AT&T May Be on the Prowl for Bigger Piece of Mexican Market, Analyst Says
AT&T’s buy of Iusacell for $2.5 billion (see 1411070053) gives AT&T less than 10 percent of the wireless market in Mexico, “but could set the stage to later on add regional assets in Mexico that America Movil is attempting to…
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sell or even assets from the bankrupt Nextel International,” BTIG analyst Walter Piecyk said Monday in a research report. “The bigger question that will likely emerge is what AT&T plans are for Brazil, which is on the cusp of wireless market consolidation.” Analysts also commented on AT&T’s announcement that it will spend less on capital expenditures in 2015 than in 2014, a 14 percent cut from $21 billion to $18 billion. The announcement seems like a negative for tower, fiber and other infrastructure companies but “the headline may appear worse than the reality” since AT&T “will continue to spend on some important initiatives such as wireless capacity and GigaPower,” wrote Wells Fargo's Jennifer Fritzsche.