So a big European telco is to be fully owned by a developing-economy company? Given the weak management of European telcos, this should not come as a surprise. Europe is not of great interest to us, but we did touch on this. One wishes it was a different company, more efficient, less immersed in a monopoly culture, but still . .
The battle for mobile customers in Latin America is hotting up as 319 million Latin Americans or 56% of the population already own a mobile phone. Telefonica of Spain and America Movil controlled by Mexican businessman Carlos Slim are going head-to-head to expand their market-share in South America and are increasingly targeting the “bottom of the pyramid.” The Race for Numero Uno in Latin Wireless (Businessweek November 27, 2006): More than 80% of Brazil’s mobile-telephone customers use prepaid service—buying cards to recharge their phones—rather than signing monthly contracts. América Móvil’s average client uses just 71 minutes of airtime each month, spending around $12.50.