AT&T has declared that it will purchase Mexico-based wireless carrier Iusacell for $1.7 billion in cash. The Mexican company has a network that blankets 70 percent of the country with 3G, and uses the same GSM frequencies that AT&T uses. The deal will also see AT&T take on $700 million in debt that Iusacell holds.
The deal isn't certain yet -- Grupo Salinas has a 50 percent share in the company, and will have to buy out the other owners -- to the tune of $717 million -- to solidify the deal, even before Mexican regulators examine the deal. Iusacell has a wide swath of the 800MHz spectrum, and notably covers Guadalajara and Mexico City.
It is unclear what AT&T plans to do with the network, or if it will be re-branded under the AT&T banner. It is speculated that the network gives AT&T a toehold in the Central America telecom industry, and heralds more buys, including assets from America Movil that are on offer.
Update: The carrier "Iusacell" was mistakenly reported as "Lusacell" and has been corrected. Electronista regrets the error.