Nextel sold to AT&T for $1.8 billion US

AT&T has agreed to purchase Mexican NII Holdings, more commonly known as Nextel, for $1.8 billion US.

The agreement, which was handed down today, includes purchasing Mexico’s Nextel for $1.875 billion US minus the company’s outstanding debt at closing.

In an agreement pursuant to Section 363 of the US Bankruptcy Code, AT&T will acquire the companies that operate under Nextel Mexico, including all of NII’s wireless, spectrum licenses, retail stores and network assets in Mexico.

Nextel Mexico has about 3 million subscribers but their total network covers about 76 million people. The acquisition of Nextel Mexico will help AT&T bring more competition and faster Internet speed to the Mexican wireless market as they plan to create the first-ever North American Mobile Service area that will cover more than 400 million businesses and consumers in Mexico and the US.

The company combination will also allow AT&T to provide expand its mobile services to include Mexican’s that live outside major metropolitan areas; places that may otherwise do without.

Completion of the purchase is subject to a bankruptcy auction and approval by the US Bankruptcy Court, which is overseeing the restructuring of NII Holdings, as well as the regulatory approval by Instituto Federal de Telecomunicaciones (IFT).