Entel to snap up Nextel for USD500m

4 Apr 2013

US-based group NII Holdings is involved in advanced talks to sell its Peruvian subsidiary Nextel del Peru to Entel Chile, with a USD500 million price tag mooted for the unit, El Comercio writes, citing unspecified sources. NII is reportedly considering selling its businesses in Peru, Chile and Argentina to focus on operations in Mexico and Brazil. iDEN and WCDMA operator Nextel del Peru registered operating losses of USD115.4 million in 2012, compared to USD59.6 million a year earlier. As noted by TeleGeography’s GlobalComms Database, Nextel activated its 3G network in December 2009 offering data-only subscriptions to high-end users. May 2012 saw the cellco widen its reach beyond its traditional business and corporate focus with the introduction of a full suite of voice and data services, including a push-to-talk (PTT) service and an expansion of its footprint.

For its part, Entel has been looking to create new revenue streams through mergers and acquisitions in the region following the failed takeover of triple-play provider Grupo GTD in its domestic market. Entel currently has presence in the Peruvian market through its wholesale and corporate unit, Americatel. Should its takeover of the US-backed cellco be successful, Entel is expected to retain the Nextel brand and niche focus.

Chile, Peru, Entel Chile, Entel Peru, NII Holdings