America Móvil, S.A.B. de C.V. (America Móvil) provides telecommunications services in 23 countries.
The company is a leading telecommunications services provider in Latin America, ranking first in wireless, fixed-line, broadband and Pay TV services based on the number of RGUs (as defined under ‘Key Performance Indicators’).
The company’s largest operations are in Mexico and Brazil, which together account for over half of the company’s total RGUs and where the company has the largest market sha...
America Móvil, S.A.B. de C.V. (America Móvil) provides telecommunications services in 23 countries.
The company is a leading telecommunications services provider in Latin America, ranking first in wireless, fixed-line, broadband and Pay TV services based on the number of RGUs (as defined under ‘Key Performance Indicators’).
The company’s largest operations are in Mexico and Brazil, which together account for over half of the company’s total RGUs and where the company has the largest market share based on RGUs. The company has operations in 16 countries in the Americas and seven countries in Central and Eastern Europe as of December 31, 2024.
The company intends to build on its position as a leader in integrated telecommunication services in Latin America and the Caribbean, and to grow in other parts of the world by continuing to expand the company’s subscriber base through the development of the company’s existing businesses and strategic acquisitions when opportunities arise. The company has developed world-class integrated telecommunications platforms to offer the company’s customers new services and enhanced communications solutions with higher data speed transmissions at lower prices. The company continues investing in its networks to increase coverage and implement new technologies to optimize the company’s network capabilities.
The company’s customers generate revenue for it by purchasing one or more of the company’s services. The company refers to each service that a customer purchases as a revenue generating unit (‘RGU’).
Each wireless subscription, which includes prepaid and postpaid subscriptions, is counted as a single RGU, while a single fixed service customer can have multiple RGUs, depending on the services the company provides in its respective country. Fixed RGUs consist of fixed voice, fixed data and Pay TV units (which include customers of the company’s Pay TV services, and separately, of certain other digital services).
The following are the company’s reportable segments: Mexico Wireless; Mexico Fixed; Brazil; Colombia; Southern Cone (Argentina); Southern Cone (Chile, Paraguay, and Uruguay); Andean Region (Ecuador and Peru); Central America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua); the Caribbean (the Dominican Republic and Puerto Rico); and Europe (Austria, Belarus, Bulgaria, Croatia, North Macedonia, Serbia, and Slovenia).
Principal Brands
The company operates in all of its geographic segments under the Claro brand name, except in Mexico and Europe.
The company’s operating revenues are derived from the sale of wireless and fixed voice services, wireless and fixed data services, including OTT services, value-added services and IT solutions, Pay TV, equipment, accessories and other services.
Services and Products
The company offers, and derives revenues from, a wide range of services and products that vary by market, including wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and information technology (‘IT’) services, Pay TV, over-the-top (‘OTT’) services and sales of equipment and accessories.
Wireless Operations
As of December 31, 2024, the company’s wireless operations represented approximately 80.5% of its total RGUs.
Revenues from wireless voice services primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on the company’s network. The primary drivers of revenues from monthly subscription charges are the number of total RGU’s and the price of its service packages. The primary drivers of revenues from usage charges are airtime, international and long-distance calls and interconnection fees.
Revenues from wireless data services primarily include charges for data, cloud, internet, machine-to-machine, OTT services and data center services. Revenues from value-added services, including revenues from VPN services to the company’s corporate clients, also contribute to its results for wireless data services.
Voice and Data: The company’s wireless subsidiaries provide voice communication services across the countries in which they operate. The company offers international roaming services to its wireless subscribers through a network of cellular service providers with which the company’s wireless subsidiaries have entered into international roaming agreements around the world, and who provide GSM, 3G, 4G-LTE and 5G roaming services.
The company’s wireless voice services are offered under a variety of plans to meet the needs of different market segments. In addition, it often bundles wireless data communications services together with wireless voice services. The company’s wireless subsidiaries had approximately 323 million wireless voice and data subscriptions as of December 31, 2024.
Prepaid customers typically generate lower levels of usage and are often unwilling or financially ineligible to purchase postpaid plans. The company’s prepaid plans have been instrumental to increase wireless penetration in Latin America and Eastern Europe to levels similar to those of developed markets. Additionally, prepaid plans entail little to no risk of non-payment, as well as lower customer acquisition costs and billing expenses, compared to the average postpaid plan.
