America Movil, the Mexican telecommunications giant, announced plans to prioritize 5G network expansion across Latin America next year.
During a third-quarter earnings call on Wednesday, America Movil CEO Daniel Hajj emphasized that 5G technology remains a top priority for the company, which has allocated a $7 billion capital expenditure budget for 2024 to accelerate its rollout, Reuters news report said.
America Movil did not reveal the number of 5G subscribers.
Recently, a GSMA report indicated that 5G in Latin America will account for nearly 60 percent of total mobile connections by 2030. Nearly two thirds of consumers in Latin America intend to upgrade to 5G, according to a GSMA Intelligence survey.
GSMA said 5G services were available in eight countries in Latin America as of March 2023. 5G coverage in Latin America is mostly limited to major cities. 5G coverage is available in all state capitals in Brazil and in all districts of Chile and Dominican Republic. Telcel’s (America Movil) 5G network was live in 100 Mexican cities at the end of 2022.
America Movil’s Daniel Hajj stated that the expansion of 5G across Mexico and Latin America will remain a central focus for the company in 2025, following a similar pattern in 2024.
America Movil’s Chief Financial Officer Daniel Garcia added that the company is considering additional financing to support the 5G push in key markets like Peru, Colombia, and Brazil, noting that the financing will involve refinancing existing debt while keeping overall debt levels stable.
In addition to its 5G plans, America Movil is exploring a potential collaboration with Elon Musk’s SpaceX. The proposed tie-up would connect SpaceX’s space technology with America Movil’s mobile services network, potentially opening up new opportunities for both companies in the satellite communications space, America Movil’s COO Oscar Von Hauske said.
America Movil’s third quarter revenue totaled MXN223 billion with service revenue growing 11.3 percent.
America Movil added 1.8 million subscribers, of which 1.4 million were postpaid. Austria added 430,000, Brazil 291,000, Colombia 59,000, and Mexico 108,000 postpaid subscribers.
America Movil connected 327,000 broadband accesses that include 116,000 in Mexico, 59,000 in Brazil, and approximately 43,000 in Argentina and Central America. America Movil disconnected 83,000 landlines and 30,000 PayTV units in the quarter.
Baburajan Kizhakedath
