Dallas, Texas 07/09/2013 (Financialstrend) – In order to facilitate its 256 million wireless subscribers and provide effective connection globally at a higher speed, America Movil SAB de CV (ADR) (NYSE:AMX) has decided to build the world’s longest undersea fiber optic cable system, commencing from the current year’s end, known as the AMX-1, with the help of its technology partner, Alcatel Lucent SA.
This cable system, known to be 17,500km long, would generate a speed of 100 Gbps and pass through seven countries helping it generate a higher amount of revenue due to its vast exposure. The net revenue anticipated for this year is upto $57 billion leading to $58.3 billion in the year ahead.
America Movil SAB de CV (ADR) (NYSE:ADR) decided to enhance its layout within the US, for that reason it let its US subsidiary TracFone take over a mobile virtual network operator, well known for its messaging and data services along with the prepaid plans for the voice, called the Start Wireless Group, after its grip on the Simple Mobile last year.
As a consequence, these acquisitions have raised the bar of TracFone’s subscribers from 23.2 million to 24.6 million. Thus due to the increase, aggregate service revenues for America Movil SAB de CV (ADR) are predicted to increase to $51 billion in the current year and $52.92 billion in the next.
Through its fleet of subsidiary companies, the Mexican company is primarily serving the market of Latin America through its products and services. These include mobile and telephony services, cable TV, broad band internet and satellite TV. Its primary brands include Telmex , Telcel, Claro, Comcel, Embratel, and TracFone.
Its major subsidiaries include Telefonos de Mexico SAB de CV, Radiomovil Dipsa SA de CV, Empresa Brasileira de Telecomunicacoes SA, Comunicacion Celular SA, TracFone Wireless Inc, and the newly acquired wholly owned subsidiary Corporacion de Medios Integrales SA de CV. US Telecom giant AT&T Inc (NYSE:T) holds 24.5% ownership stake in the company.