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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">As filed with the Securities and Exchange
Commission on August&nbsp;17, 2000</FONT></B>
</DIV>

<DIV align="right">
<B><FONT size="2">Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></B>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<P align="center">
<B><FONT size="5">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B><FONT size="6">FORM S-1</FONT></B>

<DIV align="center">
<B>REGISTRATION STATEMENT</B>
</DIV>

<DIV align="center">
<B>UNDER</B>
</DIV>

<DIV align="center">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B><FONT size="6">NEXTEL INTERNATIONAL, INC.</FONT></B>

<DIV align="center">
<B><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="34%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="32%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="28%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="center" valign="top"><FONT size="2">
	<B>Washington<BR>
	 (State or other jurisdiction of<BR>
	incorporation or organization)</B></FONT></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	<B>4812<BR>
	(Primary Standard Industrial<BR>
	Classification Code Number)</B></FONT></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	<B>91-1671412<BR>
	(I.R.S. Employer<BR>
	Identification Number)</B></FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">10700 Parkridge Boulevard, Suite&nbsp;600,
Reston, Virginia 20191</FONT></B>

<DIV align="center">
<B><FONT size="2">(703)&nbsp;433-4000</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Address, including zip code, and telephone
number, including area code, of registrant&#146;s principal
executive offices)</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B><FONT size="2">Robert B. Shanks, Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">Vice President</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Nextel International, Inc.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">10700 Parkridge Boulevard, Suite&nbsp;600
</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Reston, Virginia 20191</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(703)&nbsp;433-4000</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Name, address, including zip code, and
telephone number, including area code, of agent for service)
</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<I><FONT size="2">Copies to:</FONT></I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="55%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="42%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="center" valign="top"><FONT size="2">
	<B>Lisa A. Stater, Esq.<BR>
	Jones, Day, Reavis &#38; Pogue<BR>
	3500 SunTrust Plaza<BR>
	303 Peachtree Street<BR>
	Atlanta, Georgia 30308<BR>
	(404) 521-3939</B></FONT></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	<B>Andrew R. Schleider, Esq.<BR>
	Shearman &#38; Sterling<BR>
	599 Lexington Avenue<BR>
	New York, New York 10022<BR>
	(212) 848-4000</B></FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B>Approximate date of commencement of proposed sale to the
public:</B>

<DIV align="center">
As soon as practicable after this registration statement becomes
effective.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant
to Rule&nbsp;415 under the Securities Act of 1933, check the
following box.&nbsp;[&nbsp;&nbsp;&nbsp;]</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is filed to register additional
securities for an offering pursuant to Rule&nbsp;462(b) under the
 Securities Act, please check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same offering. &nbsp;
[&nbsp;&nbsp;&nbsp;]</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is a post-effective amendment filed
pursuant to Rule&nbsp;462(c) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same offering. &nbsp; [&nbsp;&nbsp;&nbsp;]</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is a post-effective amendment filed
pursuant to Rule&nbsp;462(d) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same offering. &nbsp; [&nbsp;&nbsp;&nbsp;]</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If delivery of the prospectus is expected to be
made pursuant to Rule&nbsp;434, please check the following
box.&nbsp;[&nbsp;&nbsp;&nbsp;]</FONT>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B><FONT size="2">CALCULATION OF REGISTRATION FEE</FONT></B>

<P align="left">
<HR size="1" width="100%" align="left">

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="55%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="19%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="20%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Title of each class of securities to be registered</B></FONT></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	<B>Proposed maximum aggregate offering price(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	<B>Amount of registration fee</B></FONT></TD>
</TR>

<TR>
	<TD colspan="5" align="left"><HR size="1"></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Class&nbsp;A Common Stock, no par value</FONT></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	$920,000,000</FONT></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	$242,880</FONT></TD>
</TR>

<TR>
	<TD colspan="5" align="left"><HR size="1"></TD>

</TR>

</TABLE>
</CENTER>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD><FONT size="2">(1)&nbsp;</FONT></TD>
	<TD align="left">
	<FONT size="2">Estimated solely for the purpose of calculating
	the registration fee pursuant to Rule&nbsp;457(o) of the
	Securities Act of 1933. A portion of the shares to be registered
	represents shares that are to be offered outside of the United
	States but that may be resold from time to time in the United
	States. Such shares are not being registered for the purpose of
	sales outside the United States.</FONT></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="36%" align="center">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">THE REGISTRANT HEREBY AMENDS THIS REGISTRATION
STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS
EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER
AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION&nbsp;8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE
REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE
 COMMISSION, ACTING PURSUANT TO SAID SECTION&nbsp;8(a), MAY
DETERMINE.</FONT></B>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT color="#FF0000">The information in this preliminary
prospectus is not complete and may be changed. These securities
may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This preliminary
 prospectus is not an offer to sell nor does it seek an offer to
buy these securities in any jurisdiction where the offer or sale
is not permitted. <BR>
</FONT></B>
</TD></TR></TABLE>

<P align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Subject to Completion. Dated August&nbsp;17, 2000.</B>

<P align="center">
<B><FONT size="4">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
</FONT></B>

<DIV align="center">
<B><FONT size="5">Nextel International, Inc.</FONT></B>
</DIV>

<DIV align="center">
<FONT size="4">Class&nbsp;A Common Stock</FONT>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 This is an initial public offering of shares of class A common
stock of Nextel International, Inc. This prospectus relates to an
 offering of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 in an offering inside the United States. In addition,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 are being offered in an international offering outside of the
United States. All of the
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 of class A common stock are being sold by Nextel International.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to this offering, there has been no public market for the
class&nbsp;A common stock. It is currently estimated that the
initial public offering price per share will be between
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
Application has been made for quotation of the class A common
stock on the Nasdaq National Market under the symbol
&#147;NXTI.&#148;

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering, Nextel International will have
outstanding two classes of authorized common stock, the
class&nbsp;A common stock and the class&nbsp;B common stock. The
rights of holders of the class&nbsp;A common stock and the
class&nbsp;B common stock are identical except with respect to
voting and conversion.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>See &#147;Risk Factors&#148; beginning on page&nbsp;10 to read
 about factors you should consider before buying shares of the
class A common stock.</I>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <B>Neither the Securities and Exchange Commission nor any other
regulatory body has approved or disapproved of these securities
or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.</B>

<P align="center">
<HR size="1" width="30%" align="center">

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="68%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">Per Share</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">Total</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Initial public offering price</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Underwriting discount</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Proceeds, before expenses, to Nextel International</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent that the U.S. underwriters sell more than
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 of class&nbsp;A common stock, the U.S. underwriters have the
option to purchase up to an additional
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares from Nextel
International at the initial public offering price less the
underwriting discount. The international underwriters may
similarly purchase up to an additional
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares.

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters expect to deliver the shares against payment in
New York, New York on
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
 2000.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="50%"></TD>
	<TD width="50%"></TD>
</TR>

<TR valign="top">
	<TD align="left"><B><FONT size="4">Goldman, Sachs &#38; Co.</FONT></B></TD>
	<TD align="right"><B><FONT size="4">Morgan Stanley Dean Witter</FONT></B></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">
<B><FONT size="4">Credit Suisse First Boston</FONT></B>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="15%"></TD>
	<TD width="85%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<B><FONT size="4">Deutsche Banc Alex. Brown</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="30%"></TD>
	<TD width="70%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<B><FONT size="4">Merrill Lynch &#38; Co.</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="46%"></TD>
	<TD width="54%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<B><FONT size="4">PaineWebber Incorporated</FONT></B></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
Prospectus dated
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2000.
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<DIV align="center">
Art Work
</DIV>

<P align="center">
[Map of Latin America and Asia with

<DIV align="center">
countries and cities in which we operate
</DIV>

<DIV align="center">
color coded and stating populations which
</DIV>

<DIV align="center">
our licenses cover]
</DIV>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should rely only on the information contained in this
prospectus. We have not authorized anyone to provide you with
information different from that contained in this prospectus. We
are offering to sell shares of class A common stock and seeking
offers to buy shares of class A common stock only in
jurisdictions where offers and sales are permitted. The
information contained in this prospectus is accurate only as of
the date of this prospectus, regardless of the time of delivery
of this prospectus or any sale of the class A common stock.

<DIV align="center">
<HR size="1" width="30%" align="center">
</DIV>

<P align="center"><B>MARKET AND INDUSTRY DATA</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Market and industry data used throughout this prospectus were
obtained from market research, publicly available information and
 industry publications. Industry publications generally state
that the information contained in those publications has been
obtained from sources believed to be reliable, but that the
accuracy and completeness of the information is not guaranteed.
Although we believe the market and industry data are reliable, we
 have not independently verified this information, and we do not
make any representation as to the accuracy of the information.
Often interviews with corporate leaders in emerging industries,
such as ours, form the basis for much statistical market and
industry data. Thus, statistical and industry data for emerging
industries, such as ours, are much less likely to be accurate.

<DIV align="center">
<HR size="1" width="30%" align="center">
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Nextel&#148;, &#147;Nextel Direct Connect&#148; and
&#147;Nextel Worldwide&#148; are trademarks or service marks of
Nextel Communications, Inc. Nextel Communications allows us to
use the &#147;Nextel&#148; tradename in jurisdictions outside of
the United States on a royalty-free basis, but we cannot assure
you that our rights to use the &#147;Nextel&#148; tradename will
continue or will continue on terms not involving the payment of
royalties or other amounts to Nextel Communications.
&#147;Motorola,&#148; &#147;iDEN&#148; and &#147;i2000&#148; are
trademarks or service marks of Motorola, Inc.
&#147;Clearnet&#148; and &#147;Mike&#148; are trademarks of
Clearnet Communications, Inc.

<P align="center">i

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<!-- link1 "SUMMARY" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center"><B>SUMMARY</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The following summary highlights basic information about us
and the class A common stock that we are offering but does not
contain all the information you should consider before investing
in our class&nbsp;A common stock. You should read the entire
prospectus carefully, especially &#147;Risk Factors.&#148; As
used in this prospectus, the terms &#147;we,&#148;
&#147;us,&#148; &#147;our&#148; and &#147;Nextel
International&#148; refer to Nextel International, Inc. and our
Operating Companies, as described below, except where the context
 otherwise requires or as otherwise indicated.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Except as otherwise indicated, all dollar amounts are
expressed in U.S. dollars and references to &#147;dollars&#148;
and &#147;$&#148; are to U.S. dollars. All consolidated
historical financial statements contained in this prospectus have
 been prepared in accordance with accounting principles generally
 accepted in the United States of America.</I>

<P align="center"><B>NEXTEL INTERNATIONAL</B>

<P align="left"><B>Overview</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide integrated digital wireless communications services
targeted at meeting the needs of business customers in selected
international markets. Our principal operations are in major
business centers and related transportation corridors of Brazil,
Mexico, Argentina and Peru. As part of our growth strategy, we
have recently expanded our wireless coverage in Latin America by
purchasing companies with specialized mobile radio, or SMR,
licenses in Chile. In addition to our wholly owned Latin American
 operations, we are also significant equity participants in
digital wireless communications providers in the Philippines and
Japan, and we have an equity interest in Clearnet Communications,
 a leading publicly-held digital wireless communications provider
 in Canada.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operating subsidiaries and affiliates, which we refer to as
our Operating Companies, have SMR licenses in markets that cover
about 382&nbsp;million persons, or Pops, of which about
149&nbsp;million are in Latin America. Our Operating Companies
currently provide integrated digital wireless communications
services in the five largest cities in Latin America and two of
the ten largest cities in Asia. We believe, based on the
magnitude of our license holdings and our subscriber base, that
we currently are the largest digital enhanced SMR, or ESMR,
provider, and operate one of the largest integrated digital
wireless communications systems utilizing a single transmission
technology, in Latin America. Our parent, Nextel Communications,
operates one of the largest integrated digital wireless
communications systems utilizing a single transmission technology
 in the United States.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our networks use a single transmission technology called
integrated digital enhanced network, or iDEN, developed by
Motorola, to provide digital ESMR services on 800 MHz spectrum
holdings in Latin America, the Philippines and Canada and on 1.5
GHz spectrum holdings in Japan. Digital ESMR allows us to use our
 spectrum more efficiently and offer enhanced services. Our
Operating Companies offer a differentiated package of services
under the &#147;Nextel&#148; name in Latin America and the
Philippines and under the &#147;Mike&#148; name in Canada. We are
 designing our digital ESMR networks to support a full complement
 of digital wireless services, including:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	digital mobile, or interconnect, telephone service;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	advanced calling features, such as two-way calling, voicemail and
	 call forwarding;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	international roaming capabilities;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Nextel Direct Connect service that allows users to contact
	co-workers instantly, on a private one-to-one call or on a
	one-to-many group call, without interconnecting to the public
	switched telephone network; and</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; paging and short-text messaging.

<P align="center">1

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
In addition, we plan to offer users access to digital two-way
mobile data and Internet connectivity services in the future.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our customers may roam throughout the iDEN&nbsp;800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800 MHz technology. To further
enhance our roaming services, during the second quarter of 2000,
we launched Nextel Worldwide with the introduction of the i2000,
a digital dual-mode subscriber unit manufactured by Motorola that
 operates on both iDEN 800 MHz and Global System for Mobile
Communications, or GSM, 900&nbsp;MHz technologies. This service
allows our customers to roam internationally when traveling
between our markets and other cities or countries in which either
 iDEN 800&nbsp;MHz or GSM 900&nbsp;MHz networks are operating and
 which are covered by our roaming arrangements. We currently have
 over 70 roaming agreements in effect with operators of iDEN
800&nbsp;MHz and GSM 900 MHz networks in over 40 countries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our senior management team has substantial operating experience
in the telecommunications industry both internationally and in
the United States. Many of our key executives and directors have
significant experience working at AT&#38;T Wireless Services,
Inc., McCaw Cellular Communications, Inc. or Nextel
Communications. In addition, we have assembled regional
management teams with substantial local telecommunications
experience that oversee the local operations of our Operating
Companies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, our Operating Companies had an
aggregate of about 1,225,900 digital subscriber units in service
in the countries indicated below. Our proportionate share, based
on our current ownership percentage of these Operating Companies,
 was about 599,900 digital subscriber units in service. Since the
 launch of our commercial ESMR operations in 1998, we have
experienced significant and rapid growth in digital subscriber
units in service. From June&nbsp;30, 1999 to June&nbsp;30, 2000,
our Operating Companies increased the total number of their
digital subscriber units in service in the countries indicated
below by 97%. In Latin America, our Operating Companies increased
 the total number of digital subscriber units in service by 205%
during the same period.

<P align="left"><B>Operating Companies Overview</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides an overview of our Operating
Companies in the countries indicated, giving effect to recent
acquisitions as described below.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="22%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="13%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Proportionate</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Digital</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Digital</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Nextel</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Subscriber</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Subscriber</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Start Date of</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>International</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Licensed</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Units in Service at</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Units in Service at</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Initial Commercial</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Country</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Ownership</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Pops</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30, 2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June 30, 2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>ESMR Services</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" colspan="3"><FONT size="2"><B>(in millions)</B></FONT></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">204</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">204</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	May 1998</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">133</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">133</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	September 1998</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	June 1998</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	June 1999</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Chile</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	&#151;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Total Latin America</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>149</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>469</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>469</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Philippines</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51.1%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">75</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	July 1998</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Japan</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32.1%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">127</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	July 1998</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Canada</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.4%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">672</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">97</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom"><FONT size="2">
	October 1996</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Total</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>382</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>1,226</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><B>600</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B>Business Strategy</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal objective is to become the leading provider of
integrated digital wireless communication services to business
customers in selected international markets. We believe the
following elements of our strategy will distinguish us from our
competitors and will enable us to compete successfully:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Focus on Major Business Centers in Emerging Markets.</I>
	</B> We operate primarily in Latin America in markets that we
	believe offer favorable long-term growth prospects for wireless
	communications services. We believe that there are significant
	opportunities for growth in these markets due to relatively low
	wireless and wireline penetration rates and increasing income
	levels. In a given market, we initially focus on highly
	concentrated business centers such as Mexico City, S&#227;o
	Paulo, Rio de Janeiro, Buenos Aires and Lima. These areas have
	high population densities and, we believe, a concentration of the
	 country&#146;s business users and economic activity. To capture
	the benefits of the projected growth in the demand for wireless
	services in our current markets and to increase our market share,
	 we intend to continue to enhance and expand our networks, to
	leverage our existing customer base and to continue developing
	innovative products and services.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Provide Differentiated Package of Wireless Services.</I>
	</B> We offer a package of services and features that combines
	multiple communications services in a single wireless subscriber
	unit, including Nextel Direct Connect, which allows users to
	contact co-workers instantly, on a private one-to-one call or on
	a one-to-many group call. In addition, we offer billing based
	upon actual seconds of airtime after the first minute and rate
	plans that do not distinguish between &#147;peak&#148; and
	&#147;off-peak&#148; minutes. We also offer international roaming
	 in selected iDEN 800 MHz and GSM 900 MHz markets. We believe
	that none of our competitors currently offers a similar package
	of services. We intend to continue to emphasize the
	differentiated features of iDEN technology and our networks and
	to continue to enhance our service offerings such as the
	anticipated future availability of regional Nextel Direct Connect
	 and wireless data services in selected markets.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Target Business Customers.</I></B> We believe that our
	focus on business customers will result in higher average monthly
	 revenue per digital subscriber unit and lower subscriber unit
	cancellations. Based on the experience of Nextel Communications
	in the United States, we believe business customers are more
	likely to recognize the advantages and value of our integrated
	service offerings. Further, we believe that we are the only major
	 wireless service provider in our markets directing
	fully-integrated digital offerings principally to the business
	segment. To increase our subscriber base, our Operating Companies
	 are continuing to implement marketing programs and promotions
	that have been proven successful in Nextel Communications&#146;
	markets in the United States.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Offer International Roaming.</I></B> We are deploying
	international digital ESMR networks that will provide roaming
	capabilities to our customers on a single digital subscriber unit
	 as they travel in iDEN 800 MHz or GSM 900 MHz markets where we
	operate or have roaming agreements. We believe that offering
	international roaming capabilities with one phone, one number and
	 one bill distinguishes our service offerings from those of other
	 wireless operators in our markets.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Expand and Strengthen Our Geographic Footprint.</I></B> We
	intend to selectively expand our coverage in those markets in
	which we currently operate. In addition, we may pursue new
	investments in high growth international markets that complement
	our existing operations and offer the opportunity to further our
	business strategy. We believe our established presence in Latin
	America and Asia, our strategic affiliations with Nextel
	Communications and Motorola, and our acquisition experience will
	enable us to capitalize on opportunities in our existing as well
	as selected new markets. In addition, as opportunities arise, we
	may also increase our ownership of our Operating Companies that
	are not wholly owned.</TD>
</TR>

</TABLE>

<P align="center">3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Leverage our Relationship with Nextel Communications.</I>
	</B> Our relationship with Nextel Communications is important as
	we continue to upgrade and deploy our digital ESMR networks and
	provide new products and services to expand our subscriber base.
	Access to the technology, supplier relationships, network
	development and marketing expertise of Nextel Communications has
	afforded us significant competitive advantages. We intend to
	continue to leverage Nextel Communications&#146; expertise in the
	 future as we enhance and expand our networks and launch new
	products and services. In addition, we currently utilize the
	&#147;Nextel&#148; brand name in Latin America and the
	Philippines. We also benefit from Nextel Communications&#146;
	relationship with Motorola, which supplies us with network
	equipment, subscriber units and related services, generally at
	the same basic prices extended to Nextel Communications.</TD>
</TR>

</TABLE>

<P align="left"><B>Recent Developments</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>McCaw Brazil. </I>We entered into a purchase, release and
settlement agreement dated as of July&nbsp;21, 2000 with the
Founders Group, who collectively were the minority stockholders
in McCaw International (Brazil), Ltd., which is referred to as
McCaw Brazil and which indirectly owns 100% of Nextel
Telecomunica&#231;&#245;es Ltda., our primary Brazilian Operating
 Company and referred to as Nextel Brazil. Under that agreement,
on August&nbsp;4, 2000, we made a cash payment to members of the
Founders Group totaling $146.0&nbsp;million, received all of the
equity interests held by the Founders Group in McCaw Brazil and
exchanged mutual releases with all of the members of the Founders
 Group. In addition, all pending court disputes between us and
Telcom Ventures, a member of the Founders Group, were permanently
 dismissed. For a description of these disputes, see
&#147;Business &#151; Legal Proceedings &#151; Telcom
Ventures.&#148; As a result, we own 100% of McCaw Brazil and all
rights of the Founders Group as minority stockholders in McCaw
Brazil, including their rights to put their equity interests to
us beginning in October&nbsp;2001, were terminated.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Increase in Our Investment in Nextel Philippines. </I>On
July&nbsp;28, 2000, we increased our direct and indirect
ownership interests in Nextel Communications Philippines, Inc.,
referred to as Nextel Philippines, from about 38% to about 51%
through the purchase of some of the minority owners&#146; equity
interests for about $9.8&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>12.75% Senior Serial Notes. </I>On August&nbsp;1, 2000, we
completed the issuance and sale in a private placement of
$650.0&nbsp;million aggregate principal amount of our 12.75%
senior serial notes due 2010, generating about
$623.8&nbsp;million of net cash proceeds.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Acquisitions.</I> On August&nbsp;11, 2000, we entered into an
agreement with Cordillera Communications Corporation, referred to
 as CCC, under which we agreed to purchase all of CCC&#146;s
equity ownership in several analog SMR companies in Chile and
Peru for about $66.5&nbsp;million. The purchase price is subject
to reduction in the event we are unable to obtain within the next
 24&nbsp;months the regulatory relief necessary to provide our
integrated digital ESMR services in Chile. Consummation of these
acquisitions is subject to various conditions, and we cannot
assure you when or whether these acquisitions will occur.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also entered into term sheets or are negotiating
agreements regarding additional potential investments to increase
 our spectrum position or make strategic acquisitions. However,
we cannot assure you that definitive agreements will be reached
regarding any of these potential investments or as to their
terms.

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal executive office is located at 10700&nbsp;Parkridge
 Boulevard, Suite&nbsp;600, Reston, Virginia&nbsp;20191. Our
telephone number is (703)&nbsp;433-4000.

<P align="center">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>THE OFFERINGS</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="37%"></TD>
	<TD width="1%"></TD>
	<TD width="62%"></TD>
</TR>

<TR>
	<TD valign="top">
	Class&nbsp;A common stock offered by Nextel International:</TD>
	<TD></TD>
	<TD valign="top">
</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;U.S. offering</TD>
	<TD></TD>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;International offering</TD>
	<TD></TD>
	<TD valign="top">
	<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
	&nbsp; shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD>
	<TD></TD>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	Common stock to be outstanding after the offerings:</TD>
	<TD></TD>
	<TD valign="top">
</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;Class&nbsp;A common stock</TD>
	<TD></TD>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;Class B common stock</TD>
	<TD></TD>
	<TD valign="top">
	<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
	&nbsp; shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD>
	<TD></TD>
	<TD valign="top">
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	Voting rights</TD>
	<TD></TD>
	<TD valign="top">
	The class A common stock and class B common stock vote as a
	single class on all matters, except as otherwise required by law,
	 with each share of class A common stock entitling its holder to
	one vote and each share of class B common stock entitling its
	holder to ten votes. After the offerings, Nextel Communications
	will own class&nbsp;B common stock representing about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our equity value, or about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the underwriters exercise
	their over-allotment options in full, and about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the combined voting power of
	our outstanding common stock, or about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the underwriters exercise
	their over-allotment options in full.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	Net proceeds</TD>
	<TD></TD>
	<TD valign="top">
	About $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, or about
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million if the underwriters
	exercise their over-allotment options in full.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	Use of proceeds</TD>
	<TD></TD>
	<TD valign="top">
	We intend to use the net proceeds from the offerings to finance
	network expansion, acquisitions of additional spectrum, working
	capital needs or debt service requirements or for other general
	corporate purposes.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR>
	<TD valign="top">
	Proposed Nasdaq National Market symbol</TD>
	<TD></TD>
	<TD valign="top">
	NXTI</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The number of shares of common stock to be outstanding after the
offerings is based on the number of shares of common stock
outstanding as of June&nbsp;30, 2000 and assumes the exchange of
all outstanding shares of our series&nbsp;A exchangeable
redeemable preferred stock into
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our
class&nbsp;B common stock at June&nbsp;30, 2000, as described
below. The number of shares of common stock to be outstanding
after the offerings excludes:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	30,900,000 shares of our class&nbsp;B common stock reserved for
	issuance under our equity incentive plans as of June&nbsp;30,
	2000, of which 13,970,584 shares were subject to outstanding
	options at a weighted average exercise price of $11.54 per share;
	 and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	1,474,304 shares of class B common stock reserved for issuance as
	 of June&nbsp;30, 2000 upon exercise of outstanding warrants at
	an exercise price of $2.50&nbsp;per share.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise specifically stated, all of the information in
this prospectus:

<P align="center">5

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	reflects the reclassification of all of our existing shares of
	common stock into an equal number of shares of our class&nbsp;B
	common stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	reflects the reclassification of all of the shares of our common
	stock issuable upon the exercise of options and warrants
	outstanding prior to the offerings into an equal number of shares
	 of our class&nbsp;B common stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	reflects the exchange of all 2,150 shares of our outstanding
	series&nbsp;A exchangeable redeemable preferred stock prior to
	completion of the offerings into a number of shares of our
	class&nbsp;B common stock that will be equal to the accreted
	value of the series&nbsp;A preferred stock on the date of the
	exchange. For this purpose the class&nbsp;B common stock will be
	valued at the initial public offering price per share of the
	class&nbsp;A common stock. Assuming the exchange occurred on
	June&nbsp;30, 2000 and assuming an initial public offering price
	for the class&nbsp;A common stock of
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the midpoint of the
	range set forth on the cover, the outstanding shares of
	series&nbsp;A preferred stock would have been exchanged into
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 of class&nbsp;B common stock. Since the liquidation preference
	of the series&nbsp;A preferred stock accretes at an annual rate
	equal to 13.625%, the actual number of shares of class&nbsp;B
	common stock issuable in the exchange will depend upon the amount
	 of accreted value of the liquidation preference on the date the
	exchange takes place, as well as the actual initial public
	offering price;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	reflects our reincorporation in Delaware, which we intend to
	effect prior to completion of the offerings; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	assumes that the underwriters do not exercise their
	over-allotment options.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Throughout this prospectus, references to our common stock
include both our class&nbsp;A common stock and our class&nbsp;B
common stock, unless the context otherwise indicates.

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<B>RISK FACTORS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the &#147;Risk Factors&#148; following this
summary, as well as the other cautionary statements throughout
the entire prospectus, to ensure that you understand the risks
associated with an investment in our class&nbsp;A common stock.

<P align="center">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>SUMMARY CONSOLIDATED FINANCIAL INFORMATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The financial information presented below for the years ended
December&nbsp;31, 1997, 1998 and 1999 has been derived from our
audited consolidated financial statements. The financial
information as of June&nbsp;30, 2000 and for the six months ended
 June&nbsp;30, 1999 and 2000 has been derived from our unaudited
financial information and reflects only normal recurring
adjustments necessary for the fair presentation of this
information. You should not expect the results of operations of
interim periods to be an indication of results for a full year.
This information is only a summary and should be read in
conjunction with our consolidated historical financial statements
 appearing elsewhere in this prospectus.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Acquisitions.</I> Our results were affected by business
combinations, acquisitions and investments. Additional
information regarding acquisition and investment activity during
1997, 1998 and 1999 can be found in Notes 2, 3 and 15 to the
audited consolidated financial statements and related notes
appearing elsewhere in this prospectus.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other Income (Expense), Net.</I> Other income (expense), net
consists primarily of foreign currency transaction losses, of
which $42.8&nbsp;million in the six months ended June&nbsp;30,
1999 and $57.0&nbsp;million in the year ended December&nbsp;31,
1999 relate to losses associated with the devaluation of the
Brazilian real.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Stock Splits.</I> The weighted average number of common shares
 outstanding reflects a 100,000-for-1 common stock split
effective March&nbsp;6, 1997, a 3.65-for-1 common stock split
effective August&nbsp;25, 1997 and a 4-for-1 common stock split
effective June&nbsp;20, 2000. Information presented throughout
this prospectus has been adjusted to reflect these stock splits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income Tax Benefit (Provision).</I> We recognized an income
tax benefit during 1998 of $22.4&nbsp;million related to net
operating losses of our subsidiaries in Brazil, Mexico and
Argentina. Changes in tax legislation in Argentina and Mexico,
and depletion of temporary differences in Brazil, have
contributed to the decrease in the income tax benefit for 1999
for those Operating Companies. Additionally, we are precluded
from recognizing any income tax benefits associated with U.S. net
 operating losses because we cannot presently conclude that it is
 more likely than not that we will generate taxable income during
 periods prior to the expiration of our accumulated net operating
 losses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EBITDA.</I> Earnings before interest, taxes, depreciation and
amortization, or EBITDA, consists of loss before income tax
benefit (provision), interest expense, interest income,
depreciation and amortization, equity in losses of unconsolidated
 affiliates, other income (expense), net and minority interest in
 losses of subsidiaries. EBITDA is provided because it is a
measure commonly used in the telecommunications industry. It is
presented to enhance an understanding of our operating results
and is not intended to represent cash flow or results of
operations for the periods presented. EBITDA is not a measurement
 under accounting principles generally accepted in the United
States and may not be similar to EBITDA measures of other
companies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>As Adjusted.</I> At June&nbsp;30, 2000, the as adjusted
balance sheet data reflects:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the receipt of about $623.8&nbsp;million in net proceeds from the
	 issuance of our 12.75% senior serial notes, referred to as our
	August 2000 Notes, on August&nbsp;1, 2000;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the acquisition on August&nbsp;4, 2000 of additional ownership
	interests in McCaw Brazil and the related payment of about $146.0
	 million;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the exchange by Nextel Communications of 2,150 shares of series A
	 exchangeable redeemable preferred stock into about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 of our class B common stock, assuming the exchange occurred on
	June&nbsp;30, 2000 and based on the accreted value of the
	series&nbsp;A preferred stock at that date of about
	$215.1&nbsp;million and an assumed initial public offering price
	for the class&nbsp;A common stock of
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
	 share, the midpoint of the range set forth on the cover.</TD>
</TR>

</TABLE>

<P align="center">7

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="1%"></TD>
        <TD width="96%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        the reclassification of all of our existing shares of common
        stock into an equal number of shares of our class&nbsp;B common
        stock; and</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        the receipt of about
        $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million in
        estimated net proceeds from the sale of
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our class A common
        stock in the offerings, assuming an initial public offering price
         of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the midpoint of the
         range set forth on the cover.</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="36%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="7"></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD colspan="11"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="7"><FONT size="2"><B>Six months ended</B></FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="11"><FONT size="2"><B>Year ended December 31,</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="11"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD colspan="19"></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="19"><FONT size="2"><B>(in thousands, except per share and average monthly revenue per digital</B></FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="19"><FONT size="2"><B>subscriber unit data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        <B>Consolidated Statement of Operations Data:</B></FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Operating revenues</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">13,015</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">104,528</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">41,760</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">110,800</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Cost of revenues</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">7,424</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">20,085</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">40,999</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">18,072</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">29,652</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Selling, general and administrative</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">26,768</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">143,098</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">226,379</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">116,222</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">148,650</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Depreciation and amortization</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">51,882</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">65,183</FONT></TD>
        <TD></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Operating loss</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(39,558</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(176,734</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(270,941</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(144,416</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(132,685</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Interest expense</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(56,583</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(106,824</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(179,604</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(82,220</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(106,660</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Interest income</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">19,666</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">8,442</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">5,547</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Equity in losses of unconsolidated affiliates</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(11,401</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(12,193</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(31,469</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(11,520</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(17,284</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Other income (expense), net</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">5,561</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(65,905</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(45,539</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">4,016</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Minority interest in losses of subsidiaries</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">2,085</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">19,314</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">13,299</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">6,504</FONT></TD>
        <TD></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Loss before income tax benefit (provision)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(80,230</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(259,493</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(520,163</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(267,569</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(240,562</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Income tax benefit (provision)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(439</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(368</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Net loss</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Accretion of series A redeemable preferred stock to value of
        liquidation preference</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(61,334</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Loss attributable to common stockholders</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(302,264</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Loss per share attributable to common stockholders, basic and
        diluted</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(0.51</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(1.62</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(3.56</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(1.83</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(2.01</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Weighted average number of common shares outstanding</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">146,000</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">146,014</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">146,240</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">146,130</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">150,422</FONT></TD>
        <TD></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>

</TR>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        <B>Selected Financial Data:</B></FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Cash flows used in operating activities</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(16,464</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(176,961</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(129,360</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(100,105</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(101,774</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Cash flows used in investing activities</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(389,153</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(402,902</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(185,315</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(116,809</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(254,983</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Cash flows provided by financing activities</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">512,378</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">542,225</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">310,134</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">242,169</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">523,945</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        EBITDA</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(21,177</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(120,695</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(162,850</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(92,534</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">(67,502</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        <B>Selected Operating Data:</B></FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Total digital subscriber units in service, at end of period</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">619</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">1,245</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">852</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">1,226</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top"><FONT size="2">
        Proportionate digital subscriber units in service, at end of
        period</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">167</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">404</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">249</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">578</FONT></TD>
        <TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">8
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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="70%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June 30, 2000</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Actual</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>As Adjusted</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Consolidated Balance Sheet Data:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cash, cash equivalents and short-term investments, including
	restricted portion of $10,487</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">297,384</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">755,229</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">755,229</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Intangible assets, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">505,675</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Total assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,124,010</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Long-term debt, including current portion of $67,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,733,732</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,374,775</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Stockholders&#146; (deficit)&nbsp;equity</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">9

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center"><B>RISK FACTORS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Investing in shares of our class&nbsp;A common stock involves
a high degree of risk. You should carefully consider the risks
described below as well as all the other information in this
prospectus&#151;including our consolidated financial statements
and related notes&#151; before investing in our class&nbsp;A
common stock. Our business, operating results and financial
condition could be seriously harmed due to any of the following
risks. The trading price of our class&nbsp;A common stock could
decline due to any of these risks, and you could lose all or part
 of your investment.</I>

<P align="left"><B>Risk Factors Relating to Nextel International</B>

<P align="left"><B><I>We have a short operating history and a history of net
losses, and we expect losses to continue for several years.</I>
</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of our Operating Companies has been operating for a
relatively short time. Additionally, if we acquire or commence
operations in new markets, any of these new operations is likely
to have little or no operating history. Our prospects, therefore,
 must be considered in light of the risks, expenses,
uncertainties and obstacles of establishing a new business in a
rapidly changing industry such as wireless telecommunications. We
 have never been profitable, and we have experienced negative
EBITDA since we began operating. Our accumulated deficit was
about $860.0&nbsp;million at December&nbsp;31, 1999 and about
$1,100.9&nbsp;million at June&nbsp;30, 2000. For the six months
ended June&nbsp;30, 2000, we had negative EBITDA of
$67.5&nbsp;million and our earnings were insufficient to cover
our fixed charges by $236.9&nbsp;million. We expect that losses
will continue for the next several years as we build, expand and
enhance our digital ESMR networks. We do not know when, if ever,
our cash flow from operations will support our growth and
continued operations.

