AT&T Mexico
AT&T Mexico is a wireless telecommunications company and wholly owned subsidiary of AT&T Inc., providing mobile voice, data, broadband, and related services to consumers and businesses across Mexico.[1][2] Established in 2015 through AT&T's acquisitions of Iusacell for $2.5 billion and Nextel Mexico for $1.9 billion, which were subsequently merged under the AT&T brand, the company traces its origins to Iusacell, founded in 1987.[3][4][5] With network coverage reaching 90% of Mexico's population, AT&T Mexico operates as the second-largest mobile provider in the country, commanding approximately 18% market share and serving over 23 million subscribers as of late 2023.[2][7] In 2025, amid AT&T's strategic refocus on core U.S. operations, the company has explored divesting its Mexican unit for more than $2 billion, reflecting challenges in achieving competitive parity against dominant player Telcel's 64% share.[7][8][9]Overview
Establishment and Corporate Structure
AT&T Mexico was established in 2015 as the result of AT&T Inc.'s acquisitions of the Mexican wireless operators Iusacell and Nextel Mexico, followed by their operational merger to form a unified entity under the AT&T brand.[3] Iusacell, originally founded in 1987, had been acquired by AT&T on November 7, 2014, in a transaction valued at $2.5 billion, which included the operator's debt and all wireless properties.[10] Nextel Mexico, facing financial distress, was purchased through U.S. bankruptcy proceedings for $1.875 billion, with the deal closing on April 30, 2015, after approval by the U.S. Bankruptcy Court for the Southern District of New York.[5] These moves positioned AT&T to enter Mexico's competitive telecommunications market, leveraging the acquired spectrum and infrastructure to serve over 400 million potential customers across North America.[11] The merger integrated Iusacell's GSM-based network with Nextel Mexico's iDEN push-to-talk technology, rebranding the combined operations as AT&T Mexico to emphasize seamless connectivity with AT&T's U.S. services.[12] This structure allowed for shared roaming agreements and cross-border billing, though initial integration faced technical challenges in unifying disparate network standards.[3] By mid-2015, the entity began operating under a single brand, phasing out Iusacell and Nextel identities while retaining key assets like Iusacell's 2.5 GHz spectrum holdings.[10] As a wholly owned subsidiary of AT&T Inc., AT&T Mexico operates primarily through Mexican limited liability companies, including AT&T Comunicaciones Digitales, S. de R.L. de C.V., which handles core voice, data, and broadband services.[13] The corporate structure emphasizes operational autonomy in regulatory compliance with Mexico's Federal Telecommunications Institute (IFT) while aligning with AT&T's global standards for network investment and customer data management.[14] Ownership remains 100% with AT&T Inc., with no minority stakes or joint ventures diluting control, enabling direct capital infusion for 4G LTE expansions post-establishment.[15]Operational Scope and Market Presence
AT&T Mexico operates primarily as a wireless telecommunications provider, offering mobile voice, data, and messaging services to consumers and businesses across the country. Its portfolio includes postpaid and prepaid plans under the AT&T brand, with additional enterprise solutions such as mobility management, dedicated network connectivity, and cloud-based services tailored for corporate clients. The company maintains a focus on 4G LTE and emerging 5G capabilities, supported by spectrum holdings in key bands for nationwide deployment. While fixed-line broadband remains limited, operational emphasis lies in mobile infrastructure to capture demand in a market dominated by wireless penetration.[1][16] In terms of market presence, AT&T Mexico holds approximately 18% of the national mobile subscriber base, positioning it as the third-largest operator behind Telcel (64%) and Movistar. As of December 2024, the company served more than 23 million total wireless subscribers, reflecting steady growth from post-acquisition integration efforts. Its network provides LTE coverage to over 104 million people, equivalent to roughly 80% of the population, with high availability metrics exceeding 99% in user experience reports for 3G/4G/5G connections. Headquartered in Mexico City, AT&T Mexico employs over 14,300 personnel dedicated to operations, customer support, and network maintenance as of 2023.