AT&T closes in on its plan for one North American market, purchases Nextel Mexico for $1.88 billion
Just ten days ago, AT&T closed on its purchase of Mexican carrier Iusacell. Monday morning, AT&T added to its Mexican properties by purchasing NII Holdings for $1.875 billion. The final price will be adjusted for NII's net debt. Acquiring these assets means that the second largest U.S. carrier will be purchasing Nextel Mexico, NII's wireless spectrum, retail stores and 3 million customers. Nextel Mexico's signal covers 76 million people. Iusacell's signal covers 84 million POPs in the country.
AT&T says that the two acquisitions will allow it to offer faster mobile internet to Mexican consumers by offering 4G LTE service. It also envisions what it calls the "North American Mobile Service area" which will cover 400 million people in the U.S. and Mexico.
By combining Iusacell and Nextel Mexico, AT&T will have 11 million subscribers in the country attributable to the pair of acquisitions. NII Holdings is in bankruptcy, swamped with $5.8 billion in debt. AT&T will have to get the approval of the U.S. Bankruptcy Court for the Southern District of New York, and regulatory approval by Mexican telecom regulator IFT (Instituto Federal de Telecomunicaciones). The U.S. carrier expects the deal to close in the middle of this year.
source: Reuters
"Combining Nextel Mexico with Iusacell will allow AT&T to more quickly improve and expand its mobile Internet service to the benefit of millions of Mexicans, particularly those who live outside major metropolitan areas, than it could otherwise do without the transaction."-AT&T statement
By combining Iusacell and Nextel Mexico, AT&T will have 11 million subscribers in the country attributable to the pair of acquisitions. NII Holdings is in bankruptcy, swamped with $5.8 billion in debt. AT&T will have to get the approval of the U.S. Bankruptcy Court for the Southern District of New York, and regulatory approval by Mexican telecom regulator IFT (Instituto Federal de Telecomunicaciones). The U.S. carrier expects the deal to close in the middle of this year.
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