Telecom service provider NII Holdings on Thursday said its Capex (capital spending) will continue to be $1 billion this year. This is despite a cut in revenue forecast.
Capital expenditure during the third quarter was $231 million. NII Holdings increased 3G sites to 8,775 in Q3 from 7,995 in Q2.
As part of its Capex plan, the telecoms will invest in LTE and will launch 4G services in select cities to become a technology leader and deliver a better customer experience.
It launched full 3G services in Sao Paulo in October 2013 and the telecom operator is expected to launch 3G services in Rio De Janeiro in November.
NII Holdings, which said the shutdown of iDEN network in the U.S. had a significant impact on Nextel Mexico’s results, announced Project Accelerate, a new initiative to recover lost ground and enhance its competitive position in 2014. It reported a net subscriber loss of 178,000, resulting in subscriber base of 9.7 million.
It announced Project Accelerate after reporting 22 percent drop in third quarter operating revenue to $1.1 billion.
NII Holdings net loss reached $300 million.
Its financial performance reflects in drop of $9 in ARPU to $31 for the third quarter of 2013.
The company admitted that the ARPU drop was due to lower priced rate plans, primarily in Brazil and Mexico.
The company it will not achieve its financial guidance for the year given the weak operational and financial results, the continued depreciation of local currency exchange rates and the expected impact of Project Accelerate on its results for the fourth quarter.