[17][18][19][20][16] The company's geographic footprint spans urban centers and rural areas, leveraging owned and shared infrastructure to achieve broad accessibility, though it trails dominant incumbents in spectrum depth and rural density. Revenue from Mexican operations reached $4.29 billion in fiscal year 2024, underscoring a viable but competitive position amid ongoing investments exceeding $10 billion since entry. AT&T Mexico's retail distribution includes thousands of points of sale, emphasizing digital channels and partnerships for subscriber acquisition in a prepaid-heavy market.[19][21][18]History
Pre-AT&T Foundations (Iusacell, Nextel, and Unefon)
Iusacell commenced operations in 1987 as Mexico's inaugural mobile telephone provider, initially offering analog cellular services before transitioning to digital CDMA technology.[22] The company, founded by the Peralta family, expanded coverage through acquisitions of smaller regional operators and pioneered services such as 3G connectivity and mobile broadband internet in the Mexican market.[23] By the early 2010s, Iusacell held a modest market share, focusing on postpaid subscribers in urban areas amid competition from dominant players like Telcel. Unefon, established in 1997, operated as a wireless carrier emphasizing prepaid services for the mass market, utilizing TDMA technology initially.[24] In 2010, Unefon shifted to GSM infrastructure, leveraging shared network assets with Iusacell to enhance coverage and service quality.[25] In March 2007, Grupo Salinas, the parent entity, merged Unefon Holdings into Iusacell, consolidating operations and boosting the combined subscriber base to over 3.4 million, representing approximately 7% of Mexico's wireless market at the time.[26] This integration allowed Iusacell to diversify its offerings, retaining Unefon as a budget prepaid brand while streamlining infrastructure and administrative functions under unified CDMA and emerging GSM deployments. Nextel Mexico launched commercial services in 1998 under NII Holdings, employing proprietary iDEN technology that enabled integrated digital enhanced network capabilities, including nationwide push-to-talk dispatch features appealing to enterprise and government users.[27] The operator built a specialized footprint with direct access spectrum allocations, differentiating itself through walkie-talkie-like communications and data services, though it maintained a niche position with limited overall market penetration compared to GSM-based rivals.[28] Prior to its 2015 acquisition, Nextel Mexico had deployed 3G enhancements in select cities by 2012 to support evolving broadband demands.[29]Entry and Acquisitions (2014-2015)
AT&T announced its entry into the Mexican telecommunications market on November 7, 2014, through an agreement to acquire wireless operator Iusacell from Grupo Salinas for $2.5 billion, including approximately $800 million in debt.[30][31] The transaction encompassed Iusacell's wireless properties, spectrum holdings, and roughly 8.6 million subscribers, enabling AT&T to establish a foothold in Mexico's post-reform competitive landscape.[10] The acquisition was completed on January 16, 2015, after regulatory approvals, marking AT&T's operational launch in the country.[32] Building on this foundation, AT&T pursued further expansion by agreeing on January 26, 2015, to purchase Nextel Mexico from NII Holdings for $1.875 billion, amid NII's Chapter 11 bankruptcy proceedings in the United States.[33][28] Nextel Mexico brought additional iDEN-based infrastructure, spectrum assets, and an estimated 2.4 million subscribers, complementing Iusacell's GSM/LTE network and broadening AT&T's coverage.[34] The deal received approval from Mexican authorities and the U.S. Bankruptcy Court, closing on April 30, 2015.[5] These back-to-back acquisitions rapidly scaled AT&T's presence, combining customer bases exceeding 11 million and key spectrum bands to challenge dominant incumbents like América Móvil, while leveraging synergies in network migration and service unification.[35] The moves aligned with Mexico's 2013 telecom reforms, which capped market concentration and permitted full foreign ownership, fostering increased competition.[36]Mergers and Early Integration (2015-2016)
