Latin American Mobile Subscribers Grow 85% Year-on-Year According to the GSM industry association of 3G Americas. The GSM mobile technology subscriber headcount in Latin America reached 192 million at the end of the 3Q 2006, up 85 percent compared to the same time a year ago.
In Canada, many wireless operators have never invested outside Canada. Only BCE with Bell Canada International (BCI) has invested in wireless subsidiaries outside Canada. BCI was finally dismantled in 2003. The creation of value at BCI has been a big disappointment. Other Canadian operators maybe have been influenced by the performance of BCI and have not invested in foreign assets. However, many European operators have invested in foreign assets like Vodafone, Telenor and Orange with some success.
Latin America represents a very interesting region to invest in wireless assets. In many areas, wireless is a valid option to wireline, at an attractive price now. Individuals can participate in the growth of wireless Latin America businesses by investing in ADRs (Foreign firms traded at American stock exchanges in US $ currency) or ETFs (exchange traded funds). For instance, iShares S&P Latin America 40 - (ticker: ILF) invests 22% of its assets in telecom assets in Latin America
Top 10 Industry Sectors as of 03/31/05
Materials 26.05%
Telecommunication Services 21.96%
Financials 15.06%
Consumer Staples 13.37%
Energy 12.70%
Industrials 4.10%
Utilities 3.40%
Consumer Discretionary 3.18%
S-T Securities 0.17%
Total 100.00%
An investor can also invest directly in wireless firms in Latin America through ADRs, like America Movil, S.A. de C.V. - Class A American Depositary Shares (ticker: AMOV) . The graph at the top told us that AMOV had a return of over 600% in 5 years.
Last Sale:$ 42.50
P/E Ratio: 26.23
Shares Outstanding: 37,600,000
Earnings Per Share (EPS): $ 1.62
Market Value: $ 1,598,000,000
Louis Rhéaume
Infocom Intelligence
infocom@videotron.ca
www.infocomintelligence.com
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