America Movil's Mexico Prepaid Rules Could Reshape Subscriber Trends

America Movil Faces an August Registration Shift

The registration deadline for existing prepaid lines depends on the last digit of each phone number and runs from Aug. 15 through Dec. 31, 2026. Customers who miss the applicable deadline will have service suspended until registration is completed.

The process is not starting from zero. Since January, new prepaid customers have been required to register, while the broader phase now brings existing prepaid lines into the timetable.

AMX's Prepaid Metrics Could Turn Noisier

Management said registration has already affected customer behavior. Some users have chosen not to renew because registration is required, contributing to somewhat lower sales but also fewer disconnections and making net activity harder to interpret.

Mexico still posted 146,000 prepaid net additions in the second quarter, versus 83,000 a year earlier and 106,000 two years earlier. Management emphasized the monthly revenue generated by prepaid customers as a key measure while adjusting behavior.

America Movil's Postpaid Mix Offers a Cushion

Postpaid remains a major growth engine for AMX. Its postpaid base increased 9.1% year over year, and the company added 3.5 million postpaid subscribers in the second quarter, including 101,000 in Mexico.

Management expects migration from prepaid to postpaid to continue over the next five years. Postpaid customers tend to take more data and applications, supporting a greater mix of recurring service revenues as that transition develops.

AMX's Service Trends Help Frame Registration Risk

At constant exchange rates, mobile service revenue rose 6.5% in the second quarter. Prepaid revenue growth accelerated to 5.3%, while postpaid revenue increased 7.2%.

Fixed-line service revenue growth accelerated to 2.7% from 1.7% in the prior quarter, and broadband accesses increased 6.1% year over year. Those trends give investors a broader operating context if prepaid subscriber movements become more uneven during the registration period.

America Movil's Execution Is the Key Test

Execution in Mexico is unfolding alongside competitive pressure elsewhere. Telefônica Brasil S.A. VIV, which markets services under the Vivo brand, is a key reference point in Brazil's telecom market.

TIM S.A. TIMB is another mobile-focused peer in Brazil. AMX management said Vivo and TIM had become more aggressive with promotions since May, while first-half 2026 capital expenditures of Mex$48 billion underscore the company's continuing network investment needs.

AMX's Style Scores Frame the Event Risk

The registration schedule is a monitoring issue rather than a stand-alone verdict on AMX. Subscriber additions and disconnections may become harder to read through year-end, while revenue trends and the postpaid mix remain important operating markers.

AMX currently carries a Zacks Rank #3 (Hold), signaling a neutral near-term backdrop. It has a Value Score of A, Momentum Score of A, Growth Score of F and VGM Score of B. The favorable Value and Momentum scores are offset by the weak Growth Score, while the VGM Score provides a blended view across all three styles. Because the Style Scores complement the Zacks Rank, the mix supports a balanced rather than strongly directional assessment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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