AT&T Continues Expansion by Acquiring Mexico's Nextel Wireless Network
The $1.88 billion Nextel Mexico acquisition is AT&T's third recent deal in the region and includes spectrum licenses, retail stores and other assets.AT&T is buying Nextel Mexico's assets for $1.88 billion in a deal that will bring AT&T another 3 million customers. The Nextel Mexico acquisition, which was announced by AT&T on Jan. 26, comes through a deal with NII Holding, which owns Nextel Mexico, according to AT&T. Nextel Mexico had filed for bankruptcy in September 2014, so the transaction is subject to a bankruptcy auction and approvals by the U.S. Bankruptcy Court for the Southern District of New York, stated AT&T. The deal, which does not include Nextel Mexico's outstanding debt, includes all of NII's wireless properties in Mexico, including spectrum licenses, network assets, retail stores and approximately 3 million subscribers, according to AT&T. Some 76 million people live in the area covered by Nextel Mexico's network. "The acquisition of Nextel Mexico will support AT&T's plans to bring greater competition and faster mobile Internet speeds to the Mexican wireless market," the company said in a statement. "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."
AT&T already has a pending takeover in Mexico of DirecTV's operations there, according to a Jan. 26 report by Bloomberg. In November 2014, AT&T announced that it was acquiring Mexican wireless provider Iusacell for $2.5 billion, which included the company's licenses, network, retail stores and some 8.6 million wireless subscribers, according to an earlier eWEEK report.