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NII Holdings Revenues and Subscriber Base Up - Profits Down

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NII Holdings, the Latin American network operator that trades as Nextel, says that it added 1.64 million new subscribers during 2010, bringing its total year end subscriber base to 9 million. Financial results for the full year 2010 included revenues of USD5.6 billion, a 27% increase compared to last year and a net income of $341 million which was down on the USD381.5 million in 2009.

"NII delivered strong growth and profitability in 2010, exceeding our goals for net subscriber additions, revenues, and OIBDA that we outlined for the year," said Steve Dussek, NII Holdings' Chief Executive Officer. "In 2010, we grew our subscriber base by 22%, increased our revenues by 27% and increased our OIBDA by 29%. During 2010, we also successfully bid for 3G spectrum in our largest markets, Mexico and Brazil. We believe our plans to deploy 3G networks will position us to pursue more profitable growth in the future by enabling us to target additional customer segments and provide innovative broadband wireless services to our high value customer base."

NII Holdings' consolidated average monthly service revenue per subscriber (ARPU) increased to US$48 for the full year 2010 from US$45 in 2009, with the increase resulting primarily from higher average currency exchange rates. The Company also reported consolidated churn of 1.66% for the full year 2010, a 35 basis point decrease from the 2.01% churn rate for the full year 2009.

"Our team delivered outstanding results in 2010, capitalizing on a solid rebound in economic activity and driving growth, while generating record levels of profitability," said Gokul Hemmady, NII's Executive Vice President and Chief Financial Officer. "The strength of our underlying operations, combined with our plans to use our recently acquired spectrum to deploy new 3G networks, has positioned us to drive success as we compete in a broadband centric world."

The Company ended the year with $2.9 billion in total long-term debt.

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