AT&T has $3B investment plan on top of $4.4B spent on acquiring Iusacell, Nextel Mexico
AT&T said it plans to invest $3 billion to expand “high-speed, mobile Internet service” to 100 million people in Mexico by the end of 2018.
The announcement was made by AT&T CEO Randall Stephenson following a meeting with Mexico President Enrique Peña Nieto, and follows on the country’s recent approval of AT&T’s acquisitions of Iusacell and Nextel Mexico that were valued at $4.4 billion.
Stephenson cited recent reforms instituted by Mexico’s regulators designed to enhance competition in the country’s telecom market that is currently dominated by América Móvil as an opening to the new investments.
“The mobile Internet in the U.S. created an engine of economic growth. As we extend it into Mexico, we believe it will do the same here,” Stephenson said in a statement. “Beyond accelerating economic growth, the mobile Internet is about changing the way people live and work, keeping families better connected, opening up new educational and health care opportunities, and strengthening and empowering communities.”
While LTE was never specifically mentioned by AT&T in the latest announcement, the carrier has previously stated it plans to deploy LTE technology across the networks. Analysts had noted that the combined operations would control more than 70 megahertz of nationwide spectrum with 90 megahertz in some markets.
The initial investment is expected to see AT&T build out services covering 40 million potential customers by the end of the year. That reach is set to hit 75 million pops by the end of 2016, and 100 million pops by the end of 2018.
AT&T said it plans to introduce new rate plans next month that allow Mexico customers to use their individual plans while in traveling in the U.S. That builds on Stephenson’s previous statement of offering what it called the first-ever North American mobile service area tapping into its own U.S.-based network and newly acquired assets. AT&T said the combined networks would cover more than 400 million potential customers.
The carrier also said it plans to launch Google Play billing in Mexico, the first in a Latin American country, as well as be the first Mexican wireless carrier to collaborate with the country’s Amber Alert initiative on a national level.
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