América Móvil Raises The Stakes In Brazil
According to Brazilian newspaper Folha de São Paulo, Carlos Slim's company América Móvil will invest over 10 billion reales (around US$5.4 billion) in 2012 to broaden its telephony service in Brazil.The amount is higher than the US$5 billion invested in 2011 by the group's three main companies: Claro (mobile services), Embratel (fixed services) and Net (cable network).
The company's main goals for 2012 are to provide faster internet access for cell phones (3G) to a larger number of users, to expand its fiber optic network and to participate in the bidding process in April to gain permission to release its 4G product lines which will offer faster internet access. In addition, the company has announced it will install an underwater cable between Brazil and the US to improve connectivity and better enjoy the FIFA World Cup 2014 and the Olympic Games 2016.
The president of Claro in Brazil, Mexican Carlos Zenteno, told Folha that América Móvil is not planning to merge Claro, Embratel and Net in 2012; yet it does intend to launch a combined service offer.
Embratel currently owns 18.2% of the fixed telephony market and is its only provider in the country for international calls. Claro has 25.09% of the market, making it the third most important mobile service operator in Brazil, according to Anatel. And Net is the country's main cable company, owning 39.9% of its market.
