Dallas, Texas 01/23/2014 (FINANCIALSTRENDS) – NII Holdings Inc (NASDAQ:NIHD) the $517 million market capped telecom services provider in countries like “Brazil, Mexico, Argentina, Peru and Chile” has had a big bull run at the markets over the past week, ever since it was disclosed that the telecom carrier has tied up with smart phone major Apple Inc (NASDAQ:AAPL) to exclusively supply the fast selling iPhone 5s and iPhone 5c models to its Brazilian customers through its subsidiary “Nextel Brazil”.
The deal is expected to become operational on Jan. 31, 2014 and since the deal got announced on 17th January, the stock of this telecom major has posted a huge 26 percent increase in its market valuation. The surge in the valuation of the stock by such a huge margin has helped the struggling operator in arresting the steady dip in its market valuation over the past few months. It would be instructive to note here that the stock has shed 40 percent of its market value in the past one quarter and by an even larger 57 percent in the past one year of trading.
In related news, NII Holdings Inc (NASDAQ:NIHD) had announced last week, that it had also tied up with Telefonica thanks to which it would be able to provide “wholesale voice and data services” to subscribers of its Brazil and Mexico subsidiaries.
These tie ups on the part of NII Holdings Inc (NASDAQ:NIHD) have been necessitated thanks to the intense competition in the telecom space in these growing Latin American markets. Due to its relative small size in comparison to larger competition, the telecom services provider has found itself loosing market share to competition. These tie ups are designed to help the firm, up its profile among the end users and the business community and project a position of strength and growth.