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AT&T Closes $2.5 Billion Acquisition of Iusacell

By Staff Author | January 16, 2015

AT&T today closed its $2.5 billion deal to acquire Mexico telecom Iusacell.

The deal lands AT&T Iusacell’s licenses, network assets, retail stores and its almost 9.2 million subscribers.

AT&T said Iusacell’s network covers approximately 120 million people. The carrier said the acquisition is part of its plan to create the “first-ever” North American Mobile Service area covering more than 400 million consumers and businesses in Mexico and the United States.

AT&T has named F. Thaddeus Arroyo, a 19-year AT&T veteran, as CEO of Iusacell. Arroyo previously served as president of AT&T Technology Development.

The closure of the deal comes only a little more than two months after the companies originally announced the transaction.

AT&T is getting into the Mexican wireless market just as dominant incumbent carrier America Movil has been divesting its wireless assets in accordance with new regulations.

“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,” AT&T CEO Randall Stephenson said in a statement.


Filed Under: Carriers

 

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