AT&T’s Mexican Wireless Operations: Solid Growth in 4Q15



AT&T’s wireless operations in Mexico

In this series, we’ll be looking at the performance of some of AT&T’s (T) components in 4Q15. In this article, we’ll look at AT&T’s Mexican (EWW) wireless operations.

In 4Q15, AT&T’s revenue from its Mexican wireless component was ~$643 million. That was a ~10.7% revenue growth on a sequential basis. Note that AT&T had acquired Iusacell and Nextel Mexico in 1H15.

During 4Q15, AT&T’s Mexican wireless operations had net customer additions of ~593,000. In 3Q15, net customer losses were ~231,000.

These net customer additions in 4Q15 came mostly from the prepaid component. According to the company, there were ~508,000 wireless prepaid net additions. On a net basis, the carrier added ~130,000 postpaid customers and lost ~45,000 reseller connections during the quarter.

Overall, AT&T had ~8.7 million wireless subscribers in Mexico at the end of 4Q15.

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Wireless customers in Mexico

Now we’ll look at the mobile customer metrics of AT&T, Telefonica (TEF), and America Movil (AMX) in Mexico during 3Q15. At the end of the quarter, wireless subscribers for America Movil, Telefonica, and AT&T were ~73 million, ~23.4 million, and ~8.1 million, respectively, in Mexico.

For a diversified exposure to US telecom companies, you could consider investing in the iShares Russell 1000 ETF (IWB). IWB held a total of ~2.3% in some of the US telecom players at the end of December 2015.


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