Nextel taps Telefonica for LatAm coverage

Spanish carrier Telefónica has been contracted by Nextel branded NII Holdings to supply nationwide 3G coverage for voice and data services in Brazil and Mexico, expanding Nextel’s existing coverage.

Telefónica and NII’s subsidiaries will continue to manage their spectrum and network assets separately to provide competing services.

In Brazil, the agreement will allow Vivo, Telefónica’s commercial brand, to more efficiently deploy its network while providing Nextel with access to a broader service area across the country. Nextel Brazil will continue to expand its own network while complying with the regulatory coverage requirements imposed by the Brazilian Telecommunications Regulator, Anatel.

In Mexico, the commercial agreement will allow Telefónica’s brand Movistar to leverage the capacity already deployed in its 3G network and provide another lever for strengthening its wholesale strategy. Again, Nextel Mexico will be able to expand its network footprint beyond its current coverage.

“The agreement allows both companies to capture the benefits derived from the optimization of infrastructure investment while maintaining the current market structure in both Brazil and Mexico,” said Santiago Fernández Valbuena, chairman and CEO of Telefónica Latin America.

The agreements are in line with other announcements Telefónica has made in recent months, such as the agreement signed with Millicom to deploy LTE networks in Colombia; the MVNO deals with Virgin Mobile in Mexico, Chile and Colombia; and the agreement with lusacell for reciprocal use of wholesale services in Mexico that started in 2012.

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