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AT&T Inc. (NYSE:T) Mexico CEO Talks On Mexico Business

AT&T Inc. (NYSE:T) Mexico CEO Thaddeus Arroyo said that it would take some years to build the business in Mexico. Recently, the company bought Mexico’s number three and number four carriers, and now competes with America Movil. After acquisition, the bigger challenge for AT&T lies ahead. He needs to integrate the network of two companies to compete with Carlos Slim’s top carrier, which owns 70% of the mobile market in Mexico.

The significance

With the new acquisitions, AT&T would be able to expand in new markets as the U.S. wireless market saturates. The experts believe that Mexico acquisitions will not create major difference in short-term. The CEO said that the company’s long term plan is to deploy latest fourth generation services to more than 100 million Mexicans, and it is going to take time, in fact number of years.

The overhaul impact

AT&T belongs to list of companies that intends to benefit from extensive telecom sector overhaul as decided last year. The new changes are forcing America Movil to open up infrastructure and allow peers interconnect to network for free. Arroyo strongly believes that it will take some years to finally commence and deploy the experiences that they are seeking for. The carrier company disclosed that Iusacell recorded a $27 million 1Q operating loss. The number of subscribers declined to 5.97 million from 9.2 million when AT&T closed the deal in January.

The future plans

AT&T Inc. (NYSE:T) Mexico’s CEO said that companies are better placed compared to government to develop wireless services. He said specifically that networks can be called as living organisms to a certain degree. Moreover, if the company wants to achieve its objective of becoming market leader in the industry within next ten years, it has no other choice but to be successful in both postpaid and prepaid segments. When asked about plans to acquire America Movil assets, Arroyo denied and added that the company looks for prospects but as of now they have their hands full.

Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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