Case #1678.0

Argentina's Telecommunications Industry and the Economic Crisis of 2002

Publication Date: December 16, 2002
Current Stock:

Educator Access

A review copy of this case is available free of charge to educators and trainers. Please create an account or sign in to gain access to this material.

Permission to Reprint

Each purchase of this product entitles the buyer to one digital file and use. If you intend to distribute, teach, or share this item, you must purchase permission for each individual who will be given access. Learn more about purchasing permission to reprint.

During the 1990s, Argentina carried out an ambitious program of economic reforms, including the privatization of its telephone system and other state-owned utilities. In 2002, however, a severe economic crisis forced Argentina to default on its foreign debts, devalue its foreign currency, and freeze bank accounts. As part of the emergency measures, the government ordered the freezing of telephone and other utility tariffs and the renegotiation of all utility concession contracts.

Learning Objective:
This case is intended for use in an executive program or graduate course on privatization and regulation to illustrate the challenges posed by an economic crisis and how they are complicated when there is a legacy of distrust among consumers, utility companies, and the government.

Other Details

Case Author:
Santiago Urbiztondo
Faculty Lead:
Jose Gomez-Ibanez
Pages (incl. exhibits):
South America, Argentina