teleco.com.br

08/03/2010

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	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Mexico	2,816	2,835	2,910	2,987	3,092	3,185	3.0%	12.3%
Brazil	1,939	2,106	2,291	2,483	2,663	2,867	7.7%	36.1%
Argentina	978	986	1,004	1,030	1,054	1,083	2.8%	9.9%
Peru	704	748	796	841	906	966	6.7%	29.1%
Chile	29	33	38	44	49	55	11.9%	63.2%
Total	6,466	6,708	7,038	7,385	7,763	8,156	5.1%	21.6%

Results per countries

Mexico

Thousands	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Accesses	2,816	2,835	2,910	2,987	3,092	3,185	3.0%	12.3%
Net Adds	90	19	75	78	104	93	(10.6%)	393.1%
Churn	2.52%	2.58%	2.24%	2.18%	1.92%	1.91%	-	-
ARPU US$ Million	47	48	47	47	47	47	0.0%	(2.1%)
SAC US$	306	362	362	404	378	386	2.1%	6.6%

Argentina

Thousands	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Accesses	978	986	1,004	1,030	1,054	1,083	2.8%	9.9%
Net Adds	11.3	7.4	18	26.4	24.1	29	20.3%	291.9%
Churn	2.13%	2.45%	2.17%	1.97%	1.75%	1.70%	-	-
ARPU US$ Million	36	35	34	34	33	34	3.0%	(2.9%)
SAC US$	202	189	220	215	200	217	8.5%	14.8%

Peru

Thousands	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Accesses	704	748	796	841	906	966	6.7%	29.1%
Net Adds	35.2	44	47.7	45	64.9	60.4	(6.9%)	37.3%
Churn	2.43%	2.24%	2.03%	2.35%	2.06%	2.06%	-	-
ARPU US$ Million	26	25	24	23	23	23	0.0%	(8.0%)
SAC US$	156	151	152	141	163	157	(3.7%)	4.0%

Economic Financial Performance

Mexico

US$ Millions	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Net Revenue	445	471	451	475	445	524	17.8%	11.3%
Services Revenue	427	450	451	457	427	503	17.6%	11.7%
Handsets Revenue	18	21	20	19	18	21	21.6%	3.4%
OIBDA	154	173	171	155	184	205	11.1%	18.5%
OIBDA Margin	34.6%	36.7%	38.0%	32.6%	41.4%	39.1%	-	-

Argentina

US$ Millions	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Net Revenue	132	129	128	131	133	136	2.5%	5.7%
Services Revenue	124	119	118	122	122	126	3.2%	5.4%
Handsets Revenue	8	9	10	9	11	10	(5.5%)	10.8%
OIBDA	42	42	35	31	37	32	(12.6%)	(22.9%)
OIBDA Margin	31.6%	32.3%	27.1%	23.5%	27.6%	23.5%	-	-

Peru

US$ Millions	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Net Revenue	66	66	67	70	73	76	4.7%	15.8%
Services Revenue	59	59	60	63	66	69	5.0%	16.0%
Handsets Revenue	7	7	7	7	7	7	1.4%	13.8%
OIBDA	9	6	4	(5)	4	6	(42.9%)	2.3%
OIBDA Margin	14.4%	8.9%	6.5%	(7.1%)	5.8%	7.9%	-	-

Annual Results

Accesses per Country

Thousands	2005	2006	2007	2008	2009	∆Year
Mexico	1,120	1,545	2,140	2,726	2987	9.6%
Brazil	638	899	1,290	1,812	2483	37.0%
Argentina	500	651	813	967	1030	6.5%
Peru	249	345	477	669	841	25.7%
Chile	-	1	10	26	44	69.2%
Total	2,506	3,440	4,729	6,200	7,385	19.1%

Results per Country

Mexico

US$ millions	2005	2006	2007	2008	2009	∆Year
Net Revenue	1,013	1,341	1,793	2,047	1,785	(12.8%)
Churn	1.7	1.7	1.9	2.3	2.4	-
ARPU (US$)	79	77	74	65	47	(27.7%)
Cost of acquisition of clients (US$)	467	458	432	404	357	(11.6%)

Argentina

US$ millions	2005	2006	2007	2008	2009	∆Year
Net Revenue	270	345	442	554	520	(6.2%)
Churn	1.2	1.3	1.5	1.7	2.2	-
ARPU (US$)	41	41	40	41.0	35	(14.6%)
Cost of acquisition of clients (US$)	187	184	173	197	207	5.1%

Peru

US$ millions	2005	2006	2007	2008	2009	∆Year
Net Revenue	114	146	191	243	268	10.3%
Churn	1.9	1.8	1.8	1.8	2.26	-
ARPU (US$)	39	36	34	30	25	(16.7%)
Cost of acquisition of clients (US$)	206	188	167	160	150	(6.3%)

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.