América Móvil announces Claro and a Puerto Rican investment plan

ClaroMexican mobile group América Móvil (AM) has relaunched Verizon Wireless of Puerto Rico, under its regional brand name of Claro. In addition, it has announced that it will invest $53 million, this year, in an initial phase of CDMA network expansion and upgrading.

Claro Puerto Rico and its wireline sister company Puerto Rico Telephone Company (PRT) are wholly owned by Telecomunicaciones de Puerto Rico (Telpri), which AM bought from the United States telecommunications company Verizon Communications for $939 million in March.

One of the conditions set by the Federal Communications Commission to approve the deal was that AM must invest $1 billion in the country over the next five years. Claro PR had 564,000 CDMA and TDMA subscribers at the end of March, up by 20,000 from the start of the year, while PRT’s local line subscriber base is in decline – down to 996,000 at the end of the first quarter from 1.022 million at the end of 2006.