América Móvil CEO Daniel Hajj Aboumrad told investors Tuesday during the company's first-quarter earnings conference call that TracFone, which is a unit of América Móvil, is committed to the prepaid market in the U.S. and does not have plans to get into the postpaid game.
Aboumrad also said TracFone does not want to own a network. TracFone currently operates as a mobile virtual network operator using Verizon Wireless (NYSE:VZ), AT&T (NYSE:T), and T-Mobile USA's networks.
In its first quarter earnings announced yesterday, TracFone said it added 780,000 new subscribers in the first quarter, bringing its total subscriber base to 18.5 million--an increase of 19.9 percent in the period. However, the number of its new subscriber additions is down slightly from the previous year's quarter, when TracFone reported adding 1 million subscribers.
The América Móvil chief said the company's margins have declined, but said that it is happening because the company is adding more high-cost subscribers. He also said that he is unsure of how AT&T's proposed $39 billion acquisition of T-Mobile will impact the company's U.S. business.
- see this Morningstar earnings transcript
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