AT&T closes in on its plan for one North American market, purchases Nextel Mexico for $1.88 billion
posted by Alan F. / Jan 26, 2015, 9:55 AM
Just ten days ago, AT&T closed on its purchase of Mexican carrier Iusacell. Monday morning, AT&T added to its Mexican properties by purchasing NII Holdings for $1.875 billion. The final price will be adjusted for NII's net debt. Acquiring these assets means that the second largest U.S. carrier will be purchasing Nextel Mexico, NII's wireless spectrum, retail stores and 3 million customers. Nextel Mexico's signal covers 76 million people. Iusacell's signal covers 84 million POPs in the country.
AT&T says that the two acquisitions will allow it to offer faster mobile internet to Mexican consumers by offering 4G LTE service. It also envisions what it calls the "North American Mobile Service area" which will cover 400 million people in the U.S. and Mexico.
"Combining Nextel Mexico with Iusacell will allow AT&T to more quickly improve and expand its mobile Internet service to the benefit of millions of Mexicans, particularly those who live outside major metropolitan areas, than it could otherwise do without the transaction."-AT&T statement
By combining Iusacell and Nextel Mexico, AT&T will have 11 million subscribers in the country attributable to the pair of acquisitions. NII Holdings is in bankruptcy, swamped with $5.8 billion in debt. AT&T will have to get the approval of the U.S. Bankruptcy Court for the Southern District of New York, and regulatory approval by Mexican telecom regulator IFT (Instituto Federal de Telecomunicaciones). The U.S. carrier expects the deal to close in the middle of this year.
You know... I'm not a huge fan of AT&T whatsoever (nor have I ever been for that matter), but if they begin to offer major discounted service and/or mexico roaming service included in their plans, I might have to finally take the plunge over after being a Verizon loyalist for 12+ years. I just wish that AT&T would improve its 4G LTE service in LA. I'm on Verizon XLTE and I consistently get anywhere between 35Mbps-85Mbps down/up, where as my sister who is on AT&T 4G LTE gets about 7-24Mbps down/up. yes I know many of you will say "why do you need so much speed?!" well A) I'm an IT Network Admin and always on the go and B) why would I downgrade? It's like getting a taste of TWC 300Mbps home service and then deciding to stick with your AT&T 6Mbps Uverse. Sure they'll both get you to the internet but when your a heavy user, there is no comparison.
Interesting you say that about AT&T in LA. I was out there for the first time in Decemeber. I have iPhone 6 Pluses one on AT&T and one on Verizon. I spend most the time in Marina Del Ray & Culver City mostly but also hit Santa Monica and other places. I had severe speed issues and signal with VZW but rock solid with AT&T.
wow thats interesting... did you do a network update on your phone when you arrived here to update the cell tower directory? If not, that maybe why. If you did, then it might just be the area in Los Angeles that you were. I'm mostly in the San Fernando Valley, Simi Valley, Thousand Oaks, Burbank/Glendale, Hollywood and Santa Monica areas. All the places I mentioned above are mainly to the north and northwest of downtown LA vs the areas you mentioned are mainly south and southeast of it.
I want to see how Telcel and Movistar deal with this. It might spark real competence in the Mexican market. Both major carriers here right now are horrible. Movistar has the decent prices but a horrible network and no LTE besides 1 city, Telcel has the decent network, Nationwide LTE but horrible prices and a really dark background.
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