Company Spotlight: America Movil

Company Spotlight

MarketWatch: Global Round-up

Company Spotlight: America Movil
The battle for supremacy of the South America mobile market has intensified after Mexican mobile operator America Movil SA purchased the number-two ranked mobile operator in Peru. It is the operator's third purchase in South America in as many months. America Movil is Latin America's largest mobile operator interms of customers, and the acquisition of the Peruvian operator TIM Peru SAC for E407m ($503m) from Telecom Italia SpA, will add at least 1.4 million clients to America Movil's already huge subscriber base of 75 million in the Americas. America Movil has operations in more than a dozen countries in the region, stretching from the US to Argentina. It is also thought to be targeting moves intoVenezuela, Panama, and Bolivia. The South American market seems to be mirroring that of western Europe, which is undergoing a wave of consolidation. Unlike Europe however, there are two regional superpowers battling for supremacy. Mexico-City based America Movil is owned by Mexican billionaire Carlos Slim, the region's wealthiest tycoon. His company is locked in an intense battle with Spain'sTelefonica SA. The sheer size and domination of these two players is putting the squeeze on the region's third-placed operator Telecom Italia. Telecom Italia, which still has businesses in Brazil, Argentina, Cuba, Bolivia, and Paraguay, could be the last major international telephone company to leave Latin America. The South American market used to have a number of foreign telecommunication companiesincluding Verizon Communications, BellSouth Corp, and AT&T. However, these giants have pulled out of Latin America in recent years in order to refocus on their domestic markets. The sale of its Peruvian unit is the second divestiture in South America this year by Telecom Italia, which will gain E110m ($136m) and reduce debt by about E400m ($494m). In March, Telecom Italia sold control of its Chileanunit to a local company for E716m ($885m) in cash. America Movil also recently paid $472m for the number-three-ranked Chilean operator Smartcom SA from Spanish company Endesa Participadas SA. Smartcom added approximately 1.7 million wireless subscribers to America Movil's 75 million customers. In July, America Movil closed the acquisition of Hutchison Telecommunications Paraguay SA. BusinessDescription America Movil is a provider of wireless communication services in Mexico and Latin America. The company operates through its subsidiary Radiomovil Dipsa, which operates under the trade name 'Telcel'. The company provides cellular telecommunications service in all nine regions in Mexico, including all major cities. America Movil generates its revenues through five sources: usage charges,monthly rentals, long-distance, other services, and though the sale of handsets and accessories. The company also operates though its subsidiaries and joint ventures in the telecommunications sector in Guatemala, Ecuador, Argentine, Brazil, Colombia, Venezuela, the US, Mexico and Spain.

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Company Spotlight

MarketWatch: GlobalRound-up

America Movil's list of subsidiaries and affiliates include wireless providers Telcel (Mexico), CTI (Argentina and Uruguay), Telecom Americas (Brazil), Comcel (Colombia and Ecuador), Megatel (Honduras), AMOV Peru (Peru) and Tracfone (USA), and wireless and wireline providers such as Enitel (Nicaragua), ACT (Guatemala), and CTE (El Salvador). The company's offerings include prepaid voiceservices, post paid voice services (which include monthly charges, usage charges and additional charges pay plans), roaming and long-distance services, and data services (which include short message services (SMS), multimedia messaging service (MMS), premium SMS and content community, Internet services, data transmission). America Movil also offers customers handsets and accessories such as...