NII Holdings Announces Third Quarter 2012 Results

              NII Holdings Announces Third Quarter 2012 Results

- Net subscriber additions of 152,000

- Consolidated operating revenues of $1.49 billion

- Consolidated operating income before depreciation and amortization (OIBDA)
of $218 million

- Consolidated operating income of $33 million and consolidated net loss of
$82 million

PR Newswire

RESTON, Va., Nov. 7, 2012

RESTON, Va., Nov. 7, 2012 /PRNewswire/ --NII Holdings, Inc. (NASDAQ: NIHD)
today announced its consolidated financial results for the third quarter of
2012. During the quarter, the Company added 152,000 net subscribers to its
network, bringing its ending subscriber base to more than 11.3 million, an 11
percent increase compared to the subscriber base as of September 30, 2011.
Financial results for the quarter included consolidated operating revenues of
$1.49 billion, down 15 percent from the level reported in the third quarter of
2011, and consolidated OIBDA of $218 million, a 44 percent decline compared to
the same period last year, resulting from weaker average foreign currency
exchange rates, lower average revenue per subscriber (ARPU) on a local
currency basis and incremental expenses related to the Company's deployment of
its planned third generation (3G) networks. For the third quarter of 2012, the
Company generated consolidated operating income of $33 million and a
consolidated net loss of $82 million, or $0.48 per basic share.

(Logo: http://photos.prnewswire.com/prnh/20110919/FL70458LOGO )

The Company began offering 3G products and services in 34 cities in Mexico,
covering 45 million people in September, and in Chile in July. Investments in
3G networks, as well as the ongoing investments in capacity of the Company's
iDEN^® networks, resulted in consolidated capital expenditures of $389 million
for the quarter.

"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. Moving forward, in the fourth quarter of this year, we have decided
to execute a strategy in Brazil to eliminate customers on our network who do
not align with our value proposition and have proven to be expensive and
difficult to retain. While this plan will mean that churn will rise
substantially for the fourth quarter of 2012, causing us to fall well below
our consolidated net addition goals for the year, it will position Nextel
Brazil to return to positive net add growth in the first quarter of 2013, with
a higher quality subscriber base. Executing this strategy is the right
decision for the business in the long-term."

NII Holdings' consolidated ARPU was $37 for the third quarter of 2012, down
almost $12 compared to the same period last year. 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 also
reported churn of 2.65 percent for the third quarter, up almost 90 basis
points from the level reported for the same period last year. This increase
was due primarily to actions the Company has taken in Brazil to focus its
retention efforts only on customers that are more likely to benefit from the
value of its services as well as the increased churn for customers purchasing
service under prepaid plans in Peru and Argentina. Consolidated cost per gross
add (CPGA) was $281 for the third quarter, a $51 decrease compared to the
third quarter of 2011.

"A key component of our long-term strategy is the deployment of our 3G
networks, which will enable us to expand and improve our competitive service
offering," added Dussek. "We have reached several milestones in this effort,
including our recent launch of the initial phase of our 3G network in Mexico,
and our launch of 3G services in Chile and Peru. We are experiencing good
demand for our 3G services adding 3G voice and data customers in each of our
markets where our new networks have been launched, and we are encouraged about
the growth we expect to generate on these networks in the future. However, we
continue to experience problems executing on our 3G deployment in Brazil, and
we are behind schedule. Our team is working hard to get our new services up
and running as soon as possible. We expect to launch our first wave of 3G
services supported by this new network in select cities in Brazil later this
year, initially focusing on data services and adding new services and features
more broadly in 2013."

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.
Also, in October, the Company closed on a local currency financing in Brazil
of approximately $200 million, enhancing its liquidity position.

Additional information relating to NII Holdings' third quarter 2012 results
will be provided on the Company's earnings call on Wednesday, November 7, 2012
from 8:30 AM to 9:15 AM EST. The call is available via webcast, online at
www.nii.com on the Investor Relations page or by phone at the numbers provided
below.

Phone:
Domestic
1.866.730.5766 pass-code: NIIHOLDINGS
International
1.857.350.1590 pass-code: NIIHOLDINGS
Please click herefor additional Global Access Numbers

All participants are asked to dial in 10-15 minutes prior to the start of the
conference call. The call will also be available via webcast, and online at
www.nii.com on the Investor Relations page. If you are unable to participate,
a rebroadcast of the conference call will be available for two weeks following
the call.

