What? Telefónica will provide data and voice coverage for NII Holdings’ Nextel in Latin America region’s two biggest markets, Mexico and Brazil.
Why it matters? The service will be provided through Telefónica’s 3G mobile network.
Telefónica strengthens its position 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.
Although Telefónica and Nextel will start implementing the deal, they will continue to independently manage their fields, in competition with each other.
Telefónica’s commercial brand in Brazil, Vivo, will benefit from the agreement by improving the networks’ distribution, aiming to cover a larger portion of the country.
As indicated by Anatel, the country’s telecom authority, Brazil’s Nextel will be able to accomplish the coverage requirements.
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 such as Colombia, where a 4G with Millicom has been set up, and Chile where it is working together with Virgin Mobile.