NII Holdings Announces Third Quarter 2013 Results

              NII Holdings Announces Third Quarter 2013 Results

- Net subscriber loss of 178,000

- Consolidated operating revenue of $1.10 billion

- Consolidated adjusted operating income before depreciation and amortization
(adjusted OIBDA) of $52 million

PR Newswire

RESTON, Va., Oct. 31, 2013

RESTON, Va., Oct. 31, 2013 /PRNewswire/ -- NII Holdings, Inc. (NASDAQ: NIHD)
today announced its consolidated financial results for the third quarter of
2013. During the quarter, the Company reported a netsubscriberloss of
178,000, resulting in an ending subscriber base of 9.7 million, in line with
the subscriber base as of September 30, 2012. Financial results for the
quarter included consolidated operating revenue of $1.10 billion, down 22
percent from the level reported in the third quarter of 2012, and consolidated
adjusted OIBDA, which excludes the impact of non-cash asset impairment,
restructuring and other non-recurring or unusual charges, of $52 million, a 78
percent decline compared to the same period last year. The decrease in
consolidated adjusted OIBDA was driven by incremental investments related to
the Company's deployment of its planned next generation networks, weaker
average foreign currency exchange rates, lower average revenue per subscriber
(ARPU) on a local currency basis, and costs to migrate customers to the
Company's next generation network in Mexico. The Company's consolidated
adjusted OIBDA does not reflect a $14 million charge recognized in the third
quarter related to a reserve for unfulfilled handset purchase commitments. For
the third quarter of 2013, the Company generated a consolidated operating loss
of $163 million and a consolidated net loss of $300 million, or $1.74 per
basic share. Capital expenditures were $231 million for the quarter, of which
$144 million was paid in cash.

"While we have met all of our network build goals, we did not effectively
address challenges in Mexico associated with the iDEN shutdown in the U.S. or
prevent the deterioration of ARPU in Brazil," said Steve Shindler, NII
Holdings' chief executive officer. "We're extremely disappointed with our
results for the quarter. In order to return to the level of growth that has
made us successful in the past, we recently began implementing a set of
initiatives focused on recovering lost ground and enhancing our competitive
position in our major markets that we call 'Project Accelerate'. These
initiatives include launching aggressive marketing campaigns and high value
pricing plans in our core markets beginning in the fourth quarter, investing
toimprove the breadth and depth of our coverage, and moving quickly to offer
iconic smartphones, including the Samsung Galaxy S4, HTC One, Moto Xand
others. We are also modifying our company-wide compensation plans to focus
the entire organization on generating stronger growth, and streamlining the
organization to re-align our resources and further reduce costs. In addition,
we are excited to announce that we will deploy LTE in select cities in 2014,
further enhancing our competitive position. These and other initiatives are
designed to accelerate subscriber and revenue growth and put us on a path to
delivering stronger operational results in 2014."

NII Holdings' consolidated ARPU was $31 for the third quarter of 2013, down $9
compared to the same period last year. This decline resulted from lower priced
rate plans the Company offered as part of its customer retention efforts and
in response to more aggressive competition in recent quarters, primarily in
Brazil and Mexico, and from the year-over-year weakening in local foreign
currency exchange rates in Brazil. The Company reported consolidated churn of
3.59% percent for the third quarter, up about 105 basis points from the level
reported for the same period last year, primarily related to higher iDEN churn
in the Company's operations in Mexico. Consolidated cost per gross add (CPGA)
was $245 for the third quarter, a $74 decrease compared to the third quarter
of 2012.

The Company ended the quarter with $5.8 billion in total debt and $2.0 billion
in consolidated cash, restricted cash and investments, which includes proceeds
from the sale of Nextel Peru, resulting in net debt of $3.8 billion. During
the third quarter, the Company signed an agreement with American Tower
Corporation under which it agreed to sell and lease back about 4,500 towers in
Mexico and Brazil for total estimated proceeds based on current foreign
currency exchange rates of approximately $800 million, subject to certain
adjustments.

