UPDATE 1-Brazil's Claro to invest $1.1 billion in 2008

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BRASILIA Oct 24 (Reuters) - Mobile phone provider Claro, the Brazilian unit of America Movil (AMXL.MX), will invest more than 2 billion reais ($1.1 billion) in 2008, America Movil boss Carlos Slim said on Wednesday.

"Claro is investing a lot, increasing its capacity, its national presence. Above all now, in the third generation, investments are very important," the Mexican tycoon told reporters after meeting Brazilian President Luiz Inacio Lula da Silva.

Claro investments "are bigger than 2 billion reais for 2008," he said.

Claro has 24.82 percent of Brazil's mobile market, behind Vivo, a joint venture between Telefonica and Portugal Telecom (PTC.LS), and TIM Brasil, Telecom Italia's Brazilian subsidiary.

Word of the 2008 investment followed the announcment on Tuesday that Brazil's telecommunications regulator had approved, with restrictions, the purchase by Telefonica, America Movil's archrival in Latin America, of an indirect stake in Telecom Italia.

America Movil had asked the regulator for access to the terms of the deal to analyze its implications in Brazil. ($1=1.803 BRL)