AT&T To Buy Mexico's Iusacell For US$2.5 Bln

(RTTNews) - AT&T Inc. (T) said Friday that it has entered into an agreement with Grupo Salinas to buy Mexican wireless company Iusacell for US$2.5 billion, inclusive of Iusacell debt.

Under the deal, AT&T will acquire all of Iusacell's wireless properties, including licenses, network assets, retail stores and about 8.6 million subscribers.

The acquisition will occur after Grupo Salinas, the current owner of 50% of Iusacell, closes its announced purchase of the other 50% 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 currently covers about 70% of Mexico's about 120 million people. AT&T plans to expand Iusacell's network to cover millions of additional consumers and businesses in Mexico.

AT&T expects the deal to close in the first quarter of 2015. Iusacell will continue to be headquartered in Mexico City following the completion of the deal.

Additionally, AT&T said its Project VIP network investment plan is ahead of schedule. The company said it has essentially completed the expansion of its 4G LTE network, which now covers more than 300 million people in the United States.

AT&T also said it expects its 2015 capital expenditure budget for its existing businesses to be in the $18 billion range.