Alexandra Borgeaud
Research expert covering cybersecurity and tech in Latin America
What do Bill Gates and Carlos Slim have in common? Both were once ranked the richest man in the world by Forbes Magazine. An engineer by training, Carlos Slim’s conglomerate Grupo Carso acquired Telefonos de Mexico (TelMex) in 1990, when the Mexican government started privatizing its telecoms industry. Ten years later, América Móvil spun off from TelMex and would grow to become one of the biggest telecom companies in the world. In 2023, it totaled nearly 384 million subscribers and generated annual revenues worth approximately 816 billion Mexican pesos, or over 48 billion U.S. dollars.
América Móvil’s expansion in Latin America
The company has had a fascinating development over the years. In 2006, América Móvil acquired Verizon’s operations in Latin America, expanding its coverage from 14 to 17 countries and adding Puerto Rico, the Dominican Republic, and Venezuela. Subsequently, it unified its brands in Central under its brand, Claro. In 2007, América Móvil acquired the Jamaican mobile operator Oceanic Digital – a transaction worth 70 million U.S. dollars. In 2010, América Móvil’s owner, Carlos Slim, offered 21 billion U.S. dollars to purchase Telmex to ensure a competitive advantage against Telefónica. The transaction was all the more controversial since América Móvil was founded as a result of Telmex’s spin-off between its wireless mobile activities and its landline and internet services. The acquisition was nevertheless approved and America Móvil pursued its expansion. At the end of 2023, the company had operations in 15 countries in Latin America and seven countries in Central and Eastern Europe.América Móvil’s leading markets
As of 2023, América Móvil was by far the largest telecommunications company in Mexico, generating revenues worth over 80 billion Mexican pesos, or 4.73 billion U.S. dollars in the Latin American country. By contrast, AT&T – the second largest telco company in Mexico - registered revenues amounting to only around 18 billion Mexican pesos, or just over one billion U.S. dollars. The company’s second most valuable market resides in Brazil, followed by Europe, with both regions recording revenues of over 100 million Mexican pesos, or nearly six million U.S. dollars each. However, Brazil is the leading market when it comes to both the number of fixed-line subscribers and the number of wireless subscribers. In terms of employment, in 2023, approximately half of América Móvil’s employees were based in Mexico. Looking ahead, America Móvil is well placed to maintain its leading position in the Latin American telecoms market.
