AT&T officially closes acquisition of Mexican carrier, Iusacell

AT&T officially closes acquisition of Mexican carrier, Iusacell
Mexico’s third-largest mobile carrier is now part of the United States’ second-largest provider, in what AT&T plans to make a contiguous North American network footprint covering nearly all of the US, and 70% of Mexico’s population.

The $2.5 billion merger closed very quickly following last November’s announcement. Iusacell may be a distant third behind Movistar and Telcel, but it was its size, coverage, network, and customer base that made it an appealing acquisition.

If Verizon wanted to make a similar move into Mexico, the price tag would most certainly be an order of magnitude larger, due to the premium that the conglomerates would demand not only for the assets, but for the shift they would be making out of a developing market.

Part of the reason for the swift closure of the deal is due to a number of reforms made in Mexico designed to attract foreign investment, “We look forward to bringing more wireless competition to Mexico along with an improved mobile internet experience for customers. Expanding and enhancing Iusacell’s mobile network to cover millions of additional consumers and businesses is our top priority,” according to AT&T CEO Randall Stephenson.

Since the two networks share standards and frequency bands, Iusacell will make a natural expansion of AT&T’s service area. In addition to continued investment from AT&T, we should see new services that better meet a consumer base that lives and works on both sides of the border. The Iusacell unit will be headed by AT&T veteran Thaddeus Arroyo.

source: FierceWireless

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8 Comments

1. downphoenix

Posts: 3165; Member since: Jun 19, 2010

would be great if this means ATT customers will get better roaming coverage and rates in Mexico.

2. reckless562

Posts: 1153; Member since: Sep 09, 2013

nice, i can finally call my cousin in mexico without thinking about how to get him to use voip through hangouts or oovoo

3. engineer-1701d unregistered

great another way an american company can waste money in another country, and hide taxable money

5. Omarc07

Posts: 574; Member since: Nov 12, 2012

Hopefully they allow better roaming in mexico since i have att and travel to mexico alot .

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What's the average income of a Mexican in Mexico? Can they handle AT&T pricing?

7. Omarc07

Posts: 574; Member since: Nov 12, 2012

500 pesos is about minimum wage a week which is about 50 US dollars . Thats how much a week some of my family members make over there a week ,if they cant afford TELCEL which has att prices right now i doubt it they will be able to afford att.

10. reckless562

Posts: 1153; Member since: Sep 09, 2013

lmao truuueeee!!! At&t is like verizon $$$ high, but wayyy crappier

8. corporateJP

Posts: 2458; Member since: Nov 28, 2009

The global telecom war is about to start, grab your popcorn...

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