Telefonica And NII Holdings Sign Agreements To Provide Wholesale Voice And Data Services To Nextel In Brazil And Mexico

  Telefonica And NII Holdings Sign Agreements To Provide Wholesale Voice And
                 Data Services To Nextel In Brazil And Mexico

-- The agreements significantly expand Nextel's voice and data coverage in
Brazil and Mexico using Telefonica's networks, while increasing the efficiency
of infrastructure investments for both parties

PR Newswire

MADRID and RESTON, Va., Jan. 13, 2014

MADRIDand RESTON, Va., Jan. 13, 2014 /PRNewswire/ --Telefonica [NYSE: TEF]
and NII Holdings [NASDAQ: NIHD] have signed agreements whereby Telefonica
will provide NII's subsidiaries, operating under the Nextel brand in Brazil
and Mexico, nationwide voice and data coverage services on Telefonica's 3G
wireless networks. When implemented, the agreements will expand the areas in
which Nextel customers using 3G services in Brazil and Mexico can access voice
and data services, supporting NII's growth strategy. Both companies will work
closely to implement the agreements as soon as possible. Telefonica and NII's
subsidiaries will continue to manage their spectrum and network assets
separately to provide competing services.

In Brazil, the announcement demonstrates the commitment of both operators to
create a dynamic competitive environment and is a natural step forward in the
networks optimization process. This agreement will allow Vivo, Telefonica's
commercial brand in Brazil, to more 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").

In Mexico, the commercial agreement will allow Movistar, Telefonica's
commercial brand in the country, to leverage the capacity already deployed in
its 3G network and will provide another lever for strengthening its wholesale
strategy in the country. Additionally, it will allow Nextel Mexico to expand
its network footprint beyond its current coverage. Moreover, it shows the
commitment of both companies to efficiently provide additional services to the
marketplace consistent with the goals of the telecommunications regulation
reform initiatives that are being implemented in Mexico.

"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 Fernandez Valbuena,
Chairman and CEO of Telefonica Latin America. "It is another example of
Telefonica's effort to optimize resource usage, improve profitability of the
businesses and increase financial flexibility."

"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, NII Holdings'
Chief Executive Officer. "Our access to Telefonica's networks under these
agreements will also allow us to utilize Telefonica's networks as we continue
to expand our own coverage footprint to provide our customers with service
that meets their needs."

The agreements reached with Nextel are in line with other announcements that
Telefonica has made in recent months, such as the 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.

About Telefonica
Telefonica is one of the largest telecommunications companies in the world in
terms of market capitalisation and number of customers. From this outstanding
position in the industry, and with its mobile, fixed and broadband businesses
as the key drivers of its growth, Telefonica has focused its strategy on
becoming a leading company in the digital world.

The company has a significant presence in 24 countries and a customer base
that amounts more than 320 million accesses around the world. Telefonica has a
strong presence in Spain, Europe and Latin America, where the company focuses
an important part of its growth strategy.

Telefonica is a 100% listed company, with more than 1.5 million direct
shareholders. Its share capital currently comprises 4.551.024.586 ordinary
shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and
Valencia) and on those in London, New York, Lima, and Buenos Aires.

AboutNII Holdings, Inc.
NII Holdings, Inc., a publicly held company based inReston, Va., is a
provider of differentiated mobile communication services for businesses and
high value consumers inLatin America.NII, operating under the Nextel brand
inBrazil,Mexico,ArgentinaandChile, 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 andBarron's500
company, and has also been named one of the best places to work among
multinationals inLatin Americaby theGreat Placeto Work^®Institute. The
company trades on the NASDAQ market under the symbol NIHD. Visit the company's

Nextel, theNextellogo and Nextel Direct Connect and International Direct
Connect are trademarks and/or service marks ofNextel Communications, Inc.,
and are used by NII's subsidiaries under license inLatin America.

VisitNII Holdings'news room for news and to access our markets' news center

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Statements in this news
release regarding expectations, including availability of services, forecasts
regarding operating results, performance assumptions and estimates relating to
costs and capital requirements, as well as other statements that are not
historical facts, are forward-looking statements. When used in this press
release, these forward-looking statements are generally identified by the
words or phrases "would be," "will allow," "expects to," "will continue," "is
anticipated," "estimate," "project" or similar expressions. While the Company
provides forward-looking statements to assist in the understanding of its
anticipated future financial performance, the Company cautions readers not to
place undue reliance on any forward-looking statements, which speak only as of
the date of this report. Forward-looking statements are based on current
expectations and assumptions that are subject to significant risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Except as otherwise required by law, the
Company undertakes no obligation to publicly release any updates to
forward-looking statements to reflect events after the date of this report,
including unforeseen events. We have included risk factors and uncertainties
that might cause differences between anticipated and actual future results in
the Company's 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 with the
Securities and Exchange Commission.

Media Contacts:

Telefonica S.A.
Distrito Telefonica
Ronda de la Comunicacion, s/n
28050 Madrid
+34 91 482 38 00

Investor Relations: Pablo Eguiron
+34 91 482 87 00

Media Relations: Miguel Garzon
+34 91 482 38 00

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

Investor Relations:Tahmin Clarke
(703) 390-7174

Media Relations: Claudia Restrepo
(786) 251-7020

SOURCE NII Holdings, Inc.

Press spacebar to pause and continue. Press esc to stop.