America Movil has reaffirmed its commitment to 5G technology investment across its markets while remaining on track to execute its $7.1 billion capital expenditure plan for the current year.
The company’s announcement comes on the heels of its recent first-quarter financial results, which saw a 55 percent year-on-year decline in net profit, primarily attributed to currency fluctuations and the absence of extraordinary income from the sale of cell phone towers.
America Movil does not reveal its specific Capex on 5G network expansion.
Despite the profit dip, America Movil remains steadfast in its 5G expansion, with its Mexican business arm, Telmex, boasting over 10 million 5G customers. In Brazil, the company’s subsidiary Claro maintains a dominant 38 percent market share in 5G technology.
The telecommunications giant expanded its 5G footprint in Colombia, launching services in six major cities shortly after securing 5G spectrum rights in December 2023. By the end of the quarter, America Movil had already amassed over one million clients benefiting from the enhanced speed and quality of its new network infrastructure.
However, the company faced headwinds during the quarter, with a stronger peso affecting earnings, and unexpected challenges such as a ransomware attack and underperformance in Argentina.
Despite these setbacks, America Movil reported robust revenue and core earnings growth, driven by strong performances in key markets such as Brazil and Mexico, Reuters news report said.
Looking ahead, America Movil has identified Peru as a focal point for expansion this year, following the launch of a new data center in the country in January. The company remains committed to its strategic investments in 5G technology and infrastructure, positioning itself for continued growth and market leadership in the telecommunications sector.
Baburajan Kizhakedath
