Showing posts with label America Movil. Show all posts
Showing posts with label America Movil. Show all posts

Thursday, January 24, 2019

Telefónica sells affiliates in Guatemala and El Salvador to América Móvil

Telefónica agreed to sell its interests in local affiliates in Guatemala and El Salvador to América Móvil for EUR 570 million.

The aggregate amount of the transaction (enterprise value) for both companies is US$648 million (approximately EUR 570 million at the current exchange rate, EUR 293 million of which correspond to Telefónica Guatemala and EUR 277 million to Telefónica El Salvador), an implicit multiple for the total amount of the transaction of 9.7 times the estimated 2018 EBITDA of the two companies. Both of the local affiliates provide mobile, fixed line voice, data and paid TV services.

Telefónica said it is disposing of these assets as part of its portfolio management policy based on a strategy of value creation, improving return on capital and strategic positioning.

Monday, August 21, 2017

América Móvil sees ARPU rising as 4G smartphones take hold in Latin America

América Móvil, the Mexican telecommunications carrier with interests across Latin America and fourth largest mobile operator worldwide in terms of subscriber count, continues to travel along a familiar path – new subscribers in many markets are harder to find but surging demand for always-connected smartphones presents an opportunity to increase ARPU, which lags the consumer spend of developed markets. Competition across Latin America is fierce as reflected in the high subscriber churn rates.

Carlos Slim Helú (77), who at times has been ranked as the world's richest person but who now holds the No.6 position on the 2017 Forbes Billionaires list ahead of No.7 Larry Ellison but behind No.5 Mark Zuckerberg, still sits on América Móvil's board of directors, but his son Carlos Slim Domit (50) now serves as chairman of the board. In recent years, the company has faced regulatory challenges in its home market, where it continues to hold the leading share, built new bases through its Claro brand throughout Latin America, and completed deep investments in Europe (a 51% stake Telekom Austria and a 21% stake in KPN Netherlands).

In 2013/14, Mexico undertook a structural reform of its telecommunications sector, forcing América Móvil to sell off some or all of its Telmex wired assets in a process that is still underway. Discussions with the Mexican regulatory authority, IFETEL, on the legal separation of Telmex appear to be ongoing. The full effect of this reform perhaps will be felt next year, when a new wholesale, nationwide infrastructure provider known as Red Compartida (shared network) begins commercial 4G service.

In late July, América Móvil published financial results and operational metrics for Q2. These provide insight not only into the company but also the Latin American telecommunications sector in general. Several macroeconomic issues, however, continue to impact the sector, including the tense situation and declining economy in Brasil, and the wildly fluctuating value of the Mexican peso (declining 28% versus the real, 20% versus the Colombian peso, and 8% versus the dollar with respect to the entire year).

Highlights for Q2 2017

Total accesses of 362,593,00 as of June 30, 2017, including 77% wireless, 9.2% fixed line, 7.6% broadband and 6.0% TV, as below (millions):

                                                  2017                                        2016

Wireless subscribers                  280                                          283

Revenue Generating Units         83                                            82

Revenues (US$)                         13.4bn                                    12.9bn

EBITDA (US$)                         3.7bn                                      3.4bn

Capex (US$)                             1.2bn                                      1.8bn



The company reports continued disconnection of prepaid subscribers in many countries, but a 5.1% net increase in postpaid subscribers, with Chile's increasing 17.8%, Brazil’s 10.0%, Colombia's 7.7% and Mexico's 6.4%l. On the fixed-line platform RGUs rose 1.1% from the prior year, with broadband accesses up 5.7% year-on-year after connecting 209,000 new accesses in the quarter, mainly in Central America, Colombia and Brazil. Colombia, Argentina, Chile and Peru were the main forces behind the strong expansion of service revenues.

Outstanding debt declined from MXP 629.7 billion (approx. $35.2 billion) in December to MXP 550.8 billion pesos ($30.8 billion) in June, a 12.5% decrease, reflecting the company’s debt reduction efforts and the appreciation of the Mexican peso versus other currencies in the period. Approximately 21.6% of company revenues are U.S. dollar-based.

