American wireless carrier AT&T is set to acquire Nextel Mexico in a deal valued at $1.875 billion, less the outstanding net debt of the business at closing.
The proposed acquisition of the ailing Nextel Mexico is set to challenge the dominance of billionaire Carlos Slim’s America Movil in the Mexico telecom market. Telecom regulator has already demanded America Movil to reduce its market presence to reduce dominant presence.
Nextel Mexico, NII Holdings’ wireless properties in Mexico, including spectrum licenses, network assets, retail stores and approximately 3 million subscribers will be part of AT&T.
“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,” said Randall Stephenson, AT&T chairman and CEO.
Nine days back, AT&T closed its $2.5 billion acquisition of Mexican wireless provider Iusacell, which has 9.2 million subscribers, from Grupo Salinas.
The Iusacell wireless network covers about 70 percent of Mexico’s 120 million citizens, while Nextel Mexico’s network covers approximately 76 million people.
The acquisition of Nextel Mexico and Iusacell will support AT&T’s plans to expand its presence in Mexico.
AT&T plans to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and the United States, and Nextel Mexico’s subscribers will be included.
Combining Nextel Mexico with Iusacell will allow AT&T to expand its mobile Internet service to the benefit of millions of Mexicans, particularly those who live outside major metropolitan areas.
The transaction to purchase Nextel Mexico is subject to a bankruptcy auction and approvals by the U.S. Bankruptcy Court for the Southern District of New York, which is overseeing the restructuring of NII Holdings.
AT&T said Iusacell and Nextel Mexico represent a geographic expansion of its wireless footprint in a country with a growing economy that is interconnected with the U.S. economy.
Baburajan K
[email protected]
