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Mexico's Iusacell Asks Government to Revoke Nextel Concession

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MEXICO CITY (Dow Jones) Mexican mobile phone operator Iusacell has asked Mexican authorities to revoke the concession of NII Holdings subsidiary Nextel because it has refused to sign a mandated interconnection agreement, said Iusacell in a statement Thursday.

"Iusacell has asked the Federal Telecommunications Commission, Cofetel, to revoke the concession of the Nextel phone company," said Iusacell in the statement.

Iusacell said Nextel has "broken the law" by refusing to sign the interconnection deal.

Nextel, which offers specialized digital trunking services, ranks as the country's smallest wireless carrier, with nearly 2 million subscribers at the end of September.

Iusacell is Mexico's third largest wireless phone company with around 4 million subscribers.

Iusacell faces stiff competition from Telcel, a unit of Latin America's largest mobile operator America Movil (AMX), and the Mexican unit of Spain's Telefonica.

-By Peter Millard; Dow Jones Newswires; 5255-5080-3454; peter.millard@dowjones.com

(END) Dow Jones Newswires

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Tags: america movil  nii holdings  iusacell  nextel  interconnection  Mexico