América Móvil raises 2005 capex to US$2.4bn

Mexican mobile phone company América Móvil (NYSE:AMX) raised its capital expenditure plan for 2005 to US$2.4bn from US$2.1bn after its subscriber base grew more than expected in the first quarter. In a conference call with analysts, chief executive Daniel Hajj said the company now expects to add 17.5 million subscribers this year. América Móvil added 5.2 million wireless subscribers in the first quarter, well above estimates, bringing its total to 66.3 million. With subscriber growth increasing faster than originally expected, the company now also plans to invest more. "América Móvil is prepared to make more acquisitions. If there is a company we feel has a good price... we want to stamp our footprint in all of Latin America," Hajj said. One such target is Brazil's Telemig Celular (NYSE: TMB), for which AMX reportedly offered US$724mn in March. Hajj said the company is not currently in discussions with Telemig, but would be "happy to talk" if the price and conditions were right. Telemig has operations in Brazil's Minas Gerais state, where América Móvil has a license but has yet to start service. The company is going ahead building its network in Minas Gerais and the launch should now be ready by October or November, Hajj said.