América Móvil beats Telefónica and AT&T in mobile phone service

América Móvil gained market share from Telefónica and AT&T in the mobile telephony service in Mexico in 2020, the Federal Telecommunications Institute (IFT) reported.

América Móvil’s market share went from 62.4% in 2019 to 62.5% in 2020.

Meanwhile, its two main competitors had falls in this indicator: Telefónica from 20.6 to 20.3% and AT&T from 15.3 to 15.1%, comparing the same periods.

On the contrary, Mobile Virtual Operators (MVNO) increased their share from 1.7 to 2.1 percent.

Among the MVNOs, the following stand out: Freedom, Oui, Virgin Mobile, Megacable-MCM, Flash Mobile and Weex.

America Movil

This company recorded income from its mobile services operations in Mexico for 232,242 million pesos and an operating profit of 70,852 million pesos in 2020.

Thus, the mobile services segment represented 22.8% of its total operating income, while it accounted for 42.8% of its total operating income in the same year.

With this, the number of users of América Móvil’s prepaid plans increased 1.1% compared to 2019 and the number of users of postpaid plans rose 1.3%, which translated into a growth of 871,000 users or 1.1% in the total number of users to stand at approximately 77.8 million as of December 31, 2020.

At the same time, operating income decreased 2.4% compared to 2019 and adjusted operating income decreased 2.4%, mainly as a result of a contraction in income from the sale of equipment and financing plans.

To conclude, América Móvil’s operating income increased 4.7% compared to 2019 and adjusted operating income decreased 1.8 percent.

Interconnection rates

In accordance with the provisions of the Federal Telecommunications and Broadcasting Law, América Móvil cannot charge interconnection rates to other operators.

However, in August 2017 the Supreme Court of Justice of the Nation declared the corresponding provisions unconstitutional with regard to mobile services and in April 2018 it did the same with regard to fixed services.

As a result, the IFT determined that as of January 1, 2018 and January 1, 2019, Telcel and Telmex, respectively, could charge other operators the asymmetric interconnection rates established by the IFT itself.

For its part, the company is obliged to pay the operators that provide mobile interconnection services and sets the rates established by the IFT.


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