For a replay of this call, please use the following:

Conference Call Replay:
Domestic
1.888.286.8010 pass-code: 81351943
International
1.617.801.6888 pass-code: 81351943

The financial results provided throughout this press release are prepared in
accordance with accounting principles generally accepted in the United States,
or GAAP. NII has presented consolidated OIBDA, ARPU, CPGA and net debt. These
measures are non-GAAP financial measures and should be considered in addition
to, but not as substitutes for, the information prepared in accordance with
GAAP. Reconciliations from GAAP results to these non-GAAP financial measures
are provided in the notes to the attached financial tables. To view these and
other reconciliations of non-GAAP financial measures that the Company uses and
information about how to access the conference call discussing NII's third
quarter 2012 results, visit the investor relations link at www.nii.com.

About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a
provider of differentiated mobile communication services for businesses and
high value consumers in Latin America. NII Holdings, operating under the
Nextel brand in Brazil, Mexico, Argentina, Peru and Chile, offers fully
integrated wireless communications tools with digital cellular voice services,
data services, wireless Internet access and Nextel Direct Connect^® and
International Direct Connect^SM, a digital two-way radio. NII Holdings is a
Fortune 500 and Barron's 500 company, and has also been named one of the best
places to work among multinationals in Latin America by the Great Place to
Work^® Institute. The Company trades on the NASDAQ market under the symbol
NIHD. Visit the Company's website at www.nii.com.

Nextel, the Nextel logo and Nextel Direct Connect are trademarks and/or
service marks of Nextel Communications, Inc., and are used by NII's
subsidiaries under license in Latin America.

Visit NII Holdings' news room for news and to access our markets' news
centers: nii.com/newsroom.

Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. This news release includes "forward-looking statements" within the
meaning of the securities laws. The statements in this news release regarding
the business outlook, future performance and forward-looking guidance, as well
as other statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and projections
reflecting management's judgment based on currently available information and
involve a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking statements.
With respect to these forward-looking statements, management has made
assumptions regarding, among other things, network usage, customer growth and
retention, pricing, operating costs, the timing of various events, the
economic and regulatory environment and the foreign exchange rates that will
prevail during 2012. Future performance cannot be assured and actual results
may differ materially from those in the forward-looking statements. Some
factors that could cause actual results to differ include the risks and
uncertainties relating to the impact of more intense competitive conditions
and changes in economic conditions in the markets we serve; the impact on our
financial results, and potential reductions in the recorded value of our
assets, that may result from fluctuations in foreign currency exchange rates
and, in particular, fluctuations in the relative values of the currencies of
the countries in which we operate compared to the U.S. dollar; the risk that
our network technologies will not perform properly or support the services our
customers want or need, including the risk that technology developments to
support our services will not be timely delivered; the risk that customers in
the markets we serve will not find our services attractive; unexpected results
of litigation; and the additional risks and uncertainties that are described
in NII Holdings' Annual Report on Form 10-K for the fiscal year ended December
31, 2011, as well as in other reports filed from time to time by NII Holdings
with the Securities and Exchange Commission. This press release speaks only as
of its date, and NII Holdings disclaims any duty to update the information
herein.



Media Contacts:

NII Holdings, Inc.
1875 Explorer Street, Suite 1000
Reston, VA. 20190
(703) 390-5100
www.nii.com

Investor Relations: Tim Perrott
(703) 390-5113
tim.perrott@nii.com

Media Relations: Claudia Restrepo
(786) 251-7020
claudia.restrepo@nii.com







NII HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(UNAUDITED)
(in millions, except per share amounts)
                              Nine Months Ended         Three Months Ended

                               September 30,            September 30,
                              2012        2011          2012        2011
                                          (Restated)              (Restated)
Operating revenues
                              $ 4,384.0   $  4,884.1    $ 1,419.1   $ 1,667.4
 Service and other revenues
Handset and accessory         236.9       251.5         72.8        86.8
revenues
                              4,620.9     5,135.6       1,491.9     1,754.2
Operating expenses

