AT&T: It will take a couple years to bring Mexican operations up to scratch

AT&T: It will take a couple years to bring Mexican operations up to scratch
Earlier this year, AT&T made some big acquisitions to expand operations and become a major carrier in Mexico. To do so, the second largest carrier in the US bought Mexico’s third-largest provider, Iusacell, and bankrupt NII Holdings which operated as Nextel Mexico.

The two Mexican properties added about 10 million customers to AT&T subscriber base, and provide about 70% overall coverage to Mexico’s population.

That is where the hard work comes in. AT&T Mexico CEO Thaddeus Arroyo says that it is going to be a long play, “It actually will take us a couple of years to ultimately begin to enhance and begin to deploy the experiences that we’re looking for.” The two Mexican networks currently operate on a blend of CDMA, GSM, UMTS, LTE, and iDEN standards.

AT&T CFO John Stephens says that the company is committed to make the necessary capital investments to improve the networks, but declined to answer inquiries if AT&T might buy assets that América Móvil is in the process of divesting in order to pare down market share and be compliant with new regulations in Mexico.

The Mexican government has instituted a number of new rules which require the opening up of infrastructure for interconnections, as well as reforms to attract more foreign investment. AT&T’s presence in Mexico ostensibly gives it a footprint that covers the majority of the North American population. The next step as the networks are enhanced is seeing how rate plans and services evolve over the next couple of years.

source: FierceWireless

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11 Comments

1. Tziggy14

Posts: 624; Member since: Sep 02, 2014

AT&T is returning more and more to their former monopoly self. Bring it on.

2. omarc26

Posts: 360; Member since: Dec 05, 2009

I hope i can be using my att phone someday from cancun at full lte speed on att without paying high roaming charges.hope att allows using your phone someday like being here in the US.

12. Augustine

Posts: 1043; Member since: Sep 28, 2013

Hahahahahahahahahaha...

4. tigermcm

Posts: 861; Member since: Sep 02, 2009

"blend of CDMA, GSM, UMTS, LTE, and iDEN standards." wasn't that basically the same crap issue Sprint had minus GSM and LTE

5. mike2959

Posts: 695; Member since: Oct 08, 2011

C'mon At&T! Next is Canada.. Oh.. Wait that's right I forgot Canadian Socialism = The government will own half your company, or tax every business 50%..your choice.

6. Slammer

Posts: 1515; Member since: Jun 03, 2010

What a waste of time and dollars. Others, as myself, fought feverishly to break up a monopoly that AT&T had in the telecommunications industry only to watch it putting itself back together again. Great job boys! The FCC and Doj as well as the other government branches can take the PAC money and stick where the sun never shines. At my age, I'm glad I won't be around to see what this generation allows and doesn't allow. I feel very bad for my grandchildren and hope they become smarter than today's consumers and government leaders. John B.

7. rallyguy

Posts: 620; Member since: Mar 13, 2012

FCC and DOJ? They have no control over Mexico.

8. Slammer

Posts: 1515; Member since: Jun 03, 2010

Yes and no. As a whole, the FCC and DoJ have continually coddled AT&T in its pursuit to regain a vast control over every facet of the telecommunications industry. With the exception of the T-Mobile purchase, very few defeats if any, have been handed down AT&T since the dissolve of its monopoly. VZW, an offspring of AT&T, have chipped away at remaining carriers by acting as a cartel in swapping assests with each other and the FCC has allowed this to happen. The most recent purchase of DirectTV is another gain and purchasing lusacell wraps up even another win as the bankruptsy was filed in the USA which allows US government involvement. Shall we applaud better coverage or quiver over a large dominance that is sure to compromise consumer choices and reasonable rates. AT&T is excited by claiming it will bring added competiton to Mexico. With AT&T now potentially holding 75% of control in Mexico, I hardly call this competition. It is another monopolistic position awarded to the carrier. John B.

9. xsquid

Posts: 7; Member since: May 30, 2014

Are you smoking crack? Coverage does not equal market share and with iusacell having 4% plus nextel's 4% they picked up 8% market share not anywhere near a monopoly and in fact barely in the game. We BADLY need someone up against telcel here. Movistar has almost 3 times the market share as att picked up. You need to learn what you are babbling about. Telcel (71% market share), Movistar (21%), Iusacell (4%), Nextel (4%) I can't post a link, but search for iusacell market share 2014. ifc dot org Not to mention that us companies can not own more than 49% here so they will never own more than 49% even if they had 100. Costco, walmart, etc are all partners with mexican companies.

10. xsquid

Posts: 7; Member since: May 30, 2014

Rallyguy is also correct in that the fcc and doj control nothing here, it's all no and no yes.

11. xsquid

Posts: 7; Member since: May 30, 2014

The article is kind of misleading. Iusacell has 70% coverage but they only have 4% market share and nextel has 4%. They picked up 8% market share.

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