AT&T announces extra US$3bn for Mexico operation

US operator and new entrant to Mexico's telecom market AT&T has announced the investment of another US$3bn to deploy its high speed mobile network.

The new investment will add to the US$4.4bn that AT&T already cashed out when it purchased Mexican operators Nextel and Iusacell earlier this year.

The network will cover 100mn people in Mexico, and is expected to be in operation by 2018. AT&T CEO Randall Stephenson said that, combined with its US network, the operator will reach 400mn users.

"We will create the first North American mobile service," he said. "This network will allow our countries, economies people and cultures to be fully connected."

By the end of this year, AT&T will have invested US$7.4bn in Mexico. According to Crónica, competitor and preponderant agent América Móvil invested US$9.6bn in total in Latin America in 2014.

AT&T closed the purchases of both Iusacell and Nextel in January and February, respectively, and is gearing up to enter the Mexican market later this year. The operator will be ranked third in terms of subscribers, with around 12% of the market, although it projects to grow that number exponentially in the next few years.

The company is planning to rent infrastructure from América Móvil's new tower rental company, Telesites.