América Móvil, a dominant force in Latin American telecommunications, is strategically positioning itself to capitalize on the turmoil surrounding its Chilean competitor, WOM.
Daniel Hajj, CEO of América Móvil, recently highlighted the potential for significant market consolidation in Chile.
Amid WOM’s financial turmoil, highlighted by a Chapter 11 bankruptcy filing, competitor actions gain significance in Chile’s telecom landscape.
WOM had unsuccessfully attempted to refinance a substantial debt of $348 million due in November.
Operating under the Claro brand in Chile, América Móvil is ramping up its competitive edge by heavily investing in 5G technology.
However, this move aims to bolster its market presence in a region currently dominated by Entel and Movistar.
Entel and Movistar hold 32% and 27% market share respectively, per Subtel’s 2023 year-end data.
Founded by the Mexican billionaire Carlos Slim, América Móvil holds a significant stake in Chile’s mobile sector, controlling 17.92% of the market.
Its partnership with VTR, part of Liberty Latin America, holds an additional 1.12%.
This positions América Móvil as a formidable fourth competitor, trailing behind WOM, which claims 21.55% of the market.
The future of América Móvil’s partnership with Liberty Latin America, known collectively as ClaroVTR, is currently under strategic review.
In addition, August’s decision is crucial for joint venture continuation, hinging on Liberty Latin America’s investment plans.
Amidst these developments, Hajj voiced his readiness for various potential outcomes, underscoring América Móvil’s adaptability and strategic foresight.
In short, the company’s proactive approach and robust investment in emerging technologies underscore its commitment to strengthening its position in the Chilean telecom market.
It also aims to navigate the dynamic shifts brought about by WOM’s financial instability.