 Cost of service (exclusive
of depreciation and           1,263.1     1,359.5       398.7       465.9

 amortization included
below)
Cost of handset and accessory 695.9       643.4         232.9       225.1
sales
Selling, general and          1,877.8     1,835.3       642.4       677.3
administrative
Depreciation                  493.9       463.3         170.3       158.8
Amortization                  34.1        29.5          15.1        10.1
                              4,364.8     4,331.0       1,459.4     1,537.2
Operating income              256.1       804.6         32.5        217.0
Other income (expense)
                              (274.4)     (272.8)       (104.4)     (94.9)
 Interest expense
Interest income               25.6        24.9          13.3        9.2
Foreign currency transaction  (42.2)      (39.8)        10.8        (63.9)
(losses) gains, net
                                                        (7.0)       (8.4)
Other expense, net            (21.5)      (16.8)
                                                                   
                              (312.5)     (304.5)       (87.3)      (158.0)
(Loss) income before income   (56.4)      500.1         (54.8)      59.0
tax provision
                              (115.9)     (278.1)       (27.6)      (59.3)
Income tax provision
                                                                 
Net (loss) income             $ (172.3)   $  222.0      $ (82.4)    $ (0.3)
Net (loss) income per common  $ (1.01)    $  1.29       $ (0.48)    $ —
share, basic
Net (loss) income per common  $ (1.01)    $  1.28       $ (0.48)    $ —
share, diluted
Weighted average number of
common shares                 171,448     170,408       171,632     171,135

 outstanding, basic
Weighted average number of
common shares                 171,448     172,913       171,632     171,135

 outstanding, diluted





CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in millions)
                                        September 30,  December 31,
                                        2012           2011
                                                       (Restated)
Cash and cash equivalents               $  1,568.0     $  2,322.9
Short-term investments                  117.1          343.4
Accounts receivable, less allowance for 800.0          858.5
 doubtful accounts of $73.7 and $66.3
Property, plant and equipment, net      3,888.6        3,481.9
Intangible assets, net                  1,175.8        1,182.4
Total assets                            9,350.0        9,822.1
Total debt                              4,639.7        4,818.2
Total liabilities                       6,413.8        6,684.0
Stockholders' equity                    2,936.2        3,138.1



NII HOLDINGS, INC. AND SUBSIDIARIES
OPERATING RESULTS AND METRICS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2012 and 2011
(UNAUDITED)



NII Holdings, Inc
(subscribers in thousands)
                                                  Three Months Ended

                                                  September 30,
                                                  2012       2011
Total subscribers (as of September 30)            11,357.4   10,245.4
Net subscriber additions                          152.5      433.3
Churn (%)                                         2.65%      1.78%
Average monthly revenue per handset/unit in
                                                  $   37     $   49
 service (ARPU) (1)
Cost per gross add (CPGA) (1) - Restated for 2011 $   281    $   332





Nextel Brazil
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                  Nine Months Ended       Three Months Ended

                                  September 30,           September 30,
                                  2012        2011        2012      2011
                                              (Restated)            (Restated)
Operating revenues
                                  $ 2,116.1   $ 2,518.7   $ 660.6   $  871.2
 Service and other revenues
Handset and accessory revenues    113.9       122.4       32.6      41.7
                                  2,230.0     2,641.1     693.2     912.9
Operating expenses

 Cost of service (exclusive of
depreciation and amortization     699.1       778.4       222.7     271.0
included

 below)
Cost of handset and accessory     164.0       188.1       49.9      62.7
sales
Selling, general and              785.0       833.7       259.9     327.4
administrative
Segment earnings                  581.9       840.9       160.7     251.8
Management fee and other          40.8        30.0        13.3      9.7
Depreciation and amortization     232.5       236.5       80.6      81.9
Operating income                  $ 308.6     $ 574.4     $ 66.8    $  160.2
Total subscribers (as of                                  4,138.0   3,923.1
September 30)
Net subscriber (deactivations)                            (92.0)    209.5
additions
Churn (%)                                                 2.89%     1.64%
ARPU (1)                                                  $ 46      $  67
CPGA (1)                                                  $ 264     $  325





Nextel Mexico
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                    Nine Months Ended       Three Months Ended

                                    September 30,           September 30,
                                    2012        2011        2012      2011
Operating revenues
                                    $ 1,528.0   $ 1,667.1   $ 503.9   $ 553.9
 Service and other revenues
Handset and accessory revenues      60.8        65.4        19.3      23.3
                                    1,588.8     1,732.5     523.2     577.2
Operating expenses

