AT&T on Friday announced that its acquisition of Mexican wireless provider Iusacell is now complete. What's more, the nation's second largest carrier appointed longtime company man F. Thaddeus Arroyo to run the venture as chief executive.
AT&T revealed intentions to purchase Iusacell last November in a deal worth $2.5 billion. Along with the company's debt, the Dallas-based wireless carrier scooped up all of Iusacell's wireless properties, licenses, network assets, retail stores and its subscriber base.
The deal is a key cog in AT&T's plan to expand its reach outside of the US. While they've had plenty of success at home, the truth of the matter is that a large portion of the population in the states already have wireless service. Instead of recruiting from a pool of consumers that have never had a cell phone, they're competing with the likes of Sprint, T-Mobile and Verizon over existing customers.
Mexico, on the other hand, has a population of 120 million people and only 9.2 million are currently Iusacell subscribers. Granted, there's plenty of wireless competition there too, but the market has a lower penetration rate than the US which translates to faster growth potential.
The acquisition also expands the reach of AT&T's coverage across North America and will no doubt allow the company to provide attractive rates to international travelers and those that frequently make calls south of the border.
Arroyo, meanwhile, has been with AT&T for the past 19 years, most recently serving as president of the technology department. He said in a statement that he plans to begin work immediately to bring more wireless competition and improve mobile Internet service in Mexico.