AT&T will pay US$2.5 billion to acquire Mexican wireless company lusacell, in a major push to expand its coverage and improve mobile Internet service for those living south of the U.S. border.

The acquisition, announced Friday, includes lusacell’s network assets, licenses, retail stores, and its 8.6 million subscribers. AT&T expects the deal to close by the end of next March.

lusacell’s network covers roughly 70 percent of Mexico’s 120 million residents, and AT&T plans to expand it to cover millions more consumers and businesses.

“Mexico is still in the early stages of mobile Internet capabilities and adoption, but customer demand for it is growing rapidly,” AT&T chairman and CEO Randall Stephenson said in the company’s announcement.

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