Telefonica will provide voice and data services on its 3G networks to Nextel mobile customers of NII Holdings in Brazil and Mexico.
Telefonica and NII Holdings announced a deal to this effect.
Interestingly, both networks will continue their network expansion in these countries. NII Holdings is looking at enhancing customer experience through the deal.
As per the agreement, Nextel customers using 3G services in Brazil and Mexico can access voice and data services, supporting NII’s growth strategy.
Telefonica and NII’s subsidiaries will continue to manage their spectrum and network assets separately to provide competing services.
This agreement will allow Vivo, Telefonica’s brand in Brazil, to efficiently deploy its network while providing Nextel with access to a broader service area across Brazil. Nextel Brazil will continue to expand its own network while complying with the regulatory coverage requirements imposed by the Brazilian Telecommunications Regulator (Anatel).
The agreement will allow Movistar, Telefónica’s brand in Mexico, to leverage its 3G network and strengthen wholesale strategy in the country. It will allow Nextel Mexico 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.
“Our new agreements with Telefonica will enhance our service offerings by giving us the ability to provide our 3G customers in Brazil and Mexico with services in more areas in those markets,” said Steve Shindler, chief executive officer of NII Holdings.
Earlier, Telefonica signed agreement signed with Millicom to deploy 4G-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.