ARPU in Mexico was MXP 137 pesos ($7.69), up 7.5% over last year, with churn at 4.1%; ARPU in Chile was CLP 5,826 ($8.96), up 6.9% over last year, with churn of 5.3%; ARPU in Colombia was COP 16,815 ($5.6), up 1.6% over last year, with churn of 4.3%.

Major spectrum acquisition in Mexico

Earlier this year, América Móvil acquired 60 MHz of wireless spectrum in the 2.5 GHz band from Grupo MVS on undisclosed terms. The deal was approved in May 2017 by Mexico's telecom regulator. The 2.5 GHz spectrum gives América Móvil a similar spectrum position as Sprint, which recently published the results of a field trial using massive MIMO with 8T8R (8 transmit, 8 receive) radios in a 20 MHz channel in the 2.5 GHz band. The trial was conducted with Samsung and reportedly delivered peak speeds of 330 Mbit/s. Capacity per channel increased approximately four-fold, cell edge performance increased three times and the overall coverage area expanded compared with current radios. América Móvil may now be looking for a similar outcome for its newly acquired spectrum in Mexico.

Pact with Samsung Electronics

Coincidentally, in July, Samsung Electronics reached a framework agreement with América Móvil to supply 4.5G networking gear in Mexico and other Latin American markets. The deal also covers the development of IoT solutions and the use of Samsung devices such as the Galaxy S7Edge, the Galaxy S8 and the Galaxy S8+.

Massive fine in Colombia

In late July, a Colombian arbitration panel ordered América Móvil's Colombian affiliate, Comunicación Celular (COMCEL, operating under the Claro brand) to pay $1 billion in a dispute over ownership of network architecture. The case dates back to a contract signed in 1994 by COMCEL under which it was bound to return certain infrastructure to the state after a period of ten years. Movistar, the local affiliate of Telefonica, has also been hit with a $529 million fine for the same reason. The operators argue that they have continually upgraded the infrastructure over time and that new contracts and conditions have superseded the outdated agreement. Both carriers are expected to appeal. América Móvil has sought the intervention of the Mexican government, arguing that such a massive fine for such a dubious case will have negative repercussions between the countries.

Wednesday, July 9, 2014

América Móvil to Sell Majority Share of Mexican Assets

América Móvil announced plans to sell the majority interest (over 50%) of its operations in Mexico in order to cease being a "preponderant economic agent" as defined by new laws intended to break up the telecom monopolies in the nation.

The intended sales concern América Móvil's fixed line business, TelMex, and its mobile network, Telcel.  Carlos Slim is the largest stakeholder in América Móvil.

As part of the plan, all cellular cites (base stations), including towers and related passive infrastructure, will be separated from Telcel so that they may serve on a wholesale basis to all interested parties.

América Móvil's TelMex division also ratified a commercial agreement with Dish México in anticipation of offering pay television service once its regulated status as preponderant economic agent is cleared.

http://www.americamovil.com/amx/en/cm/news/2014/08072014.pdf


Wednesday, September 18, 2013

América Móvil and AT&T Extend Network Alliance

América Móvil and AT&T are enhancing their network interconnections to serve multinational companies operating in Latin America and the U.S.

This milestone in the alliance between AT&T and the América Móvil group of companies --which include Telmex, Embratel and Claro, amongst others -- will allow broader regional coverage with deeper in-country reach:


  • Interconnection to América Móvil's group of companies' networks provides AT&T customers access to 15 markets in Latin America, with more than 2,000 MPLS-enabled IP services nodes and more than 50,000 service/access POPs covering: Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Paraguay, Peru and Uruguay.
  • More than 91,000 miles of América Móvil group of companies' fiber optic network installed throughout the region, and 12 data centers in Latin America.
  • Six markets with enhanced Ethernet availability via América Móvil in Argentina, Brazil, Chile, Colombia, Ecuador, and Peru.
  • Additionally, interconnection to the AT&T global backbone network enables América Móvil MPLS-based services to reach 163 countries over 3,800 service nodes and 38 on-net data centers across the globe.

