Zacks_Analysts' Blog : NIHD Begins PTT Service on WCDMA - Analyst Blog

Nextel Peru, a subsidiary of Latin America-based wireless communication company, NII Holdings, Inc. , (NIHD), recently started offering Push-to-Talk (PTT) services on its W-CDMA network.

The new service is available with the broadband data services, which is already available on NII Holdings’ network. The new 3G PTT service provided by Nextel Peru is offered through Huawei-based U3220 handsets. According to management, this new offering will enable the company to deliver high quality PTT service to its customers in Peru, thus gaining market traction in that region.

The advanced PTT service also features other high quality services like 1) Direct Connect next generation PTT service, which will enable customers to get in touch with each other with just one touch of a button 2) It also supports fast browsing by converting the handset into a modem 3) group calling features to other PTT users on the 3G network 4) PTT and group call alert notifications that alert users about incoming calls while they are busy on another call, and 5) the ability to better connect to voice and PTT customers on Nextel Peru's iDEN network.

The company reported mixed financial results for the second quarter of 2011. Revenue beat the Zacks Consensus Estimate driven by a significant rise in ARPU in Brazil and a reduction of mobile termination rates in Mexico. However, EPS fell below the Zacks Consensus Estimate, hurt by lesser subscriber addition.

Moreover, ongoing global economic volatility coupled with stiff competition from America Movil (AMX) and Telefonica (TEF), who are aggressively deploying next-generation wireless technologies in major Latin American markets, may hinder its near-term growth.

We, thus, maintain our long-term Neutral recommendation for NII Holdings, Inc. Currently, NII Holdings, Inc.has a Zacks #4 Rank, implying a short-term Sell rating on the stock.