<P align="left"><B><I>We will need substantial amounts of financing over the next
 several years.</I></B>

<P align="left"><I>&nbsp;&nbsp;Reasons we will need financing.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We anticipate that we will need substantial amounts of financing
over the next several years for, among other things, the
following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	capital expenditures to build, expand and enhance our digital
	ESMR networks;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	spectrum acquisitions;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	funding operating losses and other working capital needs;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	funding capital contributions, including acquisitions of
	additional equity interests in our Operating Companies, including
	 potential puts and/or calls under our joint venture
	arrangements;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	debt service requirements; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	other general corporate purposes.</TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Amounts available to us under our existing financing
	agreements may be insufficient to meet our long-term cash needs.
	</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our long-term cash needs are much greater than our current
resources. In the future, we will have to raise substantial
amounts of additional funds to support our growth and operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on our assessment of the business activity and related cash
 needs of our Operating Companies, with the net proceeds of the
offerings, our available cash on hand and assuming the continued
availability of borrowings under our existing financing
agreements, we believe that we will have adequate funding to
continue our operations through the end of 2001. After that, we
expect that we will need to obtain additional funding to meet the
 anticipated cash needs associated with implementing our business
 plan. We may raise this funding in the form of public

<P align="center">10

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
or private issuances of debt or equity. We may also seek to
obtain additional financing from various sources, including
additional vendor financing provided by equipment suppliers such
as Motorola, project financing from commercial banks and bank
lines of credit. We currently are exploring a number of these
alternative sources of funds. If we incur additional debt, our
leverage and debt service obligations will increase. Moreover,
our ability to access additional funds may be limited by the
terms of our existing financing agreements, including covenants
that restrict:
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the amount of additional borrowings that we can incur;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our ability to grant liens on the assets of our Operating
	Companies;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	sales or transfers of assets of our Operating Companies; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the ability of our Operating Companies to pay dividends to us to
	supply us with funds needed to service debt or for other
	purposes.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to raise additional funds also may be affected by:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	general market conditions in the U.S. and in our international
	markets that may adversely affect the availability or cost of
	capital;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	volatility in the economies of Latin America and Asia, or in the
	local markets in which we operate, which may make lenders less
	likely to extend credit to us or our relevant subsidiaries and
	affiliates;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our high level of indebtedness, which may affect our
	attractiveness as a potential borrower; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the market&#146;s perception of our performance in each of our
	markets.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other than our existing debt financing arrangements, we have no
legally binding commitments or agreements with any third parties
to obtain additional debt or equity financing. Although our
parent, Nextel Communications, has provided us with significant
financing in the past, Nextel Communications is not obligated to
provide any additional funds to us. We cannot assure you that we
will be able to raise additional debt or equity funding when
needed in sufficient amounts or on acceptable terms. If we are
unable to obtain the necessary funding, we may be required to
reduce the scope of our build-out, expansion and enhancement of
our digital ESMR networks and to curtail our operations
significantly, which could have a material adverse effect on our
ability to compete as well as our financial condition and results
 of operations.

<P align="left"><I>&nbsp;&nbsp;Our high level of indebtedness could adversely
affect your investment.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At June&nbsp;30, 2000, after giving effect to the issuance of our
 August 2000 Notes, we would have had about $2,374.8&nbsp;million
 of outstanding long-term debt. Furthermore, subject to
restrictions contained in the agreements governing our
outstanding debt, we, along with our Operating Companies, may
incur additional indebtedness from time to time to finance the
further deployment of our digital ESMR networks, provide for
working capital or capital expenditures or for other purposes. We
 anticipate that we and our Operating Companies will incur
substantial additional indebtedness in the future in connection
with the future build-out, expansion and enhancement of our
digital ESMR networks and funding cash flow deficits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our high level of indebtedness could have important consequences
to purchasers of the class A common stock, including limiting our
 ability to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	obtain additional financing for acquisitions, working capital,
	capital expenditures or other purposes;</TD>
</TR>

</TABLE>

<P align="center">11

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	use operating cash flow in other areas of our business because we
	 must dedicate a substantial portion of these funds to make cash
	interest payments and fund required principal payments on our
	debt;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	borrow additional funds or to dispose of assets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	compete with others in our industry who are not as highly
	leveraged; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	react to changing market conditions, changes in our industry and
	economic downturns.</TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Limitations imposed by restrictive covenants could limit how
	we conduct business and a default under our indentures and
	financing agreements could adversely impact your investment.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indentures governing our August 2000 Notes, our 13.0% senior
discount notes due 2007, referred to as our March 1997 Notes, and
 our 12.125% senior discount notes due 2008, referred to as our
March 1998 Notes, all of which are referred to as our outstanding
 notes, contain covenants that restrict our ability to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	incur or guarantee additional indebtedness;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	pay dividends and make other distributions;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	prepay subordinated indebtedness;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	make investments and other restricted payments;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	enter into sale and leaseback transactions;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	create liens;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	sell assets; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	engage in transactions with affiliates.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our other financing agreements contain, and any future financing
agreements are expected to contain, similar or more restrictive
covenants, as well as other covenants that will require us to
maintain specified financial ratios and satisfy financial tests.
As a result of these restrictions, we are limited in how we
conduct business and we may be unable to raise additional debt or
 equity financing, to compete effectively or to take advantage of
 new business opportunities. This may affect our ability to
generate revenues and profits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our failure to comply with the covenants and restrictions
contained in our indentures and other financing agreements could
lead to a default under the terms of these agreements. If such a
default occurs, the other parties to these agreements could
declare all amounts borrowed to become due and payable. This in
turn could cause all amounts borrowed under other instruments
that contain provisions of cross-acceleration or cross-default to
 become due and payable. In addition, lenders under our future
financing agreements could terminate their commitments to lend to
 us. If that occurs, we cannot assure you that we would be able
to make payments on our indebtedness, meet our working capital
and capital expenditure requirements or find additional
alternative financing. Even if we could obtain additional
alternative financing, we cannot assure you that it would be on
terms that will be acceptable to us. While we are currently in
compliance with the covenants under our financing agreements, in
anticipation of our non-compliance with financial covenants under
 some of our financing agreements, we have in the past notified
the lenders and obtained waivers and/or amended covenants. We
cannot assure you that we will be able to remain in compliance
with the covenants in our financing agreements in the future or,
if we fail to do so, that we will be able to obtain waivers from
the lenders or amend the covenants as we have in the past.

<P align="center">12

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<P align="left"><B><I>Our prospects depend on government regulations in various
countries.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In each market in which we operate, one or more regulatory
entities regulate the licensing, construction, acquisition,
ownership and operation of our wireless communications systems.
Additionally, other aspects of our wireless communications system
 operations, including the rates we charge subscribers and the
resale of our communications services, may be governed by public
utility regulations. Further, in some of the countries in which
we conduct business, local statutes and regulations impose
foreign ownership limitations upon telecommunications companies.
Changes in the current telecommunications statutes or regulations
 in any one or more of these countries could adversely affect our
 business.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wireless communications licenses and spectrum allocations are
subject to ongoing review and, in some cases, to modification or
early termination for failure to comply with applicable
regulations. Most of our wireless communications licenses have
fixed terms and are not renewed automatically. In cases where
license terms are fixed, we cannot assure you that our licenses
will be renewed or, if renewed, that renewal will be on
acceptable economic terms.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of the uncertainty as to the interpretation of
regulations in some countries in which we operate, we cannot
assure you that we will always be able to provide the services we
 have planned in each market. In some markets, we are unable, or
have limitations on our ability, to offer some services, such as
interconnection to other telecommunications networks and
participation in calling party pay programs. For example, our
licenses in Chile currently do not allow us to offer ESMR
services. It is possible that, in the future, we may face
additional regulatory prohibitions or limitations on our
services. Inability to provide planned services could make it
more difficult for us to compete in the affected markets. We have
 provided a detailed description of the regulatory environment in
 each of the countries in which our Operating Companies conduct
business under the &#147;Regulatory and Legal Overview&#148;
discussion for each Operating Company under
&#147;Business&nbsp;&#151; Operating Companies.&#148;

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Operating Companies that hold licenses must comply with the
terms of their licenses and regulatory requirements, including
installation deadlines and minimum loading and/or service
availability requirements. We cannot assure you that those
companies will always be able to comply with these requirements.
If our Operating Companies do not comply they could lose their
applicable licenses.

<P align="left"><B><I>Our future performance depends on our ability to compete in
 the highly competitive wireless communications industry.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our success will depend on the ability of our Operating Companies
 to compete effectively with other communications services
providers, including landline telephone companies and other
wireless communications companies, in the markets in which they
operate.

<P align="left"><I>&nbsp;&nbsp;Some of our competitors are financially stronger
than we are.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of our competitors are well-established companies with
substantially greater financial and marketing resources, larger
customer bases, better name recognition, bundled service
offerings, larger spectrum positions and larger coverage areas
than those of our Operating Companies. Because of their financial
 resources, these competitors may be able to offer services to
customers at prices that are below the prices that our Operating
Companies can offer for comparable services. As a result, our
ability to compete based on the price of our service offerings
will be limited. In addition, we anticipate that our Operating
Companies will face future market pressure to reduce the prices
charged for their products and services over the next few years
because of increased competition in our markets.

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Our Operating Companies may face disadvantages when competing
	against government-owned or affiliated telecommunications
	companies and wireline monopoly operators.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In some markets, our Operating Companies compete against an
incumbent government-owned telecommunications company, or a
formerly government-owned company in which the government may or
may not retain a significant interest. Our Operating Companies
may be at a competitive disadvantage in these markets because
government-owned or affiliated competitors may have:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	close ties with national regulatory authorities;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	control over connections to local telephone lines; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the ability to subsidize competitive services with revenues
	generated from services they provide on a monopoly basis.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent government-owned wireline companies are privatized
or join with an established foreign telecommunications partner,
competition from these companies may increase due to infusions of
 capital and managerial and technical talent. These companies may
 also continue to enjoy the legacy of their pre-privatization
privileges. Our Operating Companies may encounter obstacles and
setbacks if local governments adopt policies favoring these
competitors or otherwise afford them preferential treatment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In some markets, our Operating Companies compete against an
incumbent monopoly wireline company in the provision of some
services. In most of these markets, the monopoly wireline
provider is also a wireless operator competing directly with the
wireless operations of our Operating Companies. Often, the
monopoly provider enjoys competitive advantages similar to the
advantages described above that government-owned and affiliated
providers may enjoy. As a result, our Operating Companies may be
at a competitive disadvantage to monopoly providers, particularly
 as the Operating Companies seek to offer new telecommunications
services.

<P align="left"><I>&nbsp;&nbsp;Our coverage is not as extensive as those of other
 wireless service providers in our markets.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We focus on providing our services to business customers in major
 business centers and related transportation corridors. Our ESMR
networks do not offer nationwide coverage in the countries in
which we operate. Many of the cellular/personal communications
services, or PCS, providers in our markets have entered into
roaming agreements with each other, which permit these providers
to offer coverage to their subscribers in each other&#146;s
markets. The iDEN technology that we deploy is not compatible
with other wireless technologies such as digital cellular or PCS
technologies or with other iDEN networks not operating in the 800
 MHz spectrum. As a result, with the exception of GSM 900 MHz
systems, we cannot enter into roaming agreements with the
operators of these other cellular networks. Although the i2000
subscriber unit is compatible with iDEN 800 MHz and GSM 900 MHz
systems, our customers will not be able to roam on other iDEN 800
 MHz or GSM 900 MHz systems where we do not have a roaming
agreement. As a result, we will not be able to provide coverage
to our subscribers outside of our currently operating digital
ESMR markets until:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	we build out additional digital ESMR networks in areas outside
	our existing markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	other operators deploy iDEN 800 MHz or GSM 900 MHz technology in
	markets outside of our coverage areas and we enter into roaming
	agreements with those operators; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	multi-band and/or multi-mode subscriber units that can be used on
	 both iDEN 800 MHz and non-GSM 900 MHz wireless communications
	networks become available and we enter into roaming agreements
	with the operators of those networks.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of the above factors, we cannot assure you that we will
be able to compete effectively with cellular and PCS providers in
 our markets. We have provided a more detailed

<P align="center">14

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<DIV align="left">
description of the competitive factors affecting each of our
Operating Companies under the &#147;Competition&#148; discussion
for each Operating Company under &#147;Business &#151; Operating
Companies.&#148;
</DIV>

<P align="left"><I>&nbsp;&nbsp;We must keep pace with rapid technological
changes.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our digital ESMR technology could become obsolete. We rely on
digital technology that is not compatible with, and competes
with, other forms of digital and non-digital voice communication
technology. Competition among these differing technologies can:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	segment the user markets, thereby reducing demand for specific
	technologies, including the iDEN digital technology that we use;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	reduce the resources devoted by third-party suppliers, including
	Motorola, which supplies all of our current digital ESMR
	technology, to developing or improving the technology for our
	networks; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	adversely affect market acceptance of our service offerings.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot assure you that the iDEN digital technology we use to
operate our ESMR networks will successfully compete with the
other forms of digital and non-digital voice communication
systems. Further, new digital or non-digital voice communication
transmission technology may develop that will cause our existing
digital ESMR networks to become obsolete or otherwise impair
market acceptance of our service offerings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, in the future, we plan to offer our subscribers
access to digital two-way mobile data and Internet connectivity.
Wireless data and Internet connectivity is a new service in the
wireless communications industry. Since our networks primarily
operate on 800&nbsp;MHz spectrum, any digital two-way mobile data
 and Internet connectivity services that we may offer could be
significantly limited compared to those services offered by other
 wireless communications providers with larger spectrum
positions. We cannot assure you that we will provide any future
digital two-way mobile data and Internet connectivity services
or, if we do, that we will not encounter difficulties in
launching these services or that these services will perform
satisfactorily or achieve sufficient levels of customer
satisfaction.

<P align="left"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 If our wireless communications technology does not perform in a
manner that meets customer expectations, we will be unable to
attract and retain customers, which would adversely affect us.
</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Customer acceptance of the services we offer is and will continue
 to be affected by technology-based differences and by the
operational performance and reliability of system transmissions
on our digital ESMR networks. If we are unable to address and
resolve satisfactorily performance or other transmission quality
issues as they arise, or if these issues limit our ability to
expand our network coverage or capacity as currently planned, or
if these issues were to place us at a competitive disadvantage to
 other wireless service providers in our markets, we may have
difficulty attracting and retaining customers, which would
adversely affect us.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Our equipment is more expensive than that of some competitors,
	 which may adversely affect our growth and operating results.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently market multi-function digital subscriber units. Our
subscriber units are, and are likely to remain, significantly
more expensive than analog subscriber units and are, and are
likely to remain, somewhat more expensive than digital cellular
or PCS subscriber units that do not incorporate a comparable
multi-function capability. Although we believe that our
multi-function subscriber units currently are competitively
priced compared to multi-function digital cellular and PCS
subscriber units, the higher cost of our equipment may make it
more difficult or less

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<DIV align="left">
profitable to attract customers who do not place a high value on
our unique multi-service offering. This may reduce our growth
opportunities or profitability.
</DIV>

<P align="left"><B><I>We operate exclusively in foreign markets, and our assets,
customers and cash flows are concentrated in Latin America, which
 presents risks to our operating and financing plans.</I></B>

<P align="left"><I>&nbsp;&nbsp;We face political risks in our markets.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most of our markets are considered to be &#147;emerging
markets.&#148; Although political, economic and social conditions
 differ in each country in which we currently operate, political
and economic developments in one country may affect our business
as a whole, including our access to international capital
markets. In Peru, for example, there was significant terrorist
activity in the 1980s and the early 1990s. During that time
anti-government groups escalated violence against the government,
 the private sector and Peruvian residents. Although the
government of Peru has made progress in suppressing terrorist
activity since 1990, incidents of terrorist activity continue to
occur, including the hostage incident at the residence of the
Japanese Ambassador to Peru in 1997. Terrorist activity could
recur, and if it does, it may have a material adverse effect on
the operations of Nextel del Peru, S.A., referred to as Nextel
Peru. Similar outbreaks of terrorism or political violence have
occurred in the Philippines, Mexico and other countries in which
we operate. In addition, we are unable to predict the impact that
 presidential or other contested local or national elections,
including the recent presidential elections in Mexico and Peru,
and the associated transfer of power from incumbent officials
and/or political parties to elected victors, may have on the
local economy or the growth and development of the local
telecommunications industry and therefore on us.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Because wireless telecommunications services companies have a
	limited history in our markets, our ability to grow and develop
	our business is uncertain.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The success of our business is subject to factors that are beyond
 our control and impossible to predict due, in part, to the
limited history of wireless communications services in our
existing and targeted markets. Consequently, we face many
uncertainties in our markets, including:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the size of the markets for wireless communications services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the penetration rates of these markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the ability of potential subscribers to pay subscription and
	other fees;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the extent and nature of the competitive environment in these
	markets; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the immediate and long-term commercial viability of wireless
	communications services in these markets.</TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Risks relating to our investments in joint ventures may
	adversely affect our growth and operating results.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into contractual joint ventures regarding our
ownership interests in and arrangements with some of our
Operating Companies and may enter into other joint ventures or
similar arrangements with third parties in the future. There are
risks in participating in arrangements of these types, including
the risk that the other participants may at any time have
economic, business or legal interests or goals that are
inconsistent with our goals or those of the joint enterprise.
There also is the risk that a participant may be unable to meet
its economic or other obligations to the joint enterprise and
that we may be required to fulfill some or all of those
obligations or restrict the conduct of business of the affected
enterprise. We also may be or become obligated to acquire all or
a portion of the ownership interest of some or all of the other
participants in these joint enterprises.

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>We are subject to fluctuations in currency exchange rates and
	limitations on the expatriation or conversion of currencies.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Substantially all of our revenues are denominated in non-U.S.
currencies, although a significant portion of our capital and
operating expenditures, including imported network and subscriber
 handset equipment, and substantially all of our outstanding
debt, are denominated in U.S. dollars. Accordingly, fluctuations
in exchange rates relative to the U.S. dollar could have a
material adverse effect on our earnings or assets. For example,
the economic turmoil in Asia in the late 1990s resulted in a
significant devaluation of the currencies in several countries in
 Asia and caused fluctuations in the currencies of other emerging
 countries, particularly in Latin America. Further, the recent
currency devaluation in Brazil resulted in a significant charge
against our earnings in 1999 and a negative adjustment to the
carrying value of our assets in Brazil.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any devaluation of local currencies in the countries in which our
 Operating Companies conduct business may result in increased
costs for imported goods and services and may, as a result,
decrease demand for our products and services in the affected
markets. If our Operating Companies distribute dividends in local
 currencies in the future, the amount of cash we receive will
also be affected by fluctuations in exchange rates and currency
devaluations. In addition, some of the countries in which we have
 operations do or may restrict the expatriation or conversion of
currency. Although we routinely assess our foreign currency
exposure, we have not entered into any hedging transactions.

<P align="left"><I>&nbsp;&nbsp;We are subject to fluctuating economic conditions
in the local markets in which we operate.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operations depend on the economies of the markets in which
our Operating Companies conduct business. These markets are in
countries with economies in various stages of development or
structural reform, some of which are subject to rapid
fluctuations in terms of consumer prices, employment levels,
gross domestic product, interest rates and inflation rates.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If these fluctuations have an effect on the ability of customers
to pay for our products and services, our business may be
adversely affected. For example, several countries in Asia,
including the Philippines, have experienced significant economic
turmoil, including bank failures, in the last several years. The
economic conditions in Asia have also affected other emerging
markets, particularly those in Latin America. As a result, our
Operating Companies may experience lower demand for their
products and services and a decline in the growth of their
customer base and in revenues.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the other stockholders in our Operating Companies
may, as a result of these fluctuating economic conditions or for
other reasons, be unable or unwilling to fund their capital
contribution requirements. We then may be required to restrict
the conduct of business of the affected Operating Company or to
assume and satisfy the funding obligations of other stockholders
as we recently did in Japan and the Philippines.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of our Operating Companies conduct business in countries
where the rate of inflation is significantly higher than in the
United States. We cannot assure you that any significant increase
 in the rate of inflation in any of these countries could be
offset, in whole or in part, by corresponding price increases
implemented by our Operating Companies, even over the long term.

<P align="left"><I>&nbsp;&nbsp;We pay significant import duties on our network
equipment and handsets.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operations are highly dependent upon the successful and
cost-efficient importation of network equipment and subscriber
units from North America and, to a lesser extent, from Europe and
 Japan. In the countries in which our Operating Companies conduct
 business, network equipment and subscriber units are subject to
significant import duties and other taxes that can be as high as
50% of the purchase price. Although we believe there is a trend
away from

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<DIV align="left">
increased import duties, any significant increase in the future
could have a material adverse effect on our results of
operations.
</DIV>

<P align="left"><I>&nbsp;&nbsp;We are subject to foreign taxes in the countries
in which we operate.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Distributions of earnings and other payments, including interest,
 received from our Operating Companies may be subject to
withholding taxes imposed by the countries in which these
entities operate. Any of these taxes will reduce the amount of
after-tax cash we can receive from our Operating Companies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, a U.S. corporation may claim a foreign tax credit
against its federal income tax expense for foreign withholding
taxes and for foreign income taxes paid directly by foreign
corporate entities in which the company owns 10% or more of the
voting stock. Our ability to claim foreign tax credits and to
utilize net foreign losses is, however, subject to numerous
limitations, and we may incur incremental tax costs as a result
of these limitations or because we do not have U.S. federal
taxable income.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may also be required to include in our income for U.S. federal
 income tax purposes our proportionate share of specified
earnings of our foreign corporate subsidiaries that are
classified as &#147;controlled foreign corporations,&#148;
without regard to whether distributions have been actually
received from these subsidiaries.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>We have entered into a number of agreements that are subject
	to enforcement in foreign countries.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A number of the agreements that we enter into with our Operating
Companies are governed by the laws of, and are subject to dispute
 resolution in the courts of or through arbitration proceedings
in, the countries or regions in which the operations are located.
 We cannot accurately predict whether these forums will provide
effective and efficient means of resolving disputes that may
arise. Even if we are able to obtain a satisfactory decision
through arbitration or a court proceeding, we could have
difficulty enforcing any award or judgment on a timely basis. Our
 ability to obtain or enforce relief in the United States is also
 uncertain.

<P align="left"><I>&nbsp;&nbsp;We are subject to the Foreign Corrupt Practices
Act.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Foreign Corrupt Practices Act generally prohibits U.S.
companies and their intermediaries from bribing foreign officials
 to obtain or keep business. Although we have taken precautions
to comply with that act, we cannot assure you that these
precautions will protect us against liability under that act,
particularly as a result of actions that may have been taken in
the past or may be taken in the future by our agents and other
intermediaries. In particular, we may be held responsible for
actions taken by our local representatives or by other
stockholders in an Operating Company despite our efforts to
control them. Any determination that we have violated that act
could affect us adversely. Additionally, some of our competitors
may not be subject to similar restrictions.

<P align="left"><B><I>We are controlled by and dependent on Nextel
Communications.</I></B>

<P align="left"><I>&nbsp;&nbsp;Nextel Communications will, and its significant
stockholders may, exert control over us.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After the offerings, Nextel Communications will continue to
control us and will beneficially own
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the outstanding class B common
 stock, which will represent approximately
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the combined voting power of
all of our outstanding common stock. As a result of this
ownership, Nextel Communications generally will be able to
exercise a controlling influence over our business and affairs
and will be able to unilaterally determine the outcome of any
matter submitted to a vote of our stockholders. This
concentration of ownership by Nextel Communications may have the
effect of delaying or preventing an attempt to acquire us, even
if that would

<P align="center">18

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<DIV align="left">
be in your best interests. Further, Nextel Communications has the
 power to elect all of the members of our board of directors.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, based on the ownership information relating to
Nextel Communications as of June&nbsp;30, 2000, entities
controlled by Craig O. McCaw beneficially owned about 13% of the
outstanding Nextel Communications stock. Digital Radio L.L.C.,
which is controlled by Mr.&nbsp;McCaw, may designate at least one
 fourth of the board of directors of Nextel Communications. In
addition, Digital Radio may select, from its representatives on
the board of directors, a majority of the operations committee of
 Nextel Communications&#146; board of directors, which has
significant authority relating to Nextel Communications&#146;
business strategy, budgets and financing arrangements and in the
nomination and oversight of specified executive officers. As a
result, Digital Radio may exert significant influence over our
affairs as well. In addition, as of June&nbsp;30, 2000, Motorola
beneficially owned about 14% of the outstanding Nextel
Communications stock. Motorola is entitled to nominate two
directors to the board of directors of Nextel Communications.

<P align="left"><I>&nbsp;&nbsp;Some members of our management also serve Nextel
Communications.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Historically and currently, some of our officers have also served
 as officers of Nextel Communications, including
Mr.&nbsp;Shindler, who serves as our Chief Executive Officer and
also as the Chief Financial Officer of Nextel Communications.
Officers serving in dual roles spend a substantial part of their
time and effort on behalf of Nextel Communications. Further, our
officers continue to participate in Nextel Communications&#146;
incentive equity plan. Substantial interests in the equity of
Nextel Communications may present these officers with incentives
different from those of our stockholders. In addition, six of our
 seven directors are also directors of Nextel Communications.
These directors and officers may also have conflicts of interest
in transactions in which both we and Nextel Communications are
involved.

<P align="left"><I>&nbsp;&nbsp;Your interests may conflict with those of Nextel
Communications or its significant stockholders.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into an agreement with Nextel Communications that
 provides us with a right of first opportunity. Under that
agreement, Nextel Communications has agreed that neither it nor
its controlled affiliates may, for a period of time, participate
in other two-way terrestrial based mobile wireless communications
 systems in any region other than the United States unless these
opportunities have first been presented to and rejected by us. We
 have agreed that neither we nor any of our controlled affiliates
 will participate in the ownership or management of any wireless
communications service business in the United States without the
consent of Nextel Communications. This agreement terminates upon
specified change of control events.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although Nextel Communications currently allows us to use the
&#147;Nextel&#148; tradename on a royalty-free basis, this
license is not in writing and we cannot assure you that our right
 to use the &#147;Nextel&#148; tradename will continue or will
continue on terms not involving the payment of royalties or other
 amounts to Nextel Communications. In addition, we depend upon
our roaming agreements with Nextel Communications for access to
its iDEN network in the United States.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Digital Radio, Mr.&nbsp;McCaw and their affiliates have and,
subject to the terms of agreements between Digital Radio and
Nextel Communications, may have other investments or interests in
 entities that provide wireless telecommunications services that
could potentially compete with Nextel Communications and with us.
 Under the agreements, Mr.&nbsp;McCaw, Digital Radio and their
controlled affiliates may not, for one year after termination of
the operations committee of the board of directors of Nextel
Communications, participate in other two-way terrestrial-based
mobile wireless communications systems in the region that
includes any part of North America or South America unless these
opportunities have first been presented to and waived or rejected
 by Nextel Communications. We do not have similar arrangements
with these entities, and we cannot

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<DIV align="left">
assure you that Nextel Communications will be willing or able to
address these opportunities if they are presented.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motorola and its affiliates engage in wireless communications
businesses, and may in the future engage in additional
businesses, that do or may compete with some or all of the
services that we offer. Although we believe that our relationship
 with Motorola reflects the realities of purchasing and obtaining
 financing from a competitor, we cannot assure you that the
potential conflict of interest will not adversely affect us in
the future. In addition, Motorola is a significant stockholder of
 Nextel Communications, and indirectly of us, and a significant
stockholder in our Operating Company in Japan, which creates
potential conflicts of interest, particularly with regard to
significant transactions.

<P align="left"><I>&nbsp;&nbsp;We depend on Nextel Communications for many
services.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to an overhead services agreement, Nextel Communications
 provides us many services typically performed by in-house
personnel, including various financial, human resources, audit,
legal, engineering and marketing functions. The fee for these
services is based on the actual costs incurred by Nextel
Communications as apportioned by it in good faith. While we have
the right to review and discuss adjustments to the determinations
 made by Nextel Communications, Nextel Communications&#146;
determination is final and binding. We must continue to obtain
these services from Nextel Communications until 2007, unless
Nextel Communications consents to discontinuance of a particular
service. We cannot assure you our allocations under this
agreement will not increase as we grow or as a result of changes
in the remaining business of Nextel Communications. In addition,
if Nextel Communications&#146; equity interest in us decreases in
 the future, we would likely have more limited access, if any, to
 its employees, services and expertise.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>We are a party to a tax sharing agreement with Nextel
	Communications, which may not always be favorable to us.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into a tax sharing agreement with Nextel
Communications under which we must pay Nextel Communications an
amount equal to our tax liability as if we filed separate tax
returns. The manner in which payments are calculated may result
in higher payments to Nextel Communications than we would be
required to pay if we made separate tax filings. In addition,
Nextel Communications is entitled to utilize our tax attributes
and other items of income, gain, loss, deduction, expense, credit
 and similar treatments on behalf of the consolidated Nextel
Communications group, and we are not entitled to any compensation
 for this utilization.

<P align="left"><B><I>Our success depends on our ability to manage the expansion
of our operations.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since our inception, we have experienced rapid growth. We intend
to continue to grow through further expansion and enhancement of
our existing operations and may grow through acquisitions and
joint ventures and through the establishment of new operations.
Our future success depends on the expansion of our operations and
 the development of a large subscriber base on a timely basis.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Challenges associated with our digital ESMR network
	construction and expansion projects could adversely affect our
	growth plans.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our digital ESMR network construction and expansion projects will
 be subject to numerous factors, any of which could require
substantial changes to proposed plans or otherwise alter our
currently anticipated time frames or budgets. These factors
include:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	securing the necessary radio spectrum licenses and adhering to
	regulatory requirements relating to the licenses;</TD>
</TR>

</TABLE>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	locating suitable sites for communications sites or towers,
	obtaining any required zoning variances or other governmental or
	local regulatory approvals, and negotiating acceptable purchase,
	lease, joint venture or other agreements;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	negotiating favorable interconnection agreements with local phone
	 companies;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	delays that may be caused by frequency cross-interference with
	other radio spectrum users, such as television stations; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	risks typically associated with any construction project,
	including possible shortages of equipment or skilled labor,
	engineering or environmental problems, work stoppages, weather
	interference and unanticipated cost increases.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot assure you that our currently planned digital ESMR
network construction and expansion activities will be completed
successfully or implemented in a timely manner.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Challenges associated with selling and marketing our digital
	ESMR services could affect our ability to establish or maintain a
	 significant subscriber base.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Once our digital ESMR network operations are in place in a
particular market, the development of a significant subscriber
base depends on the success of our sales and marketing efforts
and the receptiveness of the marketplace to our services. In most
 of our markets, our Operating Companies have limited experience
in marketing our wireless communications services and in
tailoring our sales and marketing efforts to local conditions.
Additionally, in some markets, there are restrictions on the type
 of customers to whom our Operating Companies may offer their
ESMR services. We cannot assure you that the sales and marketing
teams of our Operating Companies will be able to establish a
large subscriber base in our markets successfully.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, in addition to increasing the size of our customer
base, our sales and marketing efforts must focus on the quality
of our customer base. In some cases, this burden is heavier than
that faced by United States companies due to the lack of business
 infrastructure in emerging markets. For example, the lack of
established credit bureaus in many of the countries in which our
Operating Companies conduct business makes it more difficult to
ascertain the creditworthiness of potential customers. As a
result, we, like other service providers in these markets, have
experienced and may continue to experience higher bad debt
expense as a percentage of revenues than U.S. companies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In most of our markets, our Operating Companies rely in part on
the efforts of independent dealers and distributors to market our
 services. We cannot assure you that we will be able to establish
 and maintain satisfactory relationships with enough independent
dealers or distributors or that this will be a cost-effective way
 of acquiring subscribers.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD>
	<I>Challenges associated with managing our expanded operations
	could affect our ability to manage our growth in our markets.</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of our aggressive construction and expansion plans,
we face significant challenges in managing our expanded
operations. Our construction and expansion plans will place
substantial burdens on our current management resources,
information systems and financial controls. To successfully
manage rapid growth, we must:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	anticipate projected growth;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	rapidly improve, upgrade and expand our business infrastructure;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	deliver products and services on a timely basis;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	maintain levels of service that meet customer expectations;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	recruit, hire and train additional qualified employees; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	maintain cost controls.</TD>
</TR>

</TABLE>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we expect significant challenges in integrating any
newly acquired businesses with our existing operations. We cannot
 assure you that we will be able to manage the growth of our
expanded operations effectively. Any failure to do so would have
an adverse effect on our results of operations.

<P align="left"><I>&nbsp;&nbsp;Our networks must have sufficient capacity to
support our anticipated customer growth.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business plan depends on assuring that our digital ESMR
networks have adequate capacity to accommodate anticipated new
customers and related increases in usage of our networks. Our
ability to have sufficient capacity to support growth depends on:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our ability to obtain additional radio spectrum when and where
	required;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the availability of subscriber units of the appropriate models
	and types to meet the demands and preferences of our customers;
	and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our ability to obtain additional cell sites and other
	infrastructure equipment.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are unable to obtain spectrum, equipment or subscriber
units when and as required, our ability to implement our business
 plan will be adversely affected.

<P align="left"><B><I>We rely principally on one supplier to implement our
digital ESMR networks.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motorola is currently our sole source for the iDEN digital
network and subscriber unit equipment used throughout our ESMR
markets. If Motorola fails to deliver necessary technology
improvements and enhancements and system infrastructure and
subscriber equipment on a timely, cost-effective basis, it would
have an adverse effect on our growth and operations. We expect to
 rely principally on Motorola for the manufacture of a
substantial portion of the equipment necessary to construct,
enhance and maintain our digital ESMR networks and for the
manufacture of subscriber unit equipment for the next several
years. If Motorola does not provide the necessary equipment to
us, we may not be able to service our existing subscribers or add
 new subscribers.

<P align="left">
<B>Agreements with Motorola reduce our operational flexibility
and may adversely affect our growth or operating results, which
could adversely affect the value of your investment.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our agreements with Motorola impose limitations and conditions on
 our ability to use other technologies. These terms may operate
to delay or prevent us from employing new or different
technologies that perform better or are available at a lower cost
 because of the additional economic costs and other impediments
to change arising under the Motorola agreements. For example, our
 equipment purchase agreements with Motorola provide that we must
 provide Motorola with notice of our determination that
Motorola&#146;s technology is no longer suited to our needs at
least six months before publicly announcing or entering into a
contract to purchase an alternate technology.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, if Motorola manufactures, or elects to manufacture,
the alternate technology that we elect to deploy, we must give
Motorola the opportunity to supply 50% of our infrastructure
requirements for the alternate technology for three years.
Finally, if after a switch to an alternate technology we do not
maintain operational Motorola infrastructure equipment at the
majority of our cell sites that are deployed at the date the
switch to an alternate technology is first publicly announced,
Motorola may require that all financing provided by Motorola to
us be repaid.

<P align="left"><B><I>We depend on our senior management team.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our success and our growth strategy depend in large part on our
ability to attract and retain key management, marketing, finance
and operating personnel, both at the corporate and Operating
Company levels. In many of the countries in which our Operating
Companies conduct business, experienced management and other
highly skilled personnel are in great demand. We

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<DIV align="left">
cannot assure you that we will continue to attract and retain the
 qualified personnel necessary to implement our business plan and
 strategies. In addition, the unexpected loss of the services of
one or more members of our senior management team could adversely
 affect us. We do not maintain key person life insurance on any
members of our senior management team.
</DIV>

<P align="left"><B><I>We have significant intangible assets, which may not be
adequate to satisfy our obligations in the event of a
liquidation.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we default on debt or if we were liquidated, we cannot assure
you that the value of our assets will be sufficient to satisfy
our obligations. We have a significant amount of intangible
assets, such as licenses. The value of these licenses will depend
 significantly upon the success of our digital ESMR network
business and the growth of the SMR and wireless communications
industries in general. We had a net tangible book value deficit
of about $535.4&nbsp;million as of June&nbsp;30, 2000.

<P align="left"><B><I>Our prospects may be affected by concerns about health
risk.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Portable communications devices have been alleged to pose health
risks, including cancer, due to radio frequency emissions from
these devices. Studies performed by wireless telephone equipment
manufacturers have investigated these allegations and additional
studies are ongoing. The actual or perceived risk of mobile
communications devices could adversely affect us through reduced
subscriber growth rate, a reduction in subscribers, reduced
network usage per subscriber or through reduced financing
available to the mobile communications industry.

