EXCLUSIVE INTERVIEW: Thaddeus Arroyo, AT&T Mexico CEO, pledged to “lead a transformation” in the country, as the company forked out MXN1.03 billion ($57 million) for new spectrum.

The auction, which began last month, saw the sale of frequencies in the 1710-1780MHz and 2110-2180MHz bands, and could increase spectrum available for mobile broadband by 29 per cent, according to Mexican regulator Federal Telecommunications Institute.

AT&T Mexico’s biggest rival, America Movil, was however the largest spender, paying MXN2.1 billion, as demand for mobile coverage in the country continues to grow.

Bullish about battle
Arroyo, who spoke to Mobile World Live last week in Barcelona, remains bullish about the mammoth task of competing with incumbent America Movil, after entering the market last year.

AT&T pounced on a string of regulatory reforms designed to promote competition in 2014 by acquiring smaller players Iusacell and Nextel for a combined $4.4 billion.

The company then pledged to invest $3 billion on its LTE network in Mexico, with the aim of covering 100 million people by 2018.

Despite its efforts however, data from GSMA Intelligence indicates America Movil is still the clear leader in the country, with 73.6 million connections at the end of last year, while AT&T ranks at a distant third with 8.8 million (also behind Telefonica’s 23.9 million connections).

Arroyo, speaking to Mobile World Live, maintained he was not disappointed with the pace of change, given the two acquisitions, but said there was “potential to expand competition and to equalise the playing field in the country”.

“[America Movil’s position] is very interesting, and I think in many respects our biggest challenge is also our greatest opportunity, and that is to reach a base of customers that for many years haven’t had compelling alternatives,” he said. “I’m confident that the Mexican marketplace is at the cusp of a transformation and we’re happy to do our part to lead that.”

To see further thoughts on the battle for market share, as well as his views on the synergies between the US and Mexico, watch the full interview here.