America Movil, a leading telecommunications provider in Mexico, has revealed that it will not increase its Capex despite planning to roll out 5G technology in Latin America.
America Movil — controlled by the family of Mexican billionaire Carlos Slim — reported 63 percent increase in fourth-quarter net profit, helped by reduced costs and strong gains in post-paid customers.
America Movil will focus on rolling out 5G technology in Latin America, Chief Executive Officer Daniel Hajj said on a call with analysts. America Movil will launch The technology will likely debut in Mexico this year and may arrive in Brazil as well, depending on the availability of spectrum, Daniel Hajj added.
“We just launched in Austria our 5G network,” Daniel Hajj said. “And we’re going to do that all around Latin America in the second half of the year.”
The company expects capital expenditures of $8.5 billion for the year, on par with last year’s, Daniel Hajj said. The investment will be focused on deploying fiber in Mexico, Colombia, Brazil and other markets, Daniel Hajj said.
Daniel Hajj also expressed optimism about the prospects of America Movil’s U.S. subsidiary, TracFone, as T-Mobile US’s takeover of Sprint Corp advances. A federal judge approved the deal on Tuesday.
“It’s good for TracFone – it’s good to have all of this consolidation in the market,” Daniel Hajj said.
Investment bank Barclays applauded America Movil’s gains in lucrative post-paid customers during the quarter, as well as improved profitability in markets such as Colombia, Peru and the United States.