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Argentine energy holding company Pampa Holding expects to offer voice and broadband services through its subsidiary Comunicaciones y Consumo (Cycsa), local paper El Cronista reported.
Cycsa signed a 10-year contract with local power distributor Edenor, which is also controlled by Pampa Holding. According to the report, the agreement stipulates that Cycsa could use Edenor's infrastructure to offer telecommunications services.
The contract also said that Cycsa will pay Edenor 2% of its annual revenues as well as 10% of its profits, El Cronista reported.
During 2006, Edenor modified its statutes to expand its core business and enter new segments, including telecoms. The company is currently testing power line communication (PLC). The advantage of PLC is that broadband can reach a wider audience as electric power cables are more widespread than telecommunications infrastructure. Modems are the only additional element required to obtain internet access.
Edenor is the largest power distributor in Argentina in terms of clients served and power sold. The company has an exclusive concession to distribute power in the northwestern zone of greater Buenos Aires.