uploads///AMX Q Pre Postpaid Net Additions

Expectations for America Movil’s Postpaid Net Additions in 4Q16

By

Jan. 25 2017, Updated 7:36 a.m. ET

America Movil’s postpaid net additions in 4Q16

America Movil (AMX) is one of Latin America’s two largest wireless service providers, alongside Telefonica (TEF). America Movil is focusing predominately on postpaid subscribers and has been capturing most of the total market net additions. It will thus be interesting to know what America Movil’s postpaid net additions were in 4Q16.

In 3Q16, on a consolidated net basis, America Movil added 750,000 postpaid subscribers, nearly half of them in Brazil and the rest primarily in Mexico and Colombia. America Movil’s postpaid subscriber base expanded 5.7% YoY (year-over-year).

Article continues below advertisement

America Movil’s peer comparison

America Movil’s efforts in growing its postpaid share indicate a focus on high-value subscribers, particularly as data usage is expected to ramp. However, it does seem that its overall share positioning may be eroding, despite its proactive pricing measures.

According to a report from Nasdaq, America Movil, which sells wireless services under the Telcel brand in Mexico, holds nearly 66% of the market share, with Telefonica at ~20% and AT&T (T) at ~14%. AT&T’s push into Mexico’s wireless phone market seems to be gaining traction on the incumbent America Movil. In Mexico, America Movil added 168,000 postpaid subscribers, as compared to AT&T, which added 163,000 in postpaid subscribers.

In 2015, to penetrate the Mexico market, AT&T acquired wireless telecom companies Iusacell and Nextel Mexico for a total transaction value ~$4.4 billion. AT&T’s focus on growing its newly acquired Mexican operations appear to have been successful, helping offset ongoing US weaknesses. In the US, AT&T lost postpaid phone subscribers for the sixth consecutive quarter amid stiff competition from Verizon Communications (VZ), T-Mobile (TMUS), and Sprint (S).

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.