America Movil says ready to launch 5G in Mexico; plans to sell Tracfone this year


FILE PHOTO: The logo of America Movil is pictured on the wall of a reception area in the company’s corporate offices in Mexico City, Mexico, May 18, 2017. REUTERS/Edgard Garrido/File Photo

October 20, 2021

MEXICO CITY (Reuters) – Mexican telecommunications company America Movil said on Wednesday it was “ready” to launch a 5G market in Mexico and it expects to close a deal to sell its TracFone unit by year-end.

Verizon said last year it would buy prepaid mobile phone provider TracFone, a unit of America Movil that serves about 21 million customers, in a more than $6 billion acquisition. The attorneys general of 16 U.S. states and the District of Columbia urged the FCC to thoroughly investigate the deal.

“We think we can close the TracFone transaction before year-end,” said Chief Executive Officer Daniel Hajj.

Executives were speaking in a call with analysts on Wednesday after the company on Tuesday reported a 16% drop in third-quarter net profit.

The company, controlled by the family of billionaire Carlos Slim, said it was “ready to launch 5G in Mexico,” but did not offer a time frame.

“We do everything to be ready for 5G, we still don’t know exactly when we’re going to launch, but we are ready to launch 5G in Mexico. We have a good network,” Hajj said.

(Reporting by Cassandra Garrison, Writing by Daina Beth Solomon; editing by Diane Craft)

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