Federal judge freezes order to cancel Fibertel's license, govt to appeal

Monday, September 27, 2010

An Argentine judge has suspended for 100 days a government decree forcing local media giant Grupo Clarin to shut down its ISP Fibertel, local press reported.

Federal judge Elvio Bautista Sagarra ordered Fibertel to continue guaranteeing service to the company's clients, which is estimated at approximately 1mn. Planning minister Julio De Vido said that the government will appeal this ruling.

In August, the government decided to cancel Fibertel's broadband license through a resolution issued by the country's telecoms ministry SeCom. The government decision was due to Fibertel's merger with pay-TV provider Cablevision, which according to the official was not approved by SeCom. Both Cablevision and Fibertel are fully controlled by Argentine media giant Grupo Clarin.

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Grupo Clarin has been at loggerheads with the current government administration due to its criticism of the government.