AT&T completed its acquisition of Iusacell from Grupo Salinas on January 16, 2015, for $2.5 billion, including $800 million in debt assumed.[37][32] This deal provided AT&T with Iusacell's nationwide wireless network covering approximately 70% of Mexico's population and about 8.5 million subscribers.[4] On April 30, 2015, AT&T finalized the purchase of Nextel Mexico from NII Holdings for $1.875 billion, following NII's bankruptcy proceedings.[5][33] Nextel Mexico operated primarily in urban areas with around 2.4 million subscribers and held valuable spectrum assets, including AWS bands.[5] Following the acquisitions, AT&T initiated the merger of Iusacell and Nextel operations under the unified AT&T Mexico brand, appointing Thaddeus Arroyo as CEO to oversee integration.[37][5] Early efforts focused on unifying employee cultures, standardizing service offerings, and beginning network integration to create a single provider serving over 11 million customers.[5] Rebranding of stores and marketing to AT&T commenced in August 2015, aiming to establish a seamless North American mobile footprint.[38] In 2016, integration advanced with substantial capital investments in network upgrades and coverage expansion, targeting 75 million people by year-end.[39] AT&T Mexico reported $606 million in wireless revenues for the second quarter, though incurring a $225 million operating loss due to these ongoing investments and operational unification costs.[40] The process emphasized spectrum consolidation and infrastructure harmonization to enhance service quality amid competition from dominant incumbents.[41]Expansion and Operational Challenges (2017-2024)
Following the 2016 merger of its acquired assets, AT&T Mexico pursued aggressive network expansion, committing $3 billion in capital expenditures through 2018 to extend high-speed mobile broadband coverage to 100 million people across the country.[42] This included launching MetroPCS-branded LTE services in October 2017 targeted at prepaid urban users, aiming to capture low-income segments underserved by competitors.[42] By 2024, cumulative investments exceeded $10 billion, funding 4G LTE densification and initial 5G deployments in major cities such as Mexico City, Guadalajara, and Monterrey, with further rollout to five additional cities including Morelia, Saltillo, Torreón, Hermosillo, and Culiacán.[43][44] These efforts positioned AT&T as the third-largest operator, serving approximately 22.6 million subscribers by mid-2024.[17] Operational challenges persisted amid dominance by América Móvil's Telcel, which controlled over 60% of the mobile market, limiting AT&T's share to around 18% despite expansion.[17] Intense price competition and integration hurdles from prior acquisitions eroded margins, with AT&T's Mexico unit generating revenue growth but failing to achieve profitability on par with U.S. operations, as noted in annual reports highlighting significant rivalry from incumbents.[19] Regulatory pressures compounded issues, including high spectrum auction costs that deterred participation in subsequent bids and evolving oversight from bodies like the Federal Telecommunications Institute, which imposed asymmetric obligations favoring newer entrants but struggled to erode Telcel's entrenched position.[45] By 2024, these factors contributed to strategic reevaluation, with AT&T exploring divestiture of its Mexican operations for over $2 billion, signaling underwhelming returns after a decade of investment amid macroeconomic volatility and foreign operator disadvantages.[7] Additional strains included disputes over tower leasing payments, risking cash flow disruptions for infrastructure partners, and delays in 5G scaling due to limited mid-band spectrum holdings compared to rivals.[46][47] Despite coverage gains, customer acquisition lagged, with prepaid churn high in a market where economic inequality favored budget plans from dominant players.[48]Services
Mobile Wireless Offerings
