Let’s see what was the evolution of prices of ICT services in Argentina in recent years.
If we take the time-series of the communications chapter of the INDEC Consumer Price Index (IPC-COM) we see that since the beginning of the series (Dec-2016=100) prices of communication services were above the general index until 2020, where the IPC-COM flattens and then goes below the general index.
Let’s analyze in particular the years 2020 and 2021. First, 2020: if we look at the cumulative annual variation, the IPC-COM rises above the general IPC with the increase in March, which was partially reversed in April (the increase in prepaid mobile and fixed telephony, but not postpaid and mixed mobile) and then the IPC plateaus first due to the price agreement until July 31 and then due to the freeze imposed by DNU 690/2020 until December 31.
Now let’s look at the year 2021:
As we can see, both 2020 and 2021 were years where price increases in ICTs were well below the increases in the general index.
Note: according to COICOP Argentina, the Communications Chapter of the IPC does not include only ICT services but also the price of equipment and does not include prices of pay television services, which are reflected in the Chapter of Recreation and Culture.
Now let’s see how we rank against other countries in the region in terms of affordability. The International Telecommunication Union (ITU) compiles standardized price statistics of price baskets for fixed and mobile services. Some examples:
In these time-series, Argentina only seems to be doing well in mobile broadband (only data).
Note: these time-series only includes 2018, 2019 and 2020 because in 2017 there was a change in methodology. For more information see here.