AT&T said Friday that it has entered into an agreement to by Mexican wireless company Iusacell for $2.5 billion including debt.
The purchase, which AT&T agreed to with Grupo Salinas, will occur once the Mexican diversified group completes its own ongoing acquisition of Iusacell. The AT&T deal will require the approval of Mexican regulators.
AT&T said it intends to expand Iusacell coverage, which already includes 8.6 million customers, to millions of more 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," Randall Stephenson, AT&T chairman and CEO, said in a media release.
Nieto won election in 2012 in part because he promised to reform the country's telecom industry, committing to make the industry more innovative and competitive by breaking down monopolies.
"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," Stephenson said in the release.