"We are taking significant steps to position the Company for future subscriber
and revenue growth, realign our cost structure and improve our financial
performance; however, given the results that we have reported year-to-date, we
are not going to achieve the financial goals that we laid out at the beginning
of the year," said Juan Figuereo, NII Holdings' executive vice president and
chief financial officer. "In an effort to set the stage for growth in 2014, we
are utilizing our capital to enhance our competitive position in our major
markets by accelerating investments in marketing, network quality, handset
portfolio expansion, subscriber loading, technology platforms and customer
experience touch points. With the completion of the Nextel Peru sale and the
announced tower transaction, we have a solid liquidity position to fund our
accelerated growth initiatives, which we believe offer the best opportunity to
return to profitability and improve our long-term cash flow profile."

The Company announced that it will not achieve its financial guidance for the
year given the weak year-to-date operational and financial results, the
continued depreciation of local currency exchange rates and the expected
impact of Project Accelerate on its results for the fourth quarter. The
Company has not updated its guidance at this time, but expects to miss its
consolidated adjusted OIBDA guidance for the year by $200 million or more,
while remaining in line with its prior consolidated capex guidance.

Project Accelerate

The Company today announced Project Accelerate, which aims to intensify and
refocus previously planned initiatives to accelerate growth in 2014. The
program also aims to streamline the organization and realign costs to increase
focus on revenue growth and improve competitive agility in the Company's major
markets, as well as reduce costs that are not critical to the growth agenda.
There are five major components to Project Accelerate:

  oLaunching aggressive marketing campaigns and pricing plans in time to take
    advantage of the holiday selling season in Mexico and Brazil.
  oOffering the iconic smartphones requested by target customers, to improve
    its device portfolio by the first half of 2014.
  oAccelerating early deployment of LTE technology in select cities in 2014
    to help deliver a superior customer experience and significantly improve
    customer perception, creating opportunities to drive additional growth.
  oModifying the variable compensation plans of the "front-line" organization
    to focus on driving and accelerating revenue and subscriber growth quarter
    over quarter.
  oStreamlining the organization, refocusing resources on customer facing and
    selling activities and eliminating costs that are not critical to the
    growth agenda.

To support these efforts, the Company expects to make investments that will
have a significant impact on its operating results for the fourth quarter.

A presentation highlighting NII Holdings' third quarter 2013 results is
available on the Investor Relations page of the Company's web site.
Additional information relating to NII Holdings' third quarter 2013 results
will be provided on the Company's earnings call on Thursday, October 31, 2013
from 8:30 AM to 9:15 AM EDT. The call will be available via webcast, online
www.nii.com on the Investor Relations page or by phone at the numbers provided
below.

Phone:
Domestic
1.800.743.9807 pass-code: NII HOLDINGS
International
1.212.231.2908 pass-code: NII HOLDINGS

All participants are asked to dial in 10-15 minutes prior to the start of the
conference call. 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
1.800.633.8625 pass-code: 21675233
International
1.402.977.9141 pass-code: 21675233

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 adjusted 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 2013 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, operating under the Nextel brand
in Brazil, Mexico, Argentina 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 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 and International 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's news room for news and to access our markets' news centers:
www.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 2013. 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, 2012, 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 THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(in millions, except per share amounts)


                                Three Months Ended      Nine Months Ended

                                September 30,          September 30,
                                2013        2012        2013        2012
                                (unaudited)
Operating revenues
                                $ 1,054.3   $ 1,341.5   $ 3,551.5   $ 4,146.9
 Service and other revenues
Handset and accessory revenues  47.0        65.9        140.2       214.3
                                1,101.3     1,407.4     3,691.7     4,361.2
Operating expenses

 Cost of service (exclusive of 364.4       370.1       1,156.5     1,176.9
depreciation and amortization
included below)
Cost of handset and accessory   217.1       209.3       657.3       634.1
sales
Selling, general and            456.5       545.5       1,435.3     1,607.0
administrative
Provision for doubtful accounts 25.9        43.1        76.4        130.0
Impairment and restructuring    21.3        14.0        147.2       23.3
charges
Depreciation                    162.7       150.7       496.2       437.1
Amortization                    16.2        14.4        47.1        32.0
                                1,264.1     1,347.1     4,016.0     4,040.4
Operating (loss) income         (162.8)     60.3        (324.3)     320.8
Other income (expense)
                                (135.0)     (103.9)     (394.9)     (267.3)
 Interest expense
Interest income                 9.3         13.2        24.8        25.3
Foreign currency transaction    (4.8)       10.7        (86.1)      (42.6)
(losses) gains, net
Other income (expense), net     4.5         (7.3)       (8.6)       (22.2)
                                (126.0)     (87.3)      (464.8)     (306.8)
(Loss) income from continuing
operations before income tax    (288.8)     (27.0)      (789.1)     14.0