 Cost of service (exclusive of
depreciation and amortization       290.1       338.4       83.3      110.5
included

 below)
Cost of handset and accessory sales 389.5       331.5       128.6     120.7
Selling, general and administrative 464.5       472.1       163.7     159.1
Segment earnings                    444.7       590.5       147.6     186.9
Management fee and other            97.8        101.9       32.6      39.2
Depreciation and amortization       147.0       152.8       51.7      51.0
Operating income                    $ 199.9     $ 335.8     $ 63.3    $ 96.7
Total subscribers (as of September                          3,861.1   3,623.4
30)
Net subscriber additions                                    42.1      120.1
Churn (%)                                                   2.10%     1.76%
ARPU (1)                                                    $ 39      $ 46
CPGA (1)                                                    $ 464     $ 396





Nextel Argentina
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                        Nine Months Ended   Three Months Ended

                                        September 30,       September 30,
                                        2012      2011      2012      2011
Operating revenues
                                        $ 476.6   $ 439.6   $ 166.7   $ 153.3
 Service and other revenues
Handset and accessory revenues          35.6      39.1      11.8      13.8
                                        512.2     478.7     178.5     167.1
Operating expenses

 Cost of service (exclusive of         144.5     138.7     46.5      47.1
depreciation and amortization included

 below)
Cost of handset and accessory sales     59.3      65.0      19.0      23.9
Selling, general and administrative     176.4     147.8     63.0      55.2
Segment earnings                        132.0     127.2     50.0      40.9
Management fee and other                20.6      17.4      7.5       7.2
Depreciation and amortization           34.0      31.7      11.4      10.7
Operating income                        $ 77.4    $ 78.1    $ 31.1    $ 23.0
Total subscribers (as of September 30)                      1,692.5   1,254.1
Net subscriber additions                                    94.9      35.5
Churn (%)                                                   2.46%     1.61%
ARPU (1)                                                    $ 29      $ 36
CPGA (1)                                                    $ 106     $ 289





Nextel Peru
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                    Nine Months Ended     Three Months Ended

                                    September 30,         September 30,
                                    2012       2011       2012       2011
Operating revenues
                                    $ 237.0    $ 239.5    $ 77.6     $ 82.3
 Service and other revenues
Handset and accessory revenues      22.7       24.6       6.9        8.0
                                    259.7      264.1      84.5       90.3
Operating expenses

 Cost of service (exclusive of
depreciation and amortization       86.2       80.2       28.7       27.8
included

 below)
Cost of handset and accessory sales 61.8       55.4       23.6       16.9
Selling, general and administrative 114.4      102.1      38.9       34.2
Segment (losses) earnings           (2.7)      26.4       (6.7)      11.4
Management fee and other            14.9       23.0       4.8        11.0
Depreciation and amortization       58.8       46.5       20.2       15.9
Operating loss                      $ (76.4)   $ (43.1)   $ (31.7)   $ (15.5)
Total subscribers (as of September                        1,512.6    1,372.3
30)
Net subscriber additions                                  71.4       66.4
Churn (%)                                                 3.37%      2.36%
ARPU (1)                                                  $ 16       $ 19
CPGA (1)                                                  $ 139      $ 138







NII Holdings, Inc. - Impact of Foreign Currency Fluctuations (1)
                           Nine Months Ended      Three Months Ended September
                           September 30,          30, 2012
                           2012
                           YTD 2011               3Q 2011 to
                           to        YTD 2011 to  3Q
                           YTD 2012  YTD 2012     2012         3Q 2011 to 3Q
                           Actual    Normalized                2012 Normalized
                           Growth    Growth Rate  Actual       Growth Rate
                           Rate                   Growth
                                                  Rate
Consolidated:
Operating revenues         (10)%     2%           (15)%        (2)%
 Operating income before
depreciation and           (40)%     (25)%        (44)%        (26)%

 amortization
Nextel Brazil:
Operating revenues         (16)%     (1)%         (24)%        (6)%
Segment earnings           (31)%     (13)%        (36)%        (12)%
Nextel Mexico:
Operating revenues         (8)%      1%           (9)%         (2)%
Segment earnings           (25)%     (15)%        (21)%        (13)%
Nextel Argentina:
Operating revenues         7%        17%          7%           18%
Segment earnings           4%        23%          22%          50%

(1) For information regarding ARPU, CPGA and the impact of foreign currency
fluctuations, see "Non-GAAP Reconciliations for the Nine and Three Months
Ended September 30, 2012 and 2011" included in this release.