<P align="left"><B>Risk Factors Relating to the Common Stock</B>

<P align="left"><B><I>There is no trading market for our common stock; our stock
price may be volatile.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This is the initial public offering of our class&nbsp;A common
stock, and no public market for any of our common stock currently
 exists. We cannot assure you that an active trading market will
develop or be sustained after the offerings are completed. The
initial public offering price will be determined through
negotiations between us and the underwriters based on several
factors and may not be indicative of the market price of the
class A common stock after the offerings. The market price of our
 class&nbsp;A common stock may be significantly affected by
factors including:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	actual or anticipated fluctuations in our operating results;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	new products or services offerings by us or our competitors;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	changes in our customer base or those of our competitors;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	legislative and regulatory developments;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	conditions and trends in the telecommunications industry;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	conditions in the local markets or regions in which we operate;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	general market conditions; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	other factors beyond our control.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the stock market has periodically experienced
significant price and volume fluctuations that have particularly
affected the market prices of common stock of telecommunications
companies. These changes have often been unrelated to the
operating performance of particular companies. These broad market
 fluctuations may also adversely affect the market price of our
shares. We cannot assure you that the market price of the class A
 common stock will not decline below the initial offering price.

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<P align="left"><B><I>Sales of large amounts of our common stock or the
perception that sales could occur may depress our stock price.
</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After the offerings, our existing stockholders, including Nextel
Communications, will own about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of
 the outstanding shares of our common stock. As of June&nbsp;30,
2000, there were 13,970,584&nbsp;shares of our common stock
reserved for issuance upon exercise of outstanding options
granted under our equity incentive plans. In addition,
1,474,304&nbsp;shares of our common stock are reserved for
issuance under warrants issued in connection with the sale of our
 March 1997 Notes. A registration rights agreement was entered in
 connection with the issuance of warrants that requires us to
file with, and have declared effective by, the Securities and
Exchange Commission a registration statement with respect to the
shares of common stock issuable upon exercise of the warrants,
referred to as the warrant shares, within 180&nbsp;days after
completion of the offerings. Subject to limited exceptions, the
warrant holders also have a right to have the warrant shares
included in some of our registered offerings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Communications and our directors, officers and selected
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of their
shares of common stock or securities convertible into or
exchangeable for shares of common stock for 180&nbsp;days after
the date of this prospectus. However, this agreement will be
subject to a number of exceptions and qualifications. In
addition, Goldman, Sachs &#38; Co. may, in its sole discretion,
release any or all of the securities subject to these
restrictions at any time without notice. See
&#147;Underwriting.&#148;

<P align="left"><B><I>You will experience immediate and substantial dilution in
your investment.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The initial public offering price is substantially higher than
the net tangible book value per share of our common stock. As a
result, you will experience immediate and substantial dilution in
 net tangible book value when you buy shares of our class A
common stock in the offerings. You will experience further
dilution upon the exercise of outstanding options or warrants to
purchase our common stock.

<P align="left"><B><I>Management has broad discretion in the use of proceeds.</I>
</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None of the estimated net proceeds of the offerings are allocated
 to specific purposes. Our management will have broad discretion
over the application of these funds. We cannot assure you that
management will make that application effectively or in a manner
that will not result in an adverse effect on our financial
condition or results of operations.

<P align="left"><B><I>Disparate voting rights of class A common stock and class B
 common stock could cause an adverse effect on the value and
liquidity of class A common stock</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The class A common stock and class B common stock vote as a
single class on all matters, except as otherwise required by law,
 with each share of class A common stock entitling its holder to
one vote and each share of class B common stock entitling its
holder to ten votes. In addition to voting together with holders
of class&nbsp;A common stock on most matters, holders of
class&nbsp;B common stock will be entitled to vote as a separate
class on amendments to our certificate of incorporation that
would alter or adversely affect the powers, preferences or
special rights of the class B common stock that would not also
adversely affect the holders of class A common stock. We cannot
assure you that these differences will not impact the value or
liquidity of the class A common stock. The differential in the
voting rights of the class A common stock and class B common
stock could adversely affect the value of the class A common
stock to the extent that investors or any potential future
purchaser of our common stock ascribe value to the superior
voting rights of our class B common stock. The existence of two
separate classes of common stock could also result in less
liquidity for our class&nbsp;A common stock than if there were
only one class of common stock.

<P align="center">24

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B><I>Some provisions of our certificate of incorporation and
Delaware law could make it more difficult for a third party to
acquire us.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provisions of our certificate of incorporation and of Delaware
law could make it more difficult to acquire us including:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the voting terms of the class B common stock, which based on
	Nextel Communications&#146; ownership interest following the
	offerings, effectively enable Nextel Communications to block a
	proposed acquisition or merger;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the ability of our board of directors to issue shares of
	preferred stock on terms that can be set by our board of
	directors in its sole discretion; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	provisions of Delaware law that impose restrictions on mergers
	and business combinations between us and a holder of
	15&nbsp;percent or more of our common stock, other than Nextel
	Communications.</TD>
</TR>

</TABLE>

<P align="left"><B><I>Our forward-looking statements are subject to a variety of
factors that could cause actual results to differ materially from
 current beliefs.</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>&#147;Safe Harbor&#148; Statement under the Private Securities
 Litigation Reform Act of 1995: </B>A number of the statements
made in this prospectus are not historical or current facts, but
deal with potential future circumstances and developments. They
can be identified by the use of forward-looking words such as
&#147;believes,&#148; &#147;expects,&#148; &#147;plans,&#148;
&#147;may,&#148; &#147;will,&#148; &#147;would,&#148;
&#147;could,&#148; &#147;should&#148; or &#147;anticipates&#148;
or other comparable words, or by discussions of strategy that
involve risks and uncertainties. We warn you that these
forward-looking statements are only predictions, which are
subject to risks and uncertainties, including financial
variations, changes in the regulatory environment, industry
growth and trend predictions. We have attempted to identify, in
context, some of the factors that we currently believe may cause
actual future experience and results to differ from our current
expectations regarding the relevant matter or subject area. The
operation and results of our wireless communications business
also may be subject to the effect of other risks and
uncertainties in addition to the other qualifying factors
identified in &#147;Risk Factors&#148; above and elsewhere in
this prospectus, including, but not limited to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	general economic conditions in Latin America and Asia and in the
	market segments that we are targeting for our digital ESMR
	services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the availability of adequate quantities of system network and
	subscriber equipment and components to meet our service
	deployment and marketing plans and customer demand;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	potential currency devaluations in countries in which our
	Operating Companies conduct business;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the accuracy of our estimates of the impact of foreign exchange
	volatility in our markets as compared to the U.S. dollar;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	substantive terms of any international financial aid package that
	 may be made available to any country in which our Operating
	Companies conduct business;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	future legislation or regulatory actions relating to SMR or ESMR
	services, other wireless communication services or
	telecommunications generally;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the impact that economic conditions in Latin America and Asia, as
	 well as other market conditions, may have on the volatility and
	availability of equity and debt financing in domestic and
	international capital markets;</TD>
</TR>

</TABLE>

<P align="center">25

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the success of efforts to improve and satisfactorily address any
	issues relating to our digital ESMR network performance;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	market acceptance of our new service offerings, including Nextel
	Worldwide and any future digital two-way mobile data or Internet
	connectivity services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the continued successful performance of the technology being
	deployed in our service areas and the success of technology to be
	 deployed in connection with any future introduction of digital
	two-way mobile data or Internet connectivity services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the ability to achieve and maintain market penetration and
	average subscriber revenue levels sufficient to provide financial
	 viability to our digital ESMR network business;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our ability to manage rapid growth, including our ability to
	timely and successfully accomplish required enhancement and
	expansion of our networks and scale-up of our billing,
	collection, customer care and similar back-room operations to
	keep pace with anticipated customer growth, increased system
	usage rates and growth in levels of accounts receivables being
	generated by the digital ESMR network customer base;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	access to sufficient debt or equity capital to meet our operating
	 and financial needs; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the quality and price of similar or comparable wireless
	communications services offered or to be offered by our
	competitors, including providers of cellular and PCS services.</TD>
</TR>

</TABLE>

<P align="center">26

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center"><B>USE OF PROCEEDS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on an assumed initial public offering price of $<B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B>per share, the midpoint of the range set forth on the cover,
the net proceeds of the offerings received by us, after deducting
 the estimated underwriting discounts and commissions and other
expenses of the offerings, would be about $<B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B>, or about $<B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B>if the underwriters&#146; over-allotment options are
exercised in full. We intend to use the net proceeds from the
offerings to finance network expansion, acquisitions of
additional spectrum, working capital needs or debt service
requirements or for other general corporate purposes.

<!-- link1 "DIVIDEND POLICY" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center"><B>DIVIDEND POLICY</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not paid any cash dividends on our capital stock and do
not plan to pay dividends on our common stock for the foreseeable
 future. Some of our financing arrangements prohibit, and are
expected to continue to prohibit, us from paying dividends,
except in compliance with specified financial covenants. In
addition, some of the collateral security mechanisms and related
provisions associated with our financing agreements limit the
amount of cash available to make dividends, loans and cash
distributions to us from our subsidiaries. Accordingly, while
these restrictions are in place, any profits generated by our
Operating Companies will not be available to us for, among other
things, payment of dividends.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We anticipate that for the foreseeable future any cash flow
generated from our operations will be used to develop and expand
our business and operations. Any future determination as to the
payment of dividends on our common stock will be at the
discretion of our board of directors and will depend upon our
operating results, financial condition and capital requirements,
contractual restrictions, general business conditions and other
factors that our board of directors deems relevant. We cannot
assure you that we will pay dividends on our common stock at any
time in the future.

<P align="center">27
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "CAPITALIZATION" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center"><B>CAPITALIZATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the consolidated cash, cash
equivalents and short-term investments, current portion of
long-term debt and capitalization of Nextel International as of
June&nbsp;30, 2000 on a historical basis and as adjusted to give
effect to the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the receipt of about $623.8&nbsp;million in net proceeds from the
	 issuance of our August 2000 Notes on August&nbsp;1, 2000;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the acquisition on August&nbsp;4, 2000 of additional ownership
	interests in McCaw Brazil and the related payment of about $146.0
	 million;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the exchange by Nextel Communications of 2,150 shares of series A
	 exchangeable redeemable preferred stock into about
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 of our class B common stock, assuming the exchange occurred on
	June&nbsp;30, 2000 and based on the accreted value of the
	series&nbsp;A preferred stock at that date of about $215.1
	million and an assumed initial public offering price of the
	class&nbsp;A common stock of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
	share, the midpoint of the range set forth on the cover.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the reclassification of all of our existing shares of common
	stock into an equal number of shares of our class&nbsp;B common
	stock; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the receipt of about
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
	 in estimated net proceeds from the sale of
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 of our class&nbsp;A common stock in the offerings, assuming an
	initial public offering price of
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the midpoint of the
	range set forth on the cover.</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="63%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June 30, 2000</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(unaudited)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Actual</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>As adjusted</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands, except</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Cash, cash equivalents and short-term investments(1)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">297,384</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Current portion of long-term debt</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">67,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">67,098</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Long-term debt, net of current portion:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	13.0% Senior Discount Notes due 2007</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">745,870</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">745,870</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	12.125% Senior Discount Notes due 2008</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">525,870</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">525,870</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	12.75% Senior Serial Notes due 2010</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">641,043</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	International Motorola Financing Facility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">151,025</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">151,025</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	International Motorola Incremental Facility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,650</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,650</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Brazil Motorola Financing Facility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">87,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">87,500</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Argentina Credit Facility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,334</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,334</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Motorola Argentina Incremental Facility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,483</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,483</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">902</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">902</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,666,634</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,307,677</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">28

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="60%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June 30, 2000</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(unaudited)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Actual</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>As adjusted</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands, except</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Stockholders&#146; (deficit) equity:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Series&nbsp;A exchangeable redeemable preferred stock, 12,500
	shares authorized; 2,150 shares issued and outstanding, actual
	and no shares issued and outstanding, as adjusted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">215,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Common stock, 200,000,000 shares authorized, actual and no shares
	 authorized, as adjusted; 180,691,155 shares issued and
	outstanding actual and no shares issued and outstanding, as
	adjusted;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">927,693</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Class A common stock, no shares authorized, actual and
	1,000,000,000 shares authorized, as adjusted; no shares issued
	and outstanding, actual and &nbsp;&nbsp; shares issued and
	outstanding, as adjusted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Class B common stock, no shares authorized, actual and
	500,000,000 shares authorized, as adjusted; no shares issued and
	outstanding, actual and &nbsp;&nbsp; shares issued and
	outstanding, as adjusted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,142,774</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accumulated deficit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,100,900</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,100,900</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Net unrealized gain on investments</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,707</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,707</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,671</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,671</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total stockholders&#146; (deficit)&nbsp;equity</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total capitalization</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,662,463</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Included in cash and cash equivalents is about $10.5&nbsp;million
	 that was not available to fund any of the cash needs of Nextel
	International or any of its other subsidiaries due to
	restrictions contained in specified debt agreements.</TD>
</TR>

</TABLE>

<P align="center">29

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "DILUTION" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center"><B>DILUTION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma net tangible book value as of June&nbsp;30, 2000
was $(535.3)&nbsp;million or approximately
$(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) per share, giving
effect to the exchange of all outstanding shares of our
series&nbsp;A preferred stock for shares of our class&nbsp;B
common stock, assuming the exchange occurred on June&nbsp;30,
2000 and based on the accreted value of the series&nbsp;A
preferred stock at that date of about $215.1 million and an
assumed initial public offering price for the class&nbsp;A common
 stock of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the midpoint
of the range set forth on the cover. Net tangible book value per
share represents the amount of our stockholders&#146; (deficit)
equity, less intangible assets, divided by the number of shares
of common stock outstanding on June&nbsp;30, 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net tangible book value dilution per share represents the
difference between the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="6%"></TD>
	<TD width="4%"></TD>
	<TD width="90%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	the amount paid per share by purchasers of common stock in the
	offerings; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	the adjusted pro forma net tangible book value per share of
	common stock as of June&nbsp;30, 2000.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After giving effect to our sale of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 of our class&nbsp;A common stock in the offerings, our adjusted
pro forma net tangible book value as of June&nbsp;30, 2000, based
 on an assumed initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the range set forth on the cover, would
have been
$(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
or
$(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
per share of common stock. This represents an immediate increase
in net tangible book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to existing stockholders and an immediate dilution of net
tangible book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to you. The following table illustrates this dilution:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="71%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Assumed initial public offering price per share of class&nbsp;A
	common stock</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Pro forma net tangible book value per share of common stock as of
	<BR>
	June&nbsp;30, 2000.</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(&nbsp;&nbsp;</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Increase in pro forma net tangible book value per share of common
	 stock attributable to the offerings</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Pro forma net tangible book value per share as of June&nbsp;30,
	2000 after giving effect to the offerings</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Dilution per share to new investors</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below summarizes on a pro forma basis as of
June&nbsp;30, 2000, giving effect to the exchange of all
outstanding shares of our series&nbsp;A exchangeable redeemable
preferred stock for shares of our class B common stock on the
basis described above, the difference between our existing
stockholders and the new investors in the offerings with respect
to the number of shares purchased from us, the total
consideration paid and the average price per share paid.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="48%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Total</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Shares Purchased</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Consideration</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Average</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price Per</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Share</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Existing stockholders</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	New investors</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The tables above assume no exercise of outstanding options and
warrants. As of June&nbsp;30, 2000, there were
13,970,584&nbsp;shares of common stock reserved for issuance upon
 exercise of outstanding options at a weighted average exercise
price of $11.54 per share and 1,474,304&nbsp;shares of common
stock reserved for issuance upon exercise of outstanding warrants
 at an exercise price of $2.50 per share. The tables above also
assume no exercise of the underwriters&#146; over-allotment
options. To the extent that any shares are issued in connection
with outstanding warrants or options, you will experience further
 dilution. See &#147;Management&#148; and
&#147;Underwriting.&#148;

<P align="center">30

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<P><HR noshade><P>
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<!-- link1 "SELECTED CONSOLIDATED HISTORICAL FINANCIAL INFORMATION" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center"><B>SELECTED CONSOLIDATED HISTORICAL FINANCIAL INFORMATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The financial information presented below for the years ended
December&nbsp;31, 1995, 1996, 1997, 1998 and 1999 has been
derived from our audited consolidated financial statements. Our
consolidated financial statements as of and for the years ended
December&nbsp;31, 1995, 1996, 1997, 1998 and 1999 have been
audited by Deloitte &#38; Touche LLP, our independent auditors.
Our audited financial statements as of December&nbsp;31, 1998 and
 1999 and for the years ended December 31, 1997, 1998 and 1999
are included at the end of this prospectus. The financial
information as of June&nbsp;30, 2000 and for the six months ended
 June&nbsp;30, 1999 and 2000 has been derived from our unaudited
financial information, included at the end of this prospectus,
and reflects only normal recurring adjustments necessary for the
fair presentation of this information. You should not expect the
results of operations of interim periods to be an indication of
results for a full year.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Acquisitions.</I> Our results were affected by business
combinations, acquisitions and investments. Additional
information regarding acquisition and investment activity during
1997, 1998 and 1999 can be found in Notes 2, 3 and 15 to the
audited consolidated financial statements and related notes
appearing elsewhere in this prospectus.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other (Expense) Income, Net.</I> Other (expense) income, net
consists primarily of foreign currency transaction losses, of
which $42.8&nbsp;million in the six months ended June&nbsp;30,
1999 and $57.0&nbsp;million in the year ended December&nbsp;31,
1999 relate to losses associated with the devaluation of the
Brazilian real. In 1995, other (expense)&nbsp;income, net
includes a $15.0&nbsp;million charge representing an other than
temporary decline in the fair value of our investment in
Comunicaciones Nextel de Mexico S.A. de C.V., referred to as
Nextel Mexico, as a result of a decline in the Mexican peso.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Stock Splits.</I> The weighted average number of common shares
 outstanding reflects a 100,000-for-1 common stock split
effective March&nbsp;6, 1997, a 3.65-for-1 common stock split
effective August&nbsp;25, 1997 and a 4-for-1 common stock split
effective June&nbsp;20, 2000. Information presented throughout
this prospectus has been adjusted to reflect these stock splits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income Tax (Provision) Benefit.</I> We recognized an income
tax benefit during 1998 of $22.4&nbsp;million related to net
operating losses of our subsidiaries in Brazil, Mexico and
Argentina. Changes in tax legislation in Argentina and Mexico,
and depletion of temporary differences in Brazil, have
contributed to the decrease in the income tax benefit for 1999
for those Operating Companies. Additionally, we are precluded
from recognizing any income tax benefits associated with U.S. net
 operating losses because we cannot presently conclude that it is
 more likely than not that we will generate taxable income during
 periods prior to the expiration of our accumulated net operating
 losses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EBITDA.</I> EBITDA consists of loss before income tax
(provision) benefit, interest expense, interest income,
depreciation and amortization, equity in losses of unconsolidated
 affiliates, other (expense) income, net and minority interest in
 losses of subsidiaries. EBITDA is provided because it is a
measure commonly used in the telecommunications industry. It is
presented to enhance an understanding of our operating results
and is not intended to represent cash flow or results of
operations for the periods presented. EBITDA is not a measurement
 under accounting principles generally accepted in the United
States and may not be similar to EBITDA measures of other
companies.

<P align="center">31

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="31%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="19"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Six months ended</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="19"><FONT size="2"><B>Year ended December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June 30,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="19"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="27"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="27"><FONT size="2"><B>(in thousands, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Consolidated Statement of Operations Data:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,015</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104,528</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,760</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110,800</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,424</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,072</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,652</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">277</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,318</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,768</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">226,379</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">116,222</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">148,650</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">168</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,882</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,183</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(296</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,486</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(39,558</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(176,734</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(270,941</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(144,416</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(132,685</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(323</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(56,583</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,604</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(82,220</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,660</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,233</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,300</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,666</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,442</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,547</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,853</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,991</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,401</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,193</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(31,469</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,520</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other (expense)&nbsp;income, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,002</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">379</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,561</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65,905</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,539</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,016</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,314</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,299</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,504</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax (provision) benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,918</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,121</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(80,230</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(259,493</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,163</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(267,569</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,562</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Income tax (provision)&nbsp;benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,119</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,355</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(439</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(368</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,037</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,476</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Accretion of series A redeemable preferred stock to value of
	liquidation preference</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(61,334</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss attributable to common stockholders</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,037</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,476</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(302,264</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss per share attributable to common stockholders, basic and
	diluted</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.09</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3.56</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.83</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2.01</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Weighted average number of common shares outstanding</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,014</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,240</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,130</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">150,422</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Selected Financial Data:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cash flows provided by (used in) operating activities</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,063</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,983</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,464</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(176,961</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,360</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(100,105</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(101,774</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cash flows used in investing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(47,895</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(72,286</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(389,153</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(402,902</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(185,315</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(116,809</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(254,983</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cash flows provided by financing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,592</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,996</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">512,378</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">542,225</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">310,134</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">242,169</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">523,945</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	EBITDA</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(277</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,318</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,177</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(120,695</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(162,850</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(92,534</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(67,502</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="38%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="19"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="19"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="19"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June 30,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Consolidated Balance Sheet Data:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cash, cash equivalents and<BR>
	short-term investments,<BR>
	including restricted portion</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">85,302</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53,029</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">288,350</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">121,116</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,028</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">297,384</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,703</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">136,210</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">530,571</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">755,229</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Intangible assets, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,135</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,878</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">526,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">552,419</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">454,657</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">505,675</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Total assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">169,675</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">199,367</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,123,038</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,601,136</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,124,010</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Long-term debt, including<BR>
	current portion</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">600,020</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,256,943</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,548,496</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,733,732</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Stockholders&#146; equity (deficit)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,939</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,203</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">296,029</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95,898</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">32

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION</B>

<DIV align="center">
<B>AND RESULTS OF OPERATIONS</B>
</DIV>

<P align="left"><B>Results of Operations</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a discussion and analysis of our consolidated
financial condition and results of operations for the three years
 ended December&nbsp;31, 1999 and for the six and
three&nbsp;months ended June&nbsp;30, 1999 and 2000, as well as
significant factors that could affect our prospective financial
condition and results of operations. Historical results may not
indicate future performance. See &#147;Risk Factors&nbsp;&#151;
Our forward looking statements are subject to a variety of
factors that could cause actual results to differ materially from
 current beliefs.&#148;

<P align="left"><B><I>Six and Three Months Ended June&nbsp;30, 1999 vs. Six and
Three Months Ended June&nbsp;30, 2000</I></B>

<P align="left"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Revenues</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating revenues include service revenues, which consist
primarily of charges for airtime usage and monthly network access
 fees from providing mobile wireless services.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="29%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Six Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,760</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">69,040</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">165%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,043</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,115</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,072</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,874</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,347</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,473</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,862</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,940</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,078</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">306%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,243</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,262</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><I>NM</I></FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate &#38; Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><I>NM</I></FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Three Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,899</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63,625</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,726</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">191%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,491</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">34%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,278</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,787</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">171%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,864</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,111</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,247</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">93%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,021</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,759</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,738</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">313%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">523</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,322</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,799</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><I>NM</I></FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate &#38; Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><I>NM</I></FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<DIV align="left">
<I>NM&nbsp;&#151;&nbsp;Not Meaningful</I>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating revenues increased primarily due to growth in the
number of our digital subscriber units in service and higher
average monthly revenue per digital subscriber unit. The growth
in the number of digital subscriber units in service of our
consolidated subsidiaries, primarily in Brazil, Mexico and
Argentina, from 154,000 at June&nbsp;30, 1999 to about 469,100 at
 June&nbsp;30, 2000 is the result of a number of factors,
principally:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the introduction of new products and services, such as
	international roaming services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	an increased number of indirect distributors;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the expansion of coverage in existing markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a continued emphasis on increasing brand awareness, primarily
	through increased advertising; and</TD>
</TR>

</TABLE>

<P align="center">33

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the launch of digital interconnect ESMR service in Peru during
	June 1999. Prior to June&nbsp;1999, only two-way radio digital
	dispatch service was available from Nextel Peru, and the
	potential customer base expanded significantly with the addition
	of interconnect service.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The higher average monthly revenue per digital subscriber unit is
 the result of a number of factors, principally:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the establishment of the calling party pays program in Argentina,
	 resulting in additional revenue via fees paid by non-subscribers
	 placing calls to our subscribers in Argentina;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the introduction of digital interconnect ESMR service in Peru
	during June&nbsp;1999, which has generated higher revenues per
	digital subscriber unit than the two-way radio digital dispatch
	service previously available; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a shift in our customer use patterns away from use of digital
	two-way radio only to full use of our integrated services, with a
	 corresponding increase in number of minutes of use of our
	digital services.</TD>
</TR>

</TABLE>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Cost of Revenues</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cost of revenues consists primarily of network operating costs,
including site rent and utilities, and interconnection fees
assessed by local exchange carriers.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="30%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Six Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,072</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,652</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,580</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">64</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,873</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,278</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,405</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,060</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,448</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,388</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,586</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,482</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,896</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">553</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,418</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,865</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">337</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate &#38; Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Three Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,106</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,690</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,584</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">72</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,545</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,729</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,184</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,096</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,409</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,313</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,071</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,113</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,042</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">99</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">394</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,413</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,019</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">259</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate &#38; Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in cost of revenues is primarily attributable to
interconnect costs on higher minutes of use and increased site
lease costs and utilities that we incurred due to an increase of
about 80% in the number of cell sites we placed in service from
June&nbsp;30, 1999 to June&nbsp;30, 2000.

<P align="center">34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Selling, General and
Administrative Expenses</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="29%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(Decrease) from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Six Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">116,222</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">278</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">148,650</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">134</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32,428</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling and marketing</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">49,758</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">91,861</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,103</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	General and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">66,464</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">159</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,789</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,675</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Three Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">59,337</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">271</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">81,390</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">128</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,053</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling and marketing</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,616</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">117</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,854</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,238</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">102</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	General and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,721</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">154</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,536</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,185</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in selling and marketing expenses primarily reflects
 increased costs incurred in connection with higher consolidated
sales of digital subscriber units across all of our reportable
segments during the six and three months ended June&nbsp;30,
2000, including:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$20.8&nbsp;million and $12.6&nbsp;million of additional
	advertising costs;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$15.2&nbsp;million and $8.6&nbsp;million of increased losses due
	to subsidies generated from increased sales of digital subscriber
	 units and related accessories; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$6.1&nbsp;million and $5.0&nbsp;million of increased commissions
	earned by employees, indirect dealers and distributors as a
	result of increased digital subscriber unit sales.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The decrease in general and administrative expenses during the
six and three months ended June&nbsp;30, 2000 is due primarily to
 a $13.7&nbsp;million and $10.1&nbsp;million reduction of bad
debt expense due to increased focus on credit and collection
activities. This decrease was partially offset by a
$4.0&nbsp;million and a $5.9&nbsp;million increase in expenses
related to billing and customer care as a result of a larger
customer base, as well as increases in personnel, facilities and
general corporate expenses.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Depreciation and
Amortization</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="30%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(Decrease) from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Six Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,882</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">124</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,183</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">59</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,301</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38,524</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,058</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">47</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,534</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,125</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(233</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Three Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28,468</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">130</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32,682</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,214</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,736</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">99</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,948</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,212</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,732</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,734</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depreciation and amortization increased primarily due to
increased depreciation as a result of placing additional cell
sites into service in existing markets to improve and enhance
coverage of our digital ESMR networks. System assets relating to
the development and expansion of our

<P align="center">35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
digital ESMR networks represent the largest portion of our
capital expenditures during the period. Depreciation begins when
system assets are placed into service in the relevant markets.
</DIV>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Segment Losses, Interest
Expense, Interest Income and Other</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="29%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(Decrease) from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Six Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92,534</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">222</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">67,502</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">61</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(25,032</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,439</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">94</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,087</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,352</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(47</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,792</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">57</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,608</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,184</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(68</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,037</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,933</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,896</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,501</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,735</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,234</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,765</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,139</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,374</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82,220</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">197</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106,660</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">96</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24,440</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,547</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,720</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">96</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,520</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,284</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,764</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Foreign currency transaction (losses) gains, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,864</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(110</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,922</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,786</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,299</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,504</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,795</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Three Months Ended</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">46,544</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">213</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,455</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,089</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,245</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,758</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,487</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(57</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,575</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,689</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(8,886</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,599</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,416</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,817</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,367</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,888</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">521</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,758</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,704</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,946</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43,526</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">199</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53,945</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,419</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,289</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,199</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,910</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">303</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,869</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,171</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,302</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains (losses), net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,833</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,615</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27,448</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(132</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,258</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,754</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,496</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">198</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We define segment losses as losses before interest, taxes,
depreciation and amortization and other non-recurring charges. We
 incurred segment losses across all of our consolidated
subsidiaries during the six and three months ended June&nbsp;30,
1999 and 2000. Segment losses in Brazil and Argentina decreased
for the six and three&nbsp;months ended June&nbsp;30, 2000 as a
result of increases in revenue due to subscriber growth in
Brazil, subscriber growth and average revenue per unit increases
in Argentina and reductions in bad debt expense in both markets.
We expect these segment losses to continue for the next several
years while we expand our digital ESMR networks and business
activities, grow our subscriber base and strengthen the support
systems necessary to service our growing number of subscribers.

<P align="center">36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in interest expense for the six and three months
ended June 30, 2000, resulted from higher levels of outstanding
debt drawn primarily to finance our current expansion and
improvement of digital ESMR network coverage in our Latin
American markets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in interest income for the six and three months
ended June 30, 2000 is primarily due to higher average
outstanding cash balances as a result of $442.7&nbsp;million in
proceeds received from the issuance of series A exchangeable
redeemable preferred stock in the second quarter of 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in equity in losses of unconsolidated affiliates for
 the six and three months ended June&nbsp;30, 2000 is
attributable to increased operating losses incurred by Nextel
Philippines and NEXNET.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foreign currency transaction gain for the six months ended
June 30, 2000 is due primarily to the strengthening of the
Brazilian real relative to the U.S. dollar during the first
quarter of 2000 offset by the weakening of the Brazilian real
relative to the U.S. dollar during the second quarter of 2000.
The foreign currency transaction loss for the six months ended
June&nbsp;30, 1999 is due primarily to the weakening of the
Brazilian real relative to the U.S. dollar during the first
quarter of 1999 slightly offset by the strengthening of the
Brazilian real relative to the U.S. dollar during the second
quarter of 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The decrease in minority interest in losses of subsidiaries for
the six months ended June&nbsp;30, 2000 is attributable primarily
 to the reductions in minority stockholders&#146; percentage
shares of net operating losses in Nextel Brazil and Nextel Peru.

<P align="left"><B>Year Ended December 31, 1998 vs. Year Ended December 31, 1999
</B>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Operating Revenues</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="24%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104,528</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62,040</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,480</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">34,917</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,437</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,662</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,767</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,105</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">282</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,412</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24,937</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,525</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,934</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,907</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,973</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">102</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating revenues include service revenues, which consist
primarily of charges for airtime usage and monthly network access
 fees, derived from providing mobile wireless services. Operating
 revenues increased for the year ended December&nbsp;31, 1999 due
 primarily to an increased number of digital subscriber units in
service and higher average monthly revenue per digital subscriber
 unit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increased number of digital subscriber units in service is
the primary reason for the increase in consolidated operating
revenues in 1999. The growth in the number of digital subscriber
units in service is the result of a number of factors,
principally:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the expansion of coverage in existing markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	higher average subscriber units in service during 1999 as a
	result of the inclusion of a full year of attracting new
	subscribers to our digital ESMR services in markets where we
	launched service during 1998, including Sao Paulo and Rio de
	Janeiro, Brazil; Buenos Aires and Rosario, Argentina; and Mexico
	City, Mexico, compared to 1998, which included new subscriber
	loading activities for only that portion of the year following
	the initial launches of our digital ESMR services in these
	markets;</TD>
</TR>

</TABLE>

<P align="center">37

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a continued emphasis on increasing brand awareness, primarily
	through increased advertising; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the launch of digital interconnect service in Peru during
	June&nbsp;1999. Prior to June&nbsp;1999, only two-way radio
	digital dispatch service was available from Nextel Peru, and the
	potential customer base expanded significantly with the addition
	of interconnect service.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The higher average monthly revenue per digital subscriber unit
also contributed to the increase in operating revenues in 1999.
The higher average monthly revenue is the result of a number of
factors, principally:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the establishment of the calling-party-pays program in Argentina,
	 resulting in additional revenue via fees paid by non-subscribers
	 placing calls to subscribers of Nextel Argentina S.R.L.,
	referred to as Nextel Argentina;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the introduction of digital interconnect ESMR service in Peru
	during June&nbsp;1999, which generates significantly higher
	revenues per subscriber than the two-way radio digital dispatch
	service previously available; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a shift in our customer mix away from use of digital two-way
	radio only to full use of our integrated services with a
	corresponding increase in minutes of use of our digital services.</TD>
</TR>

</TABLE>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Cost of Revenues</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="24%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">47</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,914</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,916</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,064</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,148</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,324</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,092</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,768</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,332</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,175</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,843</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">72</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">513</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,668</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">225</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cost of revenues consists primarily of network operating costs
and interconnection fees assessed by local exchange carriers.
Cost of revenues increased during 1999 in comparison to 1998
primarily due to interconnect costs on higher minutes of use and
increased site lease costs, technical expenses and utilities that
 we incurred due to an increase in the number of switches and
cell sites on air during 1999.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Selling, General and
Administrative Expenses</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="29%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">337</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">226,379</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">217</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,281</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling and marketing</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,154</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">153</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">112,116</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">107</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">46,962</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">72</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	General and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">77,944</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">184</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">114,263</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,319</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">47</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling and marketing expenses increased across all of our
reportable segments during 1999, due to the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$24.6&nbsp;million of increased losses due to subsidies generated
	 from increased sales of digital subscriber units and related
	accessories;</TD>
</TR>

</TABLE>

<P align="center">38

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$11.2&nbsp;million of increased commissions earned by employees,
	indirect dealers and distributors as a result of increased
	digital subscriber unit sales;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$8.4&nbsp;million of increased costs related to additional
	employees necessary to support marketing and fulfillment
	functions for the expanded subscriber base; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$2.8&nbsp;million of additional advertising costs.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in general and administrative expenses during 1999
is due to the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$26.1&nbsp;million of increased bad debt expense, which is
	discussed below;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$7.8&nbsp;million of increased expenses related to billing and
	customer care as a result of a larger customer base; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$2.4&nbsp;million increase in personnel, facilities and general
	corporate expenses primarily reflecting increased staffing for
	support of company wide initiatives, including negotiating
	contracts with key vendors to take advantage of volume discounts,
	 as well as coordinating the technology needs for future programs
	 such as international roaming and prepaid calling cards.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Bad debt expense increased $26.1&nbsp;million from
$7.1&nbsp;million during 1998 to $33.2&nbsp;million during 1999.
This increase is a result of a focused program to aggressively
take action on delinquent paying customers and to strengthen
credit and collection procedures in Brazil and Argentina. As part
 of this program, we suspended and/or deactivated nonpaying
customers and implemented procedures to minimize credit risk,
such as requiring deposits, requesting bank statements and/or
requesting current credit references from prospective customers.
Following the institution of this program, bad debt expense
decreased from $22.4&nbsp;million during the first six months of
1999 to $10.8&nbsp;million during the last six months of 1999.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Depreciation and
Amortization</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="27%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase from</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">132</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,052</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">93</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depreciation and amortization increased for 1999 as compared to
1998 primarily due to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	increased depreciation as a result of placing additional cell
	sites into service in existing markets to improve and expand
	coverage during 1999; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the recording of a full year of depreciation during 1999 on cell
	sites and switches placed into service at various dates during
	1998.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
System assets relating to the development and expansion of our
digital ESMR networks represent the largest portion of capital
expenditures during 1999. We begin depreciating an asset when it
is placed into service.

