America Movil SAB de CV (ADR) (NYSE:AMX) constructs “AMX-1”, AT&T Inc. (NYSE:T)

Posted by Kristi Scott July 9, 2013 0 Comment 1940 views

America Movil SAB de CV (ADR) (NYSE:AMX) is going to construct an undersea fiber optic cable system, “AMX-1” together with its technology partner Alcatel Lucent SA (NYSE:ALU). This undersea cable system would be then be the longest cable – 17,500 km, in the world and would transmit 100 Gbps speed. The project is expected to start close to the end of 2013. AMX-1 will be passing through seven countries and will provide high-speed connectivity domestic and internationally.

AMX-1 would benefit the 256 million wireless subscribers of America Movil and would foster broadband services. The company expects to bolster its earnings from $57 billion in the current year to $58.3 billion by the year 2014, from the completion of AMX-1, which will pass through seven countries, and would increase its customers.

The company’s subsidiary TracFone in the U.S. acquired Start Wireless Group with the intention to expand in the U.S. Start Wireless Group is a mobile virtual network operator, or MVNO, it is a third party operator and excels in prepaid plans for voice, data services and messaging. TracFone had earlier acquired Simple Mobile in the previous year and was a major acquisition; Start Wireless Group now stands as the second major acquisition.

The subscribers of TracFone would increase from 23.2 million in the first quarter of 2013 to 24.6 million after the acquisition. The increase in the subscriber base would help America Movil boost its revenue to $52.92 billion in the coming year from $51 billion in the current year.

AMX-1 will thus benefit America Movil’s wireless subscribers and broadband service. It will help the company improve data services and other services, thereby generating higher revenue.

Of late AT&T Inc. (NYSE:T) had sold its 7% stake in or 540 million shares America Movil.

The share fell 0.76% in its previous trading session to close at $20.89.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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