Mexico: AT&T buys Iusacell, now competes head to head with America Movil in Mobile and TV

flag.mexicoWhat: AT&T will acquire Mexican wireless company Iusacell , the third largest mobile operator in Mexico, for US$2.5 billion including its' debts.
Why it matters: This is something AT&T has been attempting to do ever since communication laws were reformed at the beginning of the new president's Pena Nieto's mandate. It will not only increase its presence in the country but  create a single network in North America, targeting approximately 400 million consumers.

The transaction is expected to close in the first quarter of 2015.AT&T has entered into an agreement with Grupo Salinas to acquire Mexican wireless company Iusacell, the third largest mobile operator in Mexico, for US$2.5 billion, inclusive of Iusacell debt.
With this agreement, AT&T will acquire all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers.

After the Iusacell acquisition, AT&T will compete with America Movil not only in the Mexican phone market but also in the pay-TV market of several Latin American countries, where AT&T owned DIRECTV Latin America rivals with America Movil's Claro.

The acquisition will occur after Grupo Salinas, the current owner of 50 percent of Iusacell, closes its announced purchase of the other 50 percent of Iusacell that Grupo Salinas does not own today.

Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people. AT&T plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.

“Our acquisition of Iusacell is a direct result of the reforms put in place by President Peña Nieto to encourage more competition and more investment in Mexico. Those reforms together with the country’s strong economic outlook, growing population and growing middle class make Mexico an attractive place to invest,” said Randall Stephenson, AT&T chairman and CEO.

“Iusacell gives us a unique opportunity to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and 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,” added Stephenson.

Iusacell will continue to be headquartered in Mexico City following the transaction closing.The transaction is subject to review by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones) and Mexico’s National Foreign Investments Commission. AT&T expects the transaction to close in the first quarter of 2015.

america movil - presencia latam 265 x 188With this acquisition, AT&T continues expanding in Mexico after the company bought DirectTV for US$ 48.5 billion dollars earlier this year. DirecTV also provides satellite television services in Latin America. After the Iusacell acquisition, AT&T will compete with America Movil not only in the Mexican cell phone market, where America Movil has the Telcel brand, but AT&T owned DirecTV Latin America will also compete in the pay-TV market of several Latin American countries with America Movil owned Claro.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

#Portada16: Are Multicultural Media Buying Agencies Necessary?

#Portada16: Are Multicultural Media Buying Agencies Necessary?

One of the key highlights of the many sessions of #Portada16, co-produced with MediaPost last week, was the panel "Do Multicultural Media Buying Agencies have a Reason to Exist? The panelists argued passionately on a topic that is at the very crux of Multicultural Marketing and Media.


Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate, the next generation global content leader, and Univision Communications Inc. are teaming to launch a premium subscription video on demand (SVOD) service for the booming Hispanic movie-going audience in the U.S.The new premium on demand movie service will tap base of more than 50 million hispanic consumers in the U.S.


IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid have launched a partnership and set of products that could make waves in the video advertising world.