In addition, the plans the company offers its retail customers include selective discounts and promotions that reduce the rates the company’s customers pay.
Value-Added Services: As part of the company’s wireless data business, the company’s subsidiaries offer value-added services that include Internet access, messaging and other wireless entertainment and corporate services through GSM/ EDGE, 3G, 4G LTE and 5G networks.
Internet services include roaming capability and wireless Internet connectivity for feature phones, smartphones, tablets and laptops, including data transmission, e-mail services, instant messaging, content streaming and interactive applications. For example, in Mexico, the company’s website for its wireless services (www.telcel.com) through Radiomóvil Dipsa, S.A. de C.V. (Telcel), offers access to a wide range of services and content, such as video, music, games and other applications, which the company’s subscribers can access from mobile devices. In addition, the company offers other wireless services, including wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network (VPN) services, video calls and personal communications services (PCS).
Fixed Operations
As of December 31, 2024, the company’s fixed operations represented approximately 19.5% of its total RGUs.
Revenues from fixed voice services primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on the company’s network. The primary drivers of revenues from monthly subscription charges are the number of total RGU’s and the price of its service packages. The primary drivers of revenues from usage charges are airtime, international and long-distance calls and interconnection fees.
Revenues from fixed data services primarily include charges for data, cloud, broadband, machine-to-machine and data center services. Revenues from IT solutions, including revenues from dedicated links to the company’s corporate clients, also contribute to its results for fixed data services.
Voice: The company’s fixed voice services include local, domestic and international long-distance, under a variety of plans to meet the needs of different market segments, specifically tailored to its residential and corporate clients.
Data: The company offers data services, including data centers, data administration and hosting services to its residential and corporate clients under a variety of plans.
Broadband: The company provides residential broadband access through hybrid fiber-coaxial (HFC) or fiber-optic cable. These services are typically bundled with voice services and are competitively priced as a function of the desired or available speed. As a complement to these services, the company offers a number of products such as home networking and smart home services.
IT Solutions: The company’s subsidiaries provide a number of different IT solutions for small businesses and large corporations; including specific solutions to the industrial, financial, government and tourism sectors, among others.
Pay TV
The company offers Pay TV through cable and satellite TV subscriptions to both retail and corporate customers under a variety of plans. As of December 31, 2024, the company had approximately 13.8 million Pay TV RGUs.
Pay TV revenues primarily consist of charges from subscription services, additional programming, including on-demand programming and advertising.
OTT Services
The company sells video, audio and other media content that is delivered through the internet directly from the content provider to the viewer or end user. The company’s most important service is ClaroVideo, an on-demand internet streaming video provider with more than 32,500 content titles sold across all the Latin American and Caribbean markets in which the company operates. The company offers bundled packages of ClaroVideo, which may include:
Subscription video on demand, providing unlimited access to its entire catalogue of content titles for a fixed monthly subscription fee;
Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and
Add-on services, such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others.
The company also offers an advertised and unlimited music streaming and downloading service in 15 countries in Latin America and Europe through ClaroMúsica, with access to approximately 100 million songs across all music genres.
Sales of Equipment and Accessories
Sales of equipment and accessories, and associated revenues, include the sale of handsets, accessories, IoT devices, and other equipment such as smart devices.
Other Services
Other services, and revenues from such services, include software development, call center services, entertainment content and news, telephone directories, advertising, cybersecurity services, mobile banking and corporate IT solutions.
Networks
The company owns and operates one of the largest integrated platforms based on the company’s covered population across 16 countries in Latin America, and the company is expanding its network in Europe.
Infrastructure
With fully convergent platforms, the company is able to deliver high-quality voice, video and data products.
As of December 31, 2024, the main components of the company’s infrastructure were consisted of:
Cell Sites: 116,000 sites with 2G, 3G, 4G and/or 5G technologies across Latin America and Europe. The company has been expanding its coverage and improving quality and speed with a number of street cells and indoor solutions. On August 8, 2022, the company completed the spin-off to Sitios Latinoamerica, S.A.B. de C.V. (Sitios Latam) of its telecommunications towers and other related passive infrastructure in Latin America outside of Mexico, Colombia and the company’s telecommunications towers existing in the Dominican Republic and Peru prior to the spin-off. Between February and July 2023, the company completed the sale of all of its telecommunication’s towers in the Dominican Republic and Peru.
