Mexico's Wireless Subscribers Reach 80.41 Million At End Of June

Mexico's wireless subscribers rose 9.6% year-on-year to 80.41 million at the end of June, according to data from the country's four mobile phone companies.

The companies added 1 million new subscribers during the second quarter, compared with 2.4 million in the same period of 2008, as the recession and an influenza epidemic in late April and early May hurt consumer demand.

The Bank of Mexico expects gross domestic product shrank between 10.5% and 11% in the second quarter, while its full-year forecast is for a contraction of 6.5% to 7.5%.

Telcel, a unit of Latin America's largest mobile-phone company America Movil SAB (AMX), said in its second-quarter earnings report that its subscriber base grew 9.9% on the year to 58.08 million. Telcel's market share was nearly unchanged at 72.2%.

America Movil is controlled by Mexican billionaire Carlos Slim, who also owns Mexico's largest fixed-line telephone company, Telefonos de Mexico SAB (TMX).

The local unit of Spain's Telefonica SA (TEF), which operates under the Movistar brand, increased its client base 13% to 15.94 million at the end of June. The company's market share rose to 19.8% from 19.2% a year earlier.

The No. 3 operator, Grupo Iusacell SA (CEL.MX), which is owned by Mexican media and retail tycoon Ricardo Salinas Pliego, saw its subscriber base fall 10.5% to 3.55 million after the company disconnected prepaid subscribers who weren't using their phones during the fourth quarter.

That caused Iusacell's market share to slip to 4.4% from the 5.4% it had at the end of June 2008.

The smallest operator, Nextel Mexico, a unit of wireless carrier NII Holdings Inc. (NIHD), grew 16.4% to 2.84 million clients.

Prepaid subscribers represented about 88% of total wireless subscribers at the end of the second quarter, and the more lucrative postpaid clients 12%.

Telefonica said in its second-quarter earnings release Thursday that Mexico's wireless penetration rate was 73% as of June 30, up five percentage points from a year earlier.

-By Ken Parks, Dow Jones Newswires; 52-55-5001-5723; [e-mail]