NII Holdings, Inc. provides digital wireless communication services for the business customers in Latin American markets. The company’s principal operations are in major business centers and related transportation corridors of Mexico, Brazil, Argentina and Peru. The company provides digital services on a limited basis in Santiago, Chile. It provides analog specialized mobile radio (SMR) services in Mexico, Brazil, Peru and Chile.
The company uses a transmission technology called integrated digital enhanced network (iDEN) technology developed by Motorola, Inc. to provide its digital mobile services on 800 MHz spectrum holdings in all of its digital markets.
The company’s digital mobile networks support multiple digital wireless services, including: digital mobile telephone service, including advanced calling features such as speakerphone, conference calling, voice-mail, call forwarding and additional line service; Nextel Direct Connect service, which allows subscribers anywhere on its network to talk to each other instantly, on a push-to-talk basis, on a private one-to-one call or on a group call; International Direct Connect service, in partnership with Nextel Communications, Nextel Partners and TELUS Corporation, which allows subscribers to communicate instantly across national borders with its subscribers in Mexico, Brazil, Argentina, Peru and Chile, and with Nextel Communications and Nextel Partners subscribers in the United States and with TELUS subscribers in Canada; mobile Internet services, text messaging services, e-mail services including Blackberry services that were introduced in Mexico and Peru, location-based services, which includes the use of Global Positioning System (GPS) technologies, digital media services and advanced Java enabled business applications, which are generally marketed as ‘Nextel Online’ services; and international roaming capabilities, which are marketed as ‘Nextel Worldwide’ services.
The company provides integrated digital mobile services in the three major metropolitan areas in each of Mexico, Brazil and Argentina, in the major city in Peru and in various other cities in each country. In December 2006, the company announced the launch of digital mobile services in Santiago, Chile, the major metropolitan area in Chile.
As of December 31, 2006, the company’s operating companies had licenses in markets that cover approximately 308 million people, and 3.44 million digital handsets in commercial service.
Products and Services
The company offers various wireless communications services and related subscriber equipment designed to meet the needs of its targeted customer groups, including businesses and individuals who utilize premium mobile communications features and services.
Nextel Direct Connect: The company's main competitive differentiators is Nextel Direct Connect, the long-range walkie-talkie service that allows communication at the touch of one button. The Nextel Direct Connect feature gives customers the ability to instantly set up a conference — either privately (one-to-one) or with a group (one-to-many) — which allows its customers to initiate and communications much more quickly than is possible using a traditional wireless call. Nextel Direct Connect service enhances the instant communication abilities of business users within their organizations and with suppliers, vendors and customers, and provides individuals the ability to contact business colleagues, friends and family instantly. This service is enhanced by its International Direct Connect service, which allows its subscribers to communicate instantly across national borders. In addition, the company's agreements with Sprint Nextel Corporation and TELUS Corporation, allow its subscribers in Mexico, Brazil, Argentina and Peru to Direct Connect subscribers in the United States and Canada.
The company also offers other push-to-talk-based applications in some of the markets in which it operates, including a push-to-email application that allows a user to send a streaming voice message from handset to an email recipient using its Direct Connect feature, Direct Talk, a service available on certain handsets that enables off-network walkie-talkie communication, and Desktop Dispatch, a service that allows users to Direct Connect messages between Nextel handsets and Internet connected personal computer.
Wireless Data Solutions and Nextel Online: The company offers various wireless data solutions that are designed to help companies improve productivity through the delivery of real-time information to mobile workers anytime and anywhere, including remote e-mail access and mobile messaging services using two-way text communications capabilities from their handsets. Accessible through its wireless handsets, in addition to laptop computers and handheld computing devices, wireless data solutions enable quick response among workers in the field and streamline operations through faster exchanges of information to support workforce mobility.
The company also designs wireless business solutions to meet the needs of specific customers based on their industry and individualized business needs, including various fleet and workforce management services that utilizes the capabilities of its data network, such as the ability to accurately and in near real time, locate handsets using assisted global positioning system, or A-GPS, technology. In addition, the company offers its customers always-on connectivity to the Internet directly from their handset through Nextel Online, which combines the vast resources of the Internet with convenient mobile content services, all from their handset. The company also offers various messaging services, including two-way SMS and text messaging, as well as additional mobile data communications services. The company has also introduced email services such as Blackberry enterprise and Internet services that are available using its Blackberry devices in Mexico and Peru.
Handsets: The company offers voice and data communications features and services through handsets that incorporate Motorola’s iDEN technology and offers its 4-in-1 service, including digital wireless service, Nextel Direct Connect walkie-talkie service, wireless Internet access and two-way messaging capabilities. All of its handsets are developed and manufactured by Motorola, other than the Blackberry devices, which are manufactured by Research in Motion (RIM). Its handsets offer various features, and many include a built-in speakerphone, additional line service, conference calling, an external screen that lets customers view caller ID, voice-activated dialing for hands-free operation, a voice recorder for calls and memos, an advanced phonebook that manages contacts and datebook tools to manage calendars and alert users of business and personal meetings. All of its handset offerings has subscriber identification module (SIM), cards, which carry relevant authentication information and address book information, thereby easing subscribers’ abilities to upgrade their handsets quickly and easily, particularly in conjunction with its on-line Web-based back-up tools. Many of its handsets include pre-installed Java applications. Java enables users to create and execute a number of mobile applications and supports various downloadable digital media capabilities.
