America Movil to review Mexican investment strategy

18 May 2011

Latin American telecoms giant America Movil (AM) is understood to be reviewing investment plans for its operations in its home territory following a number of recent regulatory rulings that will see a reduction in the fees its Mexican fixed and mobile units – Telmex and Telcel – receive from rivals. According to Bloomberg, AM has said it intends to maintain the overall level of investment it had previously earmarked for Mexico, although it will consider reducing funding to those specific projects that it believes may generate less turnover as a result of the updated regulations. Commenting on the issue, Garcia Moreno, AM’s chief financial officer, noted: ‘We’re reviewing whether to change the destination of the funds to invest less in areas that are less profitable and more in areas that are more profitable … We’re going to optimise the investments.’ No timetable for a decision on the company’s revised spending plan have been set forth.