Why Are Telecom Argentina Shares Trading Higher Today?

Comments
Loading...
  • An Argentinian court has dismissed legal action brought by Telecom Argentina SA TEO against the government's plans to prevent alleged price increases, Telecompaper reports based on Europa Press.
  • Telefonica alleged that the government's Decree 690 of 2020 was unconstitutional and caused significant harm to the company.
  • However, the Federal Contentious Administrative Court ruled that the plaintiff failed to attest to the alleged damage sufficiently.
  • Telefonica has already confirmed that it intends to appeal against the ruling, reports say.
  • Under Decree 690, internet, pay-TV, fixed, and mobile telephony service operators could increase rates by a maximum of 5% from 2021 following a temporary price freeze.
  • Earlier this year, the regulator Enacom allowed the authorized mobile operators to raise charges by up to 7.5% in February, and 2.5% in March, provided they reimbursed customers for January price hikes of up to 20%.
  • The ICT service providers could increase their prices by up to 3% in June and 7% in July to compensate for rising inflation.
  •  Price Action: TEO shares traded higher by 9.09% at $5.52 in the premarket session on the last check Monday.
TEO Logo
TEOTelecom Argentina SA
$10.674.71%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum92.65
Growth2.78
Quality98.77
Value16.35
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Posted In: