The consolidation of Carlos Slim's telecom empire--Telmex (NYSE: TII) and regional fixed line group Telint--under the America Movil (NYSE: AMX) umbrella was on display this week as the company released its Q3 2010 results.
During the third quarter, the newly combined company reported $12.33 billion, up 5.3 percent year-on-year, with wireless services and broadband growth making up for flat wireline voice revenue.
As of the end of the quarter, America Movil's broadband base rose 20.3 percent and TV subscribers rose 26 percent year-over-year to 12.5 million and 9.4 million subscribers, respectively.
Given the ongoing rise in broadband, it should not be that surprising that America Movil plans to invest about $6 billion to expand its network with a strong emphasis on data services. In September, Telmex announced plans to drive fiber closer to consumers to deliver 20 Mbps speeds to more effectively compete with area cable operators.
"Data is growing very fast," Daniel Hajj, America Movil's CEO said in a Reuters article. "We think we have a good opportunity (to reach) more households."
For more:
- Reuters has this article
- TeleGeography has this article
Related articles:
Sizing up the wireline industry in the third quarter 2010
Slim's America Movil shells out $2B to Telmex shareholders
America Movil begins acquisition process for Telmex, Carso Telecom
Analysts expect Telmex Internacional to report strong Q4
Mexico regulator approves Slim's wireless/wireline consolidation plan
Mexico's Carlos Slim wants to create a wireline/wireless powerhouse