Billionaire Carlos Slim Helu has been declared the world’s wealthiest man and his wireless business America Movil is the fourth largest mobile operator in the world with over 211 million wireless customers. According to UBS analyst Phil Huang he believes that AMX is interested in opening a MVNO (mobile virtual network operator) on Canadian soil.
In a report to his clients this morning Huang stated that “Since the Canadian federal government announced in the March 3, 2010 throne speech that they will allow more foreign ownership in the telecom sector, we looked at telecom players globally to assess their interest in Canada. Based on our analysis, we believe America Movil remains interested in entering the Canadian wireless market, a venture they have been considering for some time now”. AMX might have already contacted the incumbent carriers (the new entrants are “less desirable” as their coverage is small), but no agreements have been set.
One reason why the incumbents might decide to support AMX entry into Canada is because of their focus on upgrading customers to smartphones on their 4G network and eventually LTE, thus having “available capacity” on their HSPA or CDMA networks. Huang wrote that AMX could possibly offer “unlimited talk and text plans, require minimal customer service, and do not care about branding or handsets”.