NON-GAAP RECONCILIATIONS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(UNAUDITED)

Operating Income Before Depreciation and Amortization
Consolidated operating income before depreciation and amortization, or OIBDA,
represents operating income before depreciation and amortization expense.
Consolidated OIBDA is not a measurement under accounting principles generally
accepted in the United States, may not be similar to consolidated OIBDA
measures of other companies and should be considered in addition to, but not
as a substitute for, the information contained in our statements of
operations. We believe that consolidated OIBDA provides useful information to
investors because it is an indicator of operating performance, especially in a
capital intensive industry such as ours, since it excludes items that are not
directly attributable to ongoing business operations. Our consolidated OIBDA
calculations are commonly used as some of the bases for investors, analysts
and credit rating agencies to evaluate and compare the periodic and future
operating performance and value of companies within the wireless
telecommunications industry. Consolidated OIBDA can be reconciled to our
consolidated statements of operations as follows (in millions):



NII Holdings, Inc
                                    Nine Months Ended     Three Months Ended

                                    September 30,         September 30,
                                    2012      2011        2012      2011
                                              (Restated)            (Restated)
Consolidated operating income       $ 256.1   $ 804.6     $ 32.5    $  217.0
Consolidated depreciation           493.9     463.3       170.3     158.8
Consolidated amortization           34.1      29.5        15.1      10.1
Consolidated operating income
before                              $ 784.1   $ 1,297.4   $ 217.9   $  385.9

 depreciation and amortization





                                     Original      Updated
                                     Guidance      Guidance
                                     Estimate*     Estimate*
                                     Year Ending   Year Ending

                                     December 31,  December 31,
                                     2012          2012
Consolidated operating income        $  650.0      $  250.0
Consolidated depreciation            700.0         700.0
Consolidated amortization            50.0          50.0
Consolidated operating income before
                                     $  1,400.0    $  1,000.0
 depreciation and amortization



* The Company's guidance estimate for OIBDA for the year ending December 31,
2012 includes the impact of approximately $50 million of non-cash equity
compensation expense. This estimate is predicated on a number of assumptions,
including the assumption that foreign currency exchange rates and general
economic conditions in its markets will remain relatively stable during the
year. The information regarding the Company's outlook and objectives for 2012,
including its guidance estimate for OIBDA for the year ended December 31,
2012, is forward looking and is based upon management's current beliefs, as
well as a number of assumptions concerning future events, and as such, should
be taken in the context of the risks and uncertainties identified in the "Safe
Harbor" Statement under the Private Securities Litigation Reform Act of 1995
included above and of the risks and uncertainties outlined in the SEC filings
of NII Holdings, Inc., including the Company's Annual Report on Form 10-K for
the year ended December 31, 2011 and the Company's other filings with the SEC.

Average Monthly Revenue Per Handset/Unit in Service (ARPU)
Average monthly revenue per handset/unit in service, or ARPU, is an industry
term that measures service revenues, which we refer to as subscriber revenues,
per period from our customers divided by the weighted average number of
handsets in commercial service during that period. ARPU is not a measurement
under accounting principles generally accepted in the United States, may not
be similar to ARPU measures of other companies and should be considered in
addition, but not as a substitute for, the information contained in our
statements of operations. We believe that ARPU provides useful information
concerning the appeal of our rate plans and service offerings and our
performance in attracting and retaining high value customers. Other revenue
includes revenues for such services as roaming, handset maintenance,
cancellation fees, analog and other. ARPU can be calculated and reconciled to
our consolidated statement of operations as follows (in millions, except
ARPU):



NII Holdings, Inc
                                                Three Months Ended

                                                September 30,
                                                2012         2011
                                                (Unaudited)  (Restated)
Consolidated service and other revenues         $  1,419.1   $ 1,667.4
Less: consolidated analog and other revenues    (160.2)      (197.6)
Total consolidated subscriber revenues          $  1,258.9   $ 1,469.8
ARPU calculated with subscriber revenues        $  37        $ 49
ARPU calculated with service and other revenues $  42        $ 55





