Telefonica has signed partnership agreements with Latin American mobile operator NII Holdings, which operates under the Nextel brand. Under the terms of the deal, Telefonica will provide Nextel's subsidiaries in Brazil and Mexico with nationwide voice and data coverage services on Telefonica's 3G wireless networks. When implemented, the agreements will expand the areas in which Nextel customers using 3G services in Brazil and Mexico can access voice and data services.
Both companies plan to work closely to implement the agreements as soon as possible. Telefonica and Nextel's subsidiaries will continue to manage their spectrum and network assets separately to provide competing services.
The agreement in Brazil will allow Vivo, Telefonica's commercial brand in Brazil, to deploy its network while providing Nextel with access to a broader service area across Brazil. Nextel Brazil will continue to expand its own network while complying with the regulatory coverage requirements imposed by the Brazilian telecoms regulator Anatel.
In Mexico, the commercial agreement will allow Movistar, Telefonica's commercial brand in the country, to leverage the capacity already deployed in its 3G network and will provide another lever for strengthening its wholesale strategy in the country. Additionally, it will allow Nextel Mexico to expand its network footprint beyond its current coverage.
