QUITO -(Dow Jones)- America Movil (AMX) will invest $120 million in Ecuador in 2005 as the Mexican company aims to significantly expand its presence in the Andean nation.
America Movil, through its local subsidiary Porta Celular, said Tuesday in an e-mail to Dow Jones Newswires that next year's investment forecast is in line with the estimated $120 million that will be invested in 2004. Last year, the Mexican company invested $95 million in Ecuador.
"In the next three years the company plans to triple its penetration of the cellular market in Ecuador, for which we will continue to make heavy investments," America Movil said in the e-mail.
With more than two million subscribers, America Movil is the main provider of wireless communications services in Ecuador. The local unit of Spain's Telefonica Moviles (TEM) is second with more than a million clients.
America Movil says it's well-positioned to confront the growing challenge of Telefonica in Ecuador.
"We know Telefonica very well at America Movil. It is a very important competitor, but it isn't new," America Movil said.
Telefonica has beefed up its presence in Latin America this year with the acquisition of BellSouth Corp.'s (BLS) assets in the region. The Spanish company is now running neck and neck in the race to be the dominant wireless company in Latin America.
America Movil entered the Ecuadorean market in 2000 with the acquisition of a stake in Porta Celular, and last year raised its stake in the Ecuadorean concern to 100%. Since 2000, America Movil has invested $800 million in its Ecuadorean operations.
-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@dowjones.com
(END) Dow Jones Newswires "
Posted to the site on 30th November 2004
Posted to: www.cellular-news.com/story/11315.php