Telecom Argentina SA said Wednesday that its 4 billion peso ($840 million) capital expenditure program this year faces minor delays.
Chief Executive Franco Bertone said several projects won't be finished until early next year due to difficulties in importing equipment.
In the first nine months of the year, capital expenditures totaled ARS2.19 billion.
"Capital expenditures freed due to the cancellation of the spectrum auction is reassigned to improve coverage and capacity of our mobile access network," Mr. Bertone said.
In September, the government cancelled a spectrum auction that attracted interest from all four of the country's mobile operators. Carriers had long called on the government to free up more spectrum to meet the growing demand for bandwidth-intensive data services.
Instead of selling spectrum to the private sector, the government gave it to federal communications company Arsat, which is seeking partners to build and operate its own wireless network.
Telecom is trying to make the most efficient use of its existing spectrum in order to continue growing its mobile data services, Mr. Bertone said.
Telecom said Wednesday that its third-quarter net profit rose just 2% on the year ARS629 million due to higher labor costs and taxes.
Revenue increased 18% to ARS5.65 billion led by growth in data and wireless services.
Even so, sales grew at a slower rate than inflation, which most private sector economists say is around 25%.
Telecom's shares traded in the U.S. closed 2.6% lower at $9.84.