AT&T to merge Nextel and Iusacell, but retain Unefon

Mexico's new market entrant AT&T has announced the merger of its local brands Nextel and Iusacell, which will disappear in 2016. Unefon, on the other hand, will remain as a separate brand to focus on the pre-paid market.

Iusacell and Nextell will continue to exist as AT&T's brands in the Mexican market, but will start offering AT&T's plans as opposed to their own, as stated by CEO Thaddeus Arroyo in a press conference. The physical transformation of the brand will start later this year.

AT&T also launched its first pan-North American postpaid plan, which allows roaming-free use in Mexico, the US and Canada.

CMO Víctor Tiburcio said that the launch will raise competition in the country.

"We see the opportunity to transform the telecom industry in Mexico," he said. "Our plans are ambitious, and reflect our commitment to the country."

AT&T's priority, he said, is to build its infrastructure, for which the company will invest US$3bn in the next three years. This will translate into a better experience for the customer, said Tiburcio.

Competing operators América Móvil and Telefónica have also announced plans to counter AT&T's entry into the market, including the elimination of roaming with the US. América Móvil announced a US$6bn investment in the Mexican market, whereas Telefónica's local brand Movistar will focus on building better customer service.