Mexican telecom giant to invest $5.4 bn in Brazil

Wed, Dec 28 2011 10:30 IST | 175 Views
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Sao Paulo, Dec 28

The Brazilian subsidiaries of Mexican telecom giant America Movil are planning 10 billion reais ($5.4 billion) worth of new investment in 2012, a media report said Tuesday.

America Movil, owned by billionaire Carlos Slim, operates in Brazil via wireless operator Claro, fixed-line telephone company Embratel and cable television firm Net.

Next year's scheduled spending includes 1 billion reais ($540 million) to build an undersea cable linking Brazil and the US, Claro Brasil president Carlos Zenteno told Folha de São Paulo.

Claro and its corporate siblings will also focus on extending high-speed Internet coverage for 3G mobile subscribers, expanding their fiber-optic network and bidding on 4G frequencies in an auction set for April.

While a merger of Claro, Embratel and Net is not on the cards for 2012, the firms will offer bundled services, Zenteno said.

Embratel controls 18.2 of the Brazilian fixed-line telephone market and enjoys a monopoly on international calls in that segment. Claro, with around 25 percent of the market, is Brazil's No. 3 wireless company.

Net, which is partly held by Brazilian media powerhouse Globo, is the country's leading cable television provider, commanding nearly 40 percent of the market, and the second-biggest provider of residential Internet.

 
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