América Móvil's U.S. TracFone unit reported stronger subscriber growth and gains in average revenue per user in the first quarter. Though the parent company did not mention it, TracFone's Straight Talk launched support for Apple's iPhone in January, which likely helped boost its first quarter numbers.
America Movil reported that Q1 wireline results were driven by a 20.6 percent rise in pay TV and more customers opting for triple play voice, video and data bundles.
More action on the Brazil broadband front as America Movil said it is studying the possibility of slimming down operations in the country by merging its fixed and mobile carriers and its cable TV operations.
Telmex, America Movil's Mexico-based wireline telco subsidiary, is facing a lawsuit from Profeco, Mexico's consumer protection agency, over claims that the country's dominant telco made illegal charges.
America Movil reported on Wednesday that Q4 2012 revenues dropped 1.1 percent sequentially to MXN 198 billion (USD 15.6 billion ) despite seeing strong gains in both wireless and pay-TV service.
América Móvil's U.S. MVNO, TracFone Wireless, posted net subscriber gains of 753,000 customers in the fourth quarter, much higher than the year-ago period and better than its net subscriber additions in the first three quarters of 2012. It is unclear if the company was affected earlier this year by regulatory changes to the FCC's Lifeline program, in which TracFone is a key player.
Telmex, the Mexico-based wireline subsidiary of America Movil, has been fined MXN 657 million (USD 51.6 million) by the Comision Federal de Competencia (CFC) for engaging what the regulator says is anticompetitive practices.
América Móvil's U.S. MVNO, TracFone, offered additional details on its pilot program to deliver mobile broadband to low-income Americans as part of the FCC's Lifeline initiative. The action was a response to criticism that TracFone called in political favors in order to participate in the program, and that the program itself is not effective.
América Móvil's U.S. MVNO, TracFone Wireless, launched a new prepaid brand that aims to provide inexpensive calling to Mexico. The brand, Telcel America, offers unlimited data, texting and calling, as well as unlimited calling to Mexico, for $60 per month. "We expect Telcel America to be a significant new initiative for the company (América Móvil) and create a new headache for network based prepaid operators in the United States," wrote BTIG analyst Walter Piecyk.
Vivendi's Global Village Telecom (GVT) has now attracted the interest of three Latin American satellite and cable operators: DirecTV, Liberty Global and America Movil as well as a consortium of private equity companies.