América Móvil SAB de CV (AMX, Financial) (2.4% of net assets as of September 30, 2015) (AMX – $16.55 – NYSE) is one of the largest mobile operators in the world, serving 288 million wireless customers, primarily in Latin America. The company also serves 79 million fixed-line, broadband, and Pay TV RGUs in Latin America, the United States, and Europe. AMX is also the largest shareholder in two European telecom operators, Telekom Austria (0.6%) (60% ownership interest) and Dutch telecom incumbent, Koninklijke KPN (0.1%) (25% interest). America Movil has been declared by Mexican regulators as a “preponderant” wireless and wireline operator and is subject to asymmetric rates in Mexico until the company reduces its market share below 50%. Impacts from asymmetric rates, increased competition in a number of AMX’s major markets, challenging macroeconomic environment in Latin America, and significant depreciation of the Brazilian Real vs. the Mexican Peso have pressured the stock year-to-date. AMX is in the process of spinning off Telesites, its mobile tower business in Mexico (~18,000 towers), and expects to receive regulatory approval by the end of 2015. The company’s strategy has been focused on investing in its 4G and fiber infrastructure in order to capture rising demand for data by improving the quality of its network in an environment with increasing competition.
From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.
