Telefónica to provide data coverage for Nextel

Juan Fernandez Gonzalez | 14-01-2014

Telefónica continues to strengthen its position as a telecom services wholesaler in Latin America by providing data and voice coverage for NII Holdings' Nextel in the region's two biggest markets, Mexico and Brazil. The service will be provided through Telefónica's 3G mobile network.

Telefónica and Nextel will immediately start working to implement the deal and strengthen their positions in both markets, although they will continue to independently manage their spectrum slots, in competition with each other.

The agreement will allow Vivo – Telefónica's commercial brand in Brazil – to improve the networks' deployment, aiming to cover a larger portion of the country. On its side, Brazil's Nextel will be able to accomplish the coverage requirements as dictated by Anatel, the country's telecom authority.

In México, Telefónica's Movistar will reinforce its 3G wholesaler position while Nextel will increase its national coverage.

"The agreement allows both companies to optimise the infrastructure investments, while keeping the market position in Brazil and Mexico," said Santiago Fernández, Telefónica's president for Latin America.

"We will improve our services, being now able to offer 3G in larger areas of both countries," said Steve Shindler, CEO of NII Holdings it. "We will use Telefónica's network at a time when we are aiming to increase our coverage while rationalising our investments".

Similar agreements have been reached by Telefónica in other Latin American markets including Colombia, where it has deployed 4G with Millicom, and Chile where it is working together with Virgin Mobile.