Nextel to buy Telefonica trunking unit for US$13mn

US holding company NII Holdings and Nextel Argentina have agreed to buy 100% of trunking operator Radio Movil Digital Argentina, a unit of Telefonica de Argentina (NYSE: TAR), for US$13mn, NII spokesperson Claudia Restrepo confirmed to BNamericas. The two parties are currently completing due diligence and must seek government approval, Restrepo said, adding that no other steps have yet been determined. If approved, the acquisition would "expand the quality and quantity" of Nextel Argentina's operations, Restrepo said. RMDA operates in the capital, Buenos Aires, and Rosario, Santa Fe, Cordoba and Mendoza provinces. "The acquisition would expand Nextel's coverage, which is currently limited to a corridor between Mar del Plata, Buenos Aires and Mendoza," said Enrique Carrier, of telecom consulting firm Carrier & Associados. The Radio Movil network would extend coverage in Santa Fe and Cordoba provinces, which Carrier described as the "productive heartland" of Argentina. In terms of clients, the deal is not so significant, as Telefonica, never put much effort or resources into the business, Carrier said. Precisely for these reasons it makes sense for Telefonica to leave the business, as it has not shown much interest.