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AT&T's 4G LTE Network Expansion Plans on Track in Mexico
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U.S. telecom behemoth, AT&T Inc. (T - Free Report) is gradually expanding its 4G LTE wireless networks in Mexico. Currently, its service spans across 111 Mexican cities. Subscribers in the AT&T’s covered areas just need an LTE-enabled smartphone and SIM card to access the super-fast network at no extra charge. The company currently covers 70% of its subscribers’ footprint with LTE networks.
At the end of the first quarter of 2017, AT&T provided LTE network coverage to around 85 million people in Mexico. The company now aims to provide 4G LTE mobile service to 100 million Mexican customers by the end of 2018. Management has decided to invest $3 billion toward the expansion of high-speed mobile Internet network in the country.
In 2015, AT&T forayed into the Mexican telecom industry with the acquisition of Grupo Iusacell and Nextel de Mexico for a total consideration of approximately $4.4 billion. In 2014, the government of Mexico introduced several reforms within its telecom sector, which was previously highly monopolistic, with one or two major companies dominating the market. With the new reforms opening up considerable scope for investment in Mexico, AT&T is striving to capitalize on this opportunity.
The acquisitions of Grupo Iusacell and Nextel de Mexico have added around 12.2 million subscribers to AT&T’s kitty. The combined synergies from these two buyouts have positioned AT&T as a formidable player in the lucrative wireless market of Mexico. At present, America Movil SAB (AMX - Free Report) controls nearly 68% of the Mexican wireless market while Telefonica SA (TEF - Free Report) commands around 20%.
AT&T also plans to create a North American mobile service area covering more than 400 million customers and business enterprises in Mexico and the US. In Oct 2015, the company introduced a Pan-American cross-border unlimited voice and text-messaging service for new and existing subscribers of the post-paid plans 'AT&T Unidos' and 'AT&T Unidos Prepago' at no additional cost.
Meanwhile, T-Mobile US Inc. (TMUS - Free Report) has also introduced an innovative “Mobile without Borders” plan, through which its subscribers will be able to make calls to Canada and Mexico without having to pay any roaming charges.
Mexico is the largest economy in the Latin American region with a growing middle class population that is eager to spend more on high-speed wireless networks for more optimal use of smartphones and tablets. Also the wireless penetration rate is relatively lower in the country compared with the U.S. We, therefore, expect increased competition in this market going forward.
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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AT&T's 4G LTE Network Expansion Plans on Track in Mexico
U.S. telecom behemoth, AT&T Inc. (T - Free Report) is gradually expanding its 4G LTE wireless networks in Mexico. Currently, its service spans across 111 Mexican cities. Subscribers in the AT&T’s covered areas just need an LTE-enabled smartphone and SIM card to access the super-fast network at no extra charge. The company currently covers 70% of its subscribers’ footprint with LTE networks.
At the end of the first quarter of 2017, AT&T provided LTE network coverage to around 85 million people in Mexico. The company now aims to provide 4G LTE mobile service to 100 million Mexican customers by the end of 2018. Management has decided to invest $3 billion toward the expansion of high-speed mobile Internet network in the country.
In 2015, AT&T forayed into the Mexican telecom industry with the acquisition of Grupo Iusacell and Nextel de Mexico for a total consideration of approximately $4.4 billion. In 2014, the government of Mexico introduced several reforms within its telecom sector, which was previously highly monopolistic, with one or two major companies dominating the market. With the new reforms opening up considerable scope for investment in Mexico, AT&T is striving to capitalize on this opportunity.
The acquisitions of Grupo Iusacell and Nextel de Mexico have added around 12.2 million subscribers to AT&T’s kitty. The combined synergies from these two buyouts have positioned AT&T as a formidable player in the lucrative wireless market of Mexico. At present, America Movil SAB (AMX - Free Report) controls nearly 68% of the Mexican wireless market while Telefonica SA (TEF - Free Report) commands around 20%.
AT&T also plans to create a North American mobile service area covering more than 400 million customers and business enterprises in Mexico and the US. In Oct 2015, the company introduced a Pan-American cross-border unlimited voice and text-messaging service for new and existing subscribers of the post-paid plans 'AT&T Unidos' and 'AT&T Unidos Prepago' at no additional cost.
Meanwhile, T-Mobile US Inc. (TMUS - Free Report) has also introduced an innovative “Mobile without Borders” plan, through which its subscribers will be able to make calls to Canada and Mexico without having to pay any roaming charges.
Mexico is the largest economy in the Latin American region with a growing middle class population that is eager to spend more on high-speed wireless networks for more optimal use of smartphones and tablets. Also the wireless penetration rate is relatively lower in the country compared with the U.S. We, therefore, expect increased competition in this market going forward.
AT&T Inc. Price and Consensus
AT&T Inc. Price and Consensus | AT&T Inc. Quote
AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>