Subject: [NEXTEL-1] Official: 4 Telecom Cos To Invest ARS1.15 Billion In Argentina

From: [email-masked]
Date: Thu, 16 Oct 2003 05:57:58 -0400

Dow Jones Business News
Official: 4 Telecom Cos To Invest ARS1.15 Billion In Argentina
Wednesday October 15, 6:33 pm ET

BUENOS AIRES -(Dow Jones)- Four leading telecommunication companies will invest
around ARS1.15 billion ($1=ARS2.845) in Argentina, an official from the
presidential office said Wednesday.
The investors include CTI Movil S.A., which is controlled by Mexican giant America
Movil S.A. (AMX), Argentine fixed line giant Telecom Argentina Stet- France
Telecom S.A.  (TEO) and U.S. based companies Nextel and Movicom Bell-South, the
official said.

According to unconfirmed press
reports, CTI Movil S.A. will invest
ARS720 million, Telecom Argentina
will spend ARS200 million, Nextel will
invest ARS185 million and Movicom,
ARS45 million.

No further details were immediately
available, but the companies are
expected to make a formal
announcement later Wednesday at
a press conference.

The four companies later held a
press conference in Government
House, attended by President
Nestor Kirchner and several of his
ministers.

The investment figures reported earlier in the press were confirmed, however it
was made clear that of the total new investment, ARS600 million was money put down
by America Movil in July to take control of CTI Movil. A further ARS49 million was
what Nextel paid to acquire Radio Movil Digital, a trunking service subsidiary of
Telefonica Argentina.

That leaves another ARS500 million to be spent by the four companies on improving
and expanding their networks and systems.

CTI Movil will spend ARS120 million on expanding their network - part of the $ 150
million America Movil owner, billionaire Carlos Slim Helu, said during a recent
visit to Argentina he'd spend modernizing the company. The businessman promised to
give CTI Movil "the most modern plant in the world, with the most modern
services."

Movicom Bell-South will invest ARS45 million in improving the technology used for
their services, Nextel will invest ARS136 million in expanding its network and
Telecom Argentina will spend ARS200 modernizing its technology. No time frame was
given for when the investments will be completed.
In his speech, Kirchner welcomed the new investment, saying it showed Argentina
was "making progress" as it sought to get back on its feet after years of
recession.

The president also said the investments disproved the arguments of many of his
critics, who say Kirchner's antibusiness discourse and his refusal to lift a 21-
month cap on utility rates are driving investors away and undermining Argentina's
eventual recovery.

And he promised that he will ensure stable rules for companies that are investing
in the country.
"They are not going to be submitted to one decision today and to another one
tomorrow. The state will promote the economy, but it will not intervene," he was
quoted as saying by local news agency Diarios y Noticias.
-By Laurence Norman, Dow Jones Newswires; 5411-4311-3127;
[email-masked]

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