Monday, December 8, 2014

AT&T's expansion, future seems promising.


AT&T acquired Iusacell SA and Direct TV this year in order to expand itself into mexico. AT&T has settled for more than $50 billion to buying Mexican wireless carrier Grupo Iusacell SA and DirecTV.
AT&T  is providing it's services in bundle wireless, TV and broadband services south of the U.S. border. The best part is that the Iusacell business AT&T is getting benefits as long as America Movil faces penalties.

Gregorio Tomassi, an analyst at Banco Itau BBA said,“AT&T is in no rush to buy America Movil’s assets in the short term.” He added, “America Movil is seeing the situation is becoming more difficult than they had initially thought.”

AT&T, SoftbankCorp and China Mobile Ltd were originally contacted by American Movil. It was trying yoi sell more than $17.5 billion.AT&T spokes person is not trying to say anything about Korean visit.

AT&T agreed to pay $48.5 billion for DirecTV, including its Latin American business, expanding outside the U.S. for the first time in a decade. It then agreed to buy Iusacell, Mexico’s third-largest wireless carrier, for an equity value of $1.8 billion.

There was AT&T's announcement on Nov 7 to extend their presence in Mexico to improve AT&T.

AT&T was searching for new area to operate and new business. The $176 billion U.S. phone giant has been seeking further expansion to meet increased competition and slowing wireless growth at home. Randall Stephenson, Chief Executive Officer, initially targetted Europe but shifted back to the Americas after Comcast Corp. announced plans to buy Time Warner Cable Inc.

When Mexico signed a telecommunications over haul into law, competion on telecommunication was emphasized. It forces America Movil to cut its fees and share infrastructure with its competitors because it controls seven out of 10 mobile-phone users in the country. Even without legislation, AT&T mus expand to cope with the changes in the environment.

For Stephenson, the timing and structure of America Movil’s breakup isn’t clear yet and that his phone company would be just fine without Slim’s assets.

America Movil is raised by 4.9 percent this year as of yesterday.

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