NII reports Q2 results, announces Brazilian roaming and RAN sharing agreements

15 Aug 2016

US-based telecoms operator NII Holdings has posted operating revenues of USD249.2 million for the three months ended 30 June 2016, compared to USD320.3 million in the year-ago period. Consolidated adjusted OIBDA, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, totalled USD14.4 million in the second quarter of 2016, an improvement of USD109.3 million from an adjusted OIBDA loss of USD94.9 million twelve months earlier. NII Holdings, which emerged from Chapter 11 bankruptcy reorganisation proceedings in June last year, posted a net loss of USD9.9 million for the three months to end-June 2016. NII sold its Nextel-branded operations in Mexico to an indirect subsidiary of AT&T in April 2015, with a sale of its Argentine unit to Grupo Clarin following later in the year.

In Brazil, NII recorded first quarter net subscriber losses of 179,000, which were primarily driven by continued losses on the company’s iDEN network. As of 30 June 2016 Nextel Brasil had a total of 3.845 million mobile customers (down from 4.420 million twelve months previously), of which W-CDMA customers totalled 2.717 million (up from 2.254 million in 2Q15) and iDEN subscribers 1.128 million (down from 2.166 million). ARPU dropped from USD20 per month in the second quarter of 2015 to USD19 a year later, due to a 14% year-on-year decline in the average value of the Brazilian real.

NII has also announced that in May 2016 Nextel Brasil entered into an amendment to a nationwide voice and data roaming agreement with Telefonica Brasil (Vivo) to reduce the usage rates for roaming traffic. Concurrently, Nextel Brasil entered into a ten-year radio access network (RAN) sharing agreement, under which Telefonica will permit Nextel to use its tower and equipment infrastructure to transmit telecommunications signals on Nextel’s spectrum. These agreements require Nextel Brasil to meet certain minimum annual commitments over a five-year period totalling BRL800 million (USD250.5 million), which replaced the remaining commitments under the original roaming agreement. Nextel Brasil says the RAN sharing agreement will enable it to would reduce future operating expenses and capital expenditures.

Brazil, United States, Nextel Telecomunicacoes (now part of Claro Brasil), NII Holdings, Telefonica Brasil (Vivo)