"AT&T's goal is to provide delivery of a consistent global experience for our customers who continue to expand internationally, and especially in Latin America," said Roman Pacewicz, AT&T Business Solutions senior vice president of marketing and global strategy. "The long-standing relationship with the América Móvil group of companies is a key pillar of our global strategy. The enhanced regional interconnection will allow us to provide deeper in-country reach in the entire region to match our client's expanding presence in Latin America."

"We are pleased to offer our mutual multinational clients the combination of AT&T's footprint with the infrastructure of our operating companies, from Telmex to Embratel and Claro," said Isidoro Ambe Attar, Corporate Executive Vice President at Telmex. "Enhanced global access and sound combination of core competencies and product portfolios will be essential for our clients to improve their productivity and efficiency through advanced solutions."

http://www.americamovil.com/
http://www.att.com


  • As of June 30, 2013, América Móvil had 262 million wireless subscribers and 67 million fixed revenue generating units in the Americas. America Movil has operations in 18 countries in the Americas, more than 30 million fixed lines, 18 million fixed broadband accesses and more than 17 million television subscribers.

Saturday, August 10, 2013

América Móvil Bids for KPN

América Móvil launched a tender offer in cash to acquire all of the issued and outstanding shares of KPN for EUR 2.40 per share.  The offer represents a premium of approximately 35.4% over the average closing price of KPN's ordinary shares on Euronext Amsterdam for the last 30 trading days.

América Móvil said the acquisition would give it the opportunity to expand to other regions outside the Americas in order to achieve geographical diversification and create attractive long-term returns for its shareholders.

América Móvil aims to support to a greater extent KPN's plans in a rapidly changing environment in Europe so that both companies benefit from their respective experiences in the sector.

Currently, América Móvil holds (directly and indirectly) 1,267,677,000 ordinary shares in the capital of KPN, representing approximately 29.77% of all issued and outstanding ordinary shares in the capital of KPN.

América Móvil also noted that it is evaluating KPN's proposed sales of E-Plus.

http://www.americamovil.com/


  • On July 23, 2013, KPN announced that it had “entered into a transaction, subject to shareholder approval, to sell and transfer 100% of its interest in E-Plus to Telefonica Deutschland for EUR 5.0 billion in cash and a 17.6% stake in Telefonica Deutschland post transaction”.
  • América Móvil is headed by Carlos Slim


Thursday, May 2, 2013

Mexico Undertakes Telecom Reform

Mexico will undertake a structural reform of its telecom sector after its Congress voted almost overwhelming to create a new regulatory autonomous body with the power to revoke licenses of monopolies.  


Carlos Slim's America Movil holds an estimated 80% of the wireline sector and 70% of the wireless sector.


Wednesday, January 30, 2013

América Móvil Builds 100G Submarine Cable with ALU


América Móvil has selected Alcatel-Lucent to build a 17,500-km submarine cable linking the Americas.

The AMX-1 System will connect seven countries with eleven landing points: Miami and Jacksonville (United States), Barranquilla and Cartagena (Colombia), Fortaleza, Salvador & Rio de Janeiro (Brazil), Puerto Plata (Dominican Republic), Cancun (Mexico), San Juan (Puerto Rico) and Puerto Barrios (Guatemala). The system is optimized for 100G wavelengths and an ultimate carrying capacity of 50 Tbps. Construction is underway and activation is expected in late 2013.

Alcatel-Lucent is supplying OALC-4 cable optimized with coherent submarine fiber (CSF), repeaters, branching units and the 1620 Light Manager (LM) submarine line terminal equipped with Advanced Coherent technology.

América Móvil and its affiliates currently serve 256 million wireless subscribers and 62 million fixed lines.

http://www.alcatel-lucent.com
http://www.americamovil.com

Wednesday, November 7, 2012

América Móvil Launches LTE in Mexico with Ericsson



América Móvil's Telcel brand officially launched its LTE service in Mexico.

The service delivers downstream rates of up to 20 Mbps.  Telcel said its initial rollout covers 30 zones in nine of the country's largest cities: Mexico DF, Guadalajara, Monterrey, Querétaro, Puebla, Ciudad Juárez, Tijuana, Hermosillo and Mérida.



Telcel has about 69 million subscribers it has an estimated market share of about 77% in wireless services in Mexico.