<P align="center">39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Segment Losses, Interest
Expense, Interest Income, and Other</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="24%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase(Decrease)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>from</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">120,695</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">162,850</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">156</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">60,945</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,554</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,609</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,353</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,979</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,626</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,253</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28,813</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,560</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">181</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,007</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,579</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,572</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">318</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Corporate and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,137</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,925</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,788</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106,824</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">251</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">179,604</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">72,780</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,442</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(8,213</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(49</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,193</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,469</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,276</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">158</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains (losses)&nbsp; and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65,905</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(63</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(68,377</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2"><I>NM</I></FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,314</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,183</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="22%" align="left">

<DIV align="left">
<I>NM&nbsp;&#151;&nbsp;Not Meaningful</I>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We define segment losses as earnings before interest, taxes,
depreciation and amortization and other non-recurring charges. We
 incurred segment losses across all of our consolidated
subsidiaries for 1999. We expect these segments losses to
continue while we are expanding digital ESMR networks and
business activities, expanding our subscriber base and expanding
the support systems necessary to service our growing number of
subscribers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in interest expense during 1999 in comparison to
1998 is due to higher levels of outstanding debt throughout the
year. Draws were made on our $225.0&nbsp;million equipment
financing facility with Motorola Credit, referred to as the
International Motorola Financing Facility, and Nextel
Argentina&#146;s $100.0&nbsp;million secured credit facility,
referred to as the Argentina Credit Facility, to fund network
expansion during 1999. In addition, capitalized interest
decreased during 1999 as average construction in progress
balances decreased from 1998, when the balances consisted
primarily of costs associated with the subsequent launches of
markets in Brazil, Argentina and Mexico, to 1999, when the
balances consisted primarily of costs associated with expanding
and enhancing coverage in existing markets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We attribute the decrease in interest income to the lower average
 cash balances on hand during 1999 in comparison to 1998. During
1999, our primary funding sources consisted of borrowings under
long-term debt facilities and capital contributions from a wholly
 owned subsidiary of Nextel Communications, both of which
occurred immediately prior to, or simultaneously with, our
anticipated uses of the funds. During 1998, however, our primary
funding source was the net proceeds from the issuance of our
March&nbsp;1998 Notes, which generated interest income prior to
their utilization in our business.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our equity in losses of unconsolidated affiliates increased
primarily due to a $16.4&nbsp;million increase in the loss from
our investment in Nextel Philippines. The loss from this
investment was caused both by an increase in our ownership during
 1998 and an increase in the net losses of Nextel Philippines.
Digital ESMR service was launched in Manila during the third
quarter of 1998. The increase in the net losses of Nextel
Philippines was due primarily to higher interest expense

<P align="center">40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
and depreciation and amortization related to the build-out of its
 network and higher selling and marketing costs associated with
equipment subsidies and advertising during 1999. Increased losses
 in NEXNET caused the remaining increase in equity in losses of
unconsolidated affiliates during 1999.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our foreign currency transaction gains (losses)&nbsp;and other,
net of $(65.9) million was related primarily to the devaluation
during 1999 of the Brazilian real relative to the U.S. dollar.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in our minority interest in losses of subsidiaries
was directly related to increased losses attributable to minority
 stockholders of Nextel Brazil and Nextel Peru.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We recognized an income tax benefit during 1998 of
$22.4&nbsp;million related to net operating losses of our
subsidiaries in Brazil, Mexico and Argentina. Changes in tax
legislation in Argentina and Mexico, and depletion of temporary
differences in Brazil, have contributed to the decrease in the
income tax benefit for 1999 for those segments. Additionally, we
are precluded from recognizing any income tax benefits associated
 with U.S. net operating losses, because we cannot presently
conclude that it is more likely than not that we will generate
taxable income during periods prior to the expiration of our
accumulated net operating losses.

<P align="left"><B><I>Year Ended December&nbsp;31, 1997 vs. Year Ended
December&nbsp;31, 1998</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our 1997 consolidated financial statements include the accounts
and balances of Nextel Brazil from January&nbsp;30, 1997 through
year end, of Nextel Mexico from September&nbsp;1, 1997 through
year end, and of Nextel Argentina from January&nbsp;1, 1997
through May&nbsp;5, 1997. From May&nbsp;6, 1997 through
January&nbsp;30, 1998, Nextel Argentina was accounted for under
the equity method. Our 1998 consolidated financial statements
include the accounts and balances of Nextel Brazil and Nextel
Mexico for the entire year, and of Nextel Argentina and Nextel
Peru for the eleven months ended December&nbsp;31, 1998.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="26%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Increase(Decrease)</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>from</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Previous Year</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Revenues</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dollars</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,015</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,473</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">226</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,424</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">57</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">47</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,661</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,768</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">206</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">337</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">116,330</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">435</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">132</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">37,658</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">205</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,583</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">435</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106,824</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">251</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50,241</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">89</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,666</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">151</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,011</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">88</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,193</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">792</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,561</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,089</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(56</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,046</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">722</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Income tax benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,076</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">256</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">41

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<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Operating Revenues</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1998, operating revenues increased by $29.5&nbsp;million as
compared to 1997. This increase is primarily attributable to fees
 generated from digital ESMR service and analog SMR service
provided in Brazil in 1998 by affiliates of Nextel Brazil and
from analog SMR services provided in Mexico in 1998 by affiliates
 of Nextel Mexico. A portion of the increase is also attributable
 to the greater number of months Mexico was consolidated during
1998, and to the purchase of the majority interest in Nextel
Argentina and Nextel Peru in January&nbsp;1998. During 1997,
revenues were primarily attributable to analog SMR service
provided in Mexico and Brazil. As we launched digital ESMR
service in Brazil, Argentina and Mexico during 1998, fees were
generated predominantly by digital ESMR service.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Cost of Revenues</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1998, cost of revenues increased $12.7&nbsp;million as
compared to 1997. This increase relates primarily to increases in
 site and switch operating costs, including site rents, utilities
 and maintenance, increases in interconnect costs related to our
digital networks and increases in the cost of equipment sales and
 maintenance. The increase in cost of revenues is also
attributable to Nextel Mexico&#146;s full year of consolidated
operations during 1998 compared to only four months in 1997 and
the addition of Nextel Argentina and Nextel Peru as consolidated
subsidiaries during 1998.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Selling, General and
Administrative Expenses</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The $116.3&nbsp;million increase in selling, general and
administrative expense in 1998 as compared to 1997 is
attributable to market growth, the launch of the digital ESMR
networks, an increase in staffing and other costs required to
support the digital ESMR service, increased subsidies on sales of
 subscriber units and advertising and marketing costs incurred to
 create brand awareness in each of the markets that launched
digital ESMR service during 1998.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Depreciation and
Amortization</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The $37.6&nbsp;million increase in depreciation and amortization
expense to $56.0&nbsp;million in 1998 from $18.4&nbsp;million in
1997 is primarily attributable to amortization of licenses in
Nextel Argentina, Nextel Brazil, and Nextel Mexico, an increase
in depreciation expense related to the launch of our digital ESMR
 networks during 1998 and depreciation and amortization expense
related to the consolidation of the operating results of Nextel
Argentina for the full year in 1998 and Nextel Peru commencing in
 February&nbsp;1998.

<P align="left"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Income, Interest
Expense and Other</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest expense increased $50.2&nbsp;million to
$106.8&nbsp;million in 1998 from $56.6&nbsp;million in 1997. This
 increase is attributable to accretion of interest and related
amortization of debt issue costs on the March&nbsp;1998 Notes, a
full year of interest accretion and amortization of debt issue
costs on the March 1997 Notes, and increased interest expense due
 to the greater amount of outstanding borrowings under the
equipment facility agreement, referred to as the Brazil Motorola
Financing, between McCaw Brazil and Motorola Credit Corporation,
referred to as Motorola Credit, and the Argentina Credit Facility
 during 1998. These increased costs were partially offset by an
increase in the amount of interest capitalized in connection with
 the construction and development of our digital ESMR networks
during 1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest income decreased $3.0&nbsp;million to $16.7&nbsp;million
 during 1998 from $19.7&nbsp;million during 1997. The decrease is
 primarily attributable to a reduction of income recognized on
the investment of the net proceeds from the March&nbsp;1998
Notes, compared to the income recognized on the investment of the
 net proceeds from the issuance of the March&nbsp;1997 Notes,
prior to their utilization in our business.

<P align="center">42

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in losses of unconsolidated affiliates increased
$0.8&nbsp;million to $12.2&nbsp;million in 1998 from
$11.4&nbsp;million in 1997. The loss in 1998 was primarily
attributable to about $5.8&nbsp;million in losses associated with
 our 38% interest (30% through August&nbsp;1998) in Nextel
Philippines and $5.5&nbsp;million in losses associated with our
21% interest in NEXNET. During 1997, the equity in losses of
unconsolidated affiliates also includes $4.5&nbsp;million of
losses associated with our 50% interest in Nextel Argentina which
 was accounted for using the equity method for the majority of
1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Foreign currency transaction gains and other, net decreased
$3.1&nbsp;million during 1998 as compared to 1997 primarily due
to an increase in foreign currency gains recognized on the
remeasurement of Nextel Mexico&#146;s net monetary liabilities
and NEXNET&#146;s Japanese yen-denominated debt.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Minority interest in the net losses of Nextel Brazil and Nextel
Mexico totaled $17.1&nbsp;million in 1998, an increase of
$15.0&nbsp;million over 1997. This increase is primarily
attributable to the minority stockholders&#146; about 23%
interest in the net loss of Nextel Brazil.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We recognized an income tax benefit of $22.4&nbsp;million in 1998
 compared to an income tax benefit of $6.3&nbsp;million in 1997.
The increased income tax benefit recognized in 1998 was primarily
 attributable to operating losses related to Nextel Brazil and
Nextel Mexico.

<P align="left"><B>Liquidity and Capital Resources</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Working capital increased by $84.1&nbsp;million to
$65.8&nbsp;million at June&nbsp;30, 2000 compared to a working
capital deficit of $18.3&nbsp;million at December&nbsp;31, 1999
primarily relating to the increase in cash and cash equivalents
resulting from aggregate proceeds of $442.7&nbsp;million
generated by issuances of shares of our series&nbsp;A
exchangeable redeemable preferred stock in the second quarter of
2000 to a wholly owned subsidiary of Nextel Communications. This
working capital increase was partially offset by the utilization
of a portion of the proceeds to fund capital expenditures and
additional investments in consolidated subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We incurred losses attributable to common stockholders of
$237.1&nbsp;million in 1998, $520.1&nbsp;million in 1999 and
$302.3&nbsp;million during the six months ended June&nbsp;30,
2000. The operating expenses and capital expenditures associated
with developing, enhancing and operating our digital ESMR
networks have more than offset our operating revenues. Our
operating expenses, debt service obligations and anticipated
capital expenditures are expected to continue to more than offset
 operating revenues for the next several years. We have
consistently used external sources of funds, primarily from debt
incurrences and from the issuance of our series A exchangeable
redeemable preferred stock to a wholly owned subsidiary of Nextel
 Communications, to fund operations, capital expenditures,
acquisitions and other nonoperating needs.

<P align="left"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Flows</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in operating activities for 1999 improved by
$47.6&nbsp;million compared to 1998 primarily due to improvements
 in working capital management, including improved cash
collections and increased inventory turnover.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Capital expenditures to fund the continued expansion and
enhancement of our digital ESMR networks continue to represent
the largest use of our funds for investing activities. Cash
payments for capital expenditures increased $54.5&nbsp;million to
 $141.4&nbsp;million for the six months ended June&nbsp;30, 2000.
 The increase in capital expenditures is part of our strategy to
focus on aggressive expansion and improvement of digital ESMR
network coverage in our Latin American markets, primarily in
Brazil and Mexico. During the first half of 2000, we used
$80.5&nbsp;million of cash to increase our ownership interests in
 Nextel Brazil and in Nextel Peru and to acquire three companies
with SMR licenses in Chile. During 1998, significant capital
expenditures were made

<P align="center">43

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<DIV align="left">
in advance of the commercial launch of digital interconnect
service in S&#227;o Paulo, Buenos Aires, Rio de Janeiro, Mexico
City and Rosario, all of which occurred during the middle to
latter part of 1998. Capital expenditures during 1999 were
$226.2&nbsp;million lower than during 1998. The lower amount of
capital expenditures in 1999 is related to a commensurately
reduced network construction program. In contrast to the five
markets launched during 1998 in major metropolitan areas of Latin
 America, in 1999, we launched only one new market in Lima, Peru.
 In addition, the principal focus of our capital expenditures and
 our digital ESMR network construction program in 1999 was to
improve the quality of service in our existing coverage areas
rather than to expand our wireless service area. Investments in
unconsolidated affiliates decreased from $97.6&nbsp;million in
1998 to $38.4&nbsp;million in 1999. The lower investment amount
in 1999 resulted from reduced investment activity in Japan and a
temporary reduction in investment activity in the Philippines.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by financing activities for the six months
ended June 30, 2000 consisted primarily of aggregate net proceeds
 of $442.7&nbsp;million from issuances of shares of our series A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications, and $88.1&nbsp;million from
borrowings under vendor credit facilities offset by repayment of
$13.2&nbsp;million of long-term debt. Net cash provided by
financing activities for the year ended December 31, 1999
consisted primarily of the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$200.0&nbsp;million in aggregate net proceeds from issuances of
	shares of our series A exchangeable redeemable preferred stock to
	 a wholly owned subsidiary of Nextel Communications;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$132.9&nbsp;million from additional borrowings under our
	long-term debt facilities;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$17.0&nbsp;million of contributions from minority stockholders of
	 our majority owned consolidated subsidiaries; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$2.0&nbsp;million in proceeds from the exercise of stock options;</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
offset by:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$25.6&nbsp;million in payments to Nextel Communications as
	reimbursement of costs incurred on our behalf; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	$16.2&nbsp;million of repayment of principal amounts outstanding
	under our long-term debt facilities.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1998, cash provided by financing activities consisted
primarily of proceeds from the issuance of the March&nbsp;1998
Notes, borrowings under the Argentina Credit Facility and
additional financing from the Brazil Motorola Financing. For more
 information, see &#147;Description of Our Indebtedness.&#148;

<P align="left"><B>Future Capital Needs and Resources</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our strategy is focused on aggressive expansion and improvement
of digital ESMR coverage in our Latin American markets, expansion
 into new markets and continued support as appropriate in light
of perceived future prospects of our investments in Asia. Our
business plan, which has been developed based on this strategy,
is designed to improve subscriber unit growth, revenues and other
 key financial performance measurements. We have already begun to
 take the actions necessary to achieve the business plan. These
actions include:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	improving digital ESMR network coverage within our existing
	markets in Latin America;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	expanding our digital ESMR network service to reach new areas in
	Latin America;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	improving brand awareness;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	introducing innovative pricing plans;</TD>
</TR>

</TABLE>

<P align="center">44

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	working closely with industry associations and local government
	offices to eliminate anti-competitive and anti-consumer
	regulations;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	developing new and strengthening existing distribution channels;
	and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	introducing new products and services.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business plan has been developed in anticipation of the
continuing acceleration of the growth, and continuing
improvements in the financial and operating performance, of our
digital ESMR networks. Accordingly, we expect that anticipated
cash expenditures during the remainder of 2000 and 2001 will be
focused on the following items:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	capital expenditures to continue to expand and improve digital
	ESMR network coverage in existing or targeted future markets,
	primarily in Latin America;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	acquisition of additional spectrum to support entry into new
	digital ESMR network markets and/or to support increased network
	capacity and reduce future network construction expenditures in
	our existing digital ESMR markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	acquisition of additional ownership interests in existing
	Operating Companies;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	debt service requirements;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	capital contributions to support and develop our investment
	positions in Asia as appropriate in light of perceived future
	prospects; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	working capital requirements.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on our assessment of the business activity and related cash
 needs of our Operating Companies, we believe that the net
proceeds from the offerings, together with our available cash on
hand and borrowings expected to be available under our existing
financing agreements, will be sufficient to continue our
operations through the end of 2001. This conclusion is based on:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our $297.4 million of available cash, cash equivalents and
	short-term investments, and continued availability of about $83.8
	 million of borrowing capacity under our existing financing
	facilities, at June&nbsp;30, 2000;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the receipt of about $623.8 million of net proceeds in
	August&nbsp;2000 from the issuance of our August 2000 Notes;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the receipt of an estimated
	$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
	 of net proceeds from the sale of shares of class&nbsp;A common
	stock in the offerings; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the payment in August 2000 of about $146.0 million to members of
	the Founders Group and the related increase in our ownership
	interest in McCaw Brazil.</TD>
</TR>

</TABLE>

<P align="left">
Beginning in 2002, we expect that we will need to obtain
additional funding to meet the anticipated cash needs associated
with implementing our business plan. In making this assessment we
 have also considered:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the increase in our cash needs attributable to our potential
	acquisitions that are already subject to binding agreements or
	those which we are currently negotiating, including the payment
	of about $66.5&nbsp; million to purchase all of CCC&#146;s equity
	 interests in several analog SMR companies in Chile and Peru; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the future reductions in capital contributions from Motorola as a
	 result of Motorola no longer being a minority owner in Nextel
	Peru and Nextel Brazil and from the former minority stockholders
	in Nextel Philippines whose equity interests we recently
	acquired.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The availability of borrowings under our financing agreements is
subject to specified conditions and limitations, and we cannot
provide assurance that those conditions will be met at the times
that we need to access borrowings under the relevant facilities.
The terms of our

<P align="center">45

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<DIV align="left">
financing agreements also require us at specified times to
maintain compliance with various operating and financial
covenants or ratios, which may become more stringent over time.
Any failure to meet these covenants or ratios could have adverse
effects on us and our ability to implement our current business
plan, such as making future borrowings under those agreements
unavailable or requiring repayment of amounts previously borrowed
 under those agreements in advance of their currently scheduled
maturities. In addition, our capital needs and our ability to
adequately address those needs through existing or any future
potential debt or equity funding sources are subject to a variety
 of factors that cannot presently be predicted with certainty,
including, for example, the commercial success of our digital
ESMR networks, the amount and timing of our capital expenditures
and operating losses and the volatility and demand of the debt
and equity markets.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have had and may in the future have discussions with third
parties regarding potential acquisitions of and/or equity
investments in those third parties or wireless communications
businesses or assets owned by them. Consideration of these
potential acquisitions and/or investments is part of our
proactive approach to expanding coverage in our principal target
markets in Latin America and also could represent financially
attractive or strategically desirable investment opportunities
elsewhere. At this time, other than the existing arrangements
that have been consummated and/or are disclosed in this
prospectus, we have no material binding commitments or
understandings with any third parties that would require us to
purchase an interest in or otherwise make any investment in or
financial commitment to any new ventures. Our current expectation
 of cash needs and anticipated availability of related required
funding during the remainder of 2000 and 2001 do not reflect the
impact of any potential acquisitions or investments that may
occur other than those described above. Any potential
acquisitions or investments could involve significant additional
funding needs in excess of those sources that we currently
anticipate to be available, and thus could require us to raise
additional equity or debt funding to successfully pursue,
consummate and realize the potential benefits of those potential
acquisitions or investments.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our anticipated cash needs as well as our conclusions as to the
adequacy of our available sources could change significantly if:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	our business plans change;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	economic conditions in any of our markets or competitive
	practices in the mobile wireless telecommunications industry,
	especially in Latin America, change materially from those
	currently prevailing or anticipated; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	other presently unexpected circumstances are encountered that
	have a material effect on the cash flow and/or profitability of
	our mobile wireless business.</TD>
</TR>

</TABLE>

<P align="left">
We have been and will continue to be sensitive to abrupt changes
in the financial markets and the business environments in those
countries where we have operations, and will attempt to adjust
our operating and financing plans accordingly.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have called upon Nextel Communications to provide us with
significant financial support in the past, particularly during
2000. In the future, if we are unable to obtain necessary funding
 from other sources, we may seek additional financing from Nextel
 Communications. However, Nextel Communications has no legal
obligation to make any additional equity investments or to
otherwise advance any other funds to us. In addition to the
absence of any legal obligation of Nextel Communications to
provide funding to us, some of the agreements to which Nextel
Communications currently is a party restrict the amount available
 to Nextel Communications and its relevant subsidiaries for
specified purposes, including investments in and advances to us.
If we are unable to obtain the capital we require to implement
our business plan, or to obtain it on acceptable terms and in a
timely manner, we would attempt to take appropriate responsive
actions to tailor our activities to our available financing,
including making revisions to our

<P align="center">46

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<DIV align="left">
business plan to accommodate the reduced funding. See &#147;Risk
Factors &#151; Our forward looking statements are subject to a
variety of factors that could cause actual results to differ
materially from current beliefs.&#148;
</DIV>

<P align="left"><B>Effect of New Accounting Standards</B>

<P align="left"><B><I>Statement of Financial Accounting Standards No.&nbsp;133
</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June&nbsp;1998, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No.&nbsp;133,
&#147;Accounting for Derivative Instruments and Hedging
Activities,&#148; which, as amended by SFAS No.&nbsp;138 in
June&nbsp;2000, establishes accounting and reporting standards
for derivative instruments (including some derivatives embedded
in other contracts) and for hedging activities by requiring that
all derivatives be recognized in the balance sheet and measured
at fair value. In June&nbsp;1999, the FASB issued SFAS
No.&nbsp;137, &#147;Deferral of the Effective Date of FASB
Statement No.&nbsp;133 &#151; an Amendment of FASB Statement
No.&nbsp;133,&#148; which deferred the effective date for us
until January&nbsp;1, 2001. We are in the process of evaluating
the potential impact of this standard on our financial position
and results of operations.

<P align="left"><B><I>Staff Accounting Bulletin No.&nbsp;101</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December&nbsp;1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No.&nbsp;101, &#147;Revenue
Recognition in Financial Statements,&#148; which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No.&nbsp;101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that
SAB&nbsp;No.&nbsp;101 will have a material impact on our
financial position or results of operations.

<P align="left"><B><I>FASB Interpretation No.&nbsp;44, Accounting for Certain
Transactions Involving Stock Compensation, an Interpretation of
APB Opinion No.&nbsp;25</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;2000, the Financial Accounting Standards Board
issued Interpretation No.&nbsp;44, &#147;Accounting for Certain
Transactions involving Stock Compensation, an Interpretation of
APB Opinion No.&nbsp;25,&#148; which clarifies the application of
 APB Opinion No.&nbsp;25 for certain issues including:
(1)&nbsp;the definition of an employee for purposes of applying
APB Opinion No.&nbsp;25, (2)&nbsp;the criteria for determining
whether a plan qualifies as a noncompensatory plan, (3)&nbsp;the
accounting consequences of various modifications to the terms of
a previously fixed stock option or award and (4)&nbsp;the
accounting for an exchange of stock compensation awards in a
business combination. Interpretation No.&nbsp;44 became effective
 July&nbsp;1, 2000, but some of the conclusions cover specific
events that occurred prior to effectiveness, but after
December&nbsp;15, 1998 or January&nbsp;12, 2000, as the case may
be. We do not expect the adoption of this guidance on
July&nbsp;1, 2000 to have a material impact on our financial
position or results of operations.

<P align="left"><B><I>Emerging Issues Task Force Issue 00-14</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;2000, the Emerging Issues Task Force reached a
consensus on Issue No.&nbsp;00-14: &#147;Accounting for Certain
Sales Incentives,&#148; which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No.&nbsp;00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.

<P align="left"><B><I>Quantitative and Qualitative Disclosures About Market Risk
</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We finance a portion of our operations through senior notes and
bank and vendor credit facilities. These financial instruments
expose us to market risks, including interest rate risk and
foreign currency exchange risk. Our U.S. dollar denominated
borrowings and vendor equipment

<P align="center">47

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<DIV align="left">
financing account for about 90% of our cross currency exposure.
The tenor of available hedging products is generally short-term
and does not match our long-term capital flows. We are also
exposed to interest rate risk due to fluctuations in the U.S.
prime rate, LIBOR, the Eurodollar rate and the Average Base Rate,
 or ABR. These rates are used to determine the variable rates of
interest that are applicable to borrowings under our bank and
vendor credit facilities.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our debt is denominated in U.S. dollars, while our operating
revenues are denominated in foreign currencies. Fluctuations in
exchange rates relative to the U.S. dollar, primarily those
related to the Brazilian real and the Mexican peso, expose us to
significant foreign exchange risk. We attempt to protect our
revenues and earnings from foreign currency exchange risks by
periodically adjusting prices in local currencies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, we held about $29.9&nbsp;million of
debt securities in the form of commercial paper as short-term
investments classified as available-for-sale in accordance with
Statement of Financial Standards No.&nbsp;115, &#147;Accounting
for Certain Investments in Debt and Equity Securities.&#148; As
the weighted average maturity from the date of purchase was less
than four months, these short-term investments do not expose us
to a significant amount of interest rate risk.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We hold an available-for-sale investment in the common stock of
Clearnet, a publicly traded company, which had a fair value of
$232.5&nbsp;million at June&nbsp;30, 2000. We report our
investment at its fair market value in our financial statements.
Negative fluctuations in the stock price of Clearnet expose us to
 equity price risks. A 10% decline in the stock price would
result in a $23.3 million decrease in the fair value of our
investment in Clearnet.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below presents principal cash flows by year of maturity
 for our fixed and variable rate debt obligations at June 30,
2000. Fair values are determined based on quoted market prices
for our senior notes and carrying value for our bank and vendor
credit facilities at June&nbsp;30, 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Descriptions of our senior notes and bank and vendor credit
facilities are contained in Note 7 to the audited consolidated
financial statements included at the end of this prospectus and
should be read in conjunction with the following table. The
change in the total and fair values of our long-term debt as
compared to December&nbsp;31, 1999 reflects additional borrowings
 under the existing bank and vendor credit facilities and the
changes in the applicable market conditions.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="21%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="31"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="31"><FONT size="2"><B>Year of Maturity</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="31"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total Due</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="23"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>at</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2001</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2002</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2003</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2004</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Thereafter</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Maturity</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fair Value</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="31"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="31"><FONT size="2"><B>(U.S. dollars in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B><I>Long-Term Debt:</I></B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Fixed Rate</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">366</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">816</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">481</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,463</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,683,126</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,209,669</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Average Interest Rate</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Variable Rate</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,676</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">148,653</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,253</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,253</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">69,494</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">460,329</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">460,329</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Average Interest Rate</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.9</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.8</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">48

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<DIV align="left"><A NAME="008"></A></DIV>

<P align="center"><B>BUSINESS</B>

<P align="left"><B>Overview</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide integrated digital wireless communications services
targeted at meeting the needs of business customers in selected
international markets. Our principal operations are in major
business centers and related transportation corridors of Brazil,
Mexico, Argentina and Peru. As part of our growth strategy, we
have recently expanded our wireless coverage in Latin America by
purchasing companies with SMR licenses in Chile. In addition to
our wholly owned Latin American operations, we are also
significant equity participants in digital wireless
communications providers in the Philippines and Japan, and we
have an equity interest in Clearnet Communications, a leading
publicly-held digital wireless communications provider in Canada.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Operating Companies have SMR licenses in markets that cover
about 382&nbsp;million Pops of which about 149&nbsp;million are
in Latin America. Our Operating Companies currently provide
integrated digital wireless communications services in the five
largest cities in Latin America and two of the ten largest cities
 in Asia. We believe, based on the magnitude of our license
holdings and our subscriber base, that we currently are the
largest digital ESMR provider, and operate one of the largest
integrated digital wireless communications systems utilizing a
single transmission technology, in Latin America. Our parent,
Nextel Communications, operates one of the largest integrated
digital wireless communications systems utilizing a single
transmission technology in the United States.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our networks use iDEN technology to provide digital ESMR services
 on 800 MHz spectrum holdings in Latin America, the Philippines
and Canada and on 1.5 GHz spectrum holdings in Japan. Digital
ESMR allows us to use our spectrum more efficiently and offer
enhanced services. Our Operating Companies offer a differentiated
 package of services under the &#147;Nextel&#148; name in Latin
America and the Philippines and under the &#147;Mike&#148; name
in Canada. We are designing our digital ESMR networks to support
a full complement of digital wireless services, including:
<P>

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	<TD width="1%"></TD>
	<TD width="96%"></TD>
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	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	digital mobile, or interconnect, telephone service;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	advanced calling features, such as two-way calling, voicemail and
	 call forwarding;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	international roaming capabilities;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Nextel Direct Connect service that allows users to contact
	co-workers instantly, on a private one-to-one call or on a
	one-to-many group call, without interconnecting to the public
	switched telephone network; and</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; paging and short-text messaging.

<P align="left">
In addition, we plan to offer users access to digital two-way
mobile data and Internet connectivity services in the future.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our customers may roam throughout the iDEN&nbsp;800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800 MHz technology. To further
enhance our roaming services, during the second quarter of 2000,
we launched Nextel Worldwide with the introduction of the i2000,
a digital dual-mode subscriber unit manufactured by Motorola that
 operates on both iDEN 800 MHz and GSM 900&nbsp;MHz technologies.
 This service allows our customers to roam internationally when
traveling between our markets and other cities or countries in
which either iDEN 800&nbsp;MHz or GSM 900&nbsp;MHz networks are
operating and which are covered by our roaming arrangements. We
currently have over 70 roaming agreements in effect with
operators of iDEN 800&nbsp;MHz and GSM 900 MHz networks in over
40 countries.

<P align="center">49

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<P align="left"><B>Business Strategy</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal objective is to become the leading provider of
integrated digital wireless communication services to business
customers in selected international markets. We believe the
following elements of our strategy will distinguish us from our
competitors and will enable us to compete successfully:
<P>

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	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Focus on Major Business Centers in Emerging Markets.</I>
	</B> We operate primarily in Latin America in markets that we
	believe offer favorable long-term growth prospects for wireless
	communications services. We believe that there are significant
	opportunities for growth in these markets due to relatively low
	wireless and wireline penetration rates and increasing income
	levels. In a given market, we initially focus on highly
	concentrated business centers such as Mexico City, S&#227;o
	Paulo, Rio de Janeiro, Buenos Aires and Lima. These areas have
	high population densities and, we believe, a concentration of the
	 country&#146;s business users and economic activity. To capture
	the benefits of the projected growth in the demand for wireless
	services in our current markets and to increase our market share,
	 we intend to continue to enhance and expand our networks, to
	leverage our existing customer base and to continue developing
	innovative products and services.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Provide Differentiated Package of Wireless Services.</I>
	</B> We offer a package of services and features that combines
	multiple communications services in a single wireless subscriber
	unit, including Nextel Direct Connect, which allows users to
	contact co-workers instantly, on a private one-to-one call or on
	a one-to-many group call. In addition, we offer billing based
	upon actual seconds of airtime after the first minute and rate
	plans that do not distinguish between &#147;peak&#148; and
	&#147;off-peak&#148; minutes. We also offer international roaming
	 in selected iDEN 800 MHz and GSM 900 MHz markets. We believe
	that none of our competitors currently offers a similar package
	of services. We intend to continue to emphasize the
	differentiated features of iDEN technology and our networks and
	to continue to enhance our service offerings such as the
	anticipated future availability of regional Nextel Direct Connect
	 and wireless data services in selected markets.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Target Business Customers.</I></B> We believe that our
	focus on business customers will result in higher monthly average
	 revenue per digital subscriber unit and lower subscriber unit
	cancellations. Based on the experience of Nextel Communications
	in the United States, we believe business customers are more
	likely to recognize the advantages and value of our integrated
	service offerings. Further, we believe that we are the only major
	 wireless service provider in our markets directing
	fully-integrated digital offerings principally to the business
	segment. To increase our subscriber base, our Operating Companies
	 are continuing to implement marketing programs and promotions
	that have been proven successful in Nextel Communications&#146;
	markets in the United States.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Offer International Roaming.</I></B> We are deploying
	international digital ESMR networks that will provide roaming
	capabilities to our customers on a single digital subscriber unit
	 as they travel in iDEN 800 MHz or GSM 900 MHz markets where we
	operate or have roaming agreements. We believe that offering
	international roaming capabilities with one phone, one number and
	 one bill distinguishes our service offerings from those of other
	 wireless operators in our markets.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Expand and Strengthen Our Geographic Footprint.</I></B> We
	intend to selectively expand our coverage in those markets in
	which we currently operate. In addition, we may pursue new
	investments in high growth international markets that complement
	our existing operations and offer the opportunity to further our
	business strategy. We believe our established presence in Latin
	America and Asia, our strategic affiliations with Nextel
	Communications and Motorola, and our acquisition experience will
	enable us to capitalize on opportunities in our existing as well
	as selected new markets. In addition, as opportunities arise, we
	may also increase our ownership of our Operating Companies that
	are not wholly owned.</TD>
</TR>

</TABLE>

<P align="center">50

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<P>

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	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<B><I>Leverage our Relationship with Nextel Communications.</I>
	</B> Our relationship with Nextel Communications is important as
	we continue to upgrade and deploy our digital ESMR networks and
	provide new products and services to expand our subscriber base.
	Access to the technology, supplier relationships, network
	development and marketing expertise of Nextel Communications has
	afforded us significant competitive advantages. We intend to
	continue to leverage Nextel Communications&#146; expertise in the
	 future as we enhance and expand our networks and launch new
	products and services. In addition, we currently utilize the
	&#147;Nextel&#148; brand name in Latin America and the
	Philippines. We also benefit from Nextel Communications&#146;
	relationship with Motorola, which supplies us with network
	equipment, subscriber units and related services, generally at
	the same basic prices extended to Nextel Communications.</TD>
</TR>

</TABLE>

<P align="left"><B>Recent Developments</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Increase in Ownership Interest in NEXNET.</I> Effective in
March 2000, as a consequence of capital contributions made to
NEXNET, by some of its stockholders to supply funds that a
stockholder was required but declined to contribute, the
stockholder transferred a portion of its shares to the
contributing stockholders, including us. On March&nbsp;30, 2000,
we purchased additional shares for about $0.4&nbsp;million in
cash and were granted an option, exercisable at any time prior to
 March&nbsp;31, 2001, to purchase any or all of the remaining
shares of NEXNET stock owned by the same stockholder. As a result
 of these share acquisitions, our equity ownership interest in
NEXNET has increased from about 21% to about 32%. If we exercise
the option, our equity ownership interest would increase to about
 44%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Purchase of Common Equity Shares in Companies in Brazil, Peru
and Chile. </I>In May&nbsp;2000, we purchased another
stockholder&#146;s interest in Nextel Peru for about
$2.8&nbsp;million in cash and increased our ownership from about
63% to about 69%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;2000, we purchased all of the equity interests of
Motorola International Development Corporation, referred to as
Motorola International, in Nextel Peru, which increased our
ownership interest from about 69% to 100%. At the same time, we
purchased all of Motorola International&#146;s equity interests
in Nextel S.A., the parent company of Nextel Brazil, which
increased our ownership of Nextel Brazil from about 88% to about
92%. In May 2000, we also purchased all of Motorola
International&#146;s equity interests in three Chilean analog SMR
 companies, which were wholly owned by Motorola International. We
 have entered into an agreement with Motorola International to
manage these three Chilean SMR companies during a transition
period. The aggregate purchase price paid to Motorola
International for these three acquisitions in Brazil, Peru and
Chile was about $77.7&nbsp;million in cash.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>McCaw Brazil.</I> We entered into a purchase, release and
settlement agreement dated as of July&nbsp;21, 2000 with the
Founders Group, who collectively were the minority stockholders
in McCaw Brazil. Under that agreement, on August&nbsp;4, 2000, we
 made a cash payment to members of the Founders Group totaling
$146.0&nbsp;million, received all of the equity interests held by
 the Founders Group in McCaw Brazil and exchanged mutual releases
 with all of the members of the Founders Group. In addition, all
pending court disputes between us and Telcom Ventures, a member
of the Founders Group, were permanently dismissed. For a
description of these disputes, see &#147;&#151;&nbsp;Legal
Proceedings&nbsp;&#151; Telcom Ventures.&#148; As a result, we
increased our ownership interest in McCaw Brazil, and therefore
our indirect ownership interest in Nextel Brazil, to 100% and all
 rights of the Founders Group as minority stockholders in McCaw
Brazil, including their rights to put their equity interests to
us beginning in October&nbsp;2001, were terminated.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Increase in Investment in Nextel Philippines.</I> On
July&nbsp;28, 2000, we increased our direct and indirect
ownership interests in Nextel Philippines from about 38% to about
 51% through the

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<DIV align="left">
purchase of some of the minority owners&#146; equity interests in
 Nextel Philippines for about $9.8&nbsp;million.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Shanghai, People&#146;s Republic of China Negotiations.</I> As
 a result of recent changes to the regulatory environment in
China, Shanghai CCT-McCaw Telecommunications Systems Co., Ltd.,
referred to as Shanghai CCT McCaw, a joint venture in which we
own a 30% interest, terminated an agreement with China United
Telecommunications Corporation, referred to as Unicom, under
which we had the right to share in the profits of the cellular
network in Shanghai, referred to as the Shanghai GSM System. In
consideration for entering into this termination agreement,
Shanghai CCT McCaw received about $61.3&nbsp;million in cash, and
 we and the other joint venture participants received warrants to
 purchase shares of Unicom stock. In May&nbsp;2000, we received a
 reimbursement of $7.3 million for advances we previously made to
 Shanghai CCT McCaw. We are currently working with the other
stockholders of the joint venture to arrange reimbursement of
expenses incurred by the stockholders related to their
investments in Shanghai CCT McCaw and the sale of our interests
in the joint venture. Any funds remaining after payment of these
expenses and satisfaction of other existing obligations will be
distributed among the stockholders of Shanghai CCT McCaw. We
would be entitled to receive 30% of the total amount so
distributed based on our ownership interest.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Brazil Regulatory Development.</I> In April 2000,
Brazil&#146;s telecommunications regulatory agency, Ag&#234;ncia
Nacional de Telecomunica&#231;&#245;es, referred to as Anatel,
issued new regulations relating to the provision of SMR services
in Brazil. As a result, Brazil has opened its doors wider to
competition in the mobile wireless segment where we operate.
These new regulations have relaxed restrictions that
significantly limited the ability of Nextel Brazil and its
affiliated companies to provide ESMR services to all potential
business customer groups and to be more responsive to its
customers&#146; demands and needs for mobile wireless
communications services.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Additional Capital.</I> On April&nbsp;4, 2000, we received an
advance of $77.7 million from a wholly owned subsidiary of Nextel
 Communications in connection with the anticipated purchase of
Motorola International&#146;s equity interest in Nextel Brazil,
Nextel Peru and three Chilean SMR companies as discussed above.
On June&nbsp;2, 2000, we issued 777 shares of our series&nbsp;A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications as repayment of this
intercompany advance. Additionally, on April&nbsp;7, 2000, we
issued 1,500 shares of our series&nbsp;A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications in exchange for cash proceeds of
$150.0&nbsp;million. On June&nbsp;12, 2000, all of the shares of
series A exchangeable redeemable preferred stock outstanding at
that time were exchanged for shares of our common stock. On
June&nbsp;29, 2000, we issued an additional 2,150 shares of our
series&nbsp;A exchangeable redeemable preferred stock to a wholly
 owned subsidiary of Nextel Communications in exchange for cash
proceeds of $215.0&nbsp;million. These additional 2,150 shares of
 our series&nbsp;A exchangeable redeemable preferred stock will
be exchanged for shares of our class&nbsp;B common stock prior to
 the completion of the offerings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Stock Split.</I> On June&nbsp;2, 2000, our board of directors
approved an increase in the number of authorized shares of common
 stock from 73,000,000 to 200,000,000, enabling us to complete a
4-for-1 common stock split, which was effective June&nbsp;20,
2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>August 2000 Notes. </I>On August&nbsp;1, 2000, we completed
the issuance and sale in a private placement of
$650.0&nbsp;million aggregate principal amount of our 12.75%
senior serial redeemable notes due 2010, generating about
$623.8&nbsp;million in net cash proceeds.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Acquisitions.</I> On August&nbsp;11, 2000 we entered into an
agreement with CCC under which we agreed to purchase all of
CCC&#146;s equity ownership in several analog SMR companies in
Chile and Peru for about $66.5&nbsp;million. The purchase price
is subject to reduction in the event we are unable to obtain
within the next 24 months the regulatory relief necessary to
provide our integrated digital ESMR services in Chile.
Consummation of these acquisitions is subject to various
conditions, and we cannot assure you when or whether these
acquisitions will occur.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also entered into term sheets or are negotiating
agreements regarding additional potential investments to increase
 our spectrum position or make strategic acquisitions. However,
we cannot assure you that definitive agreements will be reached
regarding any of these potential investments or as to their
terms.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Motorola Equipment Purchase Agreements. </I>On August 14,
2000, we and some of our Operating Companies entered into
equipment purchase agreements with Motorola under which Motorola
will provide us with infrastructure equipment and services. We
and Motorola have also agreed to warranty and maintenance
programs and specified indemnity arrangements. In addition, under
 some circumstances, we have agreed to purchase at least 50% of
our infrastructure equipment from Motorola. These agreements also
 contain other minimum purchase commitments that if not met
subject us to penalties based on a percentage of the commitment
shortfall.