AT&T Mexico delivers mobile wireless services via prepaid and postpaid subscriptions, encompassing voice calls, SMS messaging, and mobile data with 4G LTE and 5G capabilities on compatible networks and devices.[49] Prepaid options, marketed as AT&T Simple or Prepago, operate on a pay-as-you-go model without long-term contracts, requiring users to purchase recargas to activate monthly plans featuring unlimited national voice minutes and SMS.[49] [50] Prepaid plans include tiers such as 12 GB data for MXN 200 monthly and 18 GB for MXN 300, both with unlimited calls to Mexico, the United States, and Canada, alongside zero-rated access to seven social networks like WhatsApp and Facebook.[50] Higher recarga amounts, such as MXN 299 to 649, provide varying data allotments while maintaining unlimited voice and text benefits across North America.[49] Services activate via physical SIM cards or eSIM, with an initial activation fee of MXN 300.[49] Postpaid plans, under the AT&T Premium brand, require a 12-month commitment for entry-level options and include unlimited voice and SMS to Mexico, the US, and Canada, with tiered high-speed data from 5 GB at MXN 319 per line to 50 GB at MXN 699.[50] In September 2025, AT&T Mexico updated its postpaid lineup to six plans starting at 10 GB for MXN 319, scaling to 50 GB for MXN 699, incorporating hotspot sharing, up to six zero-rated social apps, and 5G access.[51] [49] Multi-line family arrangements allow data sharing among subscribers, subject to plan-specific terms.[49] All offerings support device financing over 24-36 months and international roaming add-ons beyond included North American coverage.[49]Broadband and Fixed-Line Services
AT&T Mexico's broadband services are delivered primarily through fixed wireless access (FWA) technology, branded as Internet en Casa, which utilizes the company's LTE mobile network to provide home internet without requiring traditional wired infrastructure. Launched on April 17, 2018, the initial offering provided download speeds of 10 Mbps, supporting simultaneous connections for up to five devices, at a monthly price of 350 Mexican pesos (approximately 19 USD at the time).[52] This service targets residential users seeking an alternative to wireline broadband, with options to bundle additional data packages via existing mobile plans for enhanced capacity.[53] The Internet en Casa plans underwent a price adjustment announced in 2024, effective August 15, reflecting changes in operational costs amid Mexico's competitive telecom market; specific updated pricing varies by plan and requires customer selection on the official portal.[54] Coverage aligns with AT&T Mexico's mobile network footprint, which spans approximately 90% of the country's population, though actual FWA performance depends on local signal strength, congestion, and device compatibility. Unlike fiber-optic or DSL providers such as Telmex, AT&T's approach avoids capital-intensive fixed-line deployments, prioritizing scalability through spectrum assets in LTE bands.[52] Fixed-line services remain limited, with no evidence of owned copper or fiber telephony infrastructure; any local or long-distance voice offerings appear integrated into wireless or IP-based systems rather than dedicated PSTN lines. This contrasts with dominant incumbents like Telmex, which control over 80% of Mexico's fixed telephony lines as of recent regulatory data. AT&T Mexico's emphasis on wireless broadband reflects its origins as a mobile-focused operator post-2015 acquisitions, enabling rapid deployment but potentially constraining speeds and reliability in high-demand urban areas compared to wireline alternatives.Value-Added and Enterprise Solutions
AT&T Mexico provides value-added services that extend beyond core connectivity, including a free mobile top-up feature launched in partnership with Moneo on January 15, 2025, which allows prepaid customers to recharge balances using electronic sales receipts from participating merchants.[55] These services aim to enhance user convenience by integrating everyday transactions with telecom billing, though adoption depends on merchant participation and customer awareness of the digital receipt ecosystem. For enterprise clients, AT&T Mexico offers tailored B2B solutions focused on mobility, data management, and digital transformation. Key offerings include the AT&T Ármalo Negocios plan, which enables businesses to customize data allowances starting from $239 MXN per month and bundle productivity apps, social media access, and streaming services to support team collaboration.