[NewsPoster]

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.

[Inkling]

I'd be more impressed with AT&T's executives if they offered better cellular coverage. I have two of their stores within three miles but their closest cellular tower is about 7 miles away.

[chimaera]

This is good news for Mexican citizens. They need higher mobile prices. They just don't know it yet.

[zoundman]

It's Iusacell not Lusacell..

[Malcolm Owen]

Originally Posted by zoundman 

It's Iusacell not Lusacell..

Apologies. The spelling error has been corrected. Thank you.