Slim to fatten investment in telecoms in 2011

1 Feb 2011

The world’s richest man according to Forbes, Carlos Slim has announced that he expects to increase investment in Mexico in 2011 by around 20%, to USD3.6 billion, with the telecoms sector expected to be one area that benefits from the additional spending. According to Reuters, the Mexican billionaire, who controls Latin American mobile giant America Movil, will invest around MXN10 billion (USD820 million) in the group, while a further MXN10 billion is expected to be set aside for Mexican fixed line incumbent Telefonos de Mexico (Telmex).

With Telmex still awaiting regulatory approval to offer television services of its own, it currently offers billing services for direct-to-home satellite company DISH; delays in allowing the operator to enter the TV sector stem from the government’s concerns that competition in the market could be hampered should such approval be granted. The report notes that in response to queries regarding whether Slim could consider acquiring a stake in the satellite TV provider the executive noted: ‘We are not focused on that, we are waiting (for the authorisation) to offer triple-play.’

Mexico, America Movil (AM), Telefonos de Mexico (Telmex)