NII Holdings Inc. (NIHD), which offers Nextel mobile-phone service in Mexico, rose to the highest in more than two months after announcing the first phone with its new software for walkie-talkie communications.
NII, based in Reston, Virginia, jumped 14 percent at $7.39 at the close in New York, its highest closing price since Jan. 28. The shares are up 3.6 percent this year, compared with an 11 percent gain for the Standard & Poor’s 500 Index.
The software on the phone, Motorola Mobility’s Atrix HD, can also be used in other devices that operate on Google Inc. (GOOG)’s Android platform, said Chris King, an analyst at Stifel Nicolaus & Co. That means NII will be able to offer walkie-talkie service on popular Android phones such as Samsung Electronics Co.’s Galaxy devices, he said today in a note. He advises buying the shares.
NII has traditionally used a network technology called IDEN to offer walkie-talkie service, in which users can communicate with quick bursts of conversation. By switching to software that works over mobile Internet connections, it can offer a wider variety of devices to better compete with America Movil SAB and Telefonica SA. (TEF)
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