Benzinga | Sep 13, 2021 08:13AM EDT

Why Are Telecom Argentina Shares Trading Higher Today?

* An Argentinian court has dismissed legal action brought by Telecom Argentina SA (NYSE: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.