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NII counts cost of 3G evolution

8 Aug 2012

Latin American wireless operator NII Holdings has announced its second-quarter 2012 results, in which it reports consolidated operating revenues of USD1.5 billion, down 15% from the level reported in Q2 2011, and consolidated OIBDA of USD211 million, a 56% year-on-year decline, resulting from weaker average foreign currency exchange rates, lower average revenue per subscriber (ARPU) and incremental expenses related to the deployment of 3G cellular networks. For April-June 2012 the group generated consolidated operating income of USD39 million and recorded a net loss of USD104 million. In the three months to the end of June NII added 235,000 net subscribers to its networks, operating under the Nextel brand in Brazil, Mexico, Argentina, Peru and Chile, bringing its wireless customer total to more than 11.2 million, a 14% increase compared to mid-2011.

In May 2012 Nextel Peru launched a full suite of voice and data services on its existing 3G network (originally launched in selected areas at the start of 2010), and July 2012 marked the official launch of full commercial 3G services by Nextel Chile. The group is continuing the deployment of 3G networks in Mexico (where it currently offers a limited service) and Brazil. These outlays, as well as ongoing investments in capacity of its iDEN networks, resulted in consolidated capital expenditure (CAPEX) of USD366 million during 2Q12.

Argentina, Brazil, Chile, Mexico, Peru, NII Holdings

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