LATAM Telecom

We recently posted our thoughts on remarks made by Marc Beuls, President and CEO of Millicom, at the Morgan Stanley 8th Annual Technology, Media and Telecoms Conference in Barcelona. Even though Millicom continues its impressive growth in Latin America, Mr. Beuls made it clear that that CAPEX for 2009 will be “substantially lower” than in 2008. It comes as no surprise that other major players in the region will follow a similar strategy in 2009. Mr. José María Álvarez Pallete, General Manager of Telefónica Latinoamérica, stated last week at CEDE (V Congreso de la Confederación Española de Directivos y Ejecutivos) that the region will continue growing in subscribers and revenues (source Telesemana ), but he expects a slowdown in 2009, given the economic crisis. Mr. Álvarez Pallete, however, made it clear that this won't be a dramatic slowdown but rather a slower growth rate than previously expected and that Latin America is the area where the company expects to grow in the coming y...

As mobile operators finish completion of their budgets for 2009 and approach the holiday season, vendors anxiously await what will be one of the toughest years since the telecom downturn from the late 90's/2000. An interesting insight into what to expect for 2009 comes from Marc Beuls, President and CEO of Millicom, who presented to investors at the Morgan Stanley 8th Annual Technology, Media and Telecoms Conference in Barcelona just a week ago. Mr Beuls’ presentation has been posted on Millicom’s website at www.millicom.com and includes updated information on expected capital expenditures, cashflow and margins (see press release here ). Millicom continues its impressive growth with outstanding results; it reports a 71% in Honduras from Q3 07, 39% in Guatemala and 29% in El Salvador. Millicom operates in Latin American markets that are still growing but has gained market share from its main competitors in Central America, America Movil and Telefonica Movistar. Millicom is now the ...