Iusacell Plans Capex of US$50mn in 2006

Mexican mobile operator Iusacell plans capital expenditure of US$50mn in 2006 as the company intensifies its focus on boosting its postpaid subscriber base and offering 3G services, Iusacell's CEO Gustavo Guzmán told a conference.

Iusacell, which is third in the mobile market behind Telcel and Movistar, will focus its investments on boosting use of its CDMA EVDO wireless broadband network, which it launched in December.

The network offers wireless broadband access for laptops and cell phones. Among the services the company plans to offer is TV over mobile, which is due for launch in March, Guzmán told the Expocom conference in Mexico City.

Though this service will be aimed mainly at postpaid subscribers in the high-end income bracket, an increasing number of prepaid subscribers are interested in data services over mobile and are prepared to start migrating to postpaid plans, Guzmán said.

Iusacell expects to facilitate that through alliances with retail giant Elektra and Banco Azteca, which along with Iusacell are all owned by the Ricardo Salinas group. Banco Azteca will offer lower income subscribers consumer credit to help pay for more expensive phones.

Guzmán said that Iusacell's strategy was not to compete with Telcel and Movistar for prepaid subscribers but to focus on good service and making existing customers more profitable.

BNamericas.com"

Posted to the site on 16th February 2006