AT&T will acquire Mexican carrier Iusacell for $2.5 billion. The deal will see AT&T getting all of Iusacell’s licenses, network assets, stores and 8.6 million subscribers.
Iusacell operates a 3G GSM network in Mexico that’s made up of around 20 and 25MHz of 800MHz spectrum and an average of 39MHz of PCS airwaves. Iusacell’s network covers around 70 percent of Mexico’s 120 million people. Once the deal is done, AT&T plans to expand that existing coverage with the hope of covering a total of 400 million people in the U.S. and Mexico.
AT&T’s acquisition of Iusacell is subject to regulatory review, including once-overs from Mexican telecom regulator IFC and Mexico’s National Foreign Investments Commission.
U.S. carriers have been pushing tablets and wearables more lately in an effort to continue growing as smartphone adoption gets closer to saturation. AT&T’s acquisition of Iusacell appears to be another shot at AT&T growing its customer base by expanding Iusacell’s wireless footprint.