Telefónica forms alliance with AT&T to fight Slim's juggernaut

Spanish telecoms giant Telefonica has struck a deal to use some of U.S. rival AT&T's infrastructure in Mexico, a move analysts said would better position both to compete with the market's juggernaut, billionaire Carlos Slim's America Movil.

Under the agreement announced on Thursday, Telefonica will use AT&T's wireless 'last-mile' equipment -- the final link of telecom networks that delivers service to consumers through towers, antennas and fiber-optic cables, Reuters reports.