[56] The AT&T Simple Empresarial prepaid option provides flexibility with free service months for commitments of 12, 18, or 24 months, with or without device inclusion, catering to small and medium enterprises seeking cost control.[56] IoT connectivity solutions connect smart devices to optimize operational efficiency, such as asset tracking and remote monitoring, integrated into broader business plans.[57] Security features like Samsung Knox mobile device management (MDM) platform enhance data protection and device control for corporate fleets.[58] Additionally, the Control Flotilla AT&T tool supports remote vehicle fleet management, including location tracking and usage analytics, to reduce costs and improve logistics.[59] AT&T Mexico has connected over 1 million business lines since entering the market, emphasizing scalable infrastructure for enterprises.[60] In cloud services, the company completed migration of its Amdocs Customer Experience Suite systems to Oracle Cloud Infrastructure in June 2024, improving scalability and real-time processing for enterprise billing and support.[61] Digital commerce enhancements stem from an extended partnership with MATRIXX Software announced February 21, 2023, deploying cloud-native platforms for next-generation billing and monetization tailored to business needs.[62] These solutions prioritize reliability and integration, though their effectiveness is constrained by Mexico's uneven infrastructure and competition from dominant players like Telcel.Network Infrastructure
Technology Deployments and 5G Rollout
AT&T Mexico initiated its 4G LTE network deployment in July 2015, with initial service launch in October 2015 across six major cities.[63] The expansion accelerated, covering over 100 cities and reaching 78 million people within subsequent years, supported by substantial infrastructure investments including an additional $3 billion commitment to extend LTE coverage.[63][41] By the end of 2018, the LTE network was projected to serve 100 million people, facilitating the phase-out of older technologies such as CDMA in October 2016, iDEN in 2017, and GSM in 2019 to reallocate spectrum and resources toward modern standards.[64] The company also deployed LTE-M for IoT applications, launching commercial service in January 2018 following trials in Tijuana and Puebla during 2017.[65] This included upgrades to the existing LTE infrastructure, enabling low-power wide-area connectivity for enterprise use cases. In parallel, AT&T Mexico extended LTE to specific venues, such as connecting Mexico City Metro Line 2 with 4G LTE and free Wi-Fi across all stations by November 2018.[66] AT&T Mexico commenced 5G deployment in December 2021, utilizing the 2.5 GHz spectrum band for initial non-standalone operations.[67][68] Commercial 5G services launched in May 2022 in Mexico City, Guadalajara, and Monterrey, with plans to expand infrastructure to 25 additional cities by year-end.[69] Coverage grew to include Morelia, Saltillo, Torreón, Hermosillo, and Culiacán by July 2022, followed by 18 cities total by December 2022, encompassing Tijuana, Mexicali, Ciudad Juárez, Mazatlán, and Ciudad Obregón.[70][71] Further advancements include private network deployments: the first industrial-grade LTE private network at a maritime terminal with Nokia in August 2022, and Mexico's inaugural private 5G network at Tecnológico de Monterrey in collaboration with Ericsson in February 2024.[72][73] As of 2025, AT&T Mexico's 5G infrastructure supports coverage in at least 38 cities, including shared access enabling services for partners like Telefónica, though nationwide penetration remains constrained by spectrum availability and lags behind leading competitors.[74]Spectrum Holdings and Allocation
AT&T Mexico's spectrum holdings are concentrated in low- and mid-band frequencies suitable for wide-area coverage and capacity, primarily acquired through the 2015 merger of Iusacell and Nextel Mexico operations, supplemented by targeted purchases in subsequent auctions.[75] The company holds national concessions in the 800/850 MHz band (LTE Band 5/26), providing approximately 10 MHz of duplexed spectrum for primary 4G LTE coverage, inherited from Nextel’s legacy iDEN network and transitioned to LTE.[76] In mid-band, AT&T possesses AWS (1700/2100 MHz, LTE Band 4) and PCS (1900 MHz, LTE Band 2) allocations, typically 10-20 MHz paired in each, enabling urban capacity and supplementary rural extension, though partial returns occurred in select regions due to elevated usage fees.[77] For 5G deployment, initiated in late 2021, the operator relies on 2.5 GHz TDD spectrum (around 40 MHz contiguous post-returns), which supports mid-band performance akin to U.S. deployments but limits scalability without additional acquisitions.[78] Higher bands like 3.5 GHz (n78) are not significantly held, with no confirmed national rollout as of 2025.[76]| Band | Frequency Range | Approximate Bandwidth | Primary Use |
