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America Movil May Invest US$14 Billion in Network Upgrades

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Mexican billionaire Carlos Slim is reported to be able to invest nearly USD14 billion in his America Movil company to boost its capacity for smartphone services and retain its market lead across Latin America.

America Movil has announced plans to raise USD2.5 billion through a bonds issue in a few years time, prompting analysts to come up with the USD14 billion investment figure.

"Smartphone data usage is growing 30-40% a year [around the world] but in Mexico, it's just at 10%," Julio Zetina, an analyst with Vector Casa de Bolsa in Mexico City told Forbes.

Zetina added America Movil's Telcel Mexican wireless unit and Telmex will together invest at least $8.5bn this year to upgrade their mobile broadband capacity.

America Movil also recently announced plans to plough as much as $5.4 billion into its Brazilian wireless franchise in 2012, up from $5 billion spent in 2011. The company has some $10 billion in cash to grow its business, Zetina said.

On the web: Forbes

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Tags: carlos slim  america movil  Monaco  Brazil