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America Movil (AMX) Acquires Wireless Airwave from Grupo MVS
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America Movil SAB (AMX - Free Report) , the undisputed leader of the Mexican telecom market, recently purchased 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS. In May 2017, Mexican telecom regulator, Federal Telecommunications Institute (IFT), approved this deal. However, the financial terms are yet to be disclosed. The acquisition of spectrum will enhance the company’s high-speed data service.
Over the last couple of years, America Movil has been systematically enriching its spectrum portfolio. In Jun 2016, the IFT granted concessions for the 1710-1780 MHz/2110-2180 MHz AWS frequency bands to America Movil and AT&T Inc. (T - Free Report) . On Feb 15, 2016, the IFT opened an auction for 80 MHz of wireless spectrum across various Advanced Wireless Services (AWS) bands. America Movil and AT&T emerged as the two winners of the spectrum auction.
In 2014, the government of Mexico introduced some major reforms within its telecom sector. Per the IFT norms, the maximum hold of a company in any specific market has been restricted to 50%. However, about 66% and 70% of telecom space is controlled by America Movil’s wireline and wireless divisions, respectively. This has induced IFT to identify the company as a dominant player in the market and imposed stringent regulations on it.
Another incumbent telecom operator -- Telefonica S.A. (TEF - Free Report) -- holds nearly 20% market share. In 2015, U.S. telecom behemoth AT&T Inc. entered the Mexican telecom industry after acquiring Grupo Iusacell and Nextel de Mexico. In addition, Mexican cable MSO (multi service operator) Grupo Televisa S.A. (TV - Free Report) , has also received a go-ahead from the IFT to enter the wireless space. However, the company is yet to take any decision in this regard.
Mexico is the largest economy in the Latin American region, with a growing middle class population that is eager to spend more on high-speed wireless networks for optimal use of smartphones and tablets. Also the wireless penetration rate is relatively lower in the country compared with that in the U.S. We, therefore, expect increased competition in this market going forward.
Price Performance of America Movil
America Movil is one of the strongest performers in 2017. Year to date, the stock price has increased a significant 28.80%, well above the Zacks categorised Non-US wireless industry that witnessed only 7.04% gain. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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America Movil (AMX) Acquires Wireless Airwave from Grupo MVS
America Movil SAB (AMX - Free Report) , the undisputed leader of the Mexican telecom market, recently purchased 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS. In May 2017, Mexican telecom regulator, Federal Telecommunications Institute (IFT), approved this deal. However, the financial terms are yet to be disclosed. The acquisition of spectrum will enhance the company’s high-speed data service.
Over the last couple of years, America Movil has been systematically enriching its spectrum portfolio. In Jun 2016, the IFT granted concessions for the 1710-1780 MHz/2110-2180 MHz AWS frequency bands to America Movil and AT&T Inc. (T - Free Report) . On Feb 15, 2016, the IFT opened an auction for 80 MHz of wireless spectrum across various Advanced Wireless Services (AWS) bands. America Movil and AT&T emerged as the two winners of the spectrum auction.
In 2014, the government of Mexico introduced some major reforms within its telecom sector. Per the IFT norms, the maximum hold of a company in any specific market has been restricted to 50%. However, about 66% and 70% of telecom space is controlled by America Movil’s wireline and wireless divisions, respectively. This has induced IFT to identify the company as a dominant player in the market and imposed stringent regulations on it.
Another incumbent telecom operator -- Telefonica S.A. (TEF - Free Report) -- holds nearly 20% market share. In 2015, U.S. telecom behemoth AT&T Inc. entered the Mexican telecom industry after acquiring Grupo Iusacell and Nextel de Mexico. In addition, Mexican cable MSO (multi service operator) Grupo Televisa S.A. (TV - Free Report) , has also received a go-ahead from the IFT to enter the wireless space. However, the company is yet to take any decision in this regard.
Mexico is the largest economy in the Latin American region, with a growing middle class population that is eager to spend more on high-speed wireless networks for optimal use of smartphones and tablets. Also the wireless penetration rate is relatively lower in the country compared with that in the U.S. We, therefore, expect increased competition in this market going forward.
Price Performance of America Movil
America Movil is one of the strongest performers in 2017. Year to date, the stock price has increased a significant 28.80%, well above the Zacks categorised Non-US wireless industry that witnessed only 7.04% gain. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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