AT&T Completed the DIRECTV Acquisition in 2015
AT&T’s 4G LTE network in Mexico
In the last part of this series, we looked at AT&T’s (T) Mexican (EWW) acquisitions in the wireless market during 2015. We also learned that these acquisitions of Iusacell and Nextel Mexico have helped AT&T gain a significant spectrum portfolio in this market.
AT&T plans to boost its 4G LTE (long-term evolution) coverage significantly in Mexico. According to the company, it has planned a robust expansion in this market through 2018.
AT&T’s 4G LTE coverage was at ~29 million people at the end of 3Q15. The company anticipates this figure to reach ~40 million people at the end of 2015. The telecom company plans to have LTE coverage of 100 million people in Mexico at the end of 4Q18.
AT&T versus peers in Mexican wireless market in 3Q15
At the end of 3Q15, the most significant player in Mexican wireless market was America Movil (AMX). It had ~73 million wireless customers in Mexico at the end of the quarter.
Meanwhile, Telefonica (TEF) had the second-largest wireless subscriber base in this market. Telefonica Mexico had ~23.4 million mobile connections and subscribers as of the end of that quarter. At the end of 3Q15, AT&T had a wireless subscriber base of ~8.1 million in Mexico.
You may look at the iShares MSCI USA Minimum Volatility ETF (USMV) for a diversified exposure to AT&T. The telecom company made up ~1.5% of the ETF at the end of November 2015, and it held a total of ~3.8% in telecom players on the same date.
Browse this series on Market Realist: