Phone carrier Telefonos de Mexico SA, also known as Telmex, plans to invest $2.05 billion next year to expand and update its network in Mexico, chief executive Jaime Chico said Tuesday.
Chico said the money will be used mostly to increase Telmex's number of phone lines, expand its capacity to offer broadband Internet services and update the carrier's existing technology.
Telmex has boosted its annual capital expenditures for Mexico in recent years as the country's economy improves. Phone use is highly correlated with gross domestic product growth.
Telmex is a former government-held monopoly that controls more than 90 percent of Mexico's roughly 18 million phone lines. This year, though, Telmex has expanded abroad, investing $900 million to buy operators in six South American countries.
Chico said the company expects to spend as much as $500 million next year to build out those investments, with around $350 million likely going toward its interest in Brazilian cable TV operator Net Servicos de Comunicacao SA.
Telmex agreed in June to buy 30 percent to 60 percent of Net Servicos for $250 million to $370 million. The amount Telmex ultimately allots to Net Servicos next year will depend on the result of efforts to restructure the Brazilian company, Chico said.
Mexico continues to be Telmex's top priority, Chico said, despite the company's ongoing international expansion.
Mexico
There is 1 reply to this message