|---|---|---|---|
| 800/850 MHz (B5/26) | 825-835/870-880 MHz uplink; 870-880/915-925 MHz downlink | 10 MHz duplexed (national) | 4G LTE coverage, rural penetration[76] |
| AWS (B4) | 1710-1755/2110-2155 MHz | 10-20 MHz paired (regional/national) | 4G LTE capacity, urban supplemental[79] |
| PCS (B2) | 1850-1910/1930-1990 MHz | 20-30 MHz paired (1700+ municipalities) | 4G LTE primary capacity[80] |
| 2.5 GHz TDD | 2500-2570 MHz | 40 MHz contiguous (national, post-2024 return) | 5G mid-band rollout[81] |
Coverage, Capacity, and Infrastructure Investments
AT&T Mexico's mobile network achieves high availability, with users experiencing a 3G, 4G, or 5G connection 99.1% of the time in tested locations, according to the OpenSignal Mobile Network Experience Report for October 2025.[20] This metric reflects consistent signal presence where demand occurs, though geographic coverage spans the majority of populated areas, supported by post-acquisition expansions following the 2015 merger of Iusacell and Nextel Mexico assets. Capacity enhancements have centered on 4G LTE densification and 5G deployments, initiated in December 2021 across 25 initial cities, with plans to extend to additional urban centers by 2022 to accommodate growing data traffic.[88] These upgrades leverage existing spectrum holdings to boost throughput, including agreements for shared last-mile capacity with Telefónica Movistar Mexico extending through 2030, which provides mutual access to 3G, 4G, and 5G infrastructure for improved redundancy and load balancing.[89] Infrastructure investments total $10 billion cumulatively through August 2024, directed toward building out cell sites, backhaul fiber, and core network upgrades to support nationwide operations and competitive data speeds.[90] Early post-entry spending exceeded $7 billion on network expansion and modernization, enabling the transition from legacy systems to higher-capacity digital infrastructure amid challenges from dominant incumbents.[91] Ongoing commitments emphasize sustainable growth in urban and underserved regions, though specific annual capital expenditures for Mexico remain bundled within AT&T's broader Latin American allocations.Market Position
Market Share and Financial Performance
AT&T Mexico holds an approximately 18% share of the Mexican mobile market as measured by revenue in 2024, ranking third behind Telcel's 64-67% dominance and ahead of Movistar's roughly 7%.[92] [17] This position stems from subscriber growth amid a fragmented landscape where mobile virtual network operators (MVNOs) captured nearly 15% of the market by year-end 2024, eroding shares among major carriers.[93] The company's wireless subscriber base expanded to 23.6 million as of December 31, 2024, up from 22.3 million at the end of 2023, reflecting modest net additions despite intense competition from Telcel's 84+ million users.[94] [95] Financially, AT&T's Latin America segment—dominated by Mexico operations—reported $3.9 billion in revenue for 2023, with indications of stability around $4 billion in 2024 amid broader telecom market expansion from $17.83 billion to projected growth trajectories.[96] [97] This performance follows cumulative investments exceeding $10 billion since AT&T's 2015 entry via acquisitions of Iusacell and Nextel Mexico, yet profitability has lagged due to Telcel's pricing power and regulatory hurdles limiting spectrum access and infrastructure deployment.[17] Combined revenues for Telcel, AT&T, and Movistar reached MXN 358.4 billion ($18 billion USD equivalent) in 2024, up 4% year-over-year, underscoring AT&T's contribution but highlighting its secondary role in a Telcel-centric ecosystem.[93]| Metric | 2023 | 2024 |
|---|---|---|
| Wireless Subscribers (millions) | 22.3 | 23.6[94] |
| Revenue (Latin America segment, USD billions) | 3.9 | ~4.0[96] |