Mexican telecom giant América Móvil has announced a significant investment plan, earmarking $7 billion annually in capital expenditures starting 2026. This strategy aims to bolster their operations amid changing market dynamics. Daniel Hajj, the company’s CEO, emphasized that similar investment levels are anticipated over the next few years. Expected details will be revealed in an investor meeting in May.
This financial commitment follows a positive financial performance, where América Móvil reported a 25.1% increase in first-quarter profit. Their net profit reached MXN23.4 billion ($1.31 billion) due to reduced financing costs and an enhanced operational performance. The company’s growth was partly fueled by its success in the postpaid market, with the addition of 3 million new subscribers during the initial quarter of 2026.
América Móvil enjoyed a notable increase in broadband connections, amassing 594,000 new links, with substantial contributions coming from Mexico and Brazil. Despite the ongoing loss of around 90,000 prepaid users, mobile service revenue trends remained robust in markets such as Mexico and Colombia. Ongoing enhancements in their fixed-line platform service revenue growth, especially in Eastern Europe and Latin American regions like Peru and Ecuador, contributed to this stability.
A key area of exploration for América Móvil is the potential impact of satellite technology. The company is actively discussing possible collaborations with providers like Starlink. The idea is to complement mobile services with satellite-based direct-to-cell services, predicted to reach commercial readiness around 2027. Daniel Hajj acknowledged that while this technology holds promise, challenges such as spectrum availability need resolving despite ongoing talks with potential technology partners.
As the telecom industry pivots towards emerging technologies, challenges arise. Spectrum availability becomes vital for the success of new services like those using satellite technology. Although future deployments are projected, the necessity for spectrum licenses poses a logistical barrier in Latin America. Hajj mentions, “For that, you need to have spectrum. I don’t know if they already have spectrum in some places in Latin America. I understand they have acquired spectrum in the U.S. and in some parts of Europe, but I’m not sure about Latin America.”
In conclusion, América Móvil is dynamically maneuvering through a growing telecommunications landscape. The $7 billion annual capex demonstrates its readiness to innovate and expand its service offerings. Moving forward, the industry’s attention will keenly focus on advancements in satellite technology and its integration into traditional mobile networks.