<P align="left"><B>Wireless Technology</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, the systems that provide most mobile wireless
communications services in our markets are SMR/ ESMR, other
cellular systems or PCS. Virtually all of our Operating Companies
 utilize SMR and/ or ESMR.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our digital ESMR networks combine the advanced iDEN technology
developed and designed by Motorola with a low-power, multi-site
transmitter/receiver configuration that permits frequency reuse.
The iDEN technology shares many common components with GSM
technology, which has been established as the current digital
cellular communications standard in Europe and elsewhere and is a
 variant of the GSM technology that is being deployed by some PCS
 operators in the United States. The design of our existing and
proposed digital ESMR networks currently is premised on dividing
a service area into multiple sites that have a typical coverage
area ranging from less than one mile to thirty miles in radius,
depending on the terrain and the power setting. Each site
contains a low-power transmitter, receiver and control equipment
referred to as the base station. The base station in each site is
 connected by microwave, fiber optic or telephone line to a
computer controlled switching center. The switching center
controls the automatic hand-off of cellular calls from site to
site as a subscriber travels, coordinates calls to and from a
subscriber unit and connects cellular calls to the public
switched telephone network. In the case of two-way dispatch, a
dispatch application processor provides a call setup, identifies
the target radio and connects the subscriber initiating the call
to the other subscriber, in the case of a private call, or to a
number of other subscribers, in the case of a group call, without
 interconnecting to the public switched telephone network, or
PSTN.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Northern Telecom, Inc. has supplied the mobile telephone switches
 for our digital ESMR networks. At June&nbsp;30, 2000, our
consolidated subsidiaries had 5 operational switches and about
950 cell sites constructed and in operation in our digital ESMR
networks.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, there are three principal digital technology formats
that are being assessed or proposed for deployment or have been
deployed currently by providers of cellular telephone service or
by various PCS providers or licensees: time division multiple
access, or TDMA, digital transmission technology; code division
multiple access, or CDMA, digital transmission technology; and
GSM-PCS, an updated, up-banded, PCS-adapted version of the
TDMA-based GSM digital technology format.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although TDMA, CDMA and GSM-PCS are digital transmission
technologies that share basic characteristics and areas of
contrast to analog transmission technology, they are not
compatible or interchangeable with each other. Although
Motorola&#146;s proprietary iDEN technology is based on the TDMA
technology format, it differs in a number of significant respects
 from the TDMA technology versions being assessed or deployed by
cellular operators and PCS licensees.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The implementation of a digital ESMR network using iDEN
technology significantly increases the capacity of our existing
SMR channels and permits us to utilize our current holdings of
ESMR spectrum more efficiently. This increase in capacity is
accomplished in two ways.
<P>

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        <TD width="1%"></TD>
        <TD width="96%"></TD>
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        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        First, each channel on our digital ESMR networks is capable of
        carrying up to six voice and/or control paths by employing
        six-time slot TDMA digital technology or up to three voice and/or
         control paths by employing three-time slot TDMA digital
        technology. Each voice transmission is converted into a stream of
         data bits that are compressed before being transmitted, allowing
         each of the time- slotted voice and/or control paths to be
        transmitted on the same channel without causing interference.
        Upon receipt of the coded voice data bits, the digital subscriber
         unit decodes the voice signal. Using iDEN technology, we achieve
         about six times improvement over analog SMR in channel
        utilization capacity for channels used for two-way dispatch
        service and about three times improvement over analog SMR in
        channel utilization capacity for channels used for mobile
        telephone service.</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        Second, our digital ESMR networks reuse each channel many times
        throughout the market area in a manner similar to that used in
        the cellular industry.</TD>
</TR>

</TABLE>

<P align="left"><B>Nextel International Overview</B>

<P align="left"><B><I>Networks</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are designing and constructing digital ESMR networks using
iDEN technology to support the full complement of digital
wireless services in our markets. Our digital ESMR networks
provide customers desiring mobile telephone services with access
to features competitive with those offered by other current
wireless communications services, such as the
&#147;hand-off&#148; of calls from one site to another and
&#147;in-building&#148; signal penetration for improved portable
performance in selected high usage areas. Our networks also
support two-way dispatch that allows users to contact co-workers
instantly, on a private one-to-one call or on a one-to-many group
 call. We market this service as Nextel Direct Connect. In
addition to the mobile telephone and two-way dispatch functions,
our digital ESMR networks and digital subscriber units have been
designed to include a signaling or paging capability to enable
the customer to receive alphanumeric short-text messages. Our
digital ESMR networks have been designed to offer customers
additional features, such as voice mail, call hold, call waiting,
 no answer or busy-signal transfer, call forwarding, three-way
calling and two lines.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides an overview of the mobile wireless
voice communications systems operated by our Operating Companies
in the countries indicated, giving effect to recent acquisitions:

<CENTER>
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<TR>
        <TD width="3%">&nbsp;</TD>
        <TD width="32%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Proportionate</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Digital</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Digital</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Subscriber</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Subscriber</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Units&nbsp;in</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Units&nbsp;in</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Nextel</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Service at</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Service at</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Start Date of</B></FONT></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>International</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Initial Commercial</B></FONT></TD>
</TR>

<TR>
        <TD align="center" nowrap colspan="2"><FONT size="2"><B>Country</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>Ownership</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>System Type</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><FONT size="2"><B>ESMR Services</B></FONT></TD>
</TR>

<TR>
        <TD align="center" nowrap colspan="2"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="7"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD colspan="3"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
        <TD></TD>
        <TD colspan="3"></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Brazil</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">204</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">204</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">May 1998</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Mexico</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">133</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">133</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">September 1998</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Argentina</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">90</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">90</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">June 1998</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Peru</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">June 1999</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Chile</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
        <TD></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>

</TR>

<TR>
        <TD></TD>
        <TD align="left" valign="top"><FONT size="2">
        Total Latin America</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">469</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">469</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Philippines</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">51.1</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">July 1998</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Japan</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">32.1</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">July 1998</FONT></TD>
        <TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Canada</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">14.4</FONT></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">SMR/ESMR/PCS</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">672</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">97</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left" valign="bottom" nowrap><FONT size="2">October 1996</FONT></TD>
        <TD></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="1"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>

</TR>

<TR>
        <TD></TD>
        <TD align="left" valign="top"><FONT size="2">
        Total</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">1,226</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">600</FONT></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD align="left"><HR size="4" noshade></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">54

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B><I>Spectrum Position</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Through our Operating Companies, we employ iDEN technology on 800
 MHz spectrum holdings in major business centers and related
transportation corridors in Brazil, Mexico, Argentina, Peru, the
Philippines and Canada and on 1.5 GHz spectrum holdings in Japan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To construct a viable digital ESMR network utilizing iDEN
technology, we believe that at least 100 SMR channels are
necessary in any given market. We estimate that each SMR channel
has the capacity to provide service to about 100 subscribers
using analog SMR technology. We own or have options to acquire at
 least 100 channels in most of the markets in which we have
constructed or currently intend to construct digital networks. By
 deploying digital technology, we expect to significantly
increase subscriber capacity. Moreover, our large channel
position reduces capital expenditures required to upgrade to
digital networks.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our current spectrum strategy focuses on strengthening our
channel position in our existing markets. We also may seek to
acquire SMR channels or other mobile wireless communications
services in selected urban centers that have attractive economic
characteristics. As part of our strategy for expansion of our
networks, we may continue to purchase analog SMR channels, which
we would then convert to use in digital ESMR networks, as we have
 done in the past.

<P align="left"><B><I>Network Implementation, Design and Construction</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our networks are in various stages of development and deployment.
 Our critical design criteria for expanding and enhancing our
digital ESMR networks include the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	contiguous wide area coverage of major business centers and
	related transportation corridors in our licensed areas;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	signal quality comparable to that currently provided by existing
	cellular/ PCS carriers in our service area;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	call &#147;hand-off&#148; for mobile telephone service throughout
	 our digital ESMR networks;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	minimization of blocked and dropped calls, consistent with
	recognized industry performance targets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	regulatory authorizations necessary to offer enhanced services
	such as mobile telephone service, data transmission and
	short-text messaging services; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	cost-efficient routing of calls to minimize local interconnection
	 costs and toll charges and to provide maximum utilization of our
	 digital ESMR network facilities.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Careful frequency planning and system design are necessary prior
to commencing digital ESMR network construction to ensure
satisfactory coverage over the entire network. Frequency planning
 involves the selection of specific areas in our markets for the
placement of transmitter sites and the identification of specific
 frequencies that will be employed at each site in the initial
configuration.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to frequency planning and system design, the
implementation of our digital ESMR networks, and the conversion
of our existing analog SMR networks to digital ESMR networks,
requires site acquisition, equipment procurement, construction,
equipment installation, testing and optimization. A site is
selected on the basis of its proximity to targeted customers, the
 ability to acquire and build the site and frequency propagation
characteristics. Site procurement efforts include obtaining
leases and permits and, in many cases, zoning approvals. Once the
 requisite governmental approvals are obtained, the preparation
of each site, including grounding, ventilation, air conditioning
and construction, typically takes three months, while equipment
installation, testing and optimization generally takes at least
an additional four weeks. Following commencement of system
operations in a selected market, we expect to add new sites to
our digital ESMR networks continually to improve coverage,
quality and capacity.

<P align="center">55

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any scheduled build-out and/or expansion may be delayed due to
the need to obtain additional financing as well as typical
construction and other delays.

<P align="left"><B><I>International Roaming Services</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our customers may roam throughout the iDEN&nbsp;800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800&nbsp;MHz technology. To further
 enhance our roaming services, during the second quarter of 2000,
 we launched Nextel Worldwide with the introduction of the i2000,
 a digital dual-mode subscriber unit manufactured by Motorola
that operates on both iDEN 800&nbsp;MHz and GSM 900&nbsp;MHz
technology. This service allows our customers to roam
internationally when traveling between our markets and other
cities or countries in which either iDEN 800&nbsp;MHz or GSM
900&nbsp;MHz networks are operated and covered by our roaming
agreements. We currently have over 70 roaming agreements in
effect with operators of iDEN 800&nbsp;MHz and GSM 900 MHz
networks in over 40 countries. After we enter into roaming
agreements, we and our roaming partners must undertake testing
and implementation procedures before roaming can commence.

<P align="left"><B><I>Markets</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We primarily target emerging markets characterized by strong
long-term economic growth prospects, highly concentrated business
 centers and favorable competitive environments.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Strong Economic Growth Prospects. </I>We operate primarily in
Latin America and, to a lesser extent, in other international
markets that we believe offer favorable long-term economic growth
 prospects.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Highly Concentrated Business Centers. </I>We operate primarily
 in major business centers and related transportation corridors
in selected markets of Latin America, including S&#227;o Paulo,
Rio de Janeiro, Buenos Aires, Mexico City and Lima. These areas
are generally characterized by high population densities and, we
believe, a concentration of the country&#146;s business users and
 economic activity. In addition, vehicle traffic congestion, low
landline penetration and unreliability of the land-based
telecommunications infrastructure encourage the use of mobile
wireless communications services in these areas.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Favorable Competitive Environments. </I>Compared to the United
 States, there historically were relatively few licensed wireless
 communications service providers operating in most of the
emerging markets in which we operate. With the advent of
privatization programs and the deregulation of telecommunications
 markets, competition has begun to increase.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Where we believe attractive opportunities exist, we also make
strategic investments in entities that operate digital ESMR
systems in developed markets such as Japan.

<P align="left"><B><I>Marketing</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most of our Operating Companies market their wireless
communications services primarily to business customers and
mobile work forces, such as service companies, security firms,
contractors and delivery services. We believe that companies with
 mobile work forces represent growing sectors of the economies in
 our markets. These types of businesses often need to provide
their personnel with the ability to communicate directly with one
 another, either on a private one-to-one call or a one-to-many
group call. By expanding and enhancing our digital ESMR network,
we plan to increase significantly the quality and capacity of our
 wireless communications networks utilizing SMR frequencies and
be in a position to offer a broader array of digital wireless
services to a larger customer base. For a more detailed
description of the marketing focus of each Operating Company, see
 the &#147;Marketing&#148; discussion for each Operating Company
under &#147;&#151; Operating Companies.&#148;

<P align="center">56
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<P align="left"><B><I>Competition</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In each of the markets where our Operating Companies operate or
will operate, we compete or will compete with other
communications services providers, including landline telephone
companies and other wireless communications companies. Many of
our competitors are well-established companies with substantially
 greater financial and marketing resources, larger customer
bases, better name recognition, bundled service offerings, larger
 spectrum positions and larger coverage areas than we have. In
addition, many existing telecommunications enterprises in the
markets in which our Operating Companies conduct business have
successfully attracted significant investments from multinational
 communications companies. Because of their financial resources,
these competitors may be able to reduce prices to gain market
share. We expect that the prices we charge for our products and
services will decline over the next few years as competition
intensifies in our markets. Because the iDEN technology we deploy
 is not compatible with other wireless technologies such as
digital cellular or PCS technologies, or with other iDEN networks
 not operating in the 800&nbsp;MHz spectrum, our customers will
not be able to roam on non-GSM 900 MHz or non-iDEN 800&nbsp;MHz
cellular or PCS systems or any system for which we do not have a
roaming agreement. Further, they will not be able to roam on GSM
900 MHz systems unless they elect to purchase dual-band phones
that are compatible both with iDEN 800 MHz and GSM 900 MHz. At
present, the i2000 subscriber unit developed by Motorola, which
enables our customers to roam on GSM 900 MHz cellular systems
operated by other providers, is the only dual-band phone that we
expect will be available to our customers in the foreseeable
future. Accordingly, those customers will not have coverage
outside of our coverage area until:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	we build out additional digital ESMR networks in areas outside
	our existing markets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	other operators deploy iDEN 800 MHz or GSM 900 MHz technology in
	markets outside of our coverage area and we enter into roaming
	agreements with those operators; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	multi-band and/or multi-mode subscriber units that can be used on
	 both iDEN 800 MHz and non-GSM 900MHz wireless communications
	networks become available and we enter into roaming agreements
	with the operators of those networks.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a more detailed description of the competitive factors
affecting each Operating Company, see the &#147;Competition&#148;
 discussion for each Operating Company under
&#147;&#151;&nbsp;Operating Companies.&#148;

<P align="left"><B><I>Regulation</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The licensing, construction, ownership and operation of wireless
communications systems, and the grant, maintenance and renewal of
 applicable licenses and radio frequency allocations, are
regulated by governmental entities in the markets in which our
Operating Companies conduct business. In addition, these matters
and other aspects of wireless communications system operations,
including rates charged to customers and the resale of wireless
communications services, may be subject to public utility
regulation in the jurisdiction in which service is provided.
Further, statutes and regulations in some of the markets in which
 the Operating Companies conduct business impose limitations on
the ownership of telecommunications companies by foreign
entities. Changes in the current regulatory environments in those
 countries, or future judicial intervention, including with
respect to interconnection arrangements, requirements for
increased capital investments, regulations affecting prices the
Operating Companies are able to charge for their services, or
foreign ownership limitations, could have a material adverse
effect on us and our Operating Companies.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, because we utilize SMR technology, in some
jurisdictions our Operating Companies are not deemed to be, nor
is it clear whether they will be deemed to be, operators of
public communications networks. Differences in the regulatory
framework applicable to compa-

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<DIV align="left">
nies who are and are not deemed to be public communications
networks may place us at a competitive disadvantage with respect
to our ability to:
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="1%"></TD>
        <TD width="96%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        interconnect with public switched telephone networks in those
        jurisdictions, in terms of the frequency, at competitive rates
        and with availability of the necessary numbers to undertake this
        interconnection;</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        provide services to all segments of the population, such as the
        restrictions applicable to Nextel Brazil which require it to
        offer its services only to businesses or individuals
        characterized by a common economic interest; and</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&#149;&nbsp;</TD>
        <TD align="left">
        provide services under particular programs, such as calling party
         pays programs.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These differences also may impact our flexibility in terms of
permitted foreign investment and acquisitions of additional
spectrum. In addition, as a result of the different regulatory
regimes, we may be subject to more onerous requirements under our
 licenses regarding build-out, installation and loading, among
others, than our non-SMR competitors are under their licenses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a more detailed description of the regulatory environment in
each of the countries in which the Operating Companies conduct
business, see the &#147;Regulatory and Legal Overview&#148;
discussion for each Operating Company under
&#147;&#151;&nbsp;Operating Companies.&#148;

<P align="left"><B><I>Foreign Currency Controls and Dividends</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In some of the countries in which we operate, the purchase and
sale of foreign currency is subject to governmental control.
Additionally, local law in some of these countries may limit the
ability of our Operating Companies to declare and pay dividends,
and may impose a withholding tax in connection with the payment
of dividends. For a more detailed description of the foreign
currency controls and dividend limitations and taxes in each of
the countries in which our Operating Companies conduct business,
see the &#147;Foreign Currency Controls and Dividends&#148;
discussion for each Operating Company under
&#147;&#151;&nbsp;Operating Companies.&#148;

<P align="left"><B><I>Operating Company Stockholders</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not own all of the equity interests in our Operating
Companies in the Philippines, Canada and Japan. For a description
 of the current stockholders of the Operating Companies in these
countries other than us, see the discussion of minority
stockholders for each of these Operating Companies under
&#147;&#151;&nbsp;Operating Companies.&#148;

<P align="left"><B><I>Operating Companies</I></B>

<P align="left"><I>&nbsp;&nbsp;Brazil</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Nextel Brazil currently has
licenses in markets covering about 62&nbsp;million people and
provides services under the tradename &#147;Nextel&#148;. Nextel
Brazil has licenses to provide digital ESMR and/or analog SMR
services, on a commercial basis, in the following cities:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="3%">&nbsp;</TD>
        <TD width="44%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="14%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="14%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="16%">&nbsp;</TD>
</TR>


<TR>
        <TD align="center" colspan="2"><FONT size="2"><B>Digital</B></FONT></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="5"><FONT size="2"><B>Analog</B></FONT></TD>
</TR>

<TR>
        <TD colspan="2"><HR size="1"></TD>
        <TD></TD>
        <TD align="center" nowrap colspan="5"><HR size="1"></TD>
</TR>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Campinas (including Jundiai)</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Aracaju</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Florian&#243;polis</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Recife</FONT></TD>
</TR>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Rio de Janeiro (including</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Bauru</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Fortaleza</FONT></TD>
        <TD></TD>
        <TD nowrap align="left" valign="bottom"><FONT size="2">
        Ribeir&#227;o Preto</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD align="left" valign="top"><FONT size="2">
        Niter&#243;i and S&#227;o Gon&#231;alo)</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Bel&#233;m</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Goi&#226;nia</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Salvador</FONT></TD>
</TR>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        Santos (including S&#227;o</FONT></TD>
        <TD></TD>
        <TD nowrap align="left" valign="bottom"><FONT size="2">
        Belo Horizonte</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Juiz de Fora</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        S&#227;o Luiz</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD align="left" valign="top"><FONT size="2">
        Vicente and Guaruj&#225;)</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Bras&#237;lia</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Londrina</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Uberaba</FONT></TD>
</TR>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        S&#227;o Jos&#233; dos Campos</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Canoas</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Manaus</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Uberl&#226;ndia</FONT></TD>
</TR>

<TR>
        <TD colspan="2" align="left" valign="top"><FONT size="2">
        S&#227;o Paulo</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Caxias do Sul</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Palmas</FONT></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR>
        <TD colspan="2"></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Curitiba</FONT></TD>
        <TD></TD>
        <TD align="left" valign="bottom"><FONT size="2">
        Porto Alegre</FONT></TD>
        <TD></TD>
        <TD></TD>
</TR>

</TABLE>
</CENTER>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, Nextel Brazil, through its subsidiaries
 and affiliates, provided service to about 204,200 digital
subscriber units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Brazil&#146;s operations are headquartered in S&#227;o
Paulo, with branch offices in 14 other cities. As of
June&nbsp;30, 2000, Nextel Brazil&#146;s subsidiaries and
affiliates had about 1000 employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing.</I> Nextel Brazil offers both a broad range of
service options and pricing plans designed to meet the specific
needs of its targeted business customers. It currently offers
digital ESMR dispatch only plans and integrated service plans,
including dispatch and interconnect, in its digital markets, and
analog SMR dispatch in its other markets. Nextel Brazil&#146;s
target customers are businesses with mobile work forces as well
as utilities and government agencies. Nextel Brazil utilizes both
 a direct sales force as well as dealers and independent agents.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition.</I> Nextel Brazil competes with other analog SMR
and cellular service providers in Brazil. Other SMR service
providers include MComCast S.A., Splice Com S.A., referred to as
Splice do Brasil, Teleglobal S.A. and Unical S.A.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until 1998, all local, long distance and cellular
telecommunications services in Brazil were provided by
Telecomunica&#231;&#245;es Brasileiras S.A., a government-owned
holding company known as Telebras, through its operating
subsidiaries. In July&nbsp;1998, the government of Brazil
privatized Telebras by dividing Telebras into twelve separate
telecommunications companies and selling a controlling interest
in each newly created company by auction. Since the privatization
 of Telebras, each cellular market that was served by Telebras is
 now served by one of eight cellular companies created by the
privatization, including: (1)&nbsp;Telesp Celular S.A., which is
controlled by Portugal Telecom, in S&#227;o Paulo; (2)&nbsp;Tele
Sudeste Celular S.A., which is controlled by a consortium led by
Telef&#243;nica de Espa&#241;a S.A., in Rio de Janeiro and
Espirito Santo and (3)&nbsp;Tele Centro Oeste Celular S.A., which
 is controlled by Splice do Brasil, in Brasilia and other central
 cities. Additionally, the government of Brazil has divided the
Brazilian market into ten cellular regions, and, during 1997 and
1998, awarded band B cellular licenses covering all ten regions
in Brazil. Accordingly, in several markets in Brazil, including
the city of S&#227;o Paulo, there are two cellular service
providers. In May&nbsp;1998, BCP Telecomunica&#231;&#245;es S.A.,
 an affiliate of BellSouth Corp., began offering digital cellular
 service in S&#227;o Paulo. In addition, as a result of the new
regulations described below, Nextel Brazil will compete with
additional providers in each of its markets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;10, 2000, Brazil&#146;s telecommunications
regulatory agency, Anatel, published draft Guidelines for the
Implementation of the Personal Mobile Service, which are PCS
operations in Brazil, a service intended to succeed the cellular
services currently available in the market. The guidelines were
submitted for comment until August&nbsp;7, 2000 and are expected
to be finalized and adopted in the near term.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The guidelines set forth rules regarding the selection of up to
three additional mobile telephony providers per region,
corresponding to bands (or sub-ranges) &#147;C,&#148;
&#147;D&#148; and &#147;E.&#148; According to the guidelines,
Brazil will be divided into three regions for PCS operation
within the 1.8 GHz broadband frequency as opposed to ten regions
for the current cellular service providers. Each of the three
regions will have three new competitors in addition to the
existing two competitors, which have bands &#147;A&#148; and
&#147;B.&#148; The current &#147;A&#148; and &#147;B&#148; band
cellular providers will have the right to switch to PCS. If they
elect to do so, they will have the right to acquire two 5 MHz
sub-ranges (one of which being upward/output and the other
downward/return) in the 1.9 GHz range to enable them to offer the
 same services as the PCS providers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The PCS bidding will be conducted by auction, on a sequential
basis for each of the three bands. There are no restrictions on
the participation of companies organized and based in Brazil,

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<DIV align="left">
even if they are foreign-owned. Interested companies may compete
in each of the three regions. There are, however, other
conditions to participation:
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the same provider (controlling, controlled or affiliate company)
	may not provide PCS, cellular or both through more than one
	authorization or concession in the same service area; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a company that is, directly or through its controlling,
	controlled or affiliate company, a concessionaire of switched
	fixed telephony services, or SFTS, cannot bid in the auction for
	&#147;C&#148; band PCS licenses.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each successful bidder for the &#147;C,&#148; &#147;D&#148; and
&#147;E&#148; bands will be granted three licenses from Anatel.
The first license will authorize PCS operations; the second will
permit national long distance service as of January&nbsp;1, 2002;
 and the third will permit international long distance service as
 of January&nbsp;1, 2002. For this purpose, the new PCS providers
 will have their own access codes to forward long distance calls.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The PCS guidelines introduce new concepts in Brazilian mobile
telephony, since the service enables the communication between
mobile stations and from mobile stations to other stations within
 the same PCS registration area and calls originated within a PCS
 registration area and having as destination a point located
outside such registration area will be treated as SFTS for
national and international long distance.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>On April&nbsp;27, 2000,
Anatel issued Resolution No.&nbsp;221 approving new regulations
relating to SMR and ESMR (collectively &#147;SMR&#148; for
purposes of this section only) services in Brazil
(&#147;Resolution No.&nbsp;221/00&#148; or the &#147;New SMR
Regulation&#148;). As a result, Brazil has opened its doors to
wider competition in the mobile wireless segment where we
operate. The former regulations, set forth under Norma 14/97,
imposed various restrictions that significantly limited the
ability of Nextel Brazil and its affiliated companies to provide
ESMR services to all potential customer groups and to be fully
responsive to its customers&#146; demands and needs for mobile
wireless communications services. Under Resolution
No.&nbsp;221/00, SMR services, including our digital ESMR
services, are now defined as the &#147;telecommunication
terrestrial mobile service of collective interest that utilizes
radiocommunication systems basically for the performance of
dispatch-type operations, and other forms of
telecommunications.&#148; This new regulation is expected to have
 a significant positive impact for our Brazilian SMR operations
principally by:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	allowing service to be provided not only to legal entities but
	also to groups of individuals characterized by a common activity,
	 even though the group is not a formal legal entity, such as
	doctors or lawyers; however, our SMR service still may not be
	provided to stand-alone individuals;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	lifting restrictions on the volume of interconnect traffic, which
	 previously required that the volume of traffic interconnected
	with the public switched telecommunications network, referred to
	as PSTN, could not exceed one third of the sum of intra-network
	traffic volume and outgoing calls interconnected to the PSTN;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	allowing SMR companies to provide their users with other services
	 that are not characterized as another type of telecommunication
	service, such as short messaging and packet data and Internet
	data services; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	confirming that SMR networks in different service areas can
	interconnect among themselves for dispatch services, which allows
	 for long distance dispatch.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new regulations allow for implementation of a calling party
pays program. However, the specific guidelines governing this
program are not expected to be issued until later this year. Once
 these guidelines are published, we intend to deploy calling
party pays in our markets in Brazil and currently expect to have
this service available to customers beginning in 2001.

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<DIV align="left">
However, we cannot assure you as to the timing of the
implementation of calling party pays, or that calling party pays
will be implemented and, if so, as to the terms and conditions
that may apply.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new regulations now permit affiliated companies to hold more
than one license in the same service area. However, SMR licensees
 like us, and their affiliates, are still prohibited from holding
 more than 10 MHz of spectrum in the same service area.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although we believe that the new regulations give us
significantly greater flexibility to provide ESMR services, we
are still required to provide dispatch as a basic service before
we can provide any other service. For example, we cannot offer
interconnect without dispatch as well. In addition, we are
required to provide similarly situated customers with services on
 a similar basis.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No material changes were introduced under the proposed SMR
regulations in regard to the grant of new licenses. Any company
interested in obtaining new SMR licenses from Anatel is required
to apply and to present documentation showing the technical,
legal and financial qualifications required by the legislation.
Anatel, in turn, may also unilaterally communicate its intention
to grant new licenses and the terms and conditions applicable
thereto, including the relevant price for the license. In any
such case, Anatel is required to publish an announcement in the
official gazette so that any company willing to respond to an
Anatel unilateral invitation, or willing to render the applicable
 service in a given area claimed by another interested party, may
 have the opportunity to obtain an SMR license. Whenever the
number of claimants is larger than the available spectrum, Anatel
 is required to conduct competitive bidding to determine whom,
among all interested parties, will be granted the available
licenses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A license for the right to render SMR services is granted for an
undetermined period of time, while the associated radio
frequencies are licensed for a period of 15&nbsp;years, renewable
 only once, for an equal period. Renewal of the license is
subject to the rules set forth by Anatel under Resolution
No.&nbsp;65. Renewal is required at least three years prior to
the expiration of the original term, and must be decided upon by
Anatel within 12 months. Anatel may deny a request for renewal of
 the license for the right to use associated radio frequencies,
but only if the applicant is not making rational and adequate use
 of the frequency, the applicant has committed repeated breaches
in the performance of its activities or there is a need to modify
 the radio frequency allocation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that the new framework will be more flexible in regard
 to operational requirements. However, we will still be required
to make available to Anatel, at any time, all information
regarding our client-base. In addition, the new rules also
require that the service be &#147;available and in regular
operation&#148; within the relevant service area, in accordance
with the terms and minimum coverage and signal requirements
provided for under the regulations (which to date have not been
enacted). Failure to meet such requirements may entail
repossession of the channel by Anatel, and forfeiture of the
license. We believe that Nextel Brazil is currently in compliance
 with all of the operational requirements of its licenses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>The purchase and
sale of foreign currency in Brazil is subject to governmental
control. There are two foreign exchange markets in Brazil that
are subject to Central Bank of Brazil regulations. The first is
the commercial/financial floating exchange rate market, which is
reserved generally for trade-related transactions, such as import
 and export transactions, registered foreign currency investments
 in Brazil and specified other transactions involving remittances
 abroad. The second foreign exchange market is the tourism
floating exchange rate market. The commercial/financial exchange
market is restricted to transactions that require prior approval
of the Brazilian monetary authorities. Both markets operate at
floating rates freely negotiated between the parties. The
purchase of currency for repatriation of capital invested in the
country and for payment of dividends to foreign stockholders of
Brazilian companies is made in the commercial/financial floating
market, provided that the original investment of foreign capital
and capital increases were registered with

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<DIV align="left">
the Central Bank of Brazil. In this case, there are no
significant restrictions on the repatriation of share capital and
 remittance of dividends. Nextel S.A., the Brazilian subsidiary
through which any dividend is expected to flow, has applied to
the Central Bank of Brazil for the registration of all of the
investments in foreign currency made by McCaw Brazil and our
indirect subsidiary, Airfone Holdings, Inc. A substantial portion
 of those applications are still pending. An administrative
decision is expected before the end of 2000 from the Brazilian
monetary authorities. Nextel S.A. intends to structure future
capital contributions to Brazilian subsidiaries to maximize the
amount of share capital and dividends that can be repatriated
through the commercial/financial exchange market. We cannot be
certain, however, that Nextel S.A. can repatriate through the
commercial/financial exchange market share capital and dividends
on foreign investments that have not been registered.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Brazilian law provides that whenever there is a material
imbalance or a serious risk of a material imbalance in
Brazil&#146;s balance of payments, the Brazilian government may,
for a limited period of time, impose restrictions on the
remittance by Brazilian companies to foreign investors of the
proceeds of investments in Brazil. The Brazilian government may
also impose restrictions on the conversion of Brazilian currency
into foreign currency. These restrictions may hinder or prevent
us from purchasing equipment required to be paid for in any
currency other than Brazilian reais.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Minority Stockholders in Brazilian Operating Companies. </I>As
 a result of our purchase from Motorola International of the
remaining outstanding equity interest in Nextel S.A., the parent
company of Nextel Brazil and our purchase of the remaining 8% in
McCaw Brazil from the Founders Group, we own 100% of Nextel
Brazil.

