Subject: [NEXTEL-1] Nextel International to leave Philippines, focus on LatAm

From: Marcel <[email-masked]>
Date: Tue, 19 Nov 2002 17:14:49 -0500

The real question..........

Is Nextel  leaving for financial reasons ( maybe they being asked to leave?) or due to the
NTC investigations into Nextel's alleged use the use of "Dummy Companies"?

 The Philippines version of the FBI has subpoena all of Nextel's Int management. We should
know something soon. The DOJ has promised to investigate Nextel based on any wrong doings
discovered by the Philippine government.
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Nextel International to leave Philippines, focus on LatAm

NOVEMBER 18, 2002 12:00AM
BUSINESS NEWS AMERICAS

BNamericas.com via NewsEdge Corporation : Regional digital trunking operator
NII Holdings expects to exit the Philippines within three months as part of its
post-Chapter 11 strategy to place exclusive focus on Latin America, NII VP and
CFO Byron Siliezar told BNamericas.

The company had about 52,000 customers in the Philippines at end-March of this
year. Regarding the future of Chile, the least mature of its five Latin American
units, Siliezar said, "We are in the process of evaluating several alternatives. We
want to determine the best approach and timing for expanding our services in
Chile."

Chile remains the weak link in NII's operations. The company provides analog
trunking services to about 6,000 clients in the regions covering the capital
Santiago and major port Valparaiso. In comparison, NII serves 431,000 and
423,000 customers in Brazil and Mexico, its main markets, plus 185,000 and
117,000 in Argentina and Peru.

NII said Thursday in a statement its reorganization plan will reduce the
company's total indebtedness from US$2.8bn to US$500mn. Siliezar said that
debt reduction comes primarily from an agreement with creditors and
bondholders to exchange US$2.4bn of the company's high-yield liabilities for
equity positions.

"We believe we have a fully funded business plan with annual revenues in excess
of US$700mn, less than US$500mn in debt and 1.2 million wireless subscribers
with the best ARPU in Latin America," NII CEO Steve Shindler said in the
statement.

NII parent Nextel Communications (Nasdaq: NXTL) will see its 99% stake in the
company diluted to 36% as a result of the debt-for-equity swap, Siliezar said.
US-based financial institutions Mackay Shields and Merrill Lynch enter as the
company's second- and third-largest shareholders, with 22% and 13% stakes
respectively, he said.

The remaining 30% of the company is widely distributed. "We will have about
500 shareholders altogether," Siliezar said.

In related news, NII reported on Thursday net losses of US$36mn, compared to
US$552mn for the same period last year.

Revenues were stable at US$191mn for the quarter, compared to US$186mn for
3Q01. More significantly, the company went from an operating loss of US$235mn
in 3Q01, to operating income of US$19mn for 3Q02. Much of the difference was
associated with a US$147mn write-down of Philippine assets during 3Q01, Siliezar
said, adding the company also recorded significant year-over-year reductions in
SG&A and depreciation expenses.

NII reported 3Q02 operating cash flow of US$40.5mn, reversing the operating
cash flow loss of US$28.6mn recorded for the same period in 2001. Significantly,
all Latin American operating companies reported year-over-year increases in
operating cash flow.

NII Holdings provides digital trunking services using Motorola's iDEN technology.

<<BNamericas.com -- 11/15/02>>

http://www.wirelessweek.com/index.asp?layout=story&articleId=NEb1115007.7na

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