According to AT&T, the company plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.
US second largest service provider AT&T, Friday announced that it has entered into an agreement with Grupo Salinas to acquire Mexican wireless company Iusacell for US$2.5 billion. AT&T said in a statement that it will acquire all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers.
AT&T expects to carry out the transaction in the first quarter of 2015, awaiting parent Group Salinas, which owns 50 percent of Iusacell, to close its own acquisition of the remaining 50% stake in the company. The latest move by AT&T marks reform in the sector with a new entry to Mexican telecommunications market that is dominated by America Movil, owned by billionaire Carlos Slim. Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people.
Randall Stephenson, AT&T chairman and CEO
Our acquisition of Iusacell is a direct result of the reforms put in place by President Peña Nieto to encourage more competition and more investment in Mexico. Those reforms together with the country’s strong economic outlook, growing population and growing middle class make Mexico an attractive place to invest. 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. Mexico is still in the early stages of mobile Internet capabilities and adoption, but customer demand for it is growing rapidly.