<P align="left"><B><I>Mexico</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Nextel Mexico, through its
subsidiaries and management agreements, provides analog and
digital SMR services under the tradename &#147;Nextel&#148; in
about 80 cities and along a number of major highways. We provide
ESMR service in Mexico City, Toluca, Queretaro and Puebla. Cities
 where we provide analog SMR services include Guadalajara,
Monterrey and Tijuana. Nextel Mexico operated its digital ESMR
and analog SMR networks simultaneously for several months, while
it migrated its analog SMR customers to the digital ESMR network
in Mexico City, Toluca, Queretaro and Puebla. Nextel Mexico
ceased offering analog SMR service to new customers in Mexico
City, Toluca, Queretaro and Puebla in the second half of 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Mexico has licenses in markets covering about
50&nbsp;million people. As of June 30, 2000, Nextel Mexico
provided service to about 132,900 digital subscriber units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Mexico is headquartered in Mexico City and has regional
offices in Guadalajara, Monterrey, Tijuana, Toluca, Puebla and
Queretaro. As of June&nbsp;30, 2000, Nextel Mexico had about
700&nbsp;employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>Nextel Mexico offers its digital ESMR and
analog SMR services primarily to business customers, offering a
broad range of services and pricing plans designed to meet their
specific needs.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Mexico offers integrated services, including interconnect
services, dispatch radio and paging on its digital ESMR networks
in Mexico City, Toluca, Queretaro and Puebla, and offers analog
SMR dispatch in its other markets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Mexico markets its services through a distribution network
 that includes a variety of direct sales representatives and
independent dealers. The development of alternate distribution
channels has been a key factor in the commercial performance of
the company. Additionally, Nextel Mexico has used an advertising
campaign supported by press, radio, magazines, television and
direct marketing to develop brand awareness.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>Nextel Mexico&#146;s SMR operations compete
with those of Radiocel, S.A. de C.V., a large analog SMR
operator, and with other analog SMR system operators in its
Mexican markets. Nextel Mexico&#146;s digital ESMR networks
compete with analog SMR system providers and also with cellular
and PCS system operators in its market areas.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Mexican cellular market is divided into nine regions. The
Secretary of Communications and Transportation of Mexico,
referred to as SCT, has divided the cellular telephone system in
each region into the Cellular A-Band and the Cellular B-Band. In
each region, Radiom&#243;vil Dipsa, S.A. de C.V., referred to as
Telcel, and a subsidiary of Tel&#233;fonos de M&#233;xico, S.A.
de C.V., referred to as Telmex, holds the Cellular B-Band
concession and its cellular competitor in each region holds the
Cellular A-Band concession. Iusacell, S.A. de C.V., a joint
venture controlled by Verizon Communications and referred to as
Iusacell, holds the right to provide cellular service in the
greater Mexico City area, as well as in the regions covering most
 of the central and southern areas of Mexico. In the northern
region of Mexico, cellular service is provided by Movitel del
Norroeste, S.A. de C.V., Celular de Telefon&#237;a, S.A. de C.V.,
 Telefon&#237;a Celular del Norte, S.A. de C.V. and Baja Celular
Mexicana, S.A. de C.V., currently owned by Motorola. Cellular
service in the southeast region of Mexico is provided by Portatel
 del Sureste, S.A. de C.V.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pegaso Telecomunicaciones, S.A. de C.V., a joint venture among
Grupo Pegaso, Leap Wireless International Inc. and Sprint
Corporation, provides PCS services and wireless local loop
commercial services in Tijuana, Monterrey, Guadalajara and Mexico
 City. In October&nbsp;1999, Sistemas Profesionales de
Comunicaciones, S.A. de C.V., referred to as Unefon, obtained a
nationwide concession in the 1.9 GHz band to provide PCS services
 and wireless local loop commercial services. Currently Unefon is
 providing services in Acapulco, Toluca, Le&#243;n, and Mexico
City.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The SCT regulates the
telecommunications industry in Mexico. The Comision Federal de
Telecomunicaciones, referred to as COFETEL, oversees specific
aspects of the telecommunications industry on behalf of the SCT.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since early 1994, the Mexican government has been deregulating
the telecommunications industry to improve the quality and expand
 the coverage of telecommunications services. The Mexican
government has stated its intention to increase competition
within the telecommunications industry and its desire to attract
foreign investment to improve Mexico&#146;s telecommunications
infrastructure. Mexico&#146;s Federal Telecommunications Law,
which became effective in June&nbsp;1995, outlines the broad
rules for opening the local and long distance service markets to
competition.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Mexican Federal Telecommunications Law requires that all
telecommunications licenses, which are referred to as concessions
 in Mexico, must be owned by Mexican individuals or entities that
 do not have more than 49% of their voting equity interest owned
by non-Mexican entities, referred to as the 49% Rule. Although
the 49% Rule existed prior to the enactment of the Mexican
Federal Telecommunications Law for specified types of
telecommunications licenses, the Mexican Foreign Investment Law
effective as of December&nbsp;28, 1993 deleted the reference to
the 49% Rule and allowed up to a 100% foreign ownership
participation in entities involved in SMR services. Due to this
change, the foreign participation in Nextel Mexico (and
subsidiaries) was increased to become a majority foreign owned
corporation. However, the Mexican Federal Telecommunications Law
enacted on June&nbsp;8, 1995 reinstituted the former 49% Rule,
which did not affect Nextel Mexico and subsidiaries since they
became majority foreign owned companies during the time that such
 ownership was legally permitted. For this reason, Nextel Mexico
and its subsidiaries applied for and obtained in May&nbsp;1996
the modification of all of their 800 MHz SMR licenses by
deleting, among other things, all those conditions that related
to the 49% Rule applicable to foreign participation. As a result,
 all of the 800 MHz SMR licenses in which Nextel Mexico has an
interest, except for one license covering 10 channels along a
major highway from Mexico City to Guadalajara, are not subject to
 the 49% Rule. Although licenses to provide cellular

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<DIV align="left">
services are also subject to the 49% Rule, the Mexican Federal
Telecommunications Law explicitly provides a waiver for cellular
providers upon receipt of a favorable opinion from the Mexican
National Foreign Investments Commission.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Mexican Federal Telecommunications Law provides all wireless
services providers with the right to interconnect to the PSTN
operated by Telmex. Some telecommunications companies, however,
have had difficulty obtaining interconnect services from Telmex
despite having interconnection agreements with Telmex. Nextel
Mexico has entered into commercial agreements with Telmex for its
 analog SMR networks in various cities in Mexico and for its
digital ESMR networks in Mexico City, Toluca, Queretaro and
Puebla to provide interconnect services. Nextel Mexico has a
commercial agreement with Telmex that is effective through
August&nbsp;4, 2001. In the event that Nextel Mexico cannot enter
 into a new interconnection or commercial agreement with Telmex
or another PSTN or otherwise obtain interconnect services, its
results of operations would be adversely effected.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To become a concessionaire, a provider must apply to and receive
the approval of the SCT and COFETEL. To acquire spectrum, a
provider must participate in an auction process. Awarded
concessions contain requirements regarding build-out and loading
that, if not complied with, can lead to sanctions, including
revocation of the concession.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>Mexican companies
 may remit dividends and profits outside of Mexico if the Mexican
 company meets specified distribution and legal reserve
requirements. A Mexican company must distribute 10% of its pretax
 profits to employees and allocate 5% of net profits to the legal
 reserve until 20% of the stated capital is set aside. Under
Mexican corporate law, approval of a majority of stockholders of
a corporation is required to pay dividends. Dividends paid by
Nextel Mexico to any U.S. stockholder are subject to a 5%
withholding tax. Interest payments to U.S. residents are subject
to a 15% withholding tax, interest payments to a U.S. financial
institution registered with the Mexican tax authorities are
subject to a 5% withholding tax, and interest payments to a U.S.
fixed asset or machinery supplier registered with the Mexican tax
 authorities are subject to a 10% withholding tax.

<P align="left"><B><I>Argentina</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Nextel Argentina provides
digital SMR service in four major cities, Buenos Aires, Rosario,
Mar del Plata and La Plata, and along major highways, as well as
analog SMR service in C&#243;rdoba and Mendoza.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Argentina converted from analog SMR to digital ESMR
service in Buenos Aires and Rosario in the second half of 1998.
Nextel Argentina has licenses in markets covering about
23&nbsp;million people. As of June&nbsp;30, 2000, Nextel
Argentina provided service to about 90,100 digital subscriber
units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Argentina is headquartered in Buenos Aires and has
regional offices in Mar del Plata, Rosario, Mendoza and Cordoba,
and three branches in Buenos Aires. As of June&nbsp;30, 2000,
Nextel Argentina had about 550&nbsp;employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>Nextel Argentina&#146;s digital ESMR service
offerings include telephone interconnect, dispatch radio and
paging in Buenos Aires, La Plata, Mar del Plata and Rosario, as
well as on the connecting highways. Nextel Argentina currently
offers analog SMR dispatch in its other markets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Argentina markets its services under the tradename
&#147;Nextel&#148; through a direct sales force and employs
independent dealers. Nextel Argentina provides extensive training
 to each of its distribution channels to ensure a high level of
customer satisfaction.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>Nextel Argentina&#146;s major competitors
among the other SMR/ ESMR providers, as measured by the number of
 subscribers, are Movicom/ Movilink, which is owned by CRM S.A.,

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<DIV align="left">
a joint venture that includes BellSouth Corporation and Motorola,
 and Unifon, which is owned by Telefonica de Argentina S.A.
Movicom/ Movilink holds SMR channels in Buenos Aires and in each
of Argentina&#146;s three other major cities. In addition to
operating various analog SMR networks, Movicom/ Movilink also
operates an iDEN based digital ESMR system in Buenos Aires and
Rosario. Unifon operates analog SMR networks in Buenos Aires and
other major cities.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are four cellular PCS service license holders in Argentina
with which Nextel Argentina also competes: Movicom, Unifon,
Compa&#241;ia de Tel&#233;fonos del Interior S.A., which is owned
 by Verizon Communications and is referred to as CTI, and Telecom
 Personal, which is owned by Telecom Argentina STET-France
Telecom S.A.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The PCS licenses in aggregate provide for national coverage; each
 of the four license holders has the right to provide PCS
services in specified regions of the country in which it is
licensed to operate. Of these license holders, all are currently
operating in the city of Buenos Aires and in the surrounding
area.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The auction of PCS licenses, which took place during 1999, did
not result in the entry of new competitors to the market because
the licenses were awarded only to the existing providers of
cellular telephone services. The licenses and associated
frequencies provide existing cellular companies with increased
spectrum capabilities and the ability to launch a new range of
wireless products.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The four holders of PCS cellular licenses also hold landline
local and long distance telephone licenses. Licenses for landline
 local and long distance telephony services are also being
awarded to unrelated companies, which do not become effective
until November&nbsp;2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The Comision Nacional de
Comunicaciones, referred to as the Argentina CNC, and the
Secretary of Communications of Argentina are the Argentine
telecommunications authorities responsible for administration and
 regulation of the SMR and ESMR industry.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SMR and ESMR licenses have an indefinite term but are subject to
revocation for violation of applicable regulatory rules.
Depending on the type of network configuration, SMR and ESMR
service must commence within six months to one year after receipt
 of channel assignment. Failure to meet service or loading
requirements can result in revocation of the channel
authorizations. The Argentina CNC will revoke the licensee&#146;s
 SMR license upon the finding of a third breach by the licensee
of service requirements. SMR licenses and channel authorizations
also may be revoked for violation of other regulatory authority
rules and regulations. All SMR and ESMR channel holders that
received their channel authorizations in the November&nbsp;1995
SMR and ESMR auction, including Nextel Argentina, were granted an
 extension to December&nbsp;1997 from the original
December&nbsp;1996 deadline to meet initial loading requirements.
 Nextel Argentina has met its loading requirements in all of its
markets except Cordoba and Mendoza. However, when these two
markets are interconnected with its other Argentine markets,
Nextel Argentina believes it will have satisfied all of its
loading requirements, and will retain its rights to substantially
 all of its SMR licenses in these markets. Argentina imposes no
limitation on foreign ownership of SMR and ESMR licenses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SMR and ESMR providers are assured interconnection with the PSTN
pursuant to the terms of the tender rules under which the SMR
channels were awarded, as well as under other applicable laws.
Furthermore, interconnection with the PSTN must be on a
nondiscriminatory basis. Nextel Argentina provides interconnect
services to its subscribers under interconnection agreements with
 Telef&#243;nica de Argentina S.A. and Telecom Argentina
STET-France Telecom S.A. In May&nbsp;1999, the Argentina CNC
authorized Nextel Argentina to implement a calling party pays
program with the fixed line carriers with whom it interconnects.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;9, 2000, a Presidential Instruction was issued,
under which the telecommunications regulations in Argentina are
expected to be changed. The purpose of the instruction is to

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<DIV align="left">
guarantee the complete deregulation and free competition of
telecommunications services in Argentina beginning
November&nbsp;9, 2000. It is contemplated that the rules to be
enacted will cover the following:
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	licenses of telecommunications services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	national interconnection;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	universal service; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	administration of the spectrum.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>Under current
law, Argentine currency is convertible into U.S. dollars without
restrictions. Argentina has a free exchange market for all
foreign currency transactions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under applicable Argentine corporate law, a company may pay
dividends only from liquid and realized profits as shown on the
company&#146;s financial statements prepared in accordance with
Argentine generally accepted accounting principles. Of those
profits, 5% must be set aside until a reserve equal to 20% of the
 company&#146;s capital stock has been established. Subject to
these requirements, the balance of profits may be declared as
dividends and paid in cash upon a majority vote of the
stockholders. Under current law, dividend payments are not
subject to withholding tax, except when the dividend payments are
 the result of profits paid out in excess of the profits computed
 for income tax purposes. In this latter case only, a 35%
withholding tax applies on the amount of the surplus. Interest
payments are subject to withholding taxes ranging from 15% to
35%.

<P align="left"><B><I>Peru</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Nextel Peru provides digital
ESMR services in the Department of Lima and Province of Callao
area under the tradename &#147;Nextel.&#148; Nextel Peru has
licenses in markets covering about 7&nbsp;million people. Nextel
Peru launched digital ESMR service in the greater Lima area in
June&nbsp;1999. As of June&nbsp;30, 2000, Nextel Peru provided
service to about 41,900 digital subscriber units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Peru operated parallel digital ESMR and analog SMR
networks while migrating its analog SMR customers to the digital
ESMR network. Nextel Peru ceased offering analog SMR services by
the end of the second quarter of 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Peru is headquartered in Lima. As of June&nbsp;30, 2000,
Nextel Peru had about 250 employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>Nextel Peru&#146;s digital ESMR service
offerings include interconnect services, dispatch radio and short
 messaging services on its digital ESMR network. Nextel Peru
currently targets the mobile work force, which it believes will
be the most likely users of its digital ESMR network&#146;s
integrated service offerings. To establish brand identity for its
 digital ESMR services, Nextel Peru has undertaken a promotional
advertising campaign that targets the business segment of the
market. In addition to advertising, Nextel Peru relies heavily on
 its direct sales force to educate potential customers on the
benefits of using its digital ESMR services and continues to
build an indirect sales channel to increase presence and sales.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>Nextel Peru&#146;s largest SMR competitor is
Radio Trunking del Peru S.A. Bell South Peru S.A. (formerly
Tele2000), a Bell South subsidiary, and Telef&#243;nica Servicios
 M&#243;viles S.A.C., a subsidiary of Telef&#243;nica del Peru
S.A.A., are Peru&#146;s two cellular operators. Telef&#243;nica
Servicios M&#243;viles provides nationwide coverage and operates
under the brand name &#147;Moviline.&#148; Bell South Peru offers
 cellular service in the greater Lima area and 11 other cities
and has nationwide roaming agreements with Telef&#243;nica del
Peru.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The Organismo Supervisor de
 Inversi&#243;n Privada en Telecomunicaciones of Peru, referred
to as OSIPTEL, and the Ministry of Transportation,
Communications, Housing and Construction of Peru, referred to as
the Peruvian Ministry of Communications, regulate the
telecommunications industry in Peru. OSIPTEL oversees private
investments and competition in the telecommunications industry.
The Peruvian Ministry of Communications grants telecommunications
 licenses and issues regulations governing the telecommunications
 industry. In 1991, the Peruvian government began to deregulate
the telecommunications industry to promote free and open
competition for the provision of telecommunications services. The
 Telecommunications Law of Peru, the general regulations under
that law, referred to as the Peruvian General Regulations, and
the specific regulations governing trunking services govern the
operation of SMR services in Peru.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Peru, SMR/ ESMR and paging service providers are granted
20-year licenses, which may be extended for an additional 20-year
 term, subject to compliance with the terms of the license.
Licenses may be revoked prior to expiration for violations of
applicable regulatory rules as discussed below. Licensees must
comply with a five-year minimum expansion plan that sets forth
the minimum loading requirements for the licensees. Nextel Peru
has met the requirements imposed by the regulator.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Peruvian General Regulations, all wireless
telecommunications licensees have the right to interconnect to
the PSTN. Furthermore, interconnection with the PSTN must be on
an equal and nondiscriminatory basis, and the terms and
conditions of interconnection agreements must be negotiated in
good faith between the parties in accordance with the
interconnect regulations and procedures issued by OSIPTEL. In
February&nbsp;1999, Nextel Peru executed an interconnection
agreement with Telef&#243;nica del Peru S.A., which was approved
by OSIPTEL, and became effective in June&nbsp;1999. In August,
1999 Nextel Peru executed a similar interconnection agreement
with Bell South Peru, which was approved by OSIPTEL, and became
effective in September&nbsp;1999. Beginning in April&nbsp;2000,
the interconnection agreement between Telef&#243;nica del
Per&#250; and Nextel Peru was amended to offer a calling party
pays program to fixed line users of Telef&#243;nica del
Per&#250;. Peru imposes no limitation on foreign ownership of
SMR, ESMR or paging licenses or licensees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>Under current
law, Peruvian currency is convertible into U.S. dollars without
restrictions. Peru has a free exchange market for all foreign
currency transactions. On October&nbsp;1, 1998, Nextel Peru
executed a legal stability agreement with the Peruvian
government, which, among other things, guarantees free conversion
 of foreign currency for Nextel Peru and its stockholders for a
term of 10&nbsp;years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The payment and amount of dividends on Nextel Peru&#146;s common
stock is subject to the approval of a majority of the
stockholders at a mandatory meeting of the stockholders of the
company, as well as the availability of earnings, determined in
accordance with Peruvian generally accepted accounting
principles. According to Peruvian corporate law, the stockholders
 may decide on the distribution of interim dividends or,
alternatively, delegate the decision to the board of directors.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Available earnings are subject to the following priorities:
(1)&nbsp;mandatory employee profit sharing of 10% of pre-tax
profits and (2)&nbsp;10% of the net profits must be allocated to
a legal reserve, which is not further available for use except to
 cover losses in the profit and loss statement. The latter
obligation remains until the legal reserve constitutes 20% of the
 capital stock. After the legal reserve has been allocated, the
stockholders at a stockholders&#146; meeting can then allocate
any portion of the net profits to any special reserve. The
remaining amount of the net profits is available for
distribution.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends paid by Nextel Peru to its U.S. stockholders are not
subject to withholding tax, and interest paid by Nextel Peru to
U.S. residents is subject to a 30% withholding tax, unless they
qualify for a reduced rate.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other Nextel Peru Stockholders. </I>As a result of our
purchase of a minority owner&#146;s 6% equity interest and
Motorola International&#146;s 31% equity interest in Nextel Peru
in May 2000, we own 100% of Nextel Peru.

<P align="left"><B><I>Chile</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Companies Overview. </I>We recently acquired all of
the equity interests in three SMR companies in Chile from
Motorola. However, we have entered into an agreement with
Motorola under which Motorola has agreed to manage the operations
 of these companies during a transition period. We currently
provide analog SMR services in Chile through three different
companies named Comunicaciones Multikom Limitada, Comunicaciones
Multitrunking Limitada and Distribuidora Multitek Limitada. These
 companies have channels in the three largest cities in Chile,
Santiago, Valparaiso and Concepci&#243;n, representing about half
 of the Chilean population. These companies also hold several
other SMR channels throughout Chile.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, these companies in Chile provided
analog SMR services to about 2,000 subscriber units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These companies are headquartered in Santiago de Chile and have
regional offices in Valparaiso and Concepci&#243;n. As of
June&nbsp;30, 2000, these companies had about 30 employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are currently negotiating to acquire additional spectrum
channels in Chile.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>These companies currently offer exclusively
analog SMR dispatch radio services, focusing on small and medium
size companies. We intend to deploy an EMSR network assuming we
obtain the necessary regulatory approvals.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>Presently, there are no providers of digital
ESMR services in Chile. Competitors in the analog SMR business in
 Chile are Gallyas S.A., Telef&#243;nica M&#243;vil S.A., known
as Startel, Centennial Chile and Sharfstein.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are also five mobile telephone service providers authorized
 to operate throughout Chile, three of which are in the PCS 1,900
 MHz band and two of which are in the 800 MHz cellular band.
These mobile telephone service providers are Entel PCS
Telecomunicaciones S.A., a PCS concessionaire controlled by Entel
 Chile, a Chilean corporation controlled in turn by Chilean
nationals and Stet-Telecom Italia, and Motorola; Entel Telefonia
M&#243;vil S.A., a PCS concessionaire also controlled by Entel
Chile and Motorola, Inc.; Smartcom PCS, a PCS concessionaire
controlled by Endesa Espa&#241;a; Startel, which, in addition to
its SMR concessions, is the holder of a cellular concession; and
Bell South Comunicaciones S.A., a cellular concessionaire
controlled by Bell South Corporation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The main regulatory
agencies of the Chilean telecommunication sector are the Ministry
 of Transportation and Telecommunication, referred to as MTT, and
 the undersecretary of Telecommunications, referred to as Subtel.
 The application, control and interpretation of the provisions of
 the General Telecommunications Law, referred to as GTL, and/or
other regulations on telecommunications is the responsibility of
the MTT which, for these purposes, acts through Subtel.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Telecommunications concessions, including SMR concessions, may be
 granted only to private and/or public legal entities duly
incorporated and domiciled in Chile. However, there is no
restriction or limitation for the participation or ownership of
foreign investors in Chilean telecommunications concessionaires.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a general rule, telecommunications concessions are granted in
Chile without any initial payment of fees. However,
telecommunication concessionaires that use the radioelectric
spectrum for the operation of their respective concessions, such
as SMR concessionaires, are subject to an annual fee, the amount
of which is based on the size of the applicable system, the
portion of the spectrum utilized and the service area that has
been authorized.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Telecommunications concessions are not limited as to their
number, type of service or geographical area. Therefore, it is
possible to grant two or more concessions for the provision of
the same service on the same location, except where technical
limitations exist, as in the case of SMR and public telephone
service concessions. Concessions for the provision of public
telecommunication services are granted for a thirty-year period,
renewable for identical periods if requested by the
concessionaire. In order for us to provide ESMR services in
Chile, there are a number of regulatory issues that need to be
resolved, including issues relating to interconnection, number
and routing plans and access charges.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Chile, concessionaires of public telecommunication services
and concessionaires of intermediate services of telecommunication
 that render long distance telephonic services have the
obligation to establish and accept interconnections to permit
subscribers and users of public telecommunication services of the
 same type to be interconnected with each other inside or outside
 Chile. Telecommunication services of the same type are those
which are technically compatible with each other. Subtel
determines which telecommunication services are technically
compatible. These interconnections must be performed according to
 the technical rules, procedures and terms established by Subtel.
 However, because Subtel has not issued any regulation expressly
related to the interconnection of the SMR service with the other
public and intermediate telecommunication providers,
interconnection between the SMR concessionaires and the other
public and intermediate services providers, including the PSTN,
is not mandatory. Currently, there are no SMR concessionaires in
Chile effectively interconnected to the PSTN or to other public
telecommunication services established by Subtel.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, there is no numbering plan in Chile allowing the
SMR concessionaires to request specific numbering blocks for
their subscribers nor any plan regulating the routing procedures
of the communications between SMR concessionaires and the PSTN.
We believe that the MTT is in the process of issuing new
numbering and routing plans, but we cannot assure you as to when
they will be issued, if at all, and if issued, as to the terms
and conditions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SMR concessionaires may freely determine the tariffs or fees
charged to their subscribers. However, the fees and tariffs
charged by a telecommunication concessionaire to another
telecommunication concessionaire for the services rendered
through interconnection, specifically the access charges, must be
 fixed by the authorities in accordance to a tariff setting
procedure based upon, among other things, the cost structure of
the respective concessionaire, as set forth in the GTL. This
procedure is necessary for the mandatory application of the
calling party pays system among the telecommunication
concessionaires. To date, this procedure has never been applied
to any SMR concessionaire due to the lack of interconnection
regulations applicable to them.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Finally, in order to provide ESMR services in Chile and
incorporate digital technology to the Chilean Operating
Companies&#146; networks, the SMR concessions of the Chilean
Operating Companies must be amended according to the procedures
established in the GTL. Such procedures grant to third parties
the right to file oppositions against the corresponding
concession&#146;s amendment applications.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>The purchase and
sale of foreign currency in Chile is subject to governmental
control. There are two foreign exchange markets in Chile that are
 subject to regulations of the Chilean Central Bank. The first is
 the Formal Exchange Market, which consists of banks and other
entities authorized to participate therein by the Central Bank.
This market is reserved generally for trade-related transactions,
 such as import and export transactions, registered foreign
currency investments and specified other transactions, including
remittances abroad. Other purchases and sales of foreign exchange
 may be effected outside the Formal Exchange Market in the
Informal Exchange Market by entities not expressly authorized to
operate in the Formal Exchange Market, such as foreign exchange
houses, travel agencies and others. Both markets operate at
floating rates freely negotiated between the participants. There

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<DIV align="left">
are no limits imposed on the extent to which the Informal
Exchange Rate can fluctuate above or below the Formal Exchange
Rate or the Observed Exchange Rate, which is the official
exchange rate determined each day based on the average exchange
rates observed in the Formal Exchange Market.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Foreign investments in Chile are subject to exchange controls.
Appropriate registration of a foreign investment in Chile, among
other things, grants investors access to the Formal Exchange
Market and provides specified guaranties with respect to the
ability to repatriate funds and the stability of the applicable
tax regime. Foreign investments can be registered with the
Chilean Foreign Investment Committee under Decree Law
No.&nbsp;600 of 1974 or with the Central Bank of Chile under the
Compendium of Foreign Exchange Regulations issued by the Central
Bank of Chile pursuant to the Central Bank Act.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Foreign Investment regulations permit the foreign investor to
 access the Formal Exchange Market to repatriate their
investments and profits, but do not necessarily guarantee that
foreign currency will be available in the market.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The distribution of profits by limited liability companies is not
 legally regulated in Chile. Therefore, these distributions must
be made pursuant to the regulations stated in the bylaws of the
respective limited liability company or, in the absence of the
same, as agreed by the partners. Instead, according to the
Chilean Corporations Law, corporations may distribute dividends
among their stockholders exclusively from the net profits of the
respective fiscal year or, otherwise, from retained profits
recognized by balance sheets approved by the stockholders
meeting. However, in the event of accumulated losses, profits of
the respective corporation must first be allocated to cover the
losses. Losses in a specific fiscal year must be offset with
retained profits, if any.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise agreed in the relevant stockholders meeting by
the unanimous vote of all issued shares, open stock corporations
must annually distribute, as a cash dividend to their stockholder
 in proportion to their respective shares or as otherwise stated
in the respective bylaws, at least 30% of the net profits of each
 fiscal year. In this regard, closed stock corporations must
follow the provisions of their bylaws; if the bylaws do not
contain these provisions, the rules described above for the
distribution of profits by open stock corporations apply.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In any event, the board of directors may distribute provisional
dividends if the corporation has no accumulated losses, subject
to the personal responsibility of the directors approving the
distributions.

<P align="left"><B><I>Philippines</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Nextel Philippines owns
nationwide licenses to provide SMR, ESMR and paging services.
Nextel Philippines launched commercial digital ESMR service under
 the tradename &#147;Nextel&#148; in Manila during the third
quarter of 1998. As of June&nbsp;30, 2000, Nextel Philippines
provided service to about 36,800 digital subscriber units.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Philippines is headquartered in the Ortigas business
district of metropolitan Manila. As of June&nbsp;30, 2000, Nextel
 Philippines had about 700 employees, of which about 400 were
operators serving its paging customers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>Nextel Philippines markets its SMR, ESMR and
paging services primarily to business customers. Nextel
Philippines sells its digital subscriber units in 15 business
centers and sales outlets that exclusively carry Nextel
Philippines&#146; products. To target business customers, Nextel
Philippines employs a direct sales force as well as independent
dealers and agents.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>We are one of two SMR license holders in the
Philippines. The other SMR license holder has not yet commenced
operations. There are also currently five cellular telephone

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<DIV align="left">
providers with nationwide licenses in the Philippines. SMART
Communications, Inc. is the largest cellular telephone provider.
Other competitors include Globe Telecom, Inc., referred to as
Globe; Pilipino Telecom Corporation, known as Piltel; Isla
Communications Co., Inc., referred to as ISLAcom; and Express
Telecommunications Philippines, Inc., referred to as Extelcom.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The Philippines
telecommunications industry is principally governed by Republic
Act No.&nbsp;7925, referred to as the Philippines Telecoms Act,
enacted on March&nbsp;1, 1995. Under the Philippines Telecoms
Act, the National Telecommunications Commission, referred to as
the Philippines NTC, an agency under the Department of
Transportation and Communications, regulates the
telecommunications industry.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Engaging in telecommunications operations requires a
Congressional franchise. After securing a Congressional
franchise, a franchise holder must apply to the Philippines NTC
for an operating license called a Certificate of Public
Convenience and Necessity, or CPCN, following public notice and a
 hearing. After receipt of an application for a CPCN for a
particular telecommunications service, and after the applicant
presents its evidence of legal, technical and financial
capability to operate the services at a public hearing, the
Philippines NTC initially issues a provisional authority, or PA,
which serves as a temporary operating permit and allows the
applicant to commence construction and commercial operations.
Nextel Philippines&#146; PA authorizes it to operate a nationwide
 digital trunked radio dispatch communications system. Nextel
Philippines&#146; PA is subject to revocation for failure to
(1)&nbsp;operate continuously for two years or (2)&nbsp;commence
operations within two years of the issuance of the PA or the
expiration date of any extensions to the PA. Nextel
Philippines&#146; PA is scheduled to expire on January 21, 2001.
Nextel Philippines has met the conditions required to avoid
revocation of its PA and has applied for a CPCN.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Philippines Telecoms Act provides that a telecommunications
entity with regulated types of services must make a public
offering of at least 30% of its aggregate common stock within a
period of five years from the effective date of the Telecoms Act
or the telecommunications entity&#146;s commencement of
commercial operations, whichever occurs later. Since Nextel
Philippines commenced commercial operations in February&nbsp;1995
 and the Philippines Telecoms Act became effective on
March&nbsp;22, 1995, the relevant five-year period within which
Nextel Philippines must undertake a public offering, as provided
in the Philippines Telecoms Act, expired on March&nbsp;22, 2000.
As a result, on March&nbsp;20, 2000, Nextel Philippines submitted
 to the Philippines Securities and Exchange Commission its
application for registration of its public offering. We have been
 advised by Philippines counsel that the registration process
typically exceeds one year.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On advice of legal counsel in reliance on relevant provisions of
the Philippines Telecoms Act mandating the equality of treatment
among all telecommunications companies, Nextel Philippines
believes that it is entitled by operation of law to an extension
of the deadline by which it must undertake a public offering
until February&nbsp;2005. A number of telecommunications
companies in the Philippines have been granted a period of ten
years from the start of commercial operations within which to
undertake an initial public offering. On April&nbsp;3, 2000, the
Office of the President issued an opinion stating that we should
be subject to the ten-year period by virtue of the fact that
other franchises have been allowed ten years from the start of
commercial operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Philippine law, direct ownership of a telecommunications
company by a foreign entity is limited to 40% of the
company&#146;s capital stock, referred to as the 40% Rule.
Philippine law also limits the participation of foreign investors
 in the governing body of any telecommunications enterprise to
their proportionate share in its capital. Therefore, a foreign
investor&#146;s participation in the management of a
telecommunications company is limited solely to membership on its
 board of directors and committees of the board of directors,
including but not limited to the executive committee. Further,
all the executive and managing officers, including the president,
 chief executive officer and treasurer, are required to be
citizens of the Philippines.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Presidential Executive Order No.&nbsp;59 (1993)&nbsp;prescribes,
as a matter of national policy, the compulsory and
nondiscriminatory interconnection of authorized public
telecommunications carriers. Interconnection allows the
subscribers of one telecommunications company to place and
receive calls from the subscribers of another telecommunications
company. Interconnection is negotiated and effected through
bilateral agreements between the parties involved subject to
specified technical/operational and traffic settlement rules of
the Philippines NTC. Nextel Philippines has entered into an
interconnection agreement with Philippines Long Distance
Telephone Company and is interconnected through that agreement
with most of the public telecommunications carriers in the
Philippines, except SMART and Extelcom. In May&nbsp;1999 Nextel
Philippines commenced proceedings at the Philippines NTC to
compel SMART to directly interconnect with Nextel Philippines. In
 January&nbsp;2000, the Philippines NTC issued an order requiring
 the interconnection. SMART filed a motion for reconsideration of
 the order, but Nextel Philippines, based on advice of
Philippines legal counsel, believes that the motion will be
denied. Nextel Philippines is, however, still barred from
interconnection with SMART&#146;S network, although Nextel
Philippines permits calls from the SMART network to its network.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of its effort to improve teledensity, the Philippine
government requires cellular telephone providers to meet
specified landline buildout requirements, including installation
of 400,000 telephone lines by each cellular telephone operator.
The installation represents a significant investment for each of
these providers. The Philippines NTC has determined that this
requirement is not applicable to trunked radio networks like
Nextel Philippines.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Control and Dividends. </I>Under current
regulations of the Central Bank of the Philippines, referred to
as the Philippines Central Bank, foreign exchange may be freely
sold and purchased outside the Philippine banking system.
Restrictions exist on the sale and purchase of foreign exchange
in the banking system. The Philippine Central Bank, with the
approval of the President of the Philippines, has the statutory
authority, during a foreign exchange crisis or in times of
national emergency, to temporarily suspend or restrict sales of
foreign exchange, require licensing of foreign exchange
transactions or require delivery of foreign exchange to the
Philippines Central Bank or its designee.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Foreign investments do not need to be registered with the
Philippines Central Bank. The registration of a foreign
investment with the Philippines Central Bank is only required if
the foreign exchange needed to service the repatriation and the
remittance of capital and dividends are to be sourced from the
Philippine banking system. Nevertheless, even without Philippines
 Central Bank registration, foreign exchange needed for capital
repatriation and remittance of dividends of unregistered
investments can be sourced lawfully outside of the Philippine
banking system. Under current law, there is a 20% withholding tax
 on dividends and a 15% withholding tax on interest payments.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Nextel Philippines Stockholders. </I>Our current aggregate
equity interest in Nextel Philippines, which includes our direct
and indirect holdings, is about 51%. We directly hold, through
two wholly owned subsidiaries, an aggregate of about 40% and
indirectly hold about 11% of the outstanding shares of capital
stock of Nextel Philippines. The other stockholders in Nextel
Philippines currently include:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Gamboa Holdings, which holds about 20% of the outstanding shares
	of Nextel Philippines and which is 60% owned by ACCRA Investments
	 Corporation, a Philippine holding company with investments in a
	number of Philippine companies and referred to as ACCRAIN, and
	which is 40% owned by one of our indirect subsidiaries;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Emerald Investments, which holds about 8% of the outstanding
	shares of Nextel Philippines and is 60% owned by ACCRAIN Holdings
	 Corporation and 40% owned by one of our indirect wholly-owned
	subsidiaries; and</TD>
</TR>

