América Móvil, S.A.B. de C.V. Company Profile

Background

Overview

América Móvil, S.A.B. de C.V. is a Mexican multinational telecommunications corporation headquartered in Mexico City. Established on September 25, 2000, the company has grown to become the leading integrated telecommunications services provider in Latin America. It offers a comprehensive range of services, including wireless voice, wireless data, fixed voice, fixed broadband, pay television, and information technology services. As of December 31, 2023, América Móvil reported 310.1 million wireless subscribers and 73.7 million fixed revenue-generating units.

Mission and Vision

• Mission: To provide the best service and customer experience with state-of-the-art communications solutions, information technology, and digital content to bring people closer together, accelerate the development of the countries where we operate, and promote equal opportunities among people.

• Vision: To consolidate the company as an agent of change by providing connectivity and advanced technology services, maintaining leadership in the telecommunications industry, and confirming our commitment to our stakeholders to make the world more promising for everyone.

Industry Significance

América Móvil is the largest telecommunications company in Latin America and ranks as the seventh-largest mobile network operator globally in terms of equity subscribers. Its extensive infrastructure and diverse service offerings have solidified its position as a dominant player in the telecommunications sector.

Key Strategic Focus

Core Objectives

• Market Expansion: To strengthen its presence in existing markets and explore new opportunities, particularly in Europe and the United States.

• Technological Advancement: To lead in the deployment of advanced technologies, including 5G networks and fiber-optic broadband, enhancing service quality and customer experience.

• Customer-Centric Services: To offer innovative and value-added services that meet the evolving needs of consumers and businesses.

Areas of Specialization

• Wireless and Fixed-Line Services: Providing comprehensive mobile and fixed-line telecommunications solutions.

• Broadband and Pay Television: Offering high-speed internet and television services to residential and corporate clients.

• Information Technology Solutions: Delivering IT services, including data centers, cloud computing, and enterprise solutions.

Key Technologies Utilized

• 5G Networks: Deploying next-generation wireless technology to offer faster speeds and lower latency.

• Fiber-Optic Infrastructure: Expanding fiber-optic networks to provide high-speed internet and support data-intensive applications.

• Cloud Computing: Utilizing cloud platforms to offer scalable and flexible IT solutions.

Primary Markets Targeted

• Latin America: Dominant presence in countries such as Mexico, Brazil, Colombia, and Argentina.

• United States: Through subsidiaries like Tracfone Wireless, serving the prepaid mobile market.

• Europe: Operations in Austria and Eastern Europe under the A1 brand.

Financials and Funding

Funding History

América Móvil is a publicly traded company listed on the Mexican Stock Exchange and the New York Stock Exchange. The company has historically funded its operations through a combination of equity offerings, debt instruments, and reinvested earnings. Specific details regarding recent funding rounds are not publicly disclosed.

Financial Performance

• Revenue: In the first quarter of 2025, América Móvil reported total revenues of 232.038 billion Mexican pesos (approximately $10.448 billion), marking a 14.1% increase compared to the same period in 2024.

• Net Income: The company achieved a net income of 18.703 billion Mexican pesos (approximately $842 million) in Q1 2025, a 38.6% increase from the previous year.

• Debt: As of March 2025, América Móvil's net debt stood at 500 billion Mexican pesos (approximately $22.546 billion), representing 1.5 times its EBITDA.

Pipeline Development

Key Initiatives

• 5G Deployment: América Móvil is investing significantly in the rollout of 5G networks across its markets, with a capital expenditure plan of $6.7 billion for 2025, focusing on 5G and fiber-optic infrastructure.

• Fiber-Optic Expansion: The company is expanding its fiber-optic networks to enhance broadband services and support increasing data demands.

Target Conditions

• Urban and Suburban Areas: Prioritizing deployment in densely populated regions to maximize coverage and customer acquisition.

• High-Demand Markets: Focusing on areas with high demand for high-speed internet and advanced telecommunications services.

Anticipated Milestones

• 2025: Completion of initial 5G deployments in major cities across Latin America.

• 2026: Expansion of 5G coverage to additional regions and enhancement of fiber-optic infrastructure.

Technological Platform and Innovation

Proprietary Technologies

• Claro Video: A streaming service offering a wide range of content to subscribers.

• Claro Música: A music streaming platform providing access to a vast library of songs.

Significant Scientific Methods

• Data Analytics: Utilizing big data analytics to optimize network performance and customer service.

• Machine Learning: Implementing machine learning algorithms for predictive maintenance and service optimization.

AI-Driven Capabilities

• Customer Service Chatbots: Deploying AI-powered chatbots to enhance customer support and engagement.

• Network Optimization: Using AI to monitor and optimize network traffic, ensuring efficient service delivery.

Leadership Team

Key Executives and Profiles

• Carlos Slim Domit (Chairman of the Board): Son of Carlos Slim Helú, involved in various business ventures, and holds leadership positions in several companies within the Grupo Carso conglomerate.

• Daniel Hajj Aboumrad (Chief Executive Officer): Holds a background in engineering with extensive telecommunications industry experience. He has been with América Móvil since its inception and has held multiple leadership roles.

• Carlos García Moreno (Chief Financial Officer): An economist specializing in finance, having held senior financial positions in multiple telecommunications companies.

• Carlos Álvarez (Chief Technology Officer): An engineer with expertise in network infrastructure, playing a pivotal role in leading América Móvil's technological advancements.

Competitor Profile

Market Insights and Dynamics

The telecommunications industry in Latin America is defined by rapid technological advancements, growing demand for high-speed internet, and a competitive landscape comprising regional and global players. América Móvil confronts competition from companies such as AT&T, Telefónica, and local operators in various markets.

Competitor Analysis

• AT&T Inc.: A significant competitor in the U.S. and Mexico, providing a wide range of wireless and broadband services.

• Telefónica S.A.: Operating under the Movistar brand across several Latin American countries, delivering mobile and fixed-line services.

• Millicom International Cellular S.A.: Operating as Tigo in nations like Colombia, Paraguay, and Bolivia, offering mobile and broadband services.

Strategic Collaborations and Partnerships

• Ooredoo: América Móvil signed an international pact with Ooredoo in 2005 to jointly deliver various international services.

• Nokia: Partnered in 2009 with Nokia to utilize Nokia maps as its location-based service across Latin America.

Operational Insights

América Móvil's infrastructure encompasses over 290,000 kilometers of fiber-optic cable, providing a significant competitive advantage in delivering high-quality telecommunications services.

Strategic Opportunities and Future Directions

• 5G Expansion: Leveraging the deployment of 5G networks to deliver enhanced connectivity and new technology services remains a core strategic priority.