NII posts record customer growth in 2006

NII Holdings Inc., which provides iDEN-based wireless service for business customers in Latin America, added a record 934,300 net subscribers to its network last year, a 49-percent increase over its results for 2005-and predicted it will do even better in 2007, projecting customer additions of 1.2 million subscribers for this year.
The Reston, Va.-based carrier, formerly Nextel International, posted 252,200 net additions during the fourth quarter, which was 25-percent more than it saw during the same period in 2005.
The carrier’s operating revenues were about $2.37 billion for the year, up from $1.67 billion during 2005. NII Holdings reported net income of $295 million, up from $175 million during the prior year.It cut its churn rate from 1.6 percent during the fourth quarter of 2005 to 1.5 percent in the fourth quarter of 2006, with an average 2006 churn of 1.5 percent. The carrier’s average revenue per user was down slightly to $59, from $60 during 2005’s fourth quarter; but it held steady for the year with both 2005 and 2006 ARPU coming in at $58.
During the year, the company also extended its handset and network equipment supply agreement with Motorola Inc. until 2011 and acquired the assets of a Mexican carrier, including a 50 megahertz nationwide footprint in the 3.4 GHz spectrum band.
“As we move forward in 2007, we are poised to capitalize on the numerous opportunities in front of us as we complete our network expansion plan, continue to scale our business and execute on our profitable growth strategy,” said Steve Shindler, NII Holdings’ chairman and CEO.