US telecoms giant AT&T has completed its US$2.5bn acquisition of Mexico’s third-largest operator Iusacell from Grupo Salinas.
As part of the deal, the company acquired all of Iusacell’s wireless properties, including licences, network assets, retail…
US telecoms giant AT&T has completed its US$2.5bn acquisition of Mexico’s third-largest operator Iusacell from Grupo Salinas.
As part of the deal, the company acquired all of Iusacell’s wireless properties, including licences, network assets, retail stores and approximately 9.2 million subscribers, AT&T said in a statement.
Closing of the transaction comes just a few days after Grupo Salinas took full control of Iusacell by acquiring a 50% stake from Grupo Televisa in a previously-agreed US$717m deal.
In December, AT&T won approval for the transaction from Mexico’s telecoms regulator, the IFT, which had imposed some unspecified conditions on the acquisition to avoid risks to competition.
“The quick approval of this deal is one more example of why Mexico is an attractive place to invest,” AT&T CEO Randall Stephenson said.
“We look forward to bringing more wireless competition to Mexico along with an improved mobile internet experience for customers. Expanding and enhancing Iusacell’s mobile network to cover millions of additional consumers and businesses is our top priority.”
The Iusacell wireless network currently reaches about 70% of Mexico’s 120 million inhabitants.
In recent years, the Mexico City-based telco has been struggling to compete with America Movil’s Telcel, which controls 70% of the market, and Telefonica’s Movistar, which holds a 20% market share.
Further to its acquisition, AT&T aims to create “the first-ever North American mobile service area covering more than 400 million consumers and businesses in Mexico and the United States”, it said.
The company believes that Mexico holds strong growth potential in terms of smartphone adoption and mobile internet usage and expects synergies from customer additions, economies of scale and sharing of best practices. Iusacell operates a 3G wireless network based on the global GSM/UMTS technology that AT&T uses in the US.
Grupo Salinas has retained Iusacell’s residential triple-play business Total Play.
Since the Mexican government introduced some regulatory changes last year aimed at increasing competition and attracting foreign investments, many international players have reportedly shown interest in investing in the country, including Softbank, BT and China Telecom.
Names Iusacell CEO
Meanwhile, AT&T has appointed Thaddeus Arroyo as Iusacell’s new CEO, based in Mexico City, where the company will continue to be headquartered.
He will be assisted by Iusacell’s former CEO Adrian Steckel to ensure a smooth integration process.
Arroyo previously served as president of AT&T Technology Development and, before that, held a number of senior executive positions, including chief information officer (CIO) of AT&T, AT&T Mobility and Cingular Wireless.
