AT&T Exits Mexico for $2B, Eyes US Fiber & 5G

AT&T Inc. has agreed to divest its Mexican wireless operations for $2 billion in cash to a 50-50 joint venture between Grupo Televisa SAB and Fintech Holdings Inc. This transaction signifies AT&T's complete withdrawal from Mexico, a market it entered in 2014 with the acquisition of Iusacell and Nextel Mexico for $4.4 billion. The divestment will enable AT&T to concentrate its resources on enhancing its fiber and 5G infrastructure within the United States.

For Televisa, this acquisition is a significant step, positioning it as the first telecom provider in Mexico to offer a comprehensive suite of services, integrating mobile connectivity with its existing broadband, pay-TV, and landline offerings. The deal, expected to close in the first quarter of 2027, is subject to regulatory approvals. AT&T plans to classify the Mexican unit as held-for-sale starting in its third-quarter 2026 financial report.

The sale reflects AT&T's broader strategy to retreat from non-core international assets and prioritize domestic advanced connectivity. Despite investing over $10 billion in Mexico, AT&T struggled to gain substantial market share against América Móvil, led by Carlos Slim. This move comes as AT&T faces evolving market dynamics, including potential disruptions from satellite-to-cellular initiatives.