MEXICO.- El Financiero recently published an analysis related to America Movil's various operations around the world in comparison to Mexico. The telecom conglomerate owned by Carlos Slim, which is the parent company of Mexico's Telcel, obtains more earnings per client in Mexico than in other country for the same service. The report indicates that this is primarily due to the lack of competition in the Mexican telecom market.

The journal estimates that "a little more than twice the benefit" is what the company earns off its Mexican clients when compared to foreign clients in other countries.

During the second trimester of the year in course, America Movil generated an operating income of 30.4 billion pesos in Mexico, and if you divide this between its 93.6 million internet and telephone subscribers you reach an average of $325 pesos per client for the months of April through June. This calculation is termed the "average income per user."

When compared to Slim's foreign operations, Slim only makes about $147 pesos per subscriber, less than half than the average income per user in Mexico. In June of this year, in Brazil, the company made 88 pesos per client, versus $169 pesos in Mexico during the same period. According to Homero Ruiz, a telecom analyst, the main cause of this disequilibrium between cost of service in Mexico versus the rest of the world comes down to the fact that "in Mexico, a quasi-monopolistic industry allows companies to have much larger margins."

Carlos Slim recently increased his personal worth by almost 3 billion dollars after America Movil was forced to sell assets under the newly implemented telecom reform measures, due to his company's market dominance of more than fifty percent of the sector which stifled competition. By shedding properties in order to avoid being affected by the reform his net worth only increased, and the extra earnings will enable him to expand to Europe and Asia.

Jose.Sanchez@sandiegored.com

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