Facing greater competition from savvy competitors such as Telefonica (NYSE: TEF), Carlos Slim plans to spend more money to beef up his wireless and wireline networks in Mexico under the America Movil (NYSE: AMX) brand.
Slim announced this week that he will dedicate about $820 million to the group in addition to spending another $820 million on incumbent wireline operator Telmex.
Although Slim has managed to create a wireline/wireless powerhouse in America Movil, the one goal he has yet to reach is being able to offer video as part of a triple play bundle service package. Already, Slim has been building a technology foundation to possibly support an IPTV-based video with a program to upgrade Telmex's wireline broadband network infrastructure to support 20 Mbps services.
Although Slim offers video and triple play packages in other Latin American countries, Reuters reports that the Mexican government has been "reluctant" about letting Slim move into the video business because they are worried he'll create yet another service monopoly.
Right now, Telmex only offers billing services for rapidly growing satellite provider DISH Mexico. But when asked whether he would make an investment in DISH Mexico, Slim said "we are not focused on that, we are waiting (for the authorization) to offer triple play."
- Reuters has this article
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