AT&T to acquire Nextel Mexico assets for $1.9 billion

AT&T has agreed to acquire mobile carrier Nextel Mexico for UDS$1.9 billion from parent company NII Holdings, in an effort by AT&T to win a larger slice of the Mexican mobile market, the company announced Monday.

The deal includes all NII’s mobile assets in Mexico, including spectrum licenses, network facilities, retail stores and 3 million customers, AT&T said in a press release.

NII, based in Reston, Virginia, filed for bankruptcy in U.S. court in September. The company also operates mobile networks in Argentina and Brazil.

The deal with AT&T, subject to approval by the U.S. Bankruptcy Court for the Southern District of New York and regulatory approvals in Mexico, is expected to close by mid-2015, NII said in a press release.

The deal will allow AT&T to combine Nextel Mexico with Iusacell, another Mexican mobile provider that AT&T acquired in November for $2.5 billion. Iusacell, with about 9 million customers, was the third largest mobile carrier in Mexico at the time.

Mexico City-based América Móvil’s Telcel is the dominant mobile carrier in Mexico, with a market share of about 70 percent.

Nextel Mexico’s network covers about 76 million people. The acquisition of Nextel Mexico supports AT&T’s plans to offer more competitive services and faster mobile broadband speeds in Mexico, AT&T said.

To comment on this article and other CIO content, visit us on Facebook, LinkedIn or Twitter.
Download the CIO October 2016 Digital Magazine
Notice to our Readers
We're now using social media to take your comments and feedback. Learn more about this here.