 provision
Income tax provision            (4.3)       (34.7)      (74.7)      (135.1)
Net loss from continuing        (293.1)     (61.7)      (863.8)     (121.1)
operations
Loss from discontinued          (6.8)       (20.7)      (40.0)      (51.2)
operations, net of income taxes
Net loss                        $ (299.9)   $ (82.4)    $ (903.8)   $ (172.3)
Net loss from continuing
operations, per common share,   $ (1.70)    $ (0.36)    $ (5.02)    $ (0.71)
basic and diluted
Net loss from discontinued
operations, per common share,   (0.04)      (0.12)      (0.23)      (0.30)
basic and diluted
Net loss per common share,      $ (1.74)    $ (0.48)    $ (5.25)    $ (1.01)
basic and diluted
Weighted average number of
common shares outstanding,      172.4       171.6       172.1       171.4

 basic and diluted









CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except par values)


                                                  September 30,  December 31,

                                                  2013           2012
                                                  (unaudited)
ASSETS
Current assets
Cash and cash equivalents                         $  1,578.6     $   1,371.2
Short-term investments                            318.7          204.8
Accounts receivable, less allowance for doubtful  599.1          674.5
accounts of $74.6 and $108.7
Handset and accessory inventory                   385.4          323.3
Deferred income taxes, net                        221.6          175.7
Assets held for sale                              —              97.4
Prepaid expenses and other                        433.4          488.1
Total current assets                              3,536.8        3,335.0
Property, plant and equipment, net                3,356.3        3,531.3
Intangible assets, net                            1,042.4        1,125.4
Deferred income taxes, net                        419.9          367.2
Assets held for sale                              —              400.3
Other assets (1)                                  520.2          463.9
Total assets                                      $  8,875.6     $   9,223.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                  $  313.6       $   424.2
Accrued expenses and other                        989.2          969.8
Deferred revenues                                 134.5          144.1
Current portion of long-term debt                 93.3           94.0
Liabilities held for sale                         —              127.9
Total current liabilities                         1,530.6        1,760.0
Long-term debt                                    5,697.7        4,765.5
Deferred revenues                                 12.0           14.0
Deferred tax liabilities                          103.2          58.2
Liabilities held for sale                         —              12.7
Other long-term liabilities                       314.3          296.2
Total liabilities                                 7,657.8        6,906.6
Commitments and contingencies
Stockholders' equity
Undesignated preferred stock, par value $0.001,
10.0shares authorized— 2013 and 2012, no shares —              —
issued or outstanding— 2013 and 2012
Common stock, par value $0.001, 600.0shares
authorized— 2013 and 2012, 172.4 shares issued   0.2            0.2
and outstanding— 2013, 171.7 shares issued and
outstanding— 2012
Paid-in capital                                   1,504.6        1,481.7
Retained earnings                                 554.3          1,458.0
Accumulated other comprehensive loss              (841.3)        (623.4)
Total stockholders' equity                        1,217.8        2,316.5
Total liabilities and stockholders' equity        $  8,875.6     $   9,223.1
(1) Includes $50 million held in escrow related to the sale of Nextel Peru.









