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America Movil S.A.B. de C.V.

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Over the past three months, shares of America Movil grew 12.8%, outshining the Zacks classified Wireless Non-US industry’s gain of 0.2%. Launch of a Mexican language TV channel in the U.S. bode well. Moreover, the company’s participation in spectrum auctions to deploy 4G LTE services and expand its 3G footprint is a strategic business move. The company’s decision to reduce its fixed-line-to-mobile call rates in a phased manner reflects its compliance with the norms. The company’s iPhone offer has allowed it to compete effectively. However, a major setback is the recent antitrust rules stepped up against the company by the Federal Telecommunications Institute (IFT). America Movil is also focused on shifting its base from Mexico to Brazil in the wake of declining profits. Aggressive promotional strategy, liquidity pressure and competitive Mexican telecom industry and Brazilian wireless market are other major dampeners.

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