Telecom Argentina: TMA Remedies Disclosed, Heavy But as Anticipated; Positive and Buying Opportunity

Research evidence excerpt

Telecom Argentina: TMA Remedies Disclosed, Heavy But as Anticipated; Positive and Buying Opportunity

J P M O R G A N Latin America Equity Research

18 June 2026

Telecom Argentina Overweight

TEO, TEO US

TMA Remedies Disclosed, Heavy But as Anticipated; Price (17 Jun 26):$14.57

Positive and Buying Opportunity

LatAm Technology & Telecom /

Yesterday, the Argentine Antritrust Tribunal established the remedies for the Education

acquisiton of TMA by TEO, which came in line as La Nacion anticipated on an Marcelo Santos, CFA AC

article in 27-Mar-26 (see here). Among key remedies, we highlight the transfer of (55-11) 4950-3708

6 million mobile customers and the return of 130 MHz of spectrum. Although the marcelo.p.santos@jpmorgan.com

remedies are significant and would allow a third player to enter the market, we see Livea Mizobata

the outcome as positive, as we believe it is unlikely that a well-capitalized (55-11) 4950-3604

livea.mizobata@jpmorgan.com

aggressive competitor will come, and this now paves the way for a consolidation Banco J.P. Morgan S.A.

in the mobile market. Moreover, this outcome removes the risk of deal-breaking

remedies, which were a possibility in many investors’ minds. Thus, we see today’s

price weakness as a buying opportunity.

• Key Remedies, in line with what was anticipated: (1) Divestiture of 6

million mobile subs: TEO must transfer 6 million mobile customers in 2 years,

out of which 4 million should be in the metropolitan area of Buenos Aires and

the other 2 million to be freely allocated throughout the national territory; (2)

Return of 130 MHz in spectrum: TEO must return a total of 130 MHz, including

an immediate return of 60 MHz nationwide, besides additional returns in areas

of high concentration, and allocation of the remaining spectrum to the