Ericsson is the key LTE supplier for the Telcel network in Mexico.  Ericsson's contract covers deployment of RBS6000 base stations for LTE in multiple bands.  The deal also includes the Evolved Packet Core with Home Subscriber Server (HSS) for user data management and SGSN-MME as the mobility management entity that handles control signaling and traffic and can be used for all three generations of mobile data services. Ericsson will also deliver Operating Support Systems (OSS). Financial terms were not disclosed.




Sunday, October 28, 2012

América Móvil Hits 319 Million Accesses

Mexico-based América Móvil finished was serving 319 million accesses as of the end of September 2012,  up by 4.1 million wireless subscribers and 1.6 million fixed-line revenue generating units (RGUs) in the third quarter. This figure includes 255.9 million wireless subscribers, 30.3 million landlines, 16.7 million broadband accesses and 15.8 million PayTV units. Fixed-line accesses increased 11.3% year-on-year while the wireless subscriber base was up 6.0%.

América Móvil  third quarter revenues were 193 billion pesos (US$14.8 billion), up 4.5% from the year before.  The yearly comparison is affected by the appreciation of the Mexican peso vis-à-vis the dollar and other currencies. At constant exchange rates, the company's service revenues increased 6.1% year-on-year— practically the same pace seen the prior quarter — driven by mobile data and PayTV revenues.

América Móvil's net debt totaled 363 billion pesos at the end of the quarter, equivalent to 1.4
times EBITDA (last twelve months).

Capital expenditures amounted to 81.7 billion pesos *(US$6.28 billion).

América Móvil operates under the "Claro" brand in most of its markets.  In the U.S., it owns TracFone.

http://www.americamovil.com/amx/en/cm/reports/Q/3Q12_VF.pdf




Tuesday, June 19, 2012

Data Roaming Transparency Initiative Gets Traction

Twenty four leading mobile operators are backing a new Data Roaming Transparency Initiative that aims to provide consumers greater visibility of their roaming charges and usage of mobile data services when travelling abroad.



The initiative is organized by the GSMA, which is working with mobile operators worldwide to adopt the following measures:

  • Sending text messages to remind customers of their data roaming tariffs when they arrive in another country and turn on their mobile device;


  • Implementing a monthly data roaming spending limit to help consumers manage their roaming bill and sending alerts when their data usage approaches the limit; and


  • Temporarily suspending data service when usage exceeds the spending limit.


  • In the first phase of this initiative, these operators and their group subsidiaries have agreed to implement these data roaming transparency measures by the end of 2012, covering more than 4 billion mobile connections worldwide.


The GSMA will also work to promote the adoption of these guidelines across its full membership base of nearly 800 mobile operators globally. Further, the GSMA will develop a trust mark that will identify to consumers that their mobile operator is implementing these measures.



Backers of the initiative include: America Movil, AT&T, Axiata Group Berhad, Bharti Airtel, China Mobile, China Unicom, Deutsche Telekom, France Telecom-Orange, Hutchison 3 Group, KT, MTS, Qtel, SK Telecom, Smart Communications, SoftBank Mobile Corp., Tata Teleservices, Telecom Italia Group, Telefonica, Telekom Austria Group, Telenor Group, TeliaSonera, Verizon Communications, VimpelCom and Vodafone.



"A number of our operator members are already implementing sound transparency practices, benefiting more than a billion subscribers worldwide," said Franco Bernabe, Chairman of the GSMA and Chairman and CEO of Telecom Italia Group. "The initiative announced today will help to promote an even broader adoption of principles that will offer a more transparent and uniform experience for billions of consumers, wherever they travel."http://www.gsmworld.com

Thursday, June 14, 2012

América Móvil Seeks 23% in Telekom Austria

América Móvil announced a deal with Marathon Zwei Beteiligungs GmbH, a wholly owned subsidiary of RPR Privatstiftung, the private trust set up by Mr. Ronny Pecik, to acquire approximately 21% of the outstanding shares of Telekom Austria AG. América Móvil has just acquired 5% of Telekom Austria and is awaiting government clearance to acquire the remaining 16% stake as part of this deal. Taking into account the shares América Móvil already held, this will put the company's total stake in Telekom Austria at 23%.