</TABLE>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a Philippine corporation which holds about 31% of the remaining
	outstanding shares of Nextel Philippines.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have the right to designate four of the 11 members of the
board of directors of Nextel Philippines and two of the five
members of the executive committee of that board. In our capacity
 as a stockholder in Nextel Philippines, we hold veto rights on
decisions involving the following significant corporate actions
to protect our investment in Nextel Philippines, referred to
collectively as the Company Veto Rights:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the acquisition of any entity;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the merger, consolidation or sale of the company or any
	subsidiary or any disposition of a material amount of assets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the amendment of the articles of incorporation or by-laws;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any amendment affecting the preemptive rights of stockholders;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	appointment and removal of the president and secretary;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	approval of or amendment to the annual business plan;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	entering other lines of business;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	issuances of stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the approval of annual operating and capital budgets;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any borrowings in excess of $200,000;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any transactions with affiliates in excess of $200,000;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any dispositions of assets or making loans other than in the
	ordinary course of business;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	appointment and removal of the chief executive officer and chief
	financial officer of Nextel Philippines;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	election of members of the executive committee;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	filling of vacancies of the board of directors for causes other
	than removal or expiration of term; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	decisions of the executive committee of the board.</TD>
</TR>

</TABLE>

<P align="left">
The presence of the member nominated by us is required to satisfy
 the quorum requirement for meetings of the executive committee.
Our ability to impose and use the Company Veto Rights is being
contested by other stockholders of Nextel Philippines. See
&#147;&#151;&nbsp;Legal Proceedings &#151;&nbsp;Nextel
Philippines SEC Proceedings.&#148;

<P align="left"><B><I>Japan</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating Company Overview. </I>Our affiliate, NEXNET,
launched commercial digital ESMR service in the Kanto region of
Japan, which includes Tokyo, in the third quarter of 1998. NEXNET
 provides digital ESMR services to its subscribers under a
sub-entrustment agreement with Motorola Japan Ltd., a subsidiary
of Motorola referred to as Motorola Japan. NEXNET&#146;s digital
ESMR network operates on the 1.5 GHz frequency rather than the
800 MHz frequency used by our other Operating Companies. As of
June&nbsp;30, 2000, NEXNET provided service to about 47,500
digital subscriber units. NEXNET is headquartered in Tokyo. As of
 June&nbsp;30, 2000, NEXNET had about 120 employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Marketing. </I>NEXNET&#146;s current sales and marketing
efforts focus primarily on providing cost-effective, local
digital ESMR services to its target customers, which are
primarily businesses in various industries, particularly
transportation. NEXNET believes that businesses with mobile

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<DIV align="left">
workforces are the most likely users of its integrated digital
ESMR service offerings. In addition to advertising, NEXNET relies
 on its network of independent dealers, many of which are
affiliated with Motorola, to sell NEXNET&#146;s services to
potential subscribers.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Competition. </I>The Japan Ministry of Posts and
Telecommunications, referred to as the Japan MPT, has promulgated
 regulations that provide that SMR licenses may only be granted
to nonprofit organizations. Under the Japan Radio Wave Law,
referred to as the Japan RWL, the Japan MPT has granted licenses
to two nonprofit SMR providers: National Mobile Radio Centers
Council, referred to as MRC, and Japan Mobile Telecommunications
Association, referred to as JAMTA. MRC, which began offering
commercial analog SMR service in 1982, is an association of eight
 mobile radio centers that are regionally organized and supported
 financially by the Japanese government and several other
companies. JAMTA was founded in 1993 and began offering
commercial analog SMR service the same year. MRC and JAMTA are
licensed to offer both analog and digital SMR services. These
non-profit organizations may, however, entrust the operation of
the network under a license to a commercial entity or entities.
Under an entrustment agreement, Motorola Japan is authorized to
operate JAMTA&#146;s analog SMR and digital ESMR businesses.
Motorola Japan has subentrusted the operation of JAMTA&#146;s
digital ESMR business on the 1.5 GHz frequency to NEXNET under a
sub-entrustment agreement. Motorola Japan continues to operate
JAMTA&#146;s analog SMR business, which mainly uses the 800 MHz
frequency.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Japan is divided into ten cellular licensing regions including
Kanto shin-etsu, which includes the Tokyo metropolitan area,
Tokai, Kansai, Hokuriku, Chugoku, Shikoku, Kyushu, Hokkaido,
Tohoku and Okinawa. For the most populous and economically active
 regions, Kanto, Tokai and Kansai, the Japan MPT licensed four
operators in each region. With the exception of Okinawa, three
service providers have been licensed to operate in each of the
remaining six regions. The first commercial PCS network was
launched in Japan in July 1995. The Japan MPT divided the country
 into ten personal handheld service, or PHS, licensing regions,
allowing up to three operators in each region.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The largest cellular operator is Nippon Telegraph and Telephone
DoCoMo, referred to as DoCoMo, followed by DDI, Digital Phone
Group, Nippon Idou Tsushin Corp., TU-KA Group and Digital TU-KA
Group, respectively. DDI Pocket Telephone is the largest PHS
operator, followed by Nippon Telegraph and Telephone Personal and
 Astel.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Regulatory and Legal Overview. </I>The Japan MPT regulates the
 telecommunications industry in Japan. The Japan RWL governs all
users of radio spectrum. Additionally, the Japan
Telecommunications Business Law, referred to as the Japan TBL,
governs the operations of telecommunications providers. The Japan
 MPT classifies telecommunications service providers as either
&#147;Type One&#148; or &#147;Type Two.&#148; Type One operators
own and operate the telecommunications infrastructure. All other
operators are Type Two operators. Both Type One and Type Two
operators are governed by the Japan RWL and the Japan TBL.
However, JAMTA&#146;s analog SMR and digital ESMR businesses are
only governed by the Japan RWL and JAMTA&#146;s digital ESMR
business is subentrusted to NEXNET. In order for NEXNET to
operate the subentrusted business, no license is required under
the Japan RWL.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Japan MPT regulates the radio frequencies assigned for SMR
services by granting licenses for radio equipment to be installed
 on the SMR network. Each license is granted on a nationwide
basis for a term of up to five years, renewable for additional
five-year terms. There are no loading requirements with respect
to these licenses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wireless telecommunications services operators, whether they are
Type One or Type Two, have the right to interconnect to the PSTN
subject to approval by the Japan MPT of the interconnection
agreement between the wireless telecommunications services
operator and the PSTN. The Japan MPT has approved NEXNET&#146;s
interconnection agreement with Nippon Telegraph and Telephone
Corporation, referred to as NTT.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are no foreign-ownership restrictions for Japanese
telecommunications companies other than for ownership of NTT and
Kokusai Denshin Denwa.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Currency Controls and Dividends. </I>Under current
law, the Japanese yen is convertible into U.S. dollars without
restrictions. Japan has a free exchange market for all foreign
currency transactions. Dividends and interest paid by NEXNET to
its U.S. stockholders are subject to a 10% withholding tax under
the tax treaty between the U.S. and Japan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>NEXNET Stockholders. </I>We directly hold about a 32% equity
interest in NEXNET. The other stockholders in NEXNET are DJSMR
Business Partnership, a Japanese partnership in which Motorola
Japan is the majority partner, which holds about a 51% equity
interest; Nichimen Trading Company, which holds about a 12%
equity interest; and ORIX Leasing Corporation, which holds about
a 5% equity interest. We also have an option, exercisable at any
time prior to March 31, 2001, to purchase any or all of the
NEXNET shares owned by Nichimen.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;2000, as a consequence of capital contributions
made to NEXNET by some of its stockholders to supply funds that
Nichimen Corporation was required but declined to contribute,
Nichimen transferred a portion of its shares of NEXNET stock to
the contributing stockholders, including us. Additionally, on
March&nbsp;30, 2000, we executed a stock purchase and option
agreement with Nichimen, whereby we purchased additional shares
of stock in NEXNET, for a purchase price of about
$0.4&nbsp;million. We were also granted an option, exercisable at
 any time prior to March&nbsp;31, 2001, to purchase any or all of
 the remaining NEXNET shares of stock owned by Nichimen. The
exercise price of this option will be determined based on the per
 share paid-in capital valuation at the time of the purchase. As
a result of the additional shares we acquired, our equity
ownership interest in NEXNET has increased from about 21% to
about 32%. If we exercise the option to purchase all of
Nichimen&#146;s remaining shares, our equity ownership interest
would increase to about 44%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the NEXNET stockholders agreement, seven of the eight
members of NEXNET&#146;s board of directors are designated by the
 stockholders based on their respective ownership interest. Based
 on our ownership interest, we have the right to designate two of
 NEXNET&#146;s seven directors. The eighth director is elected by
 a majority vote of all of the stockholders. The vote of six of
the seven designated directors is required regarding the overall
basic business policy, capital calls and other decisions outside
of the ordinary course of business. Any transfer of shares of
stock of NEXNET is subject to approval of the board of directors.
 In addition, each stockholder has a right of first refusal with
respect to any shares proposed to be transferred to a
nonaffiliate in accordance with a bona fide offer. The exercise
price of the option is the offer price. If the selling
stockholder has not received a bona fide offer from a
nonaffiliate, the exercise price is the proposed sale price or,
if the interested stockholders so elect, an appraisal price
determined by a qualified appraiser. In addition, each other
stockholder, instead of exercising its option to buy the selling
stockholder&#146;s shares, may elect to sell a pro rata portion
of its shares in the proposed sale. We will be required to sell
our shares if DJSMR decides to sell its shares to an unaffiliated
 third party in connection with a bona fide offer to purchase all
 of the outstanding shares of NEXNET unless, upon receipt of
notice of this offer, the other stockholders elect to purchase
all of DJSMR&#146;s shares of NEXNET upon the same terms and
conditions. A change of control of a stockholder constitutes a
default under the stockholders agreement and the other
stockholders have a call option on all, but not less than all, of
 the defaulting stockholder&#146;s shares. The exercise price of
the option is the appraisal price described above.

<P align="left"><B><I>Canada</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Clearnet is a publicly traded company whose shares are listed on
the Toronto Stock Exchange and on the Nasdaq National Market. We
currently own 583,104 class A common shares and 7,790,741 class D
 common shares, or about 14% of the outstanding equity in
Clearnet. Each class D common share is convertible at the option
of the holder into one class A

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<DIV align="left">
common share. Under specified circumstances, in order to comply
with Canadian foreign investment regulatory requirements, we may,
 pursuant to contractual obligations, also be required by
Clearnet to convert class D common shares into class A common
shares. Clearnet is the largest SMR operator in Canada as
measured by the number of current subscribers, the number of 800
MHz channels and the population of its service territory.
Clearnet reported that as of June&nbsp;30, 2000, it provided
digital services to about 672,500 subscriber units, including
274,200 digital ESMR subscriber units, and that its digital ESMR
service covered a population of about 20.8&nbsp;million.
Additionally, Clearnet holds one of the two national 30 MHz
licenses to provide PCS in Canada. Clearnet launched PCS services
 in some of Canada&#146;s major metropolitan areas in
October&nbsp;1997 and reported that as of June 30, 2000, it had
about 398,300 PCS subscribers. We are contractually entitled to
one representative on Clearnet&#146;s board of directors.
Clearnet files periodic and other reports with the Securities and
 Exchange Commission pursuant to the requirements of the
Securities Exchange Act of 1934. More detailed and specific
information concerning Clearnet and information regarding our
rights to representation on the Clearnet board of directors is
contained in Clearnet&#146;s reports filed under the Securities
Exchange Act.
</DIV>

<P align="left"><B><I>Shanghai, People&#146;s Republic of China</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Shanghai GSM System was a cooperative project established by
Unicom and Shanghai Science Technology Investment Corp. Ltd.,
referred to as SSTIC, to construct and operate a GSM cellular
network in Shanghai. The Shanghai GSM System commenced commercial
 operations in July&nbsp;1995.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;1995, we formed a joint venture with SSTIC under
which we provided financial support for construction of the
initial phases of the Shanghai GSM System in exchange for a
contractual right to share profits from the system with SSTIC. We
 also provided advice and direction to the Shanghai GSM System in
 the key areas of engineering, customer care, billing practices,
quality assurance and system performance.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December&nbsp;1997, CCT Technology Services Limited, referred
to as CCT, acquired a 51% ownership interest in the joint venture
 with SSTIC in exchange for about $46.0&nbsp;million of
investments in the forms of equity, stockholder loans,
stockholder guarantees and fees. Upon receipt of government
approvals for CCT&#146;s investment, the joint venture changed
its name to Shanghai CCT-McCaw Telecommunications System Co.,
Ltd., referred to as Shanghai CCT McCaw. As of December&nbsp;31,
1999, our ownership interest in Shanghai CCT McCaw was 30%. Based
 on that ownership interest, we had a contractual right to
receive 12% of the profits of the Shanghai GSM System.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September&nbsp;1999, Unicom advised Shanghai CCT McCaw and all
 similarly situated investors in Unicom, that under a new policy
of the Chinese government, all existing arrangements between
Unicom and joint ventures in which foreign companies had invested
 needed to be terminated.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following several months of discussions with Unicom, and based on
 advice of legal and financial advisers, on March&nbsp;17, 2000,
Shanghai CCT McCaw signed an agreement with Unicom terminating
our cooperation agreement. On April&nbsp;1, 2000, in connection
with the termination, Shanghai CCT McCaw received about
$61.3&nbsp;million based on the exchange rate in effect on
April&nbsp;1, 2000, and we received warrants to purchase shares
of Unicom common stock. The warrants are exercisable for about
8.2&nbsp;million shares during the period commencing in
December&nbsp;2000 and ending in June&nbsp;2001 at the initial
public offering price of HK$15.58 or US$2.00 per share. The
carrying value of our minority interest in Shanghai CCT McCaw was
 about $15.0&nbsp;million as of March&nbsp;31, 2000, which we
expect to fully recover through a cash distribution from Shanghai
 CCT McCaw based on the terms of the agreement. On May&nbsp;24,
2000, we received a reimbursement of $7.5&nbsp;million for
advances made to Shanghai CCT McCaw. We are currently working
with the other stockholders of the joint venture to arrange
reimbursement

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<DIV align="left">
of expenses incurred by the stockholders related to their
investments in Shanghai CCT McCaw and final liquidation of the
joint venture. Any funds remaining after payment of existing
obligations will be distributed among the stockholders of
Shanghai CCT McCaw. We would be entitled to receive 30% of the
total amount so distributed based on our ownership interest.
</DIV>

<P align="left"><B>Employees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, we had about 70 employees at the
corporate level, and our consolidated subsidiaries had about
2,500 employees. Neither we nor any Operating Company that we
control is a party to any collective bargaining agreement, and we
 believe the relationship between us and our employees, and
between each of the Operating Companies that we control and its
employees, is good.

<P align="left"><B>Properties</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June&nbsp;1999, we moved our principal executive and
administrative offices to the same location in Reston, Virginia
as Nextel Communications&#146; new principal executive and
administrative offices. We since have moved our principal
executive and administrative offices to a nearby location, also
in Reston, Virginia where we lease about 16,900 square feet of
office space under a lease expiring in December&nbsp;2003. Prior
to our relocation to Reston, Virginia, our principal executive
and administrative offices were located in Seattle, Washington
where we continue to lease about 6,600 square feet of office
space. We intend to retain our former office space in Seattle
until the expiration of our lease in December&nbsp;2000 for use
as our Asia/ Pacific regional office and to house other
administrative services. In addition, our Operating Companies
lease office space and cell sites in each of the countries where
they conduct business.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each Operating Company leases cell sites for the transmission of
radio service under various individual site leases. Most of these
 leases are for terms of five years or less, with options to
renew. As of June&nbsp;30, 2000, our consolidated subsidiaries
had constructed sites at leased locations for their ESMR
business, as shown below:

<CENTER>
<TABLE width="50%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="81%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Operating</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Company</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Nextel Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">475</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Nextel Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">210</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Nextel Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Nextel Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">950</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>Legal Proceedings</B>

<P align="left"><B><I>Nextel Philippines SEC Proceedings</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Immediately prior to the Nextel Philippines annual stockholders
meeting on July&nbsp;13, 1998, the Philippines Securities and
Exchange Commission issued a temporary restraining order in favor
 of several Nextel Philippines stockholders. These stockholders
requested nullification of previously adopted amendments of the
bylaws of Nextel Philippines contemplated by the corporate
governance provisions of agreements entered into with local
stockholders of Nextel Philippines, referred to as the
Philippines Partner Agreements. The temporary restraining order
enjoined Nextel Philippines from implementing those bylaw
amendments for a 72-hour period. The stockholders further
requested that a preliminary injunction be issued with the same
effect pending a trial on the merits on the validity of the bylaw
 amendments. On July&nbsp;15, 1998, pursuant to the agreement of
Nextel Philippines and the stockholders, which agreement was
confirmed by the Philippines Securities and Exchange Commission,
the temporary restraining order was permitted to expire and,
pending a trial on the merits as to the validity of the bylaw
amendments,

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<DIV align="left">
(1)&nbsp;the petitioners agreed to withdraw their petition for a
preliminary injunction and (2)&nbsp;Nextel Philippines agreed
that the provisions of the bylaw amendments granting Nextel
International certain veto rights in corporate governance matters
 would not be implemented. Although we cannot predict the outcome
 of this proceeding, we believe that the stockholders&#146;
claims are without merit, and Nextel Philippines intends to
vigorously defend against those claims.
</DIV>

<P align="left"><B><I>Nextel Philippines Arbitration</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On October&nbsp;30, 1998, under the dispute resolution provisions
 of the Philippines Partner Agreements, we commenced arbitration
proceedings in Hong Kong against the petitioners, two of the
local stockholders of Nextel Philippines, in which we asserted
that the two stockholders had failed to perform their respective
contribution obligations under the Philippines Partner
Agreements. We seek equitable and legal relief, including, but
not limited to, compensatory damages and injunctive relief.

<P align="left"><B><I>Telcom Ventures</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January&nbsp;1997, we purchased 81% of the capital stock of
McCaw Brazil, which entitled us to 90% of the voting rights. The
Founders Group, represented by Telcom Ventures, owned 19% of the
capital stock at that time, which entitled it to 10% of the
voting rights. Pursuant to a stockholders agreement, the Founders
 Group had the right so long as it maintained at least a 10%
ownership interest in McCaw Brazil to designate candidates
representing at least 10% of the directors of McCaw Brazil. The
Founders Group also was entitled to veto rights with respect to
certain significant corporate actions such as mergers or sales of
 substantially all of the assets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the stockholders agreement, the Founders Group had the
right to defer making its pro rata share of any capital calls
that may have arisen until April&nbsp;29, 1999 without suffering
any dilution of its right to receive dividends and other cash or
noncash distributions. The Founders Group ultimately did not make
 these capital contributions by April&nbsp;29, 1999 in accordance
 with the relevant terms of the stockholders agreement, which
resulted in the proportionate dilution of its equity interest in
McCaw Brazil. Since the Founders Group&#146;s share of McCaw
Brazil&#146;s capital stock dropped below 10%, it was no longer
entitled to designate a member of the McCaw Brazil board of
directors. We called upon the Founders Group&#146;s designated
director to resign, but he refused. On August&nbsp;16, 1999, we
and McCaw Brazil filed a motion for judgment against Telcom
Ventures in the Circuit Court for the City of Alexandria,
Virginia, seeking a declaration:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(i)&nbsp; that the Founders Group&#146;s option, pursuant to a
	stockholders&#146; agreement, to pay its share of capital
	contributions during an agreed upon grace period was not properly
	 exercised;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(ii)&nbsp; that the Founders Group&#146;s ownership interest in
	McCaw Brazil had fallen below 10%;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(iii)&nbsp; that, because the Founders Group&#146;s ownership
	interest in McCaw Brazil had fallen below 10%, the Founders Group
	 was no longer entitled to designate a director to serve on the
	McCaw Brazil board of directors; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(iv)&nbsp; that the director previously designated by the
	Founders Group must resign from the McCaw Brazil board of
	directors.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;15, 1999, Telcom Ventures filed its answer
denying the material allegations made in the motion for judgment,
 and asserted a counterclaim alleging that we breached a
fiduciary duty to Telcom Ventures and that McCaw Brazil breached
a contract with Telcom Ventures by allegedly issuing shares for
less than fair market value without the informed consent of the
director designated by the Founders Group. The counterclaims were
 twice amended to assert claims of constructive fraud and actual
fraud against both McCaw Brazil and us. According to their
pleadings, Telcom Ventures intended to seek compensatory damages
of

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<DIV align="left">
$100&nbsp;million plus punitive damages. We and McCaw Brazil
timely filed a denial of the material allegations in the
counterclaim.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;26, 2000, Telcom Ventures filed a second complaint
in Chancery in the Circuit Court of the City of Alexandria,
Virginia, against McCaw Brazil and Nextel International, seeking:
 (i)&nbsp;dissolution of McCaw Brazil because of alleged
&#147;oppression&#148; of the minority stockholders by Nextel
International; (ii)&nbsp;rescission of the issuance to Nextel
International of shares of McCaw Brazil&#146;s stock;
(iii)&nbsp;an injunction preventing action by McCaw Brazil&#146;s
 board of directors without the participation of a director
appointed by the Founders Group; (iv)&nbsp;declaration of a
constructive trust; (v)&nbsp;an accounting; and (vi)&nbsp;other
declaratory and injunctive relief. McCaw Brazil and Nextel
International timely filed a denial of the material allegations
in that complaint.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;7, 2000, the court denied McCaw Brazil&#146;s and
Nextel International&#146;s motion for partial summary judgment
on the August&nbsp;16, 1999 complaint. On July&nbsp;10, 2000,
Telcom Ventures filed a motion for partial summary judgment on
its claims of breach of fiduciary duty and constructive fraud,
and for summary judgment on McCaw Brazil&#146;s and Nextel
International&#146;s August&nbsp;16, 1999 motion for judgment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;21, 2000, we entered into a purchase, release and
settlement agreement with the Founders Group. Under that
agreement, on August&nbsp;4, 2000, we made a cash payment to
members of the Founders Group totaling $146.0 million, received
all of the equity interests held by the Founders Group in McCaw
Brazil, and exchanged mutual releases with all of the members of
the Founders Group. In addition, all pending court disputes
between us and Telcom Ventures, a member of the Founders Group,
were permanently dismissed. As a result, we now own 100% of McCaw
 Brazil, and all the rights of the Founders Group as minority
stockholders in McCaw Brazil, including their rights to put their
 equity interests to us, beginning in October&nbsp;2001, were
terminated.

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<!-- link1 "INDUSTRY OVERVIEW" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center"><B>INDUSTRY OVERVIEW</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The global telecommunications industry is undergoing rapid
change, fueled by:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	privatization;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	increased competition;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	expansion of wireless services;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	growth of the Internet;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	increased use of data-intensive applications; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	deployment of higher-capacity digital networks.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Historically, wireline penetration rates in emerging markets of
Latin America, the Middle East and Asia have been significantly
below those of most industrialized countries due to the lack of
investment in telecommunications infrastructure. We believe that
the rapid growth of wireless communications services in emerging
markets is expected to outpace that of the global wireless
communications industry due to the low wireline penetration and
significant demand for telecommunications services in these
markets.

<P align="left"><B>Global Telecommunications Growth Trends</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Growth in the telecommunications industry in these markets, and
particularly wireless communications, has been driven by a number
 of trends that are expected to cause this growth to continue.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<I>Privatization Leads to Increases in Penetration.</I> The
	opening of telecommunications markets to new entrants has
	resulted in increased competition in the sector overall.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<I>Increased Competition Broadens the Size of the Addressable
	Market.</I> With the introduction of new entrants, the price of
	wireless communication services to the consumer declines, in
	effect, expanding the size of the addressable market. In
	addition, many wireless operators have launched lower-priced
	prepaid plans to target large segments of the population with
	lower incomes and limited credit.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<I>Expanding Penetration Lowers Per Subscriber Costs.</I> This
	increased subscriber base allows wireless operators to distribute
	 the fixed costs of wireless networks over a greater number of
	users, thereby reducing the per subscriber cost of providing
	these services. In addition, wireless operators are increasingly
	employing digital technology on their networks, which allows for
	the more efficient use of spectrum.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<I>Offering Calling Party Pays Billing Increases Wireless Service
	 Usage.</I> Regulators in many markets are increasingly allowing
	calling party pays, or CPP, billing systems, under which wireless
	 service charges associated with a call are billed to the person
	who initiates the call. CPP increases wireless usage, reduces the
	 overall cost of mobile ownership to the subscriber and
	encourages mobile subscribers to accept more incoming calls.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	<I>Developing Data Applications Further Expands Wireless Service
	Utility and Functionality.</I> The covergence of personal
	computing, the Internet and wireless communications is expanding
	the utility and functionality of wireless services. The
	introduction of wireless portals and web services to facilitate
	access to Internet applications through mobile phones is in its
	early stages.</TD>
</TR>

</TABLE>

<P align="left"><B>Latin American Telecommunications Opportunity</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With a population of 469&nbsp;million and a combined gross
domestic product, or GDP, of approximately $1.7&nbsp;trillion in
1999, Latin America is a large and attractive telecommunications

<P align="center">80

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
market. The following table shows, for core countries in which we
 operate or are licensed to operate, population, wireline and
wireless penetration, and the wireless growth rate as of
December&nbsp;31, 1999 as compared to the United States and
Western Europe.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="39%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Population</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Wireline</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Wireless</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Wireless Growth</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Country</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>(in millions)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Penetration(%)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Penetration&nbsp;%</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Rate (98-99)%</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	United States</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">276.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">66.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24.3</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Western Europe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">386.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62.4</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Brazil</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">168.0</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.9</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">93.7</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Mexico</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">97.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">127.5</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Argentina</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36.6</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">75.3</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Peru</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33.2</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Chile</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.0</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">134.5</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Canada</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23.0</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31.6</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Japan</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">126.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">49.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">44.9</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.2</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Philippines</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">74.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="26%" align="left">

<DIV align="left">
<FONT size="2">*&nbsp; Not available</FONT>
</DIV>

<P align="left">
<FONT size="2">Penetration rates above and elsewhere in this
section represent the number of subscribers in any given
territory expressed as a percentage of the total population in
that territory.</FONT>

<P align="left">
<FONT size="2">Source: International Telecommunications Union.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
We have focused our efforts in Latin America because of its
attractive growth prospects for our digital integrated wireless
communications service offerings. Low levels of wireline
penetration have presented an opportunity for wireless services
operators to satisfy the significant demand for
telecommunications services in many parts of Latin America,
contributing to rapid initial growth. Wireline networks require
the construction of extensive infrastructure in the form of
buried or overhead cable networks, while wireless communications
systems generally require less extensive construction. For
developing countries, wireless communications systems can
represent a more cost-effective and faster method of expanding
telecommunications infrastructure than traditional wireline
networks.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Historically, Latin America has experienced significant growth in
 wireless services, as reflected in a compounded annual growth
rate of 82% in subscribers from 1996 through 1999. According to
Pyramid Research, wireless subscribers in Latin America are
estimated to grow at a compounded annual growth rate of 22% for
the period 1999 to 2004. Wireless service revenues in the region
accounted for about $14.1&nbsp;billion in 1999 with a compounded
annual growth rate estimated at about 19% for the period 1999 to
2004.

<P align="center"><B>Latin American Wireless Market Growth Projections</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="44%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Growth</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000E</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2001E</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2002E</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2003E</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2004E</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Rate</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	End-of-period penetration</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8.2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.2</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Total service revenues (in billions)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20.7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24.8</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31.3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33.6</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.9</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Average subscribers (in millions)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53.7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68.8</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">81.3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92.9</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103.6</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22.1</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="26%" align="left">

<DIV align="left">
<FONT size="2">Source: Pyramid Research.</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
Continued growth of wireless services is expected to result from
increased penetration and usage as: service costs decline;
wireless network coverage and capacity expands; and service
functionality increases. As wireless providers acquire customers
and build high-capacity networks, they are positioned to provide
a broader array of wireless services, such as Internet access,
e-mail and other data applications like short messaging services.
 As capacity expands and service functionality improves, we
believe high-end residential and business customers will

<P align="center">81

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
be more likely to discriminate in favor of a more robust wireless
 product and service offering, including value-added and data
applications.
</DIV>

<P align="left"><B>Nextel Communications</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our parent, Nextel Communications, is a digital wireless provider
 with nationwide coverage in the United States. Beginning in the
third quarter of 1996, Nextel Communications deployed
Motorola&#146;s second generation iDEN technology. Since that
time, Nextel Communications has grown digital subscriber units in
 service at a compounded annual growth rate of 138%. For the
second quarter 2000, Nextel Communications reported
5.6&nbsp;million digital subscriber units in service.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Communications&#146; performance during this period is
attributable to several factors including: the improved
performance in Motorola&#146;s second generation iDEN technology;
 its expanded footprint to provide nationwide coverage; and
innovative marketing programs to support its differentiated
services. Specifically, iDEN technology&#146;s unique
differentiation from other digital standards is its dispatch
service, which is marketed by Nextel Communications and by us as
Nextel Direct Connect. Moreover, iDEN technology offers the same
wireless features as digital cellular and PCS service, including
call forwarding, call waiting and greater call privacy. In the
United States, Nextel Communications has successfully targeted
the mobile workforce and is increasingly moving upmarket to white
 collar professionals.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business strategy is to enter selected international markets
targeting mobile business users. Based on the experience of
Nextel Communications in the United States, we believe business
customers are more likely to recognize the advantages and value
of our integrated wireless service offerings. In contrast to
Nextel Communications, however, we focus on offering our services
 in major business centers and related transportation corridors.
We believe that this strategy offers us the opportunity to
allocate our capital more efficiently, by deploying our digital
ESMR networks in areas where we believe there are high
concentrations of the market&#146;s business users, economic
activity and, in Latin America, wealth as measured by GDP. In
addition, our focus on emerging markets positions us to exploit
the significant growth opportunities presented by the relatively
low wireline and wireless penetration rates in those markets.
Accordingly, our performance may not be similar to that of Nextel
 Communications.

<P align="center">82
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<!-- link1 "MANAGEMENT" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center"><B>MANAGEMENT</B>

<P align="left"><B>Executive Officers and Directors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have set forth below information on our executive officers and
 directors as of August&nbsp;15, 2000:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="47%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="44%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Age</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Positions</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Timothy M. Donahue</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chairman of the Board of Directors</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">40</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice Chairman of the Board of Directors</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Steven M. Shindler</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">37</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chief Executive Officer and Director</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">45</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief Operating Officer</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President and Chief Financial Officer</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Daniel F. Akerson</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	C. James Judson</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">55</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Dennis M. Weibling</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">49</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Timothy M. Donahue </I>has been Chairman of our board since
July&nbsp;1999 and a director since August&nbsp;1997.
Mr.&nbsp;Donahue has served as President and Chief Executive
Officer of Nextel Communications since July&nbsp;1999 and as a
director of Nextel Communications since June&nbsp;1996. From
February&nbsp;1996 until July&nbsp;1999, Mr.&nbsp;Donahue was
President and Chief Operating Officer of Nextel Communications.
From 1986 to January&nbsp;1996, Mr.&nbsp;Donahue held various
senior management positions with AT&#38;T Wireless Services,
formerly McCaw Cellular Communications, including, most recently,
 Regional President for the Northeast. Mr.&nbsp;Donahue is a
director of Nextel Partners, Inc. and SpectraSite Holdings, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Keith D. Grinstein </I>has been Vice Chairman of our board
since August&nbsp;1999 and a director since January&nbsp;1996.
Mr.&nbsp;Grinstein was our President from January 1996 until
March&nbsp;1999 and our Chief Executive Officer from
January&nbsp;1996 until August&nbsp;1999. From January&nbsp;1991
to December&nbsp;1995, Mr.&nbsp;Grinstein was President and Chief
 Executive Officer of the aviation communications division of
AT&#38;T Wireless Services. Mr.&nbsp;Grinstein also held a number
 of positions at McCaw Cellular Communications and its
subsidiaries, including Vice President and Assistant General
Counsel of McCaw Cellular Communications and Vice President,
General Counsel and Secretary of LIN Broadcasting Company.
Mr.&nbsp;Grinstein currently is a director of The Ackerley Group
Inc., F5 Networks Inc. and Nextera Enterprises Inc. and a partner
 of Second Avenue Partners.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Steven M. Shindler </I>has been a director on our board since
May&nbsp;1997 and has been our Chief Executive Officer since
March&nbsp;24, 2000. Mr.&nbsp;Shindler is also Executive Vice
President and Chief Financial Officer of Nextel Communications, a
 position he has held since May&nbsp;1996. From 1987 to
May&nbsp;1996, Mr.&nbsp;Shindler was an officer with Toronto
Dominion Bank, where, most recently, he was a Managing Director
in its communications finance group. Mr.&nbsp;Shindler also
serves as a director of SpectraSite Holdings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Lo van Gemert </I>has been our President and Chief Operating
Officer since September&nbsp;1999. Mr.&nbsp;van Gemert served as
Senior Vice President of Nextel Communications from
July&nbsp;1999 until August&nbsp;2000 and as Nextel
Communications&#146; President of the North Region from
October&nbsp;1996 until August&nbsp;1999. Before joining Nextel
Communications in 1996, Mr. van Gemert served as Executive Vice
President at Rogers Cantel in Canada, where he was responsible
for PCS, paging, data and air-to-ground services. From 1980 to
1994, Mr. van Gemert held various senior management positions,
domestically and abroad, at Sony Corporation and BellSouth
Corporation.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Byron R. Siliezar </I>has been our Vice President and Chief
Financial Officer since January&nbsp;1999. From July&nbsp;1998 to
 January&nbsp;1999, Mr.&nbsp;Siliezar was our Vice President and
Controller. Mr.&nbsp;Siliezar served as Vice President of Finance
 at Neodata Corporation, a subsidiary of EDS Corporation, from
1997 until joining us, as International Controller of Pagenet,
Inc. from 1996 until 1997 and in various executive and management
 positions at GTE Corporation from 1982 to 1996, most recently as
 Director&nbsp;&#151;&nbsp;Mergers &#38; Acquisitions for GTE
Telephone Operations from 1995 to 1996.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Jose Felipe </I>has served as our Vice President since January
 1999. From July 1998 to January 1999, Mr.&nbsp;Felipe was our
Vice President&nbsp;&#151; Latin America. From 1991 to 1998,
Mr.&nbsp;Felipe held various senior management positions with
AT&#38;T Corp., most recently President and Chief Executive
Officer of the Puerto Rico and Virgin Islands region and Vice
President of Emerging Markets of the Latin American Region.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Daniel F. Akerson </I>has been a director on our board since
March&nbsp;1996. Mr.&nbsp;Akerson served as Chairman of our board
 from March&nbsp;1996 until July&nbsp;1999. Mr.&nbsp;Akerson is
also currently Chairman of the board of directors of Nextel
Communications, a position he has held since March&nbsp;1996 and
serves as a member of the operations committee of that board of
directors. From March&nbsp;1996 until July&nbsp;1999,
Mr.&nbsp;Akerson was Chief Executive Officer of Nextel
Communications. Since September&nbsp;1999, Mr.&nbsp;Akerson has
served as Chairman and Chief Executive Officer of NEXTLINK
Communications, Inc., a publicly held competitive local exchange
carrier controlled by Craig&nbsp;O. McCaw. From June&nbsp;1993 to
 March&nbsp;1996, Mr.&nbsp;Akerson served as a general partner of
 Forstmann Little &#38; Co., a private investment firm, and also
held the positions of Chairman of the board and Chief Executive
Officer of General Instrument Corporation, a technology company
acquired by Forstmann Little. From 1983 to 1993, Mr.&nbsp;Akerson
 held various senior management positions with MCI Communications
 Corporation, including President and Chief Operating Officer.
Mr.&nbsp;Akerson serves as a director of American Express Company
 and America Online, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Steven P. Dussek </I>has served as a director on our board
since March&nbsp;1999. From September&nbsp;1999 until
March&nbsp;2000, Mr.&nbsp;Dussek was our Chief Executive Officer.
 Mr.&nbsp;Dussek was our President and Chief Operating Officer
from March 1999 until September&nbsp;1999. Since May&nbsp;1996,
Mr.&nbsp;Dussek has served in various senior management positions
 with Nextel Communications, most recently as Executive Vice
President and Chief Operating Officer. From May&nbsp;1995 to May
1996, Mr.&nbsp;Dussek served as Vice President and General
Manager of the Northeast Region for the PCS division of AT&#38;T
Wireless Services. From 1993 to March&nbsp;1995, Mr.&nbsp;Dussek
served as Senior Vice President and Chief Operating Officer of
Paging Networks, Inc. Mr.&nbsp;Dussek is currently a director of
Clearnet.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>C.&nbsp; James Judson </I>has been a director on our board
since February&nbsp;1995. Mr. Judson is also Vice President,
Secretary and General Counsel of Eagle River, Inc., a company
formed to make strategic investments in telecommunications
ventures. He has held those positions since January&nbsp;1995.
From 1969 to January 1995, Mr.&nbsp;Judson was a partner in the
Davis Wright Tremaine law firm.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dennis M. Weibling </I>has been a director on our board since
February&nbsp;1995. From October&nbsp;1995 to March&nbsp;1996,
Mr.&nbsp;Weibling served as Nextel Communications&#146; acting
Chief Executive Officer. Mr.&nbsp;Weibling is currently President
 of Eagle River, a position he has held since 1993.
Mr.&nbsp;Weibling is a director of Nextel Communications and is a
 member of the operations committee, audit committee and
compensation committee of the Nextel Communications board of
directors. He is also a director of NEXTLINK Communications and
Nextel Partners.