Nextel Brazil
                                                Three Months Ended

                                                September 30,
                                                2012         2011
                                                (Unaudited)  (Restated)
Service and other revenues                      $  660.6     $  871.2
Less: analog and other revenues                 (77.5)       (105.0)
Total subscriber revenues                       $  583.1     $  766.2
ARPU calculated with subscriber revenues        $  46        $  67
ARPU calculated with service and other revenues $  53        $  76





Nextel Mexico
                                                Three Months Ended

                                                September 30,
                                                2012      2011
                                                (Unaudited)
Service and other revenues                      $ 503.9   $ 553.9
Less: analog and other revenues                 (54.9)    (64.1)
Total subscriber revenues                       $ 449.0   $ 489.8
ARPU calculated with subscriber revenues        $ 39      $ 46
ARPU calculated with service and other revenues $ 44      $ 52





Nextel Argentina
                                                Three Months Ended

                                                September 30,
                                                2012      2011
                                                (Unaudited)
Service and other revenues                      $ 166.7   $ 153.3
Less: other revenues                            (21.8)    (21.5)
Total subscriber revenues                       $ 144.9   $ 131.8
ARPU calculated with subscriber revenues        $ 29      $ 36
ARPU calculated with service and other revenues $ 34      $ 41





Nextel Peru
                                                Three Months Ended

                                                September 30,
                                                2012       2011
                                                (Unaudited)
Service and other revenues                      $  77.6    $ 82.3
Less: other revenues                            (6.0)      (6.3)
Total subscriber revenues                       $  71.6    $ 76.0
ARPU calculated with subscriber revenues        $  16      $ 19
ARPU calculated with service and other revenues $  17      $ 22



Cost per Gross Add (CPGA)

Cost per gross add, or CPGA, is an industry term that is calculated by
dividing our selling, marketing and handset and accessory subsidy costs,
excluding costs unrelated to initial customer acquisition, by our new
subscribers during the period, or gross adds. CPGA is not a measurement under
accounting principles generally accepted in the United States, may not be
similar to CPGA measures of other companies and should be considered in
addition, but not as a substitute for, the information contained in our
statements of operations. We believe CPGA is a measure of the relative cost
of customer acquisition. CPGA can be calculated and reconciled to our
consolidated statements of operations as follows (in millions, except CPGA):



NII Holdings, Inc
                                                       Three Months Ended

                                                       September 30,
                                                       2012         2011
                                                       (Unaudited)  (Restated)
Consolidated handset and accessory revenues            $  72.8      $  86.8
Less: consolidated uninsured replacement revenues      (4.7)        (6.1)
Consolidated handset and accessory revenues, net       68.1         80.7
Less: consolidated cost of handset and accessory sales 232.9        225.1
Consolidated handset subsidy costs                     164.8        144.4
Consolidated selling and marketing                     202.7        245.2
Costs per statement of operations                      367.5        389.6
Less: consolidated costs unrelated to initial customer (72.9)       (68.2)
acquisition
Customer acquisition costs                             $  294.6     $  321.4
Cost per Gross Add                                     $  281       $  332





Nextel Brazil
                                                      Three Months Ended

                                                      September 30,
                                                      2012         2011
                                                      (Unaudited)  (Restated)
Handset and accessory revenues                        $   32.6     $  41.7
Less: uninsured replacement revenues                  (1.7)        (2.5)
Handset and accessory revenues, net                   30.9         39.2
Less: cost of handset and accessory sales             49.9         62.7
Handset subsidy costs                                 19.0         23.5
Selling and marketing                                 61.7         116.5
Costs per statement of operations                     80.7         140.0
Less: costs unrelated to initial customer acquisition (9.1)        (10.8)
Customer acquisition costs                            $   71.6     $  129.2
Cost per Gross Add                                    $   264      $  325





Nextel Mexico
                                                      Three Months Ended

                                                      September 30,
                                                      2012      2011
                                                      (Unaudited)
Handset and accessory revenues                        $ 19.3    $ 23.3
Less: uninsured replacement revenues                  (2.9)     (3.5)
Handset and accessory revenues, net                   16.4      19.8
Less: cost of handset and accessory sales             128.6     120.7
Handset subsidy costs                                 112.2     100.9
Selling and marketing                                 79.1      74.3
Costs per statement of operations                     191.3     175.2
Less: costs unrelated to initial customer acquisition (59.5)    (53.3)
Customer acquisition costs                            $ 131.8   $ 121.9
Cost per Gross Add                                    $ 464     $ 396