Telekom Austria, the largest telecommunications company in the country, also provides telecommunication services in Belarus, Bulgaria, Croatia, Liechtenstein, Macedonia, Serbia and Slovenia. As of March 31, 2012, it had 20.3 million wireless subscribers and 2.6 million fixed lines.



América Móvil is the leading provider of telecommunication services in Latin America. As of March 31, 2012, it had 306 million accesses in the Americas, including 246 million wireless subscribers and 60 million fixed revenue-generating units. http://www.americamovil.com

Tuesday, November 29, 2011

AT&T and China Telecom Build Alliance

AT&T and China Telecom announced a strategic agreement to deliver advanced global solutions to multinational companies (MNCs) by interconnecting their respective MPLS networks, expanding IP-VPN reach and capabilities, and simplifying joint contracting and billing.


Key points include:




  • The deal will expand AT&T's existing IP-VPN service in China to allow broader national reach, greater technology choice, enhanced performance and reduced total cost of ownership, as MNCs continue to expand their business in China. The companies also intend to explore jointly deploying an expanded suite of VPN-based services, as well as advanced services like telepresence, managed hosting, cloud-based services, network integration services, and enterprise mobility solutions.


  • The deal will connect the China Telecom and AT&T MPLS-based IP networks in the United States, to provide the same world class global experiences for Chinese multinationals as they grow outside China;


  • The companies will explore the possibility of providing mutual support in other regions of the world;


  • The deal covers bilateral Wi-Fi roaming as an additional access capability.


  • The companies will simplify intercompany business processes and put in place tools to help both companies operate more efficiently.


"Our customers have told us that enhanced communication services between China and the rest of the world is a key factor for improving their competiveness and global expansion," said Roman Pacewicz, AT&T Business Solutions senior vice president of marketing and global strategy. "Developing this strategic framework agreement will allow customers with operations in China to take advantage of the same type of business transformational services they have in other parts of the globe." http://www.att.com

  • AT&T and China Telecom have been long time joint venture partners in Shanghai Symphony Telecommunications Co., Ltd.


  • In November, América Móvil and AT&T announced a strategic accord to explore ways of delivering enhanced communication services to multinational companies throughout Latin America. The memorandum of understanding calls for the two companies to develop means of expanding and enhancing the coverage of their respective IP networks, to deliver the most sophisticated services and solutions to multinational companies in and from emerging markets. AT&T would be able to deepen its existing reach in Latin America using America Movil networks in 15 countries throughout the region. America Movil would benefit from being able to use AT&T's global network infrastructure to provide global IP-based services to its customers in the United States and the rest of the world.

Sunday, November 20, 2011

América Móvil and AT&T Sign Strategic Accord

América Móvil and AT&T announced a strategic accord to explore ways of delivering enhanced communication services to multinational companies throughout Latin America.


The memorandum of understanding calls for the two companies to develop means of expanding and enhancing the coverage of their respective IP networks, to deliver the most sophisticated services and solutions to multinational companies in and from emerging markets. AT&T would be able to deepen its existing reach in Latin America using America Movil networks in 15 countries throughout the region. America Movil would benefit from being able to use AT&T's global network infrastructure to provide global IP-based services to its customers in the United States and the rest of the world.


América Móvil currently serves more than 300 million fixed and mobile accesses in the Americas. Its network assets reach across 18 countries in the Americas and includes more than 294 million fiber route kilometers, internet data centers in each of the major metropolitan markets, fixed broadband data and hybrid-fiber coax networks passing more than 42 million households, and 5 satellites in orbit providing broad coverage for the PayTV service.


"We are pleased with the proposed expansion of our long standing and trusted relationship with AT&T," said Isidoro Ambe Attar, Chief Executive, Telmex Corporate and Global Services. "We have been working side by side for 20 years, sharing technology and operational expertise. Our proposed strategic agreement further reinforces our commitment to offer the best and broadest services to our customers." http://www.att.com http://www.americamovil.com

  • As of September 30, 2011, América Móvil had 241.5 million wireless subscribers and 56.4 million fixed revenue generating units in the Americas.

See also