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AT&T to buy Iusacell for $2.5B [New Vision (Uganda)]
[November 11, 2014]

AT&T to buy Iusacell for $2.5B [New Vision (Uganda)]


(New Vision (Uganda) Via Acquire Media NewsEdge) AT&T surprised the wireless industry late Friday with news that it will buy Mexican operator Iusacell for $2.5 billion. The deal includes 8.6 million wireless subscribers, as well as all of Iusacell's network assets, spectrum licenses and retail stores. Iusacell operates a 2G and 3G network using GSM/UMTS technology covering around 70% of Mexico's population under the Iusacell and Unefon brands.



The deal was a surprise because many industry observers expected AT&T to buy a different Mexican wireless property. América Móvil is being forced to sell its telecom infrastructure to comply with new Mexican regulations, and has reportedly invited AT&T to bid for the assets.

AT&T may still bid for América Móvil's assets, according to analyst Jennifer Fritzsche of Wells Fargo, who notes that América Móvil's "huge footprint" in Mexico could be even more attractive to AT&T as the owner of Iusacell. But if AT&T does try to buy the América Móvil infrastructure, that would be its third major acquisition announcement this year. This spring, AT&T said it plans to buy DirecTV for more than $48 billion.


AT&T made it clear that its first goal in Mexico is to own a carrier. CEO Randall Stephenson said that AT&T wants to create a "North American mobile service area" to provide "one customer experience" to subscribers regardless of which country they are in.

Iusacell is 50% owned by Grupo Salinas, which has plans to buy the other half at which point it will sell the entire operations to AT&T.

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