Revenues however fell by 15% to US$1.49 billion as consolidated ARPU fell by US$12 to just $37. This decrease was driven by year-over-year weakening in local foreign currency exchange rates and the impact of lower rate plans the Company offered in response to more aggressive competition in recent quarters, particularly in Brazil .
The company posted a net loss of US$82 million, compared to essentially breaking even last year. Yesterday the company announced a 20% reduction in its headoffice workforce to help cut costs.
"During the third quarter, we made progress on the deployment of our 3G networks, but were disappointed with our operating results," said Steve Dussek , NII Holdings ' chief executive officer. "Nextel Brazil's performance continued to be adversely impacted by the actions we are taking to improve the quality of our customer base. While these actions have driven an increase in churn, they are also leading to more stable ARPU and higher quality subscriber loading."
The Company ended the quarter with $4.7 billion in total debt and $1.7 billion in consolidated cash and investments, resulting in net debt of $3.0 billion .
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