translated from Spanish: The Information Technology Industry’s Response to the Executive’s UND

The information technology industry issued a joint statement following The Need and Urgency Decree No. 690/20 published in the Official Gazette by the National Executive Branch that determined that Information and Communications Technology (ICT) Services will be considered essential and strategic public services in competition, including mobile telephony, Internet and pay TV. The statement states that “such an untimely and unconsuming rule change has a profound negative impact on all ICT players, investors, their hundreds of thousands of employees across the country, in their value chain and throughout the digital community, shifting uncertainty to customers about the quality of service delivery they receive in the future.” He adds: “The rule never ceases to amaze as we always maintained the dialogue in good faith with all the authorities, even to seek alternatives that bring relief to those who need it most. The justification for the urgency for the UND dictation does not correspond to the reality of the facts.” The text signed by different companies that make up the industry notes that while they share “the objective of achieving universality of access to all Argentines. That’s a State of Development Policy. Public Service, on the other hand, is a limiting regulation, which does not imply obligations per se and that generates imbalances in investment and access.  Decreeing public services to the Internet, pay TV and cell phone does NOT guarantee access to the entire population, and fundamentally seeks to intervene in management, eliminating incentives for innovation and competition”. Finally, the statement concludes: “We call for reconsideration of this decision to re-establish a frank dialogue in which all parties find a way to connect Argentines and continue to develop a high value-added industry, generating legitimate jobs and with enormous potential for the country and its people.” The full communiqué following:The National Executive Branch, through The Need and Urgency Decree No. 690/20, determined that The Information and Communications Technology (ICT) Services will be considered essential and strategic public services in competition, thereby intervening in the sector. This includes fixed and mobile telephony, internet and pay TV. Such an untimely and unconsectical rule change has a profound negative impact for all ICT players, investors, their hundreds of thousands of employees across the country, in their value chain and across the digital community, shifting uncertainty to customers about the quality of service delivery they receive in the future. The norm is unsurprising as we always had a good faith dialogue with all the authorities, including to seek alternatives that bring relief to those who need it most. The justification for the urgency for the UND dictation does not correspond to the reality of the facts. It is also clear that this change in rules is putting a brake on the ICT Industry in Argentina, and it opens a serious question given the background to the price freeze of the Fixed Telephony Service for 15 years (1999/2015)While other countries are looking to boost its development and overcome the negative effects of the pandemic, the measure set out goes in the opposite direction creating a framework of absolute uncertainty. In the wrong way, this industry is rated as a public service without any need, let alone urgency. We share the goal of achieving universal access to all Argentines. That’s a State of Development Policy. Public Service, on the other hand, is a limiting regulation, which does not involve obligations per se and that creates imbalances in investment and access. Decreeing public services to the Internet, pay TV and cell phone DOES NOT guarantee access to the entire population, and fundamentally seeks to intervene in management, eliminating incentives for innovation and competition. ICT SERVICES ARE COMPETING SERVICES
Telecommunications are a competing industry of more than 1200 providers, SMEs and cooperatives that allow users to opt for different connectivity offers, in all the provinces and municipalities of the country, under a licensing regime and not public concession, which have a single provider in each zone.that on the Internet. In addition, there are more than 50 million cell lines in service. There is no other service in the country with that number of customers. For years, it has been investing and supporting local films and talent shows, thus encouraging consumption both in cinemas and in the home of Argentine productions. As well as national developments for the Internet of Things. As a result, today millions of Argentines can enjoy a variety of voices and entertainment options from series and movies to sporting events. REGULATORY CERTAINTY TO INCENTIVIZE INVESTMENT
• Accelerating digital inclusion requires intensive, on a recurring and long-term basis to expand services. The ICT industry as a whole is the sector that invests the most in Argentina, along with oil (US$20 billion over the past ten years, with a contribution of 2.4% of GDP). The intervention on the sector represented by the announced measures, in a context such as the Argentine, will be negative to continue developing access and coverage in Internet, mobile telephony and pay TV services.THE ICT SECTOR DURING THE PANDEMIA
From the beginning of the healthcare emergency, the industry is committed to its employees, suppliers, and customers with the aim of keeping all Argentines connected. It has voluntarily implemented facilities and benefits for the most vulnerable sectors such as the design of Inclusive Plans, not cutting for arrears, price retraction, and free navigation through educational portals. In addition, we kept fixed, in agreement with the Government, the prices of various service plans since November 2019 – We provide connectivity in hospitals, schools and numerous public units. In addition, we have made free donations and campaigns of SMS.- In addition, it has been sustaining compliance with tax, tax and labor obligations, without receiving any subsidies or facilities from the State.It is difficult to understand the reason for such unnecessary and unjustified decision taken unilaterally, when the Congress of the Nation is lousy, and the sector has maintained a permanent dialogue with the Executive Branch since the declaration of Health Emergency. There is a signed agreement with the government, in force until 31 August, and in a constant dialogue until the unexpected announcement by the authorities. Such a rule change would have merited a deep debate with the participation of all involved. We call for reconsideration of this decision to re-establish a frank dialogue in which all parties find a way to connect Argentines and continue to develop a high value-added industry, generating legitimate jobs and with enormous potential for the country and its people.

Original source in Spanish

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