AT&T announced late Friday that it plans to buy Mexican wireless provider Iusacell for $2.5 billion, the company’s second major acquisition this year.
The deal will create what AT&T calls the first ever North American Mobile Service area, covering both Atlanta-based AT&T Mobility’s reach in the U.S. and Iusacell’s reach of 70 percent of Mexico’s population.
AT&T’s deal is with Grupo Salinas, which owns 50 percent of Iusacell. The deal is contingent upon Grupo Salinas completing a deal to acquire the half of Iusacell that it doesn’t own.
Iusacell, which has 8.6 million subscribers, offers wireless service under the Iusacell and Unefón brands. AT&T Mobility currently has more than 116 million U.S. wireless subscribers.
The deal does not include Iusacell’s network assets to support pay TV and wireline broadband services.
In announcing the deal, AT&T Chairman Randall Stephenson said AT&T is responding to Mexico’s efforts to attract more investment and to the growing demand for mobile service. The company said Mexico offers “a natural geographic expansion” opportunity for AT&T’s wireless footprint.
AT&T said the deal will benefit U.S. customers calling or visiting Mexico, and Mexican customers calling or visiting the United States.
“It won’t matter which country you’re in or which country you’re calling – it will all be one network, one customer experience,” Stephenson said.
The combined mobile services will cover more than 400 million consumers and businesses in Mexico and the United States, AT&T said.
AT&T is the No. 2 U.S. wireless provider behind Verizon Wireless. In March, AT&T closed on its $1.2 billion deal to acquire prepaid wireless provider Leap Wireless International Inc., which operates under the Cricket brand.
AT&T says it currently offers voice coverage in more than 225 countries, data coverage in more than 210 countries and ultra-fast 3G network services in more than 170 countries.
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