US telecommunications giant AT&T has reached a deal with NII Holdings Inc. to buy Nextel Mexico for around $1.88bn, minus the company’s debt.

Under the agreement, AT&T will acquire all companies that operate under the Nextel Mexico name, including retail stores, networks assets, spectrum licenses and around 3 million customers.

According to a statement from AT&T, the acquisition supports the company’s plans to “bring greater competition and faster mobile internet speeds to the Mexican wireless market.”

NII Holdings filed for bankruptcy back in September after struggling with $5.8bn debt and competition in Brazil and Mexico.

AT&T plans to combine Nextel Mexico with lusacell, a Mexican wireless provider that it agreed to acquire towards the end of last year. It said that by doing this is will allow the telecommunications giant to “quickly improve and expand its mobile internet service” for the benefit of millions of Mexicans, particularly those who live outside major metropolitan areas.

AT&T said that it expects the transaction to close in mid-2015, subject to regulatory review and approval.