Argentina forbids telcos to offer VOD, OTT | OTT | News | Rapid TV News
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Broadcasting services are only the remit of broadcasters, not telcos. This is the clear message sent by Argentina's Supreme Court, which has ruled against the country's telcos offering any kind of TV or video services.

Following the request of the Argentinean association of cable operators ATVC, Cablevisión, Multicanal and Telecentro, the court has ratified that the telcos can't offer video-on-demand (VOD) or over-the-top (OTT) services through their data and fibre networks.

VOD platforms such as Telefónica's On Video and Telecom's Arnet Play should now be switched off, according to the new ruling. In addition, any kind of broadcasting services and even the distribution of pay-TV channels - as Telefónica and Arnet do with DirecTV - should be also suspended.

The court's sentence is a step taken in favour of the cable operators and against the introduction of new business models such as the one carried by OTT platforms like Netflix, ESPN Play and HBO Go.

But the decision isn't arbitrary; it actually follows the current legal framework for the media industry. Some market analysts in the Argentinean media have seen in the sentence a ratification of the law, while others point to the need of changing the legislation to adapt the industry to the new broadcasting technologies.