Argentina. By removing restrictions on pricing, licensees of ICT services are expected to have greater freedom to determine their rates, as long as they are fair and reasonable, and cover operating costs and a reasonable operating margin.

However, this measure also generated controversy. During the validity of the now repealed resolutions, challenges were received from the ICT services licensees and the chambers that group them, some of which managed to avoid compliance through judicial resolutions. The repeal of DNU 690/2020 and its associated resolutions is seen by some sectors as a setback in the protection of user rights and in the guarantee of equitable access to ICT services.

 
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