Instead of solely being subject to regulatory approval by Mexico’s telecom regulator, Instituto Federal de Telecommunicaciones, the deal, worth $1.875 billion, is also subject to a bankruptcy auction and approvals by the U.S. Bankruptcy Court for the Southern District of New York. Even so, AT&T expects the transaction to close in mid-2015.
“Combining Nextel Mexico with Iusacell will allow AT&T to more quickly improve and expand its mobile Internet service to the benefit of millions of Mexicans, particularly those who live outside major metropolitan areas, than it could otherwise do without the transaction,” wrote AT&T in its announcement of the deal.
Nextel Mexico covers around 76 million people. Combine that with Iusacell’s 8.6 million subscribers and AT&T’s 118.7 million wireless subscribers, and AT&T is one step closer to creating the first-ever North American Mobile Service area, which hopes to cover over 400 million subscribers between the U.S. and Mexico.