International Roaming Services: In addition to offering subscribers the ability to roam in areas in other countries served by its operating companies’ iDEN networks and those operated by Sprint Nextel in the United States and TELUS in Canada, the company offers handsets that are capable of roaming on the networks in other countries that operate using the global system for mobile communications (GSM), standard. The company's customers can roam in approximately 60 countries in the world. The company markets these roaming capabilities as ‘Roaming International and/or Nextel Worldwide’ services.
Marketing
The company’s operating companies primarily market their wireless communications services to businesses with mobile work forces and/or multiple locations, such as service companies, security firms, contractors and delivery services. The company offers a package of services and features that combines multiple communications services in one digital handset. This package includes Nextel Direct Connect, which allows users to contact other subscribers instantly on a push-to-talk basis, on a private one-to-one call or on a one-to-many group call. It offers Nextel Direct Connect in, among and throughout all areas covered by its digital wireless network in each country in which the company operates as well as internationally in the United States and certain parts of Canada.
Operating Companies
Mexico
The company’s wholly owned Mexican operating company is Comunicaciones Nextel de Mexico, S.A. de C.V. (Nextel Mexico). Various wholly owned subsidiaries of Nextel Mexico provide digital mobile services under the trade name Nextel in Mexico City, Guadalajara, Puebla, Leon, Monterrey, Toluca, Tijuana, Torreon, Ciudad Juarez, Merida, San Luis Potosi, and Cuernavaca. As of December 31, 2006, Nextel Mexico provided service to about 1,544,600 digital handsets.
Competition: The company’s competitors include Radiomovil Dipsa, S.A. de C.V., known as Telcel, which is a subsidiary of America Movil, S.A. de C.V., an affiliate of Telefonos de Mexico, S.A. de C.V.; Iusacell, S.A. de C.V. and its affiliate Operadora Unefon, S.A. de C.V., as well as with Telefonica, S.A.
Brazil
The company’s wholly owned Brazilian operating company is Nextel Telecomunicacoes Ltda. (Nextel Brazil). Nextel Brazil provides analog and digital mobile services under the trade name Nextel in Rio de Janeiro, Salvador, Sao Paulo, Recife, Curitiba, Fortaleza, Brasilia, Goiania, Belo Horizonte, Campinas, and Porto Alegre. As of December 31, 2006, Nextel Brazil provided service to approximately 899,000 digital handsets.
Competition: Nextel Brazil competes with other analog SMR and cellular and personal communications services providers, such as Vivo (a joint venture of Telefonica S.A. and Portugal Telecom S.A.), as well as other regional operators, including Telecom Americas; Telecom Italia Mobile; TNL PCS S.A.; and Brasil Telecom. Nextel Brazil also competes with other regional cellular and wireless operators including Telemig Celular S.A.
Argentina
The company’s wholly owned Argentine operating company is Nextel Communications Argentina S.A. (Nextel Argentina). Nextel Argentina provides digital mobile services under the trade name Nextel in Buenos Aires, Cordoba, Rosario, and Mendoza. As of December 31, 2006, Nextel Argentina provided service to approximately 650,700 digital handsets.
Competition: The company’s competitors include the Telefonica Moviles Group, Compania de Telefonos del Interior S.A., and Telecom Personal S.A.
Peru
The company’s wholly owned Peruvian operating company is Nextel del Peru, S.A. (Nextel Peru). Nextel Peru provides digital mobile services under the trade name Nextel in Lima, Ancash, La Libertad, Lambayeque, Piura, Arequipa, Cuzco, and Puno. Nextel Peru operates parallel analog and digital mobile networks in the metropolitan area of Lima. It also operates an analog network in the metropolitan area of Arequipa. As of December 31, 2006, Nextel Peru provided service to about 345,200 digital handsets.
In October 2006, Nextel Peru purchased Millicom Peru, S.A. Nextel Peru acquired 50 MHz of 3.4 GHz spectrum in all major provinces, as well as various network assets and equipment.
Competition: Nextel Peru competes with all other providers of mobile services in Peru, including cellular operator Telefonica Moviles S.A., and personal communications services provider America Movil Peru S.A.C.
Chile
The company's wholly owned Chilean operating company is Centennial Cayman Corporation Chile S.A. (Nextel Chile). Nextel Chile provides analog services under the trade names ‘Centennial’ and ‘Multikom’ and digital mobile services under the trade name ‘Nextel’. These operating companies provide digital service in Santiago and analog service in Santiago, Valparaiso and Vina del Mar and along related transportation corridors, as well as in a number of smaller markets. As of December 31, 2006, Nextel Chile provided services to approximately 900 digital handsets and 3,800 analog handsets.
Competition: The company’s competitors in the analog SMR business in Chile are Gallyas S.A., Mobilink S.A. and Sharfstein, S.A. Its other competitors include Entel Chile, Telefonica Moviles de Chile S.A. and Claro S.A.
History
NII Holdings, Inc. was founded in 1995. It was formerly known as Nextel International, Inc. and changed its name to NII Holdings, Inc. in 2001.
