Nextel Mexico acquires wireless broadband provider; NII extends iDEN agreement

29 Sep 2006

Mobile digital trunking operator Nextel Mexico, a subsidiary of US-based NII Holdings, has signed an agreement to acquire wireless broadband provider Cosmofrecuencias for USD200 million in cash, the company said in a statement. The acquisition will provide Nextel Mexico with a local telephony operating licence and 50MHz of 3.4GHz spectrum nationwide. It says the integration of Cosmofrecuencias will also result in significant operational cost savings and increased flexibility for additional revenue generating opportunities. The deal is subject to regulatory approvals.

Cosmofrecuencias was formed by TV Azteca and the Moises Saba family in 2000. Earlier this month, the Saba family took full control of the company as part of a deal under which it transferred a stake in mobile operator Unefon to TV Azteca.

In separate news, NII Holdings has announced that it has renewed its supply agreement with Motorola for use of the company’s iDEN handsets and network infrastructure until December 2011. NII’s subsidiaries in Argentina, Brazil, Mexico, and Peru all utilise iDEN equipment to provide mobile digital trunking services, predominantly to corporate users.