CONDENSED CONSOLIDATED CASH FLOW DATA

(in millions)


                                                   Nine Months Ended September
                                                   30,
                                                   2013            2012
                                                   (unaudited)
Cash and cash equivalents, beginning of period     $  1,371.2      $  2,310.7
Net cash (used in) provided by operating           (102.7)         303.0
activities
Net cash used in investing activities              (487.4)         (666.9)
Net cash provided by (used in) financing           823.7           (396.1)
activities
Effect of exchange rate changes on cash and cash   (38.5)          5.0
equivalents
Change in cash and cash equivalents held for sale  12.3            (19.3)
Cash and cash equivalents, end of period           $  1,578.6      $  1,536.4









NII HOLDINGS, INC. AND SUBSIDIARIES

OPERATING RESULTS AND METRICS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 and 2012

(UNAUDITED)


NII Holdings, Inc. (1)
(subscribers in thousands)
                                Three Months Ended
                                September 30,
                                2013                        2012
Total subscribers (2) (as of    9,735.9                     9,844.8
September 30)
Net subscriber (deactivations)  (178.4)                     81.1
additions
Churn (%)                       3.59             %          2.54          %
Average monthly revenue per
subscriber unit in              $       31                  $     40

 service (ARPU) (1)
Cost per gross add (CPGA) (1)   $       245                 $     319
(1) All operating results and metrics presented herein have been adjusted to
exclude the results of Nextel Peru, which has been
accounted for as discontinued operations.
(2) Each subscriber, which is also referred to as a subscriber unit,
represents an active subscriber identity module, or SIM, which
 is the level at which the Company has tracked and will continue to track
subscribers.







Nextel Brazil
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                  Three Months Ended    Nine Months Ended
                                  September 30,
                                                        September 30,
                                  2013       2012       2013        2012
                                  (unaudited)
Operating revenues
                                  $ 465.5    $ 660.6    $ 1,641.4   $ 2,116.1
 Service and other revenues
Handset and accessory revenues    25.4       32.6       64.1        113.9
                                  490.9      693.2      1,705.5     2,230.0
Operating expenses

 Cost of service (exclusive of
depreciation and amortization     182.0      222.7      604.4       699.1
included

 below)
Cost of handset and accessory     67.8       49.9       158.5       164.0
sales
Selling, general and              181.6      222.0      584.8       674.7
administrative
Provision for doubtful accounts   17.0       35.7       50.3        107.8
Segment earnings                  $ 42.5     $ 162.9    $ 307.5     $ 584.4
Total subscribers (as of          3,888.1    4,138.0
September 30)
Net subscriber additions          8.5        (92.0)
(deactivations)
Churn (%)                         3.12    %  2.89    %
ARPU (1)                          $ 35       $ 46
CPGA (1)                          $ 185      $ 264







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

                                  September 30,         September 30,
                                  2013       2012       2013        2012
                                  (unaudited)
Operating revenues
                                  $ 432.7    $ 503.9    $ 1,426.3   $ 1,528.0
 Service and other revenues
Handset and accessory revenues    9.3        19.3       32.4        60.8
                                  442.0      523.2      1,458.7     1,588.8
Operating expenses

 Cost of service (exclusive of
depreciation and amortization     122.1      83.3       369.8       290.1
included

 below)
Cost of handset and accessory     122.1      128.6      413.2       389.5
sales
Selling, general and              159.7      159.7      488.1       452.5
administrative
Provision for doubtful accounts   6.0        3.8        14.8        11.6
Segment earnings                  $ 32.1     $ 147.8    $ 172.8     $ 445.1
Total subscribers (as of          3,654.6    3,861.1
September 30)
Net subscriber (deactivations)    (284.5)    42.1
additions
Churn (%)                         4.13    %  2.10    %
ARPU (1)                          $ 33       $ 39
CPGA (1)                          $ 568      $ 464







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

                     September 30,                     September 30,
                     2013               2012           2013          2012
                     (unaudited)
Operating revenues
                     $   141.7          $  166.7       $  443.8      $  476.6
 Service and other
revenues
Handset and          16.5               11.8           45.3          35.6
accessory revenues
                     158.2              178.5          489.1         512.2
Operating expenses

 Cost of service
(exclusive of
depreciation and     40.5               46.5           121.9         144.5
amortization
included

 below)
Cost of handset and  24.7               19.0           67.7          59.3
accessory sales
Selling, general and 54.4               60.1           161.0         167.0
administrative
Provision for        2.1                2.9            7.8           9.3
doubtful accounts
Segment earnings     $   36.5           $  50.0        $  130.7      $  132.1
Total subscribers    1,965.1            1,692.5
(as of September 30)
Net subscriber       77.6               94.9
additions
Churn (%)            3.50        %      2.46      %
ARPU (1)             $   21             $  29
CPGA (1)             $   81             $  106
(1) For information regarding ARPU and CPGA, see "Non-GAAP Reconciliations for
the Three and Nine Months Ended September 30, 2013 and 2012" included in this
release.









