AT&T has announced a plan to buy NII Holdings’ wireless business in Mexico for a reported $1.875bn.
Both companies have agreed to enter into an agreement which will see AT&T acquire Nextel Mexico and its assets, which include spectrum licenses, network assets, retail stores and nearly 3 million subscribers.
In September, NII filed for bankruptcy protection in the US as it was sitting on $5.8bn debt and facing tough competition from other players in Brazil and Mexico, reported Reuters.
According to AT&T, Nextel Mexico’s network connects nearly 76 million people.
By acquiring Nextel Mexico, the American telecom giant is expected to provide faster mobile internet services to the Mexican market and give competition to the other top players including America Movil.
The US telecom giant is also planning to introduce a first of its kind North American Mobile Service area, which is likely to cover over 400 million consumers and businesses in Mexico and the US.
In order to expand its mobile internet services in remote areas of Mexico, AT&T is also planning to combine Nextel Mexico with its previously acquired company Iusacell.
According to reports Iusacell has more than 8 million subscribers, a base larger than Nextel Mexico’s 3 million subscribers.
America Movil, owned by billionaire Carlos Slim, currently owns 70% of the telecom market share in Mexico, followed by Telefonica which has a 20% market share.