Nextel Argentina
                                                      Three Months Ended

                                                      September 30,
                                                      2012       2011
                                                      (Unaudited)
Handset and accessory revenues                        $  11.8    $ 13.8
Less: cost of handset and accessory sales             19.0       23.9
Handset subsidy costs                                 7.2        10.1
Selling and marketing                                 16.3       19.5
Costs per statement of operations                     23.5       29.6
Less: costs unrelated to initial customer acquisition (0.5)      (2.2)
Customer acquisition costs                            $  23.0    $ 27.4
Cost per Gross Add                                    $  106     $ 289



Nextel Peru
                                                      Three Months Ended

                                                      September 30,
                                                      2012       2011
                                                      (Unaudited)
Handset and accessory revenues                        $  6.9     $ 8.0
Less: cost of handset and accessory sales             23.6       16.9
Handset subsidy costs                                 16.7       8.9
Selling and marketing                                 17.4       15.1
Costs per statement of operations                     34.1       24.0
Less: costs unrelated to initial customer acquisition (3.3)      (1.6)
Customer acquisition costs                            $  30.8    $ 22.4
Cost per Gross Add                                    $  139     $ 138



Net Debt

Net debt represents total debt less cash, cash equivalents, short-term and
long-term investments. Net debt to consolidated operating income before
depreciation and amortization represents net debt divided by consolidated
operating income before depreciation and amortization. We include the cash in
long-term investments to the items subtracted from total debt to calculate net
debt. Net debt is not a measurement under accounting principles generally
accepted in the United States, may not be similar to net debt measures of
other companies and should be considered in addition to, but not as a
substitute for, the information contained in our balance sheets. We believe
that net debt and net debt to consolidated operating income before
depreciation and amortization provide useful information concerning our
liquidity and leverage. Net debt as of September 30, 2012 can be calculated as
follows (in millions):



NII Holdings, Inc
Total debt                      $ 4,639.7
Add: debt discounts             25.6
Less: cash and cash equivalents 1,568.0
Less: short-term investments    117.1
Net debt                        $ 2,980.2

Impact of Foreign Currency Fluctuations

The following table shows the impact of changes in foreign currency exchange
rates on certain financial measures for the nine and three months ended
September 30, 2011 compared to the same period in 2012 by (i) adjusting the
relevant measures for the nine and three months ended September 30, 2011 to
levels that would have resulted if the average foreign currency exchange rates
for the nine and three months ended September 30, 2011 were the same as the
average foreign currency exchange rates that were in effect for the nine and
three months ended September 30, 2012; and (ii) comparing the actual and
adjusted financial measures for the nine and three months ended September 30,
2011 to the similar financial measures for the nine and three months ended
September 30, 2012 to show the percentage change in those measures before and
after taking those adjustments into account. The amounts reflected in the
following table for operating income before depreciation and amortization on a
consolidated basis and segment earnings for Nextel Brazil, Nextel Mexico and
Nextel Argentina, before the adjustments for changes in foreign currency
exchange rates, are based on the calculations contained elsewhere in these
non-GAAP reconciliations for the nine and three months ended September 30,
2012 and 2011. The average foreign currency exchange rates for each of the
relevant currencies during each of the nine and three months ended September
30, 2012 and 2011 are included in the notes to the table below. The
information reflected in the following table is not a measurement under
accounting principles generally accepted in the United States and should be
considered in addition to, but not as a substitute for, the information
contained in our statements of operations. We believe that these calculations
provide useful information concerning our relative performance for the nine
and three months ended September 30, 2012 compared to the same period in 2011
by removing the impact of the significant difference in the average foreign
currency exchange rates in effect for those periods.



