teleco.com.br

11/01/2011

Nextel

This page: Nextel results in Brazil including Revenue, EBITDA Margin, ARPU, MOU and Churn. Source: NII.

Nextel is part of NII Holdings, open company that has operations in Argentina, Brazil, Mexico, Peru and Chile.

Nextel uses IDEN, Motorola's technology.

Nextel Peru started to operate its 3G network (WCDMA) in December 2009. Nextel Chile acquired frequencies for 3G and is building its network. The service will start in 2011.

Quarter Results

Operational Performance

Thousands	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Mexico	3,092	3,185	3,272	3,361	3,445	3,503	3,623	3.4%	10.7%
Brazil	2,663	2,867	3,113	3,319	3,509	3,714	3,923	5.6%	26.0%
Argentina	1,054	1,083	1,117	1,154	1,183	1,219	1,254	2.9%	12.2%
Peru	906	966	1,029	1,128	1,225	1,306	1,372	5.1%	33.4%
Chile	49	55	-	65	-	-	73	2.5%	19.6%
Total	7,763	8,156	8,591	9,028	9,430	9,812	10,245	4.4%	19.3%

Results per countries

Mexico

Thousands	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Accesses	3,092	3,185	3,272	3,361	3,445	3,503	3,623	3.4%	10.7%
Net Adds	104	93	87	89	83	59	120	104.6%	37.9%
Churn	1.92%	1.91%	1.79%	1.77%	1.65%	1.73%	1.76%	-	-
ARPU US$ Million	47	47	45	47	47	48	46	(4.2%)	2.2%
SAC US$	378	386	385	432	428	461	396	(14.1%)	2.9%

Argentina

Thousands	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Accesses	1,054	1,083	1,117	1,154	1,183	1,219	1,254	2.9%	12.2%
Net Adds	24.1	29	34.2	36.5	29.2	35.5	35.5	0.0%	3.8%
Churn	1.75%	1.70%	1.58%	1.42%	1.58%	1.54%	1.61%	-	-
ARPU US$ Million	33	34	34	36	34	35	36	2.9%	5.9%
SAC US$	200	217	213	235	202	227	289	27.3%	35.7%

Peru

Thousands	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Accesses	906	966	1,029	1,128	1,225	1,306	1,372	5.1%	33.4%
Net Adds	64.9	60.4	62.9	99.4	97.1	80.6	66.3	(17.7%)	5.4%
Churn	2.06%	2.06%	2.06%	1.93%	1.99%	2.11%	2.36%	-	-
ARPU US$ Million	23	23	22	22	20	19	19	0.0%	(13.6%)
SAC US$	163	157	150	165	147	150	138	(8.0%)	(8.0%)

Economic Financial Performance

Mexico

US$ Millions	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Net Revenue	445	524	530	550	567	588	577	(1.9%)	8.9%
Services Revenue	427	503	503	529	546	567	554	(2.4%)	10.1%
Handsets Revenue	18	21	27	21	21	21	23	12.6%	(13.1%)
OIBDA	184	205	183	132	151	190	148	(22.1%)	(2.4%)
OIBDA Margin	41.4%	39.1%	34.5%	24.1%	26.7%	32.2%	25.6%	-	-

Argentina

US$ Millions	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Net Revenue	133	136	142	153	151	161	167	3.9%	17.7%
Services Revenue	122	126	129	141	139	148	153	3.8%	18.9%
Handsets Revenue	11	10	13	12	12	13	14	4.5%	5.3%
OIBDA	37	32	31	40	40	36	34	(5.9%)	7.7%
OIBDA Margin	27.6%	23.5%	22.0%	26.0%	26.7%	22.2%	20.2%	-	-

Peru

US$ Millions	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Net Revenue	73	76	79	84	86	88	90	2.4%	14.3%
Services Revenue	66	69	72	76	78	80	82	3.5%	14.8%
Handsets Revenue	7	7	7	8	8	9	8	(8.0%)	9.6%
OIBDA	4	6	5	(7)	2	1	0.4	(55.6%)	(91.3%)
OIBDA Margin	5.8%	7.9%	5.8%	(7.9%)	2.5%	1.0%	0.4%	-	-

Annual Results

Accesses per Country

Thousands	2005	2006	2007	2008	2009	2010	∆Year
Mexico	1,120	1,545	2,140	2,726	2987	3,361	12.5%
Brazil	638	899	1,290	1,812	2483	3,319	33.7%
Argentina	500	651	813	967	1030	1,154	12.0%
Peru	249	345	477	669	841	1,128	34.2%
Chile	-	1	10	26	44	65	47.7%
Total	2,506	3,440	4,729	6,200	7,385	9,028	22.2%

Results per Country

Mexico

US$ millions	2005	2006	2007	2008	2009	2010	∆Year
Net Revenue	1,013	1,341	1,793	2,133	1,862	2,114	13.5%
Churn	1.7	1.7	1.9	2.3%	2.4%	1.8%	-
ARPU (US$)	79	77	74	65	47	47	0.0%
Cost of acquisition of clients (US$)	467	458	432	404	357	395	10.6%

Argentina

US$ millions	2005	2006	2007	2008	2009	2010	∆Year
Net Revenue	270	345	442	554	520	564	8.4%
Churn	1.2	1.3	1.5	1.7	2.2	1.6%	-
ARPU (US$)	41	41	40	41.0	35	34	(2.9%)
Cost of acquisition of clients (US$)	187	184	173	197	207	217	4.8%

Peru

US$ millions	2005	2006	2007	2008	2009	2010	∆Year
Net Revenue	114	146	191	243	268	312	16.2%
Churn	1.9	1.8	1.8	1.8	2.26	2.01%	-
ARPU (US$)	39	36	34	30	25	22	(12.0%)
Cost of acquisition of clients (US$)	206	188	167	160	150	159	(8.1%)

In 12/05/06, Nextel announced the beginning of its operation in Chile.

Technology

Nextel uses IDEN, Motorola's technology.

In 09/28/06 Motorola and NII holdings announced the signature of an agreement that guarantees the production and technological update of telephones with IDEN technology untill 2011. Nextel compromised to annual increases in the purchases of IDEN telephones. This agreement is important to NII therefore Nextel of the United States was acquired by Sprint and must change to another technology in the future.