AT&T moves into discussion to buy the Mexican NII holdings after the company came under the hammer from the U.S. Bankruptcy Code.
AT&T recently moved in to finalize the deal that sealed it for Nextel Mexico. The American telecommunication company has entered into agreement to buy out the NII Holdings Mexican wireless company Nextel Mexico for US$1.875 billion.
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The amount is less than the amount that the company owes under the Section 36 of the U.S. Bankruptcy Code. AT&T doesn’t seem to mind because they will not only be acquiring Nextel alone, all the companies and assets that are owned by Nextel, including spectrum licenses, network assets, retail stores and most importantly, the company’s 3 million subscribers.
AT&T is looking at a broader spectrum. Nextel acquisition will play a role in providing the company with bringing better competition and faster mobile internet to 76 million people and expanding in all areas of Mexico. With such a chance at hand, AT&T can move in to create a coverage area of 400 million people.
AT&T first step will be to merge the company with Iusacell which will aid the extension rapidly. The company will bring telecommunication facilities to millions of Mexicans, even the ones living outside metropolitan areas. It could have gone through such expansion without the transaction but with it under their belt now; AT&T has the license to do so.
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The only hurdle in the company’s way is the permit that it must acquire to regulatory approval by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones). With an aggregate of positive reviews and approval rate success, the AT&T is expected to buy out the company by mid-2015.