AT&T offers $5 unlimited calling to Mexico after Iusacell buy

AT&T's acquisition of Mexican wireless carrier Iusacell has already yielded one benefit.

The Dallas telecommunications giant said Tuesday that it would begin offering unlimited calls to any number in Mexico as part of its World Connect Value plan. The program costs $5 a month. Previously, AT&T charged 1 cent a minute for wireless or landline calls.

The announcement comes just days after the news that AT&T, the second-largest wireless carrier in the US by subscriber, had closed its acquisition of Iusacell. The deal allows AT&T to enter the faster-growing Mexican market, with Iusacell covering 70 percent of Mexico's population of 120 million people.

But the unlimited calling is a boon to customers in the US who routinely make calls to friends and family in Mexico, potentially shaving off a significant chunk of the monthly international phone costs.

"Mexico is the most frequently dialed country among our wireless customers -- and now they can call as much as they want with our enhanced World Connect Value package," said David Christopher, chief marketing officer of AT&T Mobility.

The announcement comes after AT&T revised its World Connect Value package in December, increasing the rates to Latin American and Caribbean countries to 5 cents to 20 cents a minute, depending on the country. The increases goes into effect after January 31. Calls to Canada under the program remain at 1 cent per minute.