NON-GAAP RECONCILIATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED)


Consolidated OIBDA and Consolidated Adjusted OIBDA


Consolidated operating income before depreciation and amortization, or OIBDA,
represents operating income before depreciation and amortization expense.
Consolidated adjusted operating income before depreciation and amortization,
or adjusted OIBDA, represents consolidated operating income before
depreciation expense, amortization expense, material non-cash asset
impairments, severance costs associated with publicly announced restructuring
plans and other material non-recurring or unusual charges. During the fourth
quarter of 2012, we converted our consolidated OIBDA metric to a consolidated
adjusted OIBDA metric to better align this metric with our business
objectives. Consolidated OIBDA and consolidated adjusted OIBDA are not
measurements under accounting principles generally accepted in the United
States, may not be similar to consolidated OIBDA and consolidated adjusted
OIBDA measures of other companies and should be considered in addition to, but
not as substitutes for, the information contained in our statements of
operations. We believe that consolidated OIBDA and consolidated adjusted OIBDA
provide useful information to investors because they are indicators of our
operating performance, especially in a capital intensive industry such as
ours, since they exclude items that are not directly attributable to ongoing
business operations. Consolidated OIBDA and consolidated adjusted OIBDA can be
reconciled to our consolidated statements of operations as follows (in
millions):
NII Holdings, Inc
                 Three Months Ended                 Nine Months Ended

                 September 30,                      September 30,
                 2013                2012           2013            2012
Consolidated
operating (loss) $   (162.8)         $   60.3       $  (324.3)      $  320.8
income
Consolidated     162.7               150.7          496.2           437.1
depreciation
Consolidated     16.2                14.4           47.1            32.0
amortization
Consolidated
operating income
before           16.1                225.4          219.0           789.9

 depreciation
and amortization
Non-cash asset
impairment       12.8                14.0           138.0           23.3
charges
Restructuring    8.6                 —              9.3             —
charges
Reserve for
unfulfilled      14.1                —              14.1            —
handset
commitments
Consolidated
adjusted
operating income
                 $   51.6            $   239.4      $  380.4        $  813.2
 before
depreciation and
amortization

Average Monthly Revenue Per Handset/Unit in Service (ARPU)

Average monthly revenue per subscriber 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 subscriber units 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,
                                                2013        2012
                                                (unaudited)
Consolidated service and other revenues         $ 1,054.3   $ 1,341.5
Less: consolidated other revenues               (124.9)     (154.3)
Total consolidated subscriber revenues          $ 929.4     $ 1,187.2
ARPU calculated with subscriber revenues        $ 31        $ 40
ARPU calculated with service and other revenues $ 36        $ 46



Nextel Brazil
                                                Three Months Ended

                                                September 30,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 465.5   $ 660.6
Less: other revenues                            (55.8)    (77.5)
Total subscriber revenues                       $ 409.7   $ 583.1
ARPU calculated with subscriber revenues        $ 35      $ 46
ARPU calculated with service and other revenues $ 40      $ 53



Nextel Mexico
                                                Three Months Ended

                                                September 30,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 432.7   $ 503.9
Less: other revenues                            (50.4)    (54.9)
Total subscriber revenues                       $ 382.3   $ 449.0
ARPU calculated with subscriber revenues        $ 33      $ 39
ARPU calculated with service and other revenues $ 38      $ 44



Nextel Argentina
                                                Three Months Ended

                                                September 30,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 141.7   $ 166.7
Less: other revenues                            (17.3)    (21.8)
Total subscriber revenues                       $ 124.4   $ 144.9
ARPU calculated with subscriber revenues        $ 21      $ 29
ARPU calculated with service and other revenues $ 24      $ 34

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,
                                                            2013      2012
                                                            (unaudited)
Consolidated handset and accessory revenues                 $ 47.0    $ 65.9
Less: consolidated uninsured replacement revenues           (4.1)     (4.7)
Consolidated handset and accessory revenues, net            42.9      61.2
Less: consolidated cost of handset and accessory sales *    203.0     209.3
Consolidated handset subsidy costs                          160.1     148.1
Consolidated selling and marketing                          143.9     185.3
Costs per statement of operations                           304.0     333.4
Less: consolidated costs unrelated to initial customer      (88.2)    (69.6)
acquisition
Customer acquisition costs                                  $ 215.8   $ 263.8
Cost per Gross Add                                          $ 245     $ 319

* Excludes $14.1 million related to a charge for unfulfilled handset
commitments that was recorded in the third quarter of 2013.