Fiber-optic Network: More than 1.4 million km. the company’s network reached approximately 118 million homes.
Submarine Cable Systems: Capacity in more than 200 thousand km of submarine cables, including the AMX-1 submarine cable that extends 18.3 thousand km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7.3 thousand km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with five landing points. Both systems provide international connectivity to all of the company’s subsidiaries in these geographic areas.
Satellites: Five. Star One S.A. (Star One) has the most extensive satellite system in Latin America, with a fleet that covers the United States, Mexico, Central America, and South America. The company uses these satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH Operations, as well as cellular backhaul, video broadcast and corporate data networks.
Data Centers: 41. The company uses its data centers to manage a number of cloud solutions, such as Infrastructure as a Service (IAAS), Software as a Service (SAAS), security solutions and unified communications.
Technology
The company’s primary wireless networks use GSM/EDGE, 3G, 4G LTE and 5G technologies, which the company offers in most of the countries where the company operates. The company intends to increase the speed of transmission of its data services and has been expanding the company’s 5G coverage. In 2022, the company began its 5G rollout in some countries in the Latin America region. In February 2022, the company launched 5G in Mexico through Telcel, which was the largest data infrastructure deployment in Latin America. As of December 31, 2024, the company covered close to 55% of the population in Mexico and Brazil with 5G services.
The company transmits wireless calls and data through radio frequencies that the company uses under spectrum licenses. The company continues to invest significant capital in expanding its network capacity and reach and to address spectrum and capacity constraints on a market-by-market basis.
Competition
The company competes against other providers of wireless, broadband and Pay TV that operate on a multi-national level, such as AT&T Inc., Telefônica Brasil S.A., and Millicom, as well as various providers that operate on a nationwide level, such as Telecom Argentina in Argentina and Telecom Italia in Brazil.
Acquisitions, Other Investments and Divestitures
On October 3, 2024, AMX received approval by the National Economic Prosecutor’s Office of the Republic of Chile (Fiscalia Nacional Económica) to consolidate Claro Chile, SpA into its operations. As a result, on October 31, 2024, AMX converted its outstanding notes in Claro Chile, SpA into equity and consolidated Claro Chile, SpA into its operations. As of December 31, 2024, AMX held a 94.9% interest in Claro Chile, SpA.
Marketing, Sales and Distribution, Customer Services
Marketing
The company advertises its services and products through different channels with consistent and distinct branding and targeted marketing. The company advertises via print, radio, television, digital media, sports event sponsorships and other outdoor advertising campaigns. In 2024, the company’s efforts were mainly focused on promoting its 5G services, the company’s fiber optic rollout, leveraging the speed and quality of the company’s networks and its fixed bundled offers, which compete on broadband speed and premium content.
Sales and Distribution
The company’s extensive sales and distribution channels help the company attracts new customers and develop new business opportunities. The company primarily sells its services and products through a network of retailers and service centers for retail customers and a dedicated sales force for corporate customers, with more than 420,000 points of sale and more than 3,400 customer service centers. The company’s subsidiaries also sell their services and products online.
Customer Service
The company focuses its efforts on constantly improving its customers’ experience by leveraging the company’s commercial offerings and its sales and distribution networks.
Segments
The company has operations in 23 countries, which are aggregated for financial reporting purposes into ten reportable segments. the company’s operations in Mexico are presented in two segments—Mexico Wireless and Mexico Fixed, which consist mainly of Telcel and Telmex, respectively. The company’s headquarters’ operations are allocated to the Mexico Wireless segment. The company’s operations in the Southern Cone are presented in two segments, Argentina, and Uruguay, Paraguay and Chile.
Seasonality
The company’s business is subject to a certain degree of seasonality, characterized by a higher number of new customers during the fourth quarter of each year (year ended December 2024). This seasonality is mainly driven by the Christmas shopping season.
History
America Móvil, S.A.B. de C.V. was founded in 2000. The company was incorporated under the laws of Mexico in 2000.
