) has been reportedly planning its expansion in Latin America
markets through its collaboration with Leading Latin American
telecom carrier -
AT&T now expects to reach beyond key countries like Mexico
and Brazil and establish its presence in countries like Costa
Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Honduras, Nicaragua, Paraguay, Peru and Uruguay. The company
already entered into a network sharing agreement with America
Movil in Nov 2012, which allows them to expand and enhance
networks within Latin America and offshore key markets throughout
the world, including growth regions like, Asia and the Middle
We believe AT&T's strategic alliance with America Movil to
grow in South America remains reflective of
Verizon Communications Inc.
) intention to step into the Canadian Telecommunication
AT&T and Verizon have already achieved significant success
in their home ground and are seeking new markets to grow beyond
the mature and highly competitive telecom industry in the U.S.
However, while AT&T banks on its collaboration with top
players like America Movil, Verizon is looking forward to
acquisitions, creating a significant threat for three big
Canadian companies like
Rogers Communications Inc.
). Further, Verizon is also considering participation in spectrum
auction by the Canadian government.
Coming back to AT&T, although nothing much has been
disclosed by the company on its expansion policies or its deal
terms with America Movil, it is anticipated that AT&T can
also seek to establish itself in Europe through its tie up with
In Jun 2012, America Movil increased its minority stake in
Koninklijke KPN NV (a Dutch telecom company) to 28% from 4.8% and
assimilated a 22% stake in Telekom Austria AG, intensifying its
foray into the European market. Given America Movil's growing
presence in Europe, we believe it is much likely for AT&T to
join forces for invading the European telecom market.
AT&T has a Zacks Rank #3 (Hold).
AMER MOVIL-ADR (AMX): Free Stock Analysis
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