AT&T exits Mexico wireless

AT&T is making a big bet on focus, selling its entire Mexico mobile business—24.7 million subscribers—to Grupo Televisa and Fintech Holdings for $2 billion cash. This move lets AT&T double down on its U.S. fiber and 5G ambitions, while Televisa gains firepower for “quadruple play” bundles to challenge Telcel. Regulators and fierce competition will shape how this shakes out, but for AT&T, it’s a clean exit that streamlines operations and brings in capital, at the cost of giving up any future growth in Latin America.

But here’s the catch: as AT&T retires copper lines—already shuttered in 500+ communities—the company must migrate millions to fiber or wireless alternatives. The payoff is lower costs and modern infrastructure, but customer complaints are piling up, especially in California. Meanwhile, fiber ARPU slipped 4% last quarter, weighed down by discounts and bundles, even as more customers than ever are signing up.

With $150 billion in net debt and tighter margins, CEO John Stankey is betting scale and convergence—getting customers to bundle mobile and home internet—will outweigh short-term pricing pain. These moves, combined with a watchful eye on outages and satellite threats, will decide whether AT&T can deliver on its next-generation network promise.

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