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The purpose of this paper is thus to determine how governments and in particular regulatory agencies in less developed
nations can impact innovation processes. The notion of innovation in the telecommunications sector is a relatively new
phenomenon for developing nations, in which their main concern- since telecommunications deregulation- has been related to
issues such as connectivity expansion and to a lesser extent the promotion of competition and the prevention of abuses by
incumbent operators. This paper is focused on the Argentinean case because among Latin American nations has achieved
greater development and thus there is the potential that their telecommunications sector has more resources for innovation as
well as the first country in the region to introduce a single license regime which can make facilitate entry and through
competition foster innovation. In this paper we find that even in a country like Argentina there are still important limitations,
the power of large operators, the influence of politicians as well as the economic limitations have made the regulator a
relatively passive agency where it is precisely because of this passivity that innovation is being negatively impacted. In this
paper we present some examples of the type of innovations that companies in Argentina are implementing.
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