AT&T to Acquire Nextel Mexico for $1.875 Billion
AT&T (T) this week reached an agreement with NII Holdings (NIHD), a multinational telecommunications company, to acquire its wireless business in Mexico for $1.875 billion.
Under terms of the agreement, AT&T will acquire companies, which operate under the name Nextel Mexico, holding all of NII’s wireless properties in Mexico, including spectrum licenses, network assets, retail stores and approximately 3 million subscribers.
Together, AT&T and Nextel Mexico plan to create the first 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,” an AT&T spokesperson told Talkin’ Cloud.
The spokesperson also noted that the acquisition could help AT&T accelerate the roll-out of faster mobile Internet speeds in Mexico.
AT&T previously purchased Mexican wireless provider Iusacell for $2.5 billion last November, and the Nextel Mexico addition gives AT&T yet another piece it can use to expand in 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,” an AT&T spokesperson said.
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Mexico has the second-largest economy in Latin America, and the spokesperson added that Mexico could prove to be a popular investment site for AT&T and others going forward.
“Mexico and the U.S. are connected geographically, economically and culturally. Mexico’s government has taken bold steps on fiscal and economic issues, and made regulatory reforms in the telecom, energy and financial services sectors – all of those actions have created a good climate for investment,” the spokesperson said. “Those actions, plus Mexico’s growing population, growing middle class, growing economy and relatively low wireless penetration rates make it an attractive place to invest.”
AT&T said it expects to finalize the Nextel Mexico transaction in mid-2015.
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