Morningstar Rating

Stock Research and Analysis

by Imari Love

Bulls Say

The firm has launched 3G service in Chile and Mexico with handsets that feature mobile broadband data speeds up to 50 times faster than those on its 2G service. This should help improve its ARPU and churn outlook.
By investing only in populated areas where economic activity is high, NII has been able to enjoy high returns on investments and strong operating margins.
The new regulatory reform initiative signed into law in Mexico should weaken Telcel's dominance in the market, thus improving NII's growth prospects. Read more 

Bears Say

NII competes with telecom giants that are beginning to target the postpaid wireless market. Given the massive price cuts its competitors have instituted over the past few years, NII cannot afford to have inferior network quality or a weaker device lineup.
3G deployment delays have handcuffed the firm's near-term growth prospects. After losing two-thirds of its EBITDA in 2013, NII is guiding for negative EBITDA in 2014.
The weakening of the Brazilian real and Mexican peso have been recent headwinds for NII. Read more 

Management

After a brief hiatus, Steve Shindler is once again CEO of NII. He joined Nextel Communications in 1996 as executive vice president and chief financial officer. From 2000 to 2008, he was CEO of Nextel International, now NII. He has been a member of the   Read more 

Profile

NII Holdings was incorporated in Virginia but conducts all of its business in Latin America. The firm provides a push-to-talk wireless service, using technology licensed   Read more 

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