There are some things that you don't want to bet against -- such as gravity or increasingly bizarre hairstyles on Britney Spears. Another is the stunning growth of wireless services in developing nations. With its third-quarter earnings, America Movil
The company that, along with Telmex
The big bite out of the bottom line came from a few areas -- one was increased depreciation expense and another was a bigger tax bite. The higher depreciation charges stem from removing equipment and services based on an old technical standard, called TDMA, in some countries. Other operators, such as AT&T
Chile was the only market where America Movil had a net reduction in wireless subscribers for the quarter, characterizing the loss as a "cleansing" of the base there. But the company is generally holding its own against main rival Telefonica
America Movil's stock took a dip after the earnings release, but shares still sit nearly 50% higher than where they started in 2007. The lighter-than-expected earnings and continued rise in the stock will make America Movil look more expensive to investors. But compared with its peers, I still find this giant company a cheaper way to tap the booming growth of wireless services in emerging markets.
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