NII Holdings, Inc.
US-based NII Holdings provides integrated mobile communication services in Latin America. Using the iDEN (Integrated Digital Enhanced Network) technology developed by Motorola, it is the first in the region to provide two-way radio with push-to-talk (PTT) functions. It focuses on the mid- to high-usage customer segment, typically post-paid corporate white- and blue-collar workers, offering specialized services, while its main competitors serve multiple prepaid customer segments. Initially a subsidiary of Nextel Communications, one of the first PTT system providers in the US, NII Holdings operates under Nextel TM brand in the major urban and suburban centers of Mexico, Brazil, Argentina, Peru, and Chile. It has successfully leveraged the use of the Nextel brand to develop relationships with corporate customers, and has obtained high ARPU (average revenue per user) rates and low monthly churn rates. Consequently, the company can realize its profitable growth strategy. A strong balance sheet enables NII Holdings to continue expanding its network infrastructure in key growth markets like Brazil and Peru. The RIMM Blackberry handset supported by the iDEN technology is the company’s most recent development. Given the corporate world’s preference for RIMM phones, this new device could become a significant sales driver for NII Holdings.
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Based on Published sources; 18 pages.
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Hoffman, A.N. (2010). NII Holdings, Inc.. RSM Case Development Centre. Retrieved from http://hdl.handle.net/1765/38849