América Móvil plans to invest over US$7bn in Brazil

América Móvil’s Claro Brasil is considering investing US$7.7bn in the country over the next five years, mainly for the expansion of its fiber optic service and for 5G networks.

Multibillionaire Carlos Slim Helú, whose holding company owns the Mexican telco, told Brazilian President Luiz Inácio Lula da Silva of the plan at a meeting in Brasília on Friday.

América Móvil’s chairman Carlos Slim Domit and the CEO of Claro Brasil, José Felix, along with other executives from the Mexican group were also present at the meeting.

Slim Helú told reporters when leaving the meeting that in the last five years América Móvil has invested around US$9.6bn in Brazil, which has surpassed Mexico as the company’s main market.

After acquiring spectrum for 5G in some of its principal Latin American markets, including Brazil, and completing the purchase of its stake at Oi's mobile business, América Móvil is trimming its overall investments.

In 2023, the group’s capex stood at US$8.5bn, while for this year the global target is US$7bn.

FIBER

The investment in fiber in Brazil is justified by the still large base of internet via copper and coaxial cable that Claro Brasil has compared with other operators and even América Móvil’s internet base in other markets.

At the end of February, according to data from regulator Anatel, Claro led the fixed broadband market in Brazil with a share of 20.9%.

Considering specifically internet via fiber, which in Brazil represents more than 70% of broadband accesses, the company's share was only 3.9%.

This share is smaller than that of internet service provider EB Fibra (Alloha) and in line with another ISP, Brisanet, although it has grown considerably in recent months. 

The fiber broadband market in Brazil is dominated by Telefônica Brasil (Vivo), with 17.6% of all accesses using the technology, followed by Oi (12.1%). 

Oi's fiber customer base is for sale as part of the company's new judicial recovery plan, a form of bankruptcy protection. 

Asked about this asset, Slim said in his briefing to journalists that América Móvil “is not considering acquiring any company.”

5G

In 5G, Claro Brasil leads the Brazilian market with 38% of all accesses, equivalent to 8.6mn lines, ahead of Telefônica.

The mobile market in general, considering all technologies, is led by the Spanish group with a 38.8% share as of end-February. Claro had 34.1%.