American Movil SAB de CV (ADR) (AMX) Responds To AT&T Inc. (T)’s Challenge
American Movil SAB de CV (ADR) (NYSE:AMX) responded to the challenges thrown by AT&T Inc. (NYSE:T). The Mexican telecom giant has offered free calls and data to some subscribers in the United States. Its CEO, Daniel Hajj, said that it would also make an investment of $6 billion in its Mexico network in the next three-year period.
The move was in response to AT&T Inc. (NYSE:T)’s acquisition of two wireless operators in the Mexican turf, which was the home for American Movil SAB de CV (ADR) (NYSE:AMX). Hajj also indicated that he would remove the roaming charges between Mexico and the United States for post-paid customers if they opt to pay $3.16 a month extra.
The Mexican firm is also hoping to do the same in respect of pre-paid customers. That was primarily because over 80% of the subscribers were pre-paid customers. The CEO was also ready to extend the package to cover Canada. The move is in retaliation to T-Mobile US Inc (NYSE:TMUS), AT&T Inc. (NYSE:T) and Telefonica SA. The three telecom service providers launched fresh deals with free calls earlier this year between Mexico and the United States.
No Rush To Sell Assets
Reports suggest that American Movil SAB de CV (ADR) (NYSE:AMX) was looking to divest some assets though they are not in any rush. A year ago, the company indicated that it was planning to divest some assets in Mexico so as to reduce its market share. The objective was to escape the tough fresh measures imposed to limit the dominance of the company.
The Mexican company said in April that it was reviewing its idea of selling cross-section assets since AT&T Inc. (NYSE:T) acquired number three and four wireless operators in Mexico. That meant an increased competition. The American firm also indicated that it would invest $3 billion in Mexico. That was despite having only six million subscribers in Mexico while American Movil SAB de CV (ADR) (NYSE:AMX) enjoys 72 million subscriber-base.
Latest posts by Viraj Shah (see all)
- Tesla Motors Inc (NASDAQ:TSLA)’s Elon Musk Is Going After Semi Truck Industry - November 17, 2017 04:37 AM PST
- Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior” - November 15, 2017 06:58 AM PST
- Nikola Tesla and Tesla Motors Inc (TSLA) – The Past & Future of the World You Cannot Ignore- Part 1 - May 15, 2017 05:11 AM PST