Mexico’s America Movil to invest $6 bln in next 3 years-CEO

Earlier on Thursday Chief Executive Daniel Hajj said the company would offer some subscribers free calls to, and data in, the United States as well as invest $6 billion in its network in Mexico.

Citing slow growth in Mexico and a “soft patch” for the USA economy at the start of the second quarter, America Movil saw its profits drop by 25.4 percent year over year to $895 million (14.05 billion pesos).

AT&T Inc has challenged America Movil on its home turf with the purchases of two Mexican wireless operators.

At the event on Thursday, Hajj also announced that roaming charges from Mexico to the United States would be eliminated from all post-pay plans.

The company said in July previous year that it would sell assets in Mexico to cut its market share and avoid tough new measures imposed under a sweeping telecom reform aimed at curbing America Movil’s dominance. Telcel grew its customer base by 559,000 customers in Q2, of which 293,000 postpaid, to finish June with 72.6 million mobile clients, or 1.9 percent more than a year before.

America Movil saw a 2 percent jump in profits in its Central America and Caribbean region, with revenue of just over $1 billion ($15.91 billion pesos).

Rivals AT&T, Telefonica SA and T-Mobile Everybody Inc make sure you have also unveiled new services with the use of free cell phone calls between Mexico plus the Simply.S….

America Movil said “We will lead the integration of the Mexico and U.S. telecoms market, one with 440 million POPs”, despite its main competitor AT&T already holding a leading market share with around 130 million mobile customers.

In April, America Movil said it was reviewing the original plan to sell a cross-section of the company.