What América Móvil is doing to fend off AT&T in Mexico

In the battle between operators for leadership of the Mexican telecoms market, América Móvil's mobile operator Telcel has announced its latest move, stating that it plans to invest US$6bn within the next three years, as well as eliminating roaming charges between Mexico and the US.

With this announcement, América Móvil is hoping to match new entrant AT&T's stated plan to invest US$3bn in the Mexican market to create a unified North American market. According to CEO Daniel Hajj América Móvil has invested US$10bn in Mexico over the last five years.

América Móvil's customers will also be allowed to use their plans in the US at no extra charge by signing up to the company's plan "Telcel sin fronteras" (Telcel without frontiers) for 50 pesos. Hajj said that 85% of Telcel's international travelers go to the US.

"We are making borders disappear," he said during a press conference, adding that text messages and data will cost the same as in Mexico.

América Móvil has agreements with US operators such as T-Mobile, which announced just this month that it was eliminating roaming charges with Mexico. The company is planning to extend the no-borders plan to Canada and Latin America.

América Móvil is the last of Mexico's operators to eliminate roaming charges with the US. Movistar announced its no-borders plan last month.

AT&T entered the Mexican market in January, after closing the purchase of local operators Nextel and Iusacell. Nextel will adopt the brand first, whereas Iusacell will keep its name for the time being.