NII Holdings, Inc
(dollars in thousands)
              Nine Months Ended September 30,
                                                                  YTD
                                                                  2011   YTD 2011

                                                                to YTD to YTD
              YTD 2011                               YTD 2012     2012   2012
              Actual       YTD 2011     YTD 2011     Actual
                           Adjustment   Normalized                Actual Normalized
                           (1)          (1)                       Growth
                                                                         Growth
                                                                  Rate   Rate (3)
                                                                  (2)
              (Restated)
Consolidated:
Operating     $ 5,135,612  $ (596,442)  $ 4,539,170  $ 4,620,869  (10)%  2%
revenues
 Operating
income before
depreciation  1,297,442    (251,419)    1,046,023    784,096      (40)%  (25)%

 and
amortization
Nextel
Brazil:
Operating     $ 2,641,114  $ (397,070)  $ 2,244,044  $ 2,230,010  (16)%  (1)%
revenues
Segment       840,904      (168,671)    672,233      581,921      (31)%  (13)%
earnings
Nextel
Mexico:
Operating     $ 1,732,516  $ (158,317)  $ 1,574,199  $ 1,588,785  (8)%   1%
revenues
Segment       590,466      (64,395)     526,071      444,698      (25)%  (15)%
earnings
Nextel
Argentina:
Operating     $ 478,696    $ (40,419)   $ 438,277    $ 512,153    7%     17%
revenues
Segment       127,174      (19,833)     107,341      131,969      4%     23%
earnings





NII Holdings, Inc
(dollars in thousands)
              Three Months Ended September 30,
                                                                  3Q
                                                                  2011   3Q 2011

                                                                to 3Q  to 3Q 2012
              3Q 2011                                3Q 2012      2012
              Actual       3Q 2011      3Q 2011      Actual              Normalized
                           Adjustment   Normalized                Actual
                           (1)          (1)                       Growth Growth
                                                                         Rate (3)
                                                                  Rate
                                                                  (2)
              (Restated)
Consolidated:
Operating     $ 1,754,213  $ (235,598)  $ 1,518,615  $ 1,491,896  (15)%  (2)%
revenues
 Operating
income before
depreciation  385,908      (91,612)     294,296      217,905      (44)%  (26)%

 and
amortization
Nextel
Brazil:
Operating     $ 912,945    $ (177,860)  $ 735,085    $ 693,189    (24)%  (6)%
revenues
Segment       251,806      (68,165)     183,641      160,698      (36)%  (12)%
earnings
Nextel
Mexico:
Operating     $ 577,202    $ (41,275)   $ 535,927    $ 523,220    (9)%   (2)%
revenues
Segment       186,856      (16,399)     170,457      147,627      (21)%  (13)%
earnings
Nextel
Argentina:
Operating     $ 167,132    $ (16,072)   $ 151,060    $ 178,505    7%     18%
revenues
Segment       40,900       (7,604)      33,296       50,045       22%    50%
earnings



(1) The "3Q 2011 Normalized" and "YTD 2011 Normalized" amounts reflect the
impact of applying the average foreign currency exchange rates for the nine
and three months ended September 30, 2012 to the operating revenues earned in
foreign currencies and to the other components of each of the actual financial
measures shown above for the nine and three months ended September 30, 2011,
other than certain components of those measures consisting of U.S.
dollar-based operating expenses, which were not adjusted. The amounts included
under the columns "3Q 2011 Adjustment" and "YTD 2011 Adjustment" reflect the
amount determined by subtracting the "3Q 2011 Normalized" and "YTD 2011
Normalized" amounts calculated as described in the preceding sentence from the
"3Q 2011 Actual" and "YTD 2011 Actual" amounts and reflect the impact of the
year-over-year change in the average foreign currency exchange rates on each
of the financial measures for the nine and three months ended September 30,
2011. The average foreign currency exchange rates for each of the relevant
currencies during the nine and three months ended September 30, 2012 and 2011
for purposes of these calculations were as follows:



               Nine Months Ended September  Three Months Ended
               30,                          September 30,
               2012             2011        2012       2011
Brazilian real 1.92             1.63        2.03       1.64
Mexican peso   13.24            12.02       13.19      12.25
Argentine peso 4.47             4.09        4.61       4.17



(2) The percentage amounts in these columns reflect the growth rates for
each of the financial measures comparing the amounts in the "3Q 2012 Actual"
and "YTD 2012 Actual" columns with those in the "3Q 2011 Actual" and "YTD 2011
Actual" columns.

(3) The percentage amounts in these columns reflect the growth rates for
each of the financial measures comparing the amounts in the "3Q 2012 Actual"
and "YTD 2012 Actual" columns with those in the "3Q 2011 Normalized" and "YTD
2011 Normalized" columns.

SOURCE NII Holdings, Inc.

Website: http://www.nii.com
 
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