Infrastructure is not everything, market price also counts.
- European Infrastructure Surpasses South Americans, while Telecom Costs are Exorbitant in Argentina.
- It is 6 times More Expensive to Call a Mobile User in Argentina than in Germany
- Germany has 8 Times More Fixed Broadband Lines, but Argentineans Pay 66% More Expensive the Service.
Argentina and Germany are facing this Sunday the match of their lives in the 2014 World Cup. Many people think this could be the chance to avenge the “Hand of God” that gave Argentina the pass (over England) to face Germany in the Finals of the Championship in 1986. As many other fans would believe this is the last chance for Messi (by many considered the best player in current soccer world) to hold the only cup he has not get yet, the FIFA Soccer World Cup.
Although, if we see both countries from the Telecommunications industry perspective, we might see that Germany has an impressive infrastructure advantage. There are about 10 million immigrants that had fled into Germany (being the majority form Turkey) while Argentina only has about 1.5million people immigrating into their country (basically form neighboring Bolivia and Peru). Most likely because of that reason, there is a major volume of voice traffic incoming into the European country, where per each minute of international voice entering into Argentina there is an approximate of 10 minutes more of voice traffic getting into to Germany.
On the Fixed line segment the European country has 5 times more fixed lines than the South American king of football. While Germany has three major Land Lines operators, Argentina is systematically divided in a duopoly, we can see the effect of that in the prices where the cost per minute of voice termination in landlines is basically double in Argentina than in Germany.
Although, the mobile penetration is slightly higher in Argentina where 142% of the population has a mobile phone, in Germany there is more competition in the mobile segment, with 4 major mobile operators, (Argentina has only 3 major ones). That is also dramatically reflected in the prices to mobiles in each country, where to call an Argentina mobile phone is six times more expensive than to call Germany cellphone user.
The statistic that is absolutely overcoming is the Fixed Broadband Internet subscribers, where there are close to 30 million subscribers in Germany, while in Argentina there are barely 4 million fixed lines of broadband, however the price to the end user of such service is 66% expensive in Argentina, than in Germany.
Coming, back to the World cup, and according to many Internet sources, the odds for Germany to win are in a 40% over Argentina that holds 30% preferences in winning in the first 90 minutes. The other 30 percentage believe that the game will be decided in Penalties. For many experts Germany would have the best tactics as a complete and cohesive teamwork required to win this game. While many other believe that Argentina, has the passion, hunger and key players, that can make the difference in the score of this Great Final showdown. What is truth is that although Germany might be superior in many other aspects such as telecommunications infrastructure, Argentineans are also well known by being survivors, and with this telecom prices, they better be! In any event, may the best players win! Happy Final 2014 World Cup for every one!