AT&T has purchased its second wireless carrier in Mexico this week when it completed its buyout of Nextel Mexico. The deal, which was announced today, is valued at $1.875 billion.
Nextel Mexico, which has around 3 million subscribers on a network that covers over 76 million people, is now owned by AT&T who is looking to making a serious imprint on the Mexican market. In November of last year, AT&T acquired Mexican carrier Iusacell and its 9.2 million subscribers. Together with Nextel Mexico, AT&T’s reach now extends to over 12 million Mexican subscribers.
AT&T still has a long way to go to make a dent in the country’s market share though. Telcel, currently believed to have a 70 percent of the country’s wireless market, is still way ahead. However, this is definitely a good start for Ma Bell.
The Nextel Mexico deal is expected to be finalized in mid-2015 and requires approval from both the US and Mexico.