Nextel Brazil
                                                      Three Months Ended

                                                      September 30,
                                                      2013       2012
                                                      (unaudited)
Handset and accessory revenues                        $  25.4    $ 32.6
Less: uninsured replacement revenues                  (2.6)      (1.7)
Handset and accessory revenues, net                   22.8       30.9
Less: cost of handset and accessory sales *           53.7       49.9
Handset subsidy costs                                 30.9       19.0
Selling and marketing                                 47.1       61.7
Costs per statement of operations                     78.0       80.7
Less: costs unrelated to initial customer acquisition (9.4)      (9.1)
Customer acquisition costs                            $  68.6    $ 71.6
Cost per Gross Add                                    $  185     $ 264

* Excludes $14.1 million related to a charge for unfulfilled handset
commitments that was recorded in the third quarter of 2013.

Nextel Mexico
                                                      Three Months Ended

                                                      September 30,
                                                      2013      2012
                                                      (unaudited)
Handset and accessory revenues                        $ 9.3     $ 19.3
Less: uninsured replacement revenues                  (2.1)     (2.9)
Handset and accessory revenues, net                   7.2       16.4
Less: cost of handset and accessory sales             122.1     128.6
Handset subsidy costs                                 114.9     112.2
Selling and marketing                                 68.4      79.1
Costs per statement of operations                     183.3     191.3
Less: costs unrelated to initial customer acquisition (77.8)    (59.5)
Customer acquisition costs                            $ 105.5   $ 131.8
Cost per Gross Add                                    $ 568     $ 464





Nextel Argentina
                                                      Three Months Ended

                                                      September 30,
                                                      2013       2012
                                                      (unaudited)
Handset and accessory revenues, net                   $  16.5    $ 11.8
Less: cost of handset and accessory sales             24.7       19.0
Handset subsidy costs                                 8.2        7.2
Selling and marketing                                 15.5       16.3
Costs per statement of operations                     23.7       23.5
Less: costs unrelated to initial customer acquisition (1.0)      (0.5)
Customer acquisition costs                            $  22.7    $ 23.0
Cost per Gross Add                                    $  81      $ 106

Net Debt

Net debt represents total debt less cash, cash equivalents, short-term and
long-term investments and restricted cash. 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 provides useful information
concerning our liquidity and leverage. Net debt as of September 30, 2013 can
be calculated as follows (in millions):

NII Holdings, Inc
Total debt                      $ 5,791.1
Add: debt discounts             11.4
Less: cash and cash equivalents 1,578.6
Less: short-term investments    318.7
Less: long-term investments     38.1
Less: restricted cash           75.7
Net debt                        $ 3,791.4

Impact of Foreign Currency Fluctuations

The following table shows the impact of changes in foreign currency exchange
rates on certain financial measures for the three and nine months ended
September 30, 2012 compared to the same period in 2013 by (i) adjusting the
relevant measures for the three and nine months ended September 30, 2012 to
levels that would have resulted if the average foreign currency exchange rates
for the three and nine months ended September 30, 2012 were the same as the
average foreign currency exchange rates that were in effect for the three and
nine months ended September 30, 2013; and (ii) comparing the actual and
adjusted financial measures for the three and nine months ended September 30,
2012 to the similar financial measures for the three and nine months ended
September 30, 2013 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 three and nine months ended September 30,
2013 and 2012. The average foreign currency exchange rates for each of the
relevant currencies during each of the three and nine months ended September
30, 2013 and 2012 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 three
and nine months ended September 30, 2013 compared to the same period in 2012
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)
              Three Months Ended September 30,
                                                                 3Q
                                                                 2012   3Q 2012

