- AT&T explores divestment of its Mexico mobile business
- The division holds approximately 18% market share in Mexico
What happened: AT&T weighs exit from Mexico mobile market after decade of struggle
AT&T is working with advisers to explore the sale of its Mexican mobile unit. The company is seeking more than $2 billion for the business. Final decisions have not been made and deliberations are ongoing. AT&T declined to comment on the matter. The unit holds about 18 percent of Mexico’s mobile market, far behind the dominant operator.
AT&T entered the market in 2014 by acquiring local operators. It invested over $10 billion but failed to close the gap with the leading firm. Market conditions and shifting regulations added complexity. Spain’s Telefónica is also reportedly looking to reduce its footprint in Mexico. AT&T’s move reflects a broader effort to refocus on more profitable domestic operations and digital services.
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Why it’s important
A possible sale would mark a significant retreat from a major international market. AT&T’s Mexico unit, despite heavy investment, struggled to grow against entrenched rivals. Divesting could free up capital for prioritised projects such as fibre and 5G in the US. The shift underscores challenges of competing in highly concentrated telecom markets. It may signal a broader industry trend of global operators retreating from low-growth, high-barrier markets.
Regulators may also view this as further consolidation in Mexico’s telecom sector. For AT&T, the sale would align with its strategic focus on domestic convergence and infrastructure. How the deal unfolds may affect future regional telecom investment and competition dynamics.
