AT&T to acquire Mexico’s third largest carrier, Iusacell

AT&T to acquire Mexico’s third largest carrier, Iusacell
America’s second largest carrier is making moves south of the border, as it announced Friday that it would acquire Iusacell, Mexico’s third largest wireless provider.

Iusacell’s 8.6 million customers, radio spectrum, retail operations, and other hard assets, will come under the fold of AT&T’s operations for $2.5 billion. The deal is contingent on Grupo Salinas, who currently owns 50% of Iusacell, to buy the portion it does not own from Televisa.

While Iusacell is a distant third behind Movistar (owned by Telefonia) and Telcel (owned by America Movil), its network still covers 70% of Mexico’s population, and AT&T intends to expand that footprint to “cover millions of additional consumers and businesses in Mexico.” AT&T also made point of stating that this investment is a direct result of reforms enacted by the Mexican government to attract more foreign investment.

AT&T CEO Randall Stephenson noted that this acquisition of Iusacell “gives us a unique opportunity to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and the United States. It won’t matter which country you’re in or which country you’re calling – it will all be one network, one customer experience.”

Iusacell’s network is compatible with AT&T's as well, operating on the same incumbent 800MHz spectrum bands in southern Mexico, and 1900MHz PCS bands across the whole network. With that operability, AT&T plans on enabling a common service area which will benefit consumers and businesses alike, since Mexico is also the United States’ third largest trading partner.

Following regulatory approvals by Mexico’s regulators, AT&T anticipates the deal will close in the first quarter of 2015, which is very fast as far as mergers and acquisitions go.

source: AT&T

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20 Comments

1. D.Aceveda

Posts: 433; Member since: Jun 30, 2012

So instead of putting money into their own network, they are still hell bent on buying other carriers. I guess they learned nothing from their failed purchase of T-Mobile US.

2. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Their network is already solid tbh. This does make sense though.

19. reckless562

Posts: 1153; Member since: Sep 09, 2013

it does if u have fam in mexico and u travel to see them. or if u wana send them a phone so they ca talk to u, makes it wayy easier to do that. the idea of a "North American Network" is a suprise from $HlTTyAss At&t n im actually rooting for them. i live n socal, n my cuzo plays basketball in mexico n i never talk to him over there, despite having the internet chat apps n video. idk. n he always has to get another stupid iphone kez hes retarted like that, or he has no phone period. point is, ppl that travel n have family in mexico n vice versa will benifit. its a great company n marketing move

8. Omarc07

Posts: 574; Member since: Nov 12, 2012

Well maybe they didnt do that for now since there network is already more solid than tmobile or sprint ...

12. a_merryman

Posts: 749; Member since: Dec 14, 2011

What would they have learned from the failed T-Mobile bid that applies to this? The T-Mobile bid didn't happen because it was anti-competitive and wouldve left AT&T with nearly half of all subscribers in the US. This is them buying a carrier in a country that they currently aren't even in. And it is a country that Americans travel to often for vacationing or business, so it could become a great asset to have a native network for their subscribers when they visit Mexico.

15. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Where I'm at, AT&T is the top carrier, Verizon a distant second. I get the argument (no carrier works everywhere, especially T-Mobile and Sprint), but considering the United States government and current administration do not recognize any form of a southern border, this kind of works in AT&T's favor. I just wish they would do this sometime soon with Canada as well, because 1000 minutes and pricey data on Verizon just don't work. Verizon headhunts for Movistar now in 5...4...3...2...1...

17. InspectorGadget80 unregistered

It's sad and pitiful these Carriers in different countires let a big company like AT&T to get rid of them. more profit for their greedy pockets.

22. DaveElliott

Posts: 148; Member since: Sep 20, 2012

Both Sprint and Tmobile are mostly owned by foreign companies. How might this be any different?

23. a_merryman

Posts: 749; Member since: Dec 14, 2011

Exactly, maybe that person should look at Vodafone or Deutsche Telekom or Orange if they're mad about large telecom companies owning carriers in foreign countries.

3. hitechredneck

Posts: 103; Member since: Nov 21, 2011

AT&T has always wanted to go globally with their network.

18. InspectorGadget80 unregistered

Let's hope they won't reach no where NEAR EUROPE.

4. d2kplus

Posts: 6; Member since: Nov 08, 2014

No mention that Iusacell is CDMA based. There won't be any roaming between at&t and Iusacell for a while, regardless of frequencies.

6. Slammer

Posts: 1515; Member since: Jun 03, 2010

Lusacell is GSM/UMTS. John B.

7. Omarc07

Posts: 574; Member since: Nov 12, 2012

I go to mexico ALOT every 3 months iusacell is now GSM/HSPA+ thats not good for people who had verizon or sprint since they stopped expanding its cdma network i have friends with verizon that only have cdma coverage in big cities like mexico city ,GDL roaming on iusacells old cdma network .. Go outside them cities isuacell has hspa coverage no more cdma coverage for some reason verizon global phones do not roam on isuacell gsm when its available or telcel gsm or movistar gsm so they are stuck with no service . If u go to mexio att or tmobile is the way to go since they both roam on all GSM networks in mexico .

5. Slammer

Posts: 1515; Member since: Jun 03, 2010

AT&T: "We are still pissed off with the breakup of our monopoly and being the largest telecom company in the world. We want it back." John B.

13. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

AT&T will soon be able to track movements and detailed information of people to/from the US and Mexico using their AT&T/Iusacell cell phones. This data will then be sold to the government, i.e. used to gain further concessions for AT&T becoming a global telecom monopoly over time.

14. YourNickname

Posts: 127; Member since: Aug 14, 2014

The government already scans passports and driver licenses every time i come back from mexico. Why do they need at&t?

16. Augustine

Posts: 1043; Member since: Sep 28, 2013

They needed ATT for NSA to infiltrate the Brazilian telecommunications network, a Trojan horse for the police states of America.

20. reckless562

Posts: 1153; Member since: Sep 09, 2013

idk bout all that now......

21. reckless562

Posts: 1153; Member since: Sep 09, 2013

hmm forgot bout that angle of tracking people. hey!! the narco terrorists will be paying ppl off to track ppl they are trying to kill. a blood bath is gona be hard to stop now........

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