AT&T on Friday completed its US$2.5 billion acquisition of Iusacell and named a longtime company executive to head up the Mexican mobile operator.

"We’ll begin work immediately to bring more wireless competition and improved mobile Internet service to Mexico," said new Iusacell chief executive Thaddeus Arroyo, in a statement.

Arroyo, who has worked for AT&T for the past 19 years, most recently as president of technology development, replaces Adrian Steckel at the helm of Iusacell. Steckel will remain with the company to assist with its integration into AT&T.

The acquisition of Iusacell will enable AT&T to create a North American service area encompassing the U.S. and Mexico. It plans to treat the 400 million consumers and businesses it covers as though they were on a single network and provide a consistent customer experience.

AT&T announced the Iusacell takeover in November.

"The quick approval of this deal is one more example of why Mexico is an attractive place to invest,” said AT&T CEO Randall Stephenson. "Expanding and enhancing Iusacell’s mobile network to cover millions of additional consumers and businesses is our top priority."

As it stands, Iusacell’s network covers around 70% of Mexico’s 120 million people, AT&T said.

Mexico has made great advances when it comes to encouraging more competition in the market. The country’s fixed and mobile markets are currently dominated by America Movil, but following regulatory pressure the incumbent is selling a portfolio of assets that will bring down its market share and allow a new player in.

Nonetheless, AT&T will face stiff competition in Mexico. America Movil aims to enter the pay TV market, becoming a quad-play operator, while number two mobile player Telefonica will doubtless fight hard to maintain its position. Furthermore, America Movil expects its as-yet undisclosed portfolio of assets to attract a new overseas player into Mexico, and major players including Softbank, China Mobile, and Bell Canada have been named as possible buyers.

Under the terms of the takeover agreement and as per the regulator’s insistence, AT&T has taken over Iusacell’s mobile licences, network assets, retail stores and a subscriber base of around 9.2 million. Grupo Salinas, the seller, has retained control of Iusacell’s Total Play broadband and TV operations.
 

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