Carlos Jose Garcia Moreno Elizondo, the CFO of America Movil S.A.B. de C.V. (AMX), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - January 24, 2014 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: 4G Infrastructure Capital Expenditures - Tower Cell Splitting - Global Wireless Spectrum Allocation - Consolidation of Components - Integrated Wireless Platforms - Increased Competition in Wireless Space - Next Phase of 4G Buildout - New Site Leasing Activity

Companies include: America Movil S.A.B. de C.V. (AMX) and many more.

In the following excerpt from the Wireless Communications & Telecom Report, the CFO of America Movil S.A.B. de C.V. (AMX) discusses company strategy and the outlook for this vital industry:

TWST: So certainly you have grown tremendously. Are you continuing to expand?

Mr. Garcia Moreno: Yes. We had a very fast growth when wireless penetration was increasing. We were driving much of the increase, because we would typically go into new countries and invest heavily. We were convinced that if you have the capacity, you would always find demand for the service, and so we went investing aggressively to Latin America, and we helped to bring about more than 10 times increase in wireless penetration in the region since we began. Wireless penetration in Latin America in 2000 was approximately 12%; today it's approximately 120%. So there was a very, very significant ramp up of telecom services in the region.

At the outset, not many people had their own voice service. Wireline penetration was still around 10%, 12%, but not very high. But now you can say that substantially all of the population in Latin America have their own basic wireless voice service, and I think that now the challenge is do the same that has been done with voice but now with data. Latin America has ended up lagging all the regions of the world in terms of Internet penetration, fixed broadband, and the reason was mostly to do with the fact in order to access Internet you needed a computer, and computers were truly expensive in the region. The lack of computers ended up being the bottleneck that was impeding the growth of the fixed broadband services.

But this is now changing dramatically with the advent of new devices like smartphones and the tablets that are now being sold at a fraction of what the computer went for. We are confident that if the prices of these devices continues to drop, that you will end up getting to the mass market. So we are seeing now the very beginning of what we think is going to be a very significant expansion of mobile data services and general data services all throughout the region.

TWST: Is that going to require a large capex?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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