AT&T’s goal is to connect more people with cutting-edge technology. The Dallas, Texas-based American multinational entered Mexico in 2015 with the purchase of Iusacell and Nextel, promising to compete against América Móvil (Telcel). However, the numbers don’t reflect the desired profitability.
AT&T has invested more than $10 billion in Mexico, but is currently facing rumors of a sale for more than $2 billion.
Over 10 years, the telecommunications company has acquired 23.6 million customers (individuals and businesses). Mónica Aspe, CEO of AT&T Mexico, points out that this has been achieved thanks to a reliable network and an increasingly personalized user experience.
The essence of the brand is “more than numbers, people.”
Mónica Aspe, CEO of AT&T Mexico.
AT&T offers prepaid, postpaid, business, and wholesale services. It offers high-speed browsing, customizable plans, and financing options for cutting-edge equipment. “In 2024, we will increase satisfaction, recommendation, and loyalty levels through active customer listening,” says Mónica Aspe.
AT&T was founded in 1878 (147 years ago) by Alexander Graham Bell and Gardiner Greene Hubbard. It is the third-largest telecommunications company in the world. The first and second places are occupied by T-Mobile and China Mobile. In 2023, AT&T had revenues of $120.7 billion, ranking it 13th on the Fortune 500 and one of the largest companies in the United States.
Alexander Graham Bell and Gardiner Greene Hubbard.
In 1982 (43 years ago), this multinational telecommunications company faced an antitrust lawsuit in the United States and was forced to sell off subsidiaries. This resulted in several independent companies, including Southwestern Bell.
After several mergers, acquisitions, and divestitures throughout its history, the current AT&T reconstructs much of the former Bell System, a telecommunications monopoly that dominated the United States for most of the 20th century.
The corporation as it exists today includes 10 of the original 22 Bell operating companies. Currently, AT&T owns the assets and operations of 10 of the original 22 companies that existed before 1984.
Western Union rejected an offer from Gardiner Hubbard, which offered them the rights to the telephone for $100,000.
The End of AT&T’s Monopoly in the United States
At the beginning of the 20th century, AT&T executives spread several rumors that the company was not in good shape. This caused investors in other companies to sell their shares for fear of a collapse. After this, AT&T bought these shares at a lower price and soon became the leading provider of telephone service nationwide.
However, the telephone monopoly ended on January 8, 1982, when the antitrust lawsuit filed in 1974 by the United States Department of Justice against the company of Alexander Graham Bell and Gardiner Greene Hubbard was settled. The telephone company’s value was reduced by 70%.
From there, AT&T entered the computer business, but failed in its attempt. Then, in 1991, it merged with NCR Corporation, but also failed to achieve the expected profits and was spun off in 1996.
After several mergers and investments, SBC Communications bought AT&T in 2005. The company also attempted to acquire T-Mobile, the world’s largest telecommunications company, but regulators blocked the deal.
Other AT&T acquisitions:
DirecTV and Iusacell in 2014.
Nextel Mexico in 2015.
WarnerMedia, Xandr, and AlienVault in 2016.
AT&T merged with Discovery, Inc. in 2021.
AT&T controls the production companies, subsidiaries, and affiliates of Warner Bros. and various cable television channels such as CNN, HBO, Cartoon Network, Boomerang, Cartoonito, TNT, and HTV.
The 5 factors for its possible exit from the country
On August 24, 2015, “AT&T Mexico” was officially launched through the campaign “United we are better: Iusacell and Nextel united we are AT&T.” Ten years have passed, and in August 2025, a rumor emerged in the Mexican telecommunications sector: Is AT&T planning to leave the country?
The three largest mobile phone operators in Mexico are Telcel, AT&T, and Movistar, with approximately 55%, 15%, and 14.2% of the market.
AT&T’s possible exit from Mexico is attributed to a combination of factors, according to various media reports and market analyses:
Low profitability: The main reason why AT&T could cease operations in Mexico is due to its low profitability in Mexico.
Market dominated by Telcel: Despite having invested more than $10 billion and having acquired Iusacell and Nextel, AT&T has failed to compete effectively with Telcel (owned by América Móvil), which maintains a dominant market share, hindering the growth of its competitors.
Regulatory barriers and spectrum costs: The company has faced a regulatory environment that, in its opinion, has failed to generate true competition. In particular, it has been pointed out that Mexico has one of the highest radio spectrum costs in Latin America, which discourages investment and competition.
Disputes with América Móvil: AT&T has had public conflicts with Carlos Slim’s company, even escalating to mutual accusations in the past.
Global Restructuring Plan: At a global level, the multinational telecommunications company has been refocusing its strategy in the United States, concentrating its resources on the deployment of fiber optic networks and other services. The possible sale of its Mexican subsidiary could be part of this plan to simplify its operations and raise capital.
It is important to note that AT&T’s situation is not isolated.
Telefónica (Movistar), another major competitor, has also reduced its operations in Mexico, opting to lease AT&T’s network rather than continue investing in its own infrastructure. This reflects a broader challenge for telecommunications operators seeking to compete in a market with a dominant economic player.
At the global level, AT&T has more than 140 employees, and in Mexico, there are 14,000.
Although reports indicate that AT&T is working with advisors to sell its business, the company has not issued an official confirmation on this matter.
Source: altonivel