                                                                 to 3Q  to 3Q 2013
              3Q 2012      3Q 2012     3Q 2012      3Q 2013      2013
              Actual       Adjustment  Normalized   Actual              Normalized
                           (1)         (1)                       Actual
                                                                 Growth Growth
                                                                        Rate (3)
                                                                 Rate
                                                                 (2)
Consolidated:
Operating     $ 1,407,367  $ (99,553)  $ 1,307,814  $ 1,101,265  (22)%  (16)%
revenues
 Adjusted
operating
income before 239,358      (35,290)    204,068      51,555       (78)%  (75)%
depreciation
and
amortization
Nextel
Brazil:
Operating     $ 693,189    $ (78,551)  $ 614,638    $ 490,952    (29)%  (20)%
revenues
Segment       162,866      (24,430)    138,436      42,507       (74)%  (69)%
earnings
Nextel
Mexico:
Operating     $ 523,220    $ 10,924    $ 534,144    $ 442,023    (16)%  (17)%
revenues
Segment       147,800      3,367       151,167      32,130       (78)%  (79)%
earnings
Nextel
Argentina:
Operating     $ 178,505    $ (31,186)  $ 147,319    $ 158,170    (11)%  7%
revenues
Segment       50,045       (15,284)    34,761       36,507       (27)%  5%
earnings







NII Holdings, Inc
(dollars in thousands)
              Nine Months Ended September 30,
                                                                  YTD
                                                                  2012   YTD 2012

                                                                  to YTD to YTD
              YTD 2012     YTD 2012     YTD 2012     YTD 2013     2013   2013
              Actual       Adjustment   Normalized   Actual
                           (1)          (1)                       Actual Normalized
                                                                  Growth
                                                                         Growth
                                                                  Rate   Rate (3)
                                                                  (2)
Consolidated:
Operating     $ 4,361,151  $ (228,641)  $ 4,132,510  $ 3,691,664  (15)%  (11)%
revenues
 Adjusted
operating
income before 813,215      (95,316)     717,899      380,358      (53)%  (47)%
depreciation
and
amortization
Nextel
Brazil:
Operating     $ 2,230,010  $ (218,427)  $ 2,011,583  $ 1,705,468  (24)%  (15)%
revenues
Segment       584,358      (76,272)     508,086      307,497      (47)%  (39)%
earnings
Nextel
Mexico:
Operating     $ 1,588,785  $ 68,393     $ 1,657,178  $ 1,458,734  (8)%   (12)%
revenues
Segment       445,137      22,239       467,376      172,753      (61)%  (63)%
earnings
Nextel
Argentina:
Operating     $ 512,153    $ (78,659)   $ 433,494    $ 489,155    (4)%   13%
revenues
Segment       132,042      (38,039)     94,003       130,690      (1)%   39%
earnings

(1)The "3Q 2012 Normalized" and "YTD 2012 Normalized" amounts reflect the
impact of applying the average foreign currency exchange rates for the three
and nine months ended September 30, 2013 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, 2012,
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 2012 Adjustment" and "YTD 2012 Adjustment" reflect the
amount determined by subtracting the "3Q 2012 Normalized" and "YTD 2012
Normalized" amounts calculated as described in the preceding sentence from the
"3Q 2012 Actual" and "YTD 2012 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 three and nine months ended September 30,
2013. The average foreign currency exchange rates for each of the relevant
currencies during the three and nine months ended September 30, 2013 and 2012
for purposes of these calculations were as follows:

               Three Months Ended September     Nine Months Ended September
               30,                              30,
               2013                2012         2013               2012
Brazilian real 2.29                2.03         2.12               1.92
Mexican peso   12.92               13.19        12.68              13.24
Argentine peso 5.59                4.61         5.28               4.47

(2) The percentage amounts in these columns reflect the growth rates for
each of the financial measures comparing the amounts in the "3Q 2013 Actual"
and "YTD 2013 Actual" columns with those in the "3Q 2012 Actual" and "YTD 2012
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 2013 Actual"
and "YTD 2013 Actual" columns with those in the "3Q 2012 Normalized" and "YTD
2012 Normalized" columns.

SOURCE NII Holdings, Inc.

Website: http://www.nii.com