<P align="left"><B>Other Key Senior Management</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Peter&nbsp;A. Foyo </I>has served as President of Nextel
Mexico since August 1998. From 1988 to 1998, Mr.&nbsp;Foyo held
various senior management positions with AT&#38;T Corp., most
recently as Corporate Strategy Director of Alestra S.A. de C.V.,
a joint venture between AT&#38;T and a local

<P align="center">84

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<DIV align="left">
Mexican partner. In that position, Mr.&nbsp;Foyo was responsible
for developing a pan regional network plan for Latin America
including fixed, wireless and network services on Alestra&#146;s
behalf.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Alexis Mozarovski </I>has served as President of Nextel Brazil
 since June 1999. From 1980 to 1999, Mr.&nbsp;Mozarovski held
various positions with Aydin Corp., most recently as Vice
President for Latin American Operations and President of Aydin
S.A. where he was responsible for implementing communication
systems for government agencies and cellular companies throughout
 Latin America.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Miguel&nbsp;A. Rivera</I> has served as President of Nextel
Peru since January 2000. Previously, Mr.&nbsp;Rivera was the
General Manager of the Lima Stock Exchange from 1999 to 2000.
From 1986 to 1998, Mr.&nbsp;Rivera held various executive
positions with IBM in Latin America, most recently as General
Manager&nbsp;&#151; Manufacturing Industry, Latin America, where
he was responsible for implementing the IBM manufacturing
industry strategy throughout the region.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Antonio&nbsp;M. Urera</I> has served as President and Chief
Operating Officer of Nextel Philippines since June 1998. From
March 1997 to May 1998, Mr.&nbsp;Urera held various senior
management positions at Bayentel Telecommunications, Inc., most
recently as Executive Vice President&nbsp;&#151; Network Group
from September 1997 to May 1998. From January 1989 to March 1997,
 Mr.&nbsp;Urera held a number of positions at Eastern
Telecommunications Philippines, Inc., including Senior Vice
President for Operations, with responsibility for sales,
marketing and technical operations as well as General Manager and
 Chief Operating Officer.

<P align="left"><B>Committees of the Board of Directors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established three committees: an audit committee, a plan
administration committee and an executive committee.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Audit Committee. </I>We established an audit committee in
November&nbsp;1997. Messrs.&nbsp;Weibling (Chairman) and Shindler
 serve as members of the audit committee. The audit committee
reviews with our management, the internal auditors and the
independent auditors, our policies and procedures with respect to
 internal control; reviews significant accounting matters;
approves the audited financial statements before public
distribution; approves any significant changes in our accounting
principles or financial reporting practices; reviews independent
auditor services; and recommends to our board of directors the
firm of independent auditors to audit our consolidated financial
statements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Plan Administration Committee. </I>We established a plan
administration committee in June&nbsp;1998. Messrs.&nbsp;Weibling
 (Chairman) and Judson serve as members of the plan
administration committee. The plan administration committee
administers, and makes all ongoing determinations concerning
matters relevant, to our equity incentive plans.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Executive Committee. </I>We established an executive committee
 in March&nbsp;1999. Messrs.&nbsp;Donahue (Chairman), Weibling
and Shindler serve as members of the executive committee. The
executive committee exercises the authority of our board of
directors with respect to the management of our company, subject
to limitations imposed by applicable law and our board of
directors.

<P align="left"><B>Compensation of Executive Officers</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the table and discussion below, we summarize the compensation
earned during the last three fiscal years by: (1)&nbsp;each
individual who served as our Chief Executive Officer during 1999;
 (2)&nbsp;each of our three other most highly compensated
executive officers who earned more than $100,000 in salary and
bonuses for services rendered in all capacities during 1999; and
(3)&nbsp;one other individual who would have been among the
individuals in clause (2)&nbsp;above but for the fact that he was
 not serving as an executive officer at December&nbsp;31, 1999.
We refer to these individuals collectively as the Named Executive
 Officers. Information throughout this prospectus

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<DIV align="left">
related to the Nextel Communications&#146; incentive equity plan
reflects its 2-for-1 common stock split effective in June 2000.
</DIV>

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="25%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>Annual</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>Compensation</B></FONT></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Long-Term Compensation Awards</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Annual</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Securities</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Compen-</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Restricted</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name and Principal Position</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Year</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Salary($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Bonus($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>sation($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Stock Awards($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options(#)(1)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">150,618</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">458,400</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(4)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1,420,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Chief Executive</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein(6)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">207,518</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">113,400</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice Chairman and former</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">195,054</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">73,426</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">120,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">180,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">79,200</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">2,080,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Executive Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert(7)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">98,928</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">79,270</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1,438,200</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(8)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">250,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">197,708</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">100,620</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">260,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">56,250</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(9)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">23,494</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">86,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Financial Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">236,688</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">149,900</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">188,454</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(11)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">380,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">116,795</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">75,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">360,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Heng-Pin Kiang(12)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">128,323</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">30,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Senior Vice</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">165,769</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">50,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">28,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President, General Counsel and Secretary</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">160,940</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">60,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1,130,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">5,572</FONT></TD>
	<TD></TD>
</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="40%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="57%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="18%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="18%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>All Other</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name and Principal Position</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Compensation($)(2)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">72,511</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(5)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Chief Executive</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein(6)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">3,800</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice Chairman and former</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">3,900</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">3,200</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Executive Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert(7)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">2,672</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">34,544</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(10)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President and Chief</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">76,854</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(10)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Financial Officer</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">36,805</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(11)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">37,000</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(11)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Heng-Pin Kiang(12)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">62,614</FONT></TD>
	<TD align="left" valign="top" nowrap><FONT size="2">(12)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Senior Vice</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">7,600</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President, General Counsel and Secretary</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="6%"></TD>
	<TD width="94%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (1)&nbsp;</TD>
	<TD align="left">
	We granted options under the Nextel International 1997 stock
	option plan. Additionally, all of the Named Executive Officers
	also have received equity awards pursuant to the Nextel
	Communications incentive equity plan. Options generally vest over
	 a four-year period and become exercisable, subject to the
	provisions of each plan, for shares of our common stock and
	Nextel Communications class A common stock, respectively. Stock
	appreciation rights were granted under our stock appreciation
	rights plan. As of December&nbsp;31, 1999, all but one holder of
	stock appreciation rights granted under our stock appreciation
	rights plan, including all of the members of senior management,
	had agreed to exchange their stock appreciation rights for
	options granted under the Nextel International 1997 stock option
	plan.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (2)&nbsp;</TD>
	<TD align="left">
	This is comprised of our contributions to the Nextel
	Communications Section&nbsp; 401(k) Plan and the value received
	from purchases under the Nextel Communications stock purchase
	plan, which reflects the difference between the purchase price,
	which is the lower of 85% of market value at the beginning or the
	 end of each quarter, and the market value.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (3)&nbsp;</TD>
	<TD align="left">
	Mr.&nbsp;Dussek is currently a director and from
	September&nbsp;1999 until March 2000 was our Chief Executive
	Officer. He was our President and Chief Operating Officer from
	March&nbsp; 1999 until September&nbsp;1999. As Mr.&nbsp;Dussek is
	 also the Executive Vice President and Chief Operating Officer of
	 Nextel Communications, Nextel Communications has paid
	Mr.&nbsp;Dussek&#146;s salary and bonus since
	September&nbsp;1999. The salary and bonus shown represents only
	the salary and bonus paid with respect to 1999 by us.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (4)&nbsp;</TD>
	<TD align="left">
	Mr.&nbsp;Dussek&#146;s deferred stock award granted in 1999 is
	based on 30,000 shares times $15.28&nbsp;per share, which was the
	 closing price of Nextel Communications&#146; class A common
	stock on February&nbsp;18, 1999, the date of award.
	Mr.&nbsp;Dussek&#146;s deferred stock award vests ratably on each
	 of the first three anniversary dates of the grant date. The
	value of the shares covered by Mr.&nbsp;Dussek&#146;s deferred
	stock award as of December&nbsp;31, 1999 was $1,546,875 (30,000
	shares times $51.5625, the closing price of Nextel
	Communications&#146; class A common stock on that date).</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (5)&nbsp;</TD>
	<TD align="left">
	The $72,511 represents Mr.&nbsp;Dussek&#146;s allowance for
	relocation expenses.</TD>
</TR>

</TABLE>

<P align="center">86
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="6%"></TD>
	<TD width="94%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (6)&nbsp;</TD>
	<TD align="left">
	Mr.&nbsp;Grinstein is currently Vice Chairman of our board of
	directors. He was our President until March&nbsp;1999 and our
	Chief Executive Officer until August&nbsp;1999.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (7)&nbsp;</TD>
	<TD align="left">
	Mr. van Gemert became our President and Chief Operating Officer
	in September&nbsp; 1999.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (8)&nbsp;</TD>
	<TD align="left">
	Mr. van Gemert was granted two deferred stock awards during 1999.
	 On February&nbsp; 18, 1999, Mr.&nbsp;van Gemert received 20,000
	shares which vest ratably on each of the first three anniversary
	dates of the grant date. On September&nbsp;1, 1999, Mr.&nbsp;van
	Gemert received 40,000 shares which vest 100% on the fourth
	anniversary of the grant date. The closing price of a share of
	Nextel Communications&#146; class&nbsp;A common stock on the
	award dates was $15.280 on February&nbsp;18, 1999 and $28.313 on
	September&nbsp;1, 1999. The value of the shares covered by
	Mr.&nbsp;van Gemert&#146;s deferred stock award as of
	December&nbsp;31, 1999 was $3,093,750 (60,000 shares times
	$51.5625, the closing price of Nextel Communications&#146; class
	A common stock on that date).</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (9)&nbsp;</TD>
	<TD align="left">
	The $56,250 reflects Mr.&nbsp;Siliezar&#146;s salary paid from
	July&nbsp;20, 1998 to December&nbsp;31, 1998.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="5%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>(10)&nbsp;</TD>
	<TD align="left">
	The $76,854 represents Mr.&nbsp;Siliezar&#146;s signing bonus of
	$30,000 and allowance for relocation expenses of $46,852 in 1998.
	 The $34,544 represents Mr.&nbsp;Siliezar&#146;s allowance for
	relocation expenses in 1999.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(11)&nbsp;</TD>
	<TD align="left">
	&#147;Other Annual Compensation&#148; for Mr.&nbsp;Felipe
	includes a $90,000 foreign services differential, an $86,874
	housing allowance and $11,580 representing the aggregate personal
	 travel costs of Mr. Felipe paid by Nextel Argentina, for the
	period from April&nbsp;1, 1999, the effective date of our letter
	agreement with Mr.&nbsp;Felipe, to December&nbsp;31, 1999.
	&#147;All Other Compensation&#148; for Mr.&nbsp;Felipe includes a
	 $35,000 signing bonus in 1998 and a $35,436 allowance for
	relocation expenses in 1999.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(12)&nbsp;</TD>
	<TD align="left">
	Mr.&nbsp;Kiang resigned as Senior Vice President and General
	Counsel effective September&nbsp;1999 and resigned as Secretary
	of our board effective November 1999. His termination agreement
	provided for a cash payment of $60,000, which is included in
	&#147;All Other Compensation,&#148; and a consulting relationship
	 for the period September&nbsp;15, 1999 to November&nbsp;15, 2000
	 at a rate of $14,506&nbsp;per month.</TD>
</TR>

</TABLE>

<P align="left"><B>Option Grants in Fiscal Year 1999</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the table below, we set forth selected information on options
exercisable for shares of our common stock, referred to as NII
Options, and Nextel Communications&#146; class A common stock,
referred to as NCI Options, that were granted to the Named
Executive Officers during fiscal year 1999.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="32%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Securities</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total Options</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted to</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise or</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Grant Date</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Employees in</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Base Price</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Expiration</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Present</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted(#)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fiscal Year(%)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>($/Shares)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Date</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value($)(1)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,200,000(2)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38.29</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.008</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/13/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,674,843</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">170,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.93</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,305,331</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50,000(4)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.27</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28.315</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">09/01/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">740,302</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.55</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">767,842</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">150,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.82</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,151,763</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000(4)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.55</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28.315</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">09/01/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,462,607</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000(2)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.38</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.008</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/13/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">612,474</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">60,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.33</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">461,084</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">87

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="32%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent of</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Securities</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total Options</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted to</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise or</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Grant Date</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Employees in</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Base Price</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Expiration</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Present</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted(#)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fiscal Year(%)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>($/Shares)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Date</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value($)(1)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">300,000(5)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.57</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.008</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/13/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">918,711</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">614,274</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Heng-Pin Kiang</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,000(3)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.16</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">02/18/2009</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">230,353</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	We used the Black-Scholes pricing model to estimate the present
	value of options at the date of grant, using the following
	assumptions to derive valuations for the NII Options and the NCI
	Options:</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	an expected stock price volatility of 51%;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a risk free interest rate of 5.06&nbsp;&#151;&nbsp;6.09%;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	an expected life of 5&nbsp;years; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	an expected dividend yield of 0%.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	These NII Options were granted on May&nbsp;13, 1999 and vest over
	 a four-year period on a monthly basis from the date of grant.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	These NCI Options were granted on February&nbsp;18, 1999 and vest
	 over a four-year period at a rate of 25% per year from the date
	of grant.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(4)&nbsp;</TD>
	<TD align="left">
	These NCI Options were granted on September&nbsp;1, 1999 and vest
	 over a four-year period at a rate of 25% per year from the date
	of grant.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(5)&nbsp;</TD>
	<TD align="left">
	These NII Options were granted on May&nbsp;13, 1999; 25% of the
	options vested immediately and 75% of the options vest over a
	four-year period on a monthly basis from the date of grant.</TD>
</TR>

</TABLE>

<P align="left"><B>Option Exercises in Fiscal Year 1999 and Year-End Option
Values</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the following table, we set forth information on the exercise
of options during the year ended December&nbsp;31, 1999 and
unexercised option values as of December&nbsp;31, 1999 for each
of the Named Executive Officers:

<TABLE width="90%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="33%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Number of Securities</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Underlying Unexercised</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Options at Fiscal</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year-End(#)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Acquired on</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise(#)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Realized($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,025,000</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">242,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,937,735</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">587,500</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">120,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">553,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,780,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">115,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,626,093</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">55,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">230,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">102,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,792,109</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">392,500</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">57,496</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">222,504</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">64,500</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">214,060</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">385,940</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">318,557</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">125,000</FONT></TD>
	<TD></TD>
</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="60%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="50%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="9%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Value of Unexercised In-</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>the-Money Options at Fiscal</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year-End($)(1)(2)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">193,813</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,135,188</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,513,895</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,214,700</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">461,500</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,245,938</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,833,438</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,385,078</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32,299</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">189,201</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54,094</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,339,156</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119,402</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">212,848</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,525,313</FONT></TD>
	<TD></TD>
</TR>

</TABLE>

<P align="center">88

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="90%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="33%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Number of Securities</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Underlying Unexercised</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Options at Fiscal</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year-End(#)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Acquired on</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise(#)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Realized($)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Heng-Pin Kiang</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">120,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">553,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">952,916</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,084</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">59,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">840,903</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">66,000</FONT></TD>
	<TD></TD>
</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="60%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="50%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="9%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Value of Unexercised In-</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>the-Money Options at Fiscal</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year-End($)(1)(2)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Heng-Pin Kiang</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NII Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,397,707</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">124,993</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NCI Options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">546,875</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,552,344</FONT></TD>
	<TD></TD>
</TR>

</TABLE>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	The value of the in-the-money NCI Options is based on the closing
	 price of the Nextel Communications class A common stock as
	reported by the Nasdaq Stock Market on December&nbsp;31, 1999,
	which was $51.563 per share, less the aggregate exercise price,
	times the aggregate number of shares issuable upon exercise of
	those options.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	The value of the in-the-money NII Options is derived from an
	independent valuation of NII&#146;s common stock performed by a
	public accounting firm, made in conformance with the Uniform
	Standards of Professional Appraisal Practice of The Appraisal
	Foundation, which was $7.115 per share, less the aggregate
	exercise price, times the aggregate number of shares issuable
	upon exercise of those options.</TD>
</TR>

</TABLE>

<P align="left"><B>Employment Agreements</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Communications executed on our behalf a letter agreement
with Mr.&nbsp;Felipe in May&nbsp;1999 providing for his
employment effective April&nbsp;1, 1999. The letter provides for
base compensation of $250,000 per year, as well as eligibility
for bonuses of $150,000 based on the achievement of specified
performance objectives. Further, Mr.&nbsp;Felipe is paid a
foreign services differential of $120,000&nbsp;per year to
compensate him for the higher cost of living in Argentina as
compared to the United States, and a housing allowance of up to
$10,000&nbsp;per month.

<P align="left"><B>Compensation Committee Interlocks and Insider Participation
</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board of directors does not currently have a compensation
committee. Our full board of directors is responsible for
executive compensation matters. Mr.&nbsp;Shindler serves on our
board of directors and also serves as our Chief Executive
Officer. In addition, Mr.&nbsp;Grinstein serves on our board of
directors and was our Chief Executive Officer from
January&nbsp;1996 until August&nbsp;1999, and Mr.&nbsp;Dussek
serves on our board of directors and was our Chief Executive
Officer from September&nbsp;1999 until March&nbsp;2000 and our
Chief Operating Officer from March 1999 until
September&nbsp;1999.

<P align="left"><B>Compensation of Directors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, our directors do not receive any compensation.

<P align="left"><B>Equity Incentive Plans</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently have two equity incentive plans in effect. Awards
under the plans that are currently outstanding or are made before
 the closing of the offerings will be made in respect of the
class B common stock and awards granted after the closing of the
offerings will be made in respect of the class A common stock. In
 this section, all references to common stock refer to the class
A and class B common stock issuable under the respective award.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>1997 Stock Option Plan. </I>Our 1997 stock option plan was
adopted by the board of directors in June 1997 and amended in
July&nbsp;1998 and May&nbsp;1999. It provides for issuance of a
maximum of 10,900,000 shares of common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The plan provides for the grant of incentive stock options
intended to qualify under Section&nbsp;422 of the Internal
Revenue Code of 1986, as amended, and nonqualified stock options
to our employees, directors, officers, consultants, agents,
advisors, and independent contractors

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<DIV align="left">
or those of our subsidiaries. The plan provides that it will be
administered by the board of directors or a committee consisting
of at least two members of the board. Presently, the entire board
 of directors serves as the plan administrator.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The term of the stock options granted under the plan is ten years
 from the date of grant, subject to adjustment by the plan
administrator, which may extend the period of an option. The
exercise price of the options granted under the plan is
determined by the plan administrator. The exercise price of
options as incentive stock options granted under the plan may not
 be less than 100% of the fair market value on the date the
option is granted. In accordance with the terms and requirements
of the plan, Arthur Andersen LLP has conducted independent
appraisals of the market value of our common stock from October
1998 through May 2000. The options vest on a monthly basis over a
 four-year period, unless provided otherwise in the option
agreement evidencing the award. No option may be transferred by
the optionee other than by will or the laws of descent and
distribution, subject to exceptions with the permission of the
plan administrator to the extent permitted by the Internal
Revenue Code.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An optionee whose relationship with us ceases for any reason
other than termination for cause, as defined in the plan, may
exercise the vested portion of options. Vested, nonforfeitable
options of an optionee, other than an optionee whose relationship
 with us terminates because of total disability or death, may be
immediately exercised for a period of 90&nbsp;days following the
termination of the relationship. For an optionee whose
relationship with us terminates because of total disability or
death, the right to exercise vested, nonforfeitable options
extends to one year from the date of an optionee&#146;s
termination as a result of disability or death, and, if due to
the death of the optionee, the right to exercise passes to the
optionee&#146;s estate. All unvested options, all options of an
optionee terminated for cause, and all options not exercised
within the required period are forfeited upon these events.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent required for incentive stock option status under
Section&nbsp;422 of the Internal Revenue Code and to the extent
the aggregate fair market value of the common stock with respect
to which incentive stock options are granted under the plan and
options granted under any other stock option plan in the year
first exercisable during any calendar year exceeds $100,000, the
excess over $100,000 will be treated as a nonqualified stock
option. No incentive stock option may be granted under this plan
or any other stock option plan to any person possessing more than
 10% of the total combined voting power of all classes of our
stock, unless the exercise price of that option is at least 110%
of the fair market value of the stock subject to the option, and
the option term does not exceed five years. The term of incentive
 stock options may not exceed ten years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any shares of common stock that have been subject to an option
and cease to be subject to the option, other than by reason of
exercise, will be available for future awards under the plan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The plan provides that any shares of common stock issued under an
 option granted under the plan may not be sold or otherwise
disposed of or transferred for value during a period of up to 180
 days following the initial underwritten public offering of our
equity securities, including the offerings, without our prior
written consent or that of the underwriters.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, options to purchase an aggregate of
8,571,452 shares of common stock were granted under the plan, and
 an aggregate 2,328,543 of shares of common stock remained
available for grant, although we do not intend to make further
awards under the plan. Of the options granted, options to
purchase 7,002,084 shares of common stock were outstanding, and
options to purchase 1,569,368 shares of common stock had been
exercised.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Incentive Equity Plan. </I>Our incentive equity plan was
approved by our plan administration committee in May&nbsp;2000
and ratified by our board of directors in June 2000. It provides
for awards of option rights, appreciation rights, restricted
shares, deferred shares and performance shares to our
nonaffiliate directors, officers, including officers who are
members of our board of

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<DIV align="left">
directors, and other key employees, consultants, and advisors or
those of our subsidiaries with respect to 20,000,000 shares of
common stock, except replacement option rights, which may not in
the aggregate exceed five percent of the shares of common stock
outstanding on January 1 of that year. The number of shares of
common stock that may be issued or transferred as restricted
shares under the plan may not in the aggregate exceed 800,000
shares. The number of performance units granted under the plan
may not in the aggregate exceed 2,000,000. Notwithstanding
anything to the contrary and subject to adjustments as provided
in the plan, the aggregate number of shares of common stock
actually issued or transferred upon the exercise of options
intended to qualify as incentive stock options under
Section&nbsp;422 of the Internal Revenue Code may not exceed
20,000,000 shares. The plan is administered by the plan
administration committee of our board of directors.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Option Rights. </I>The plan administrator may grant option
rights that entitle the optionee to purchase shares of common
stock at a price equal to or greater than market value on the
date of grant, except that the option price of a replacement
option right may be less than the market value on the date of
grant. Replacement option rights are otherwise subject to the
same terms, conditions, and discretion as other option rights
under the plan. A replacement option right is an option right
that is granted in exchange for the surrender and cancellation of
 an option to purchase shares of another corporation that has
been acquired by us or one of our subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Option rights granted under the plan may be option rights that
are intended to qualify as &#147;incentive stock options&#148;
within the meaning of Section 422 of the Internal Revenue Code or
 nonqualified stock option rights.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each grant, unless otherwise determined by the plan
administrator, becomes exercisable with respect to 50% of the
shares of common stock covered by the grant on the second
anniversary of the date of grant and with respect to 25% of the
shares of common stock covered by the grant on each of the third
and fourth anniversaries of the date of grant for so long as the
optionee remains in our continuous employ. However, in the event
of an initial public offering or change of control, as defined in
 the plan, prior to the first anniversary of the date of grant,
25% of the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of common stock
covered by the grant become exercisable on each of the second,
third, and fourth anniversaries of the date of grant for so long
as the optionee remains in our continuous employ.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each grant also provides, unless otherwise expressly determined
in a resolution duly adopted by the board of directors, that the
option right will:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	if the optionee is a nonaffiliate director, immediately become
	fully exercisable upon the occurrence of a defined change of
	control;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	if the optionee is an employee, immediately become fully
	exercisable upon the termination of the optionee&#146;s
	employment without cause, as defined under the plan, within one
	year of a defined change of control; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	if the optionee is an executive, as defined under the plan,
	immediately become fully exercisable upon the termination of the
	optionee&#146;s employment by us without cause, as defined under
	the plan, or by the executive for good reason, as defined under
	the plan, in each case, within one year of a defined change of
	control;</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These change of control terms are deemed void if it should be
determined that any of these terms would prevent a proposed
merger or other business combination that is intended by the

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<DIV align="left">
parties to be accounted for as a pooling of interests from
qualifying for this intended accounting treatment. For purposes
of the plan, a change of control generally includes, in respect
of both us and Nextel Communications while Nextel Communications
holds a majority of our combined voting power of outstanding
securities, specified mergers, consolidations, reorganizations,
the sale of substantially all of the assets or acquisitions of
50% or more of the voting securities.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Appreciation Rights. </I>Appreciation rights granted under the
 plan may be either free-standing appreciation rights or
appreciation rights that are granted in tandem with option
rights. An appreciation right represents the right to receive
from us the difference, or spread, or a percentage of the spread,
 not in excess of 100&nbsp;percent, between the base price per
share of common stock in the case of a free-standing appreciation
 right, or the option price of the related option right in the
case of a tandem appreciation right, and the market value of the
common stock on the date of exercise of the appreciation right.
Tandem appreciation rights may only be exercised at a time when
the related option right is exercisable and the spread is
positive, and the exercise of a tandem appreciation right
requires the surrender of the related option right for
cancellation. A free-standing appreciation right must have a base
 price that is at least equal to the fair market value of a share
 of common stock on the date of grant, must specify the period of
 continuous service as a director, continuous employment, or
continuous engagement of consulting services, that is necessary
before the appreciation right becomes exercisable, except that it
 may provide for its earlier exercise in the event of a defined
change in control, and may not be exercised more than
10&nbsp;years from the date of grant. Any grant of appreciation
rights may specify that the amount payable by us upon exercise
may be paid in cash, shares of common stock, or a combination of
cash and stock, as determined by the recipient or the plan
administrator, which may provide for the payment of dividend
equivalents on the award in cash or common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Restricted Shares. </I>A grant of restricted shares involves
the immediate transfer to the recipient of ownership of a
specific number of shares of common stock in consideration of the
 performance of services. The recipient is entitled immediately
to voting, dividend, and other ownership rights in the shares.
The transfer may be made without additional consideration or for
consideration in an amount that is less than the market value of
the shares on the date of grant, as the plan administrator may
determine. The plan administrator may condition a grant of
restricted shares on the achievement of specified performance
objectives.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Restricted shares must be subject to a &#147;substantial risk of
forfeiture&#148; within the meaning of Section&nbsp;83 of the
Internal Revenue Code for a period to be determined by the plan
administrator. The plan administrator may provide for a shorter
period during which the forfeiture provisions are to apply in the
 event of a change in control or other similar transaction or
event.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Deferred Shares. </I>A grant of deferred shares constitutes
our agreement to deliver shares of common stock to the recipient
in the future in consideration of the performance of services,
subject to the fulfillment of those conditions during a period of
 time specified by the plan administrator. During this deferral
period, the recipient has no right to vote the shares of common
stock covered by his or her grant of deferred shares and, except
in the limited circumstances described below, has no right to
transfer any of his or her rights in the shares. The plan
administrator may authorize the payment of dividend equivalents
on a current, deferred, or contingent basis in either cash or
additional shares of common stock. Grants of deferred shares may
be made without additional consideration or for consideration in
an amount that is less than the market value of the shares on the
 date of grant. The deferral period is subject to acceleration in
 the event of a defined change in control in the same manner and
upon the terms as those set forth above regarding option rights.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Performance Shares and Performance Units. </I>A performance
share is the equivalent of one share of common stock, and a
performance unit is the equivalent of $1.00. A recipient of a
grant of performance shares or performance units may be granted
any number of performance shares

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<DIV align="left">
or performance units. The recipient must be given one or more
objectives to meet within a specified period. This period may be
subject to earlier termination in the event of a defined change
in control in the same manner and upon the terms as those set
forth above regarding option rights. A minimum level of
acceptable achievement will also be established by the plan
administrator. If by the end of the performance period the
recipient has achieved the specified objectives, he or she will
be deemed to have fully earned the performance shares or
performance units. If the recipient has not achieved the
objectives but has attained or exceeded the predetermined minimum
 level of acceptable achievement, he or she will be deemed to
have partly earned the performance shares or performance units in
 accordance with a predetermined formula. To the extent earned,
the performance shares or performance units will be paid to the
recipient in cash, shares of common stock, or any combination of
cash and stock. The plan administrator may authorize the payment
of dividend equivalents on a current, deferred, or contingent
basis in either cash or additional shares of common stock.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Transferability.</I> Except as otherwise determined by the
plan administrator, no option right, appreciation right, or other
 derivative security granted under the plan may be transferred by
 a participant other than by will or the laws of descent and
distribution, and, except as otherwise determined by the plan
administrator, option rights and appreciation rights may be
exercised during a participant&#146;s lifetime only by the
participant or his or her guardian or legal representative.
Option rights other than incentive stock options, appreciation
rights, restricted shares, deferred shares, performance shares,
and performance units may be transferred by a participant,
however, without payment of consideration by the transferee, to
any one or more members of the participant&#146;s immediate
family or to related trusts, provided that the participant
delivers to us reasonable prior notice of any that transfer and
complies with any terms and conditions that we may impose on any
transfer.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, options to purchase an aggregate of
6,968,500 shares of common stock were granted under the plan,
none of which are currently exercisable, and an aggregate of
13,031,500 shares of common stock remained available for grant.

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<!-- link1 "PRINCIPAL STOCKHOLDERS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<P align="center"><B>PRINCIPAL STOCKHOLDERS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are currently no shares of our class&nbsp;A common stock
outstanding. Immediately following the offerings, Nextel
Communications will continue to control us and will beneficially
own &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the outstanding
class&nbsp;B common stock, which will represent about
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the combined voting power of
all of our outstanding common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the table below, we set forth, as of June&nbsp;30, 2000, the
amount and percentage of shares of our voting common stock that
are deemed under the rules of the Securities and Exchange
Commission to be &#147;beneficially owned&#148; by:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="2%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD> &#149; &nbsp;</TD>
	<TD align="left">
	each of our directors;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD> &#149; &nbsp;</TD>
	<TD align="left">
	each of the Named Executive Officers who continued to serve as an
	 executive officer as of that date;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD> &#149; &nbsp;</TD>
	<TD align="left">
	all of our directors and officers as a group; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD> &#149; &nbsp;</TD>
	<TD align="left">
	each person or &#147;group,&#148; as that term is used in
	Section&nbsp;13(d)(3) of the Securities Exchange Act of 1934,
	known by us to be the beneficial owner of more than 5% of our
	outstanding voting common stock.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below gives effect to the reclassification of our
existing shares of common stock into shares of our class&nbsp;B
common stock and the exchange by Nextel Communications of its
2,150&nbsp;shares of our series&nbsp;A exchangeable redeemable
preferred stock into
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 of our class&nbsp;B common stock, assuming the exchange occurred
 on June&nbsp;30, 2000 and based on the accreted value of the
series A preferred stock at that date of about $215.1 million and
 an assumed initial public offering price for the class&nbsp;A
common stock of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the
midpoint of the range set forth on the cover.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The address of each named person or group is 10700 Parkridge
Boulevard, Suite&nbsp;600, Reston, Virginia 20191, unless
otherwise specified.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="50%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount and</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Approximate</B></FONT></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Nature&nbsp;of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Equity and Voting</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Approximate</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Beneficial</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>% Before the</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>% After the</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name of Beneficial Owner</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Ownership</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Offerings(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Offerings(2)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Equity</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Voting</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Daniel F. Akerson</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">179,166(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,958,331(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Timothy M. Donahue</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">87,500(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	C. James Judson</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven M. Shindler</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">89,583(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Dennis M. Weibling</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">375,000(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Jose Felipe</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">301,559(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104,165(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	All directors and executive officers as a group (10&nbsp;
	persons)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,095,304(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Nextel Communications, Inc.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	2001 Edmund Halley Drive</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Reston, Virginia 20191</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD><FONT size="2">&nbsp; *</FONT></TD>
	<TD align="left">
	<FONT size="2">Less than one percent (1%).</FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD><FONT size="2">(1)&nbsp;</FONT></TD>
	<TD align="left">
	<FONT size="2">Represents the voting power of the number of
	shares of class&nbsp;B common stock beneficially owned by each
	named person or group as of June 30, 2000, expressed as a
	percentage of (a)&nbsp;all shares of our class&nbsp;B common
	stock actually outstanding as of that date, plus (b)&nbsp;all
	other shares of our class&nbsp; B common stock deemed outstanding
	 as of that date under Rule&nbsp;13d-3(d)(1) under the Securities
	 Exchange Act.</FONT></TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD><FONT size="2">(2)&nbsp;</FONT></TD>
	<TD align="left">
	<FONT size="2">Gives effect to the sale of
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 of our class&nbsp;A common stock in the offerings.</FONT></TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD><FONT size="2">(3)&nbsp;</FONT></TD>
	<TD align="left">
	<FONT size="2">Comprised entirely of shares of our class&nbsp;B
	common stock obtainable as of June 30, 2000 or within
	60&nbsp;days of that date by the named person or group upon the
	exercise of options.</FONT></TD>
</TR>

</TABLE>

<P align="center">94

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<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>

<P align="left"><B>Tax Sharing Agreement</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We entered into a tax sharing agreement with Nextel
Communications dated as of January&nbsp;1, 1997. Under that
agreement, we must pay Nextel Communications an amount equal to
what our federal income tax liability would have been had we
filed a separate federal income tax return. The computation of
our liability takes into account any carryovers and carrybacks of
 losses and credits that would be allowed if we had filed a
separate federal income tax return, except that, in making the
computation for any taxable year, the liability will be
determined at the highest corporate tax rate and without an
exemption for purposes of calculating the alternative minimum tax
 and the environmental tax. The agreement further provides that
we may be included in any consolidated, combined or unitary state
 or local income or franchise tax return or report, and our
liability for these taxes will be computed in a manner consistent
 with the calculation of our federal income tax liability.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the tax sharing agreement provides that Nextel
Communications is entitled to utilize on behalf of the
consolidated group of which we are a member all of our tax
attributes, including items of income, gain, loss, deduction,
expense, credit and similar treatments, which arise in the
current taxable year or another taxable year or years and which
properly may be carried back or carried forward to that taxable
year. We are not entitled to receive any compensation utilization
 of these attributes or items by the Nextel Communications
consolidated group in determining for any taxable year or years
the consolidated taxable income and consolidated tax liability
for that taxable year or years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Communications is not required to compensate us for the
benefit of a loss or credit carryback from our separate filing to
 the consolidated group should we leave the Nextel Communications
 consolidated group. Further, under certain circumstances we are
required to compensate Nextel Communications for adjustments of
tax attributes after we leave the group.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the U.S. consolidated income tax rules, we and each other
member of the Nextel Communications consolidated group of which
we are a member will be jointly and severally liable for the U.S.
 tax liabilities of each other member of that group for each year
 we file a consolidated tax return with that group. This
liability continues for these years even if we should leave the
Nextel Communications consolidated group.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are not required to make any payments to Nextel Communications
 under the tax sharing agreement with respect to 1999 tax
liabilities.

<P align="left"><B>Overhead Services Agreement</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under an overhead services agreement between us and Nextel
Communications, Nextel Communications has agreed to provide
services to us, including those relating to accounts payable,
cash management, payroll, human resources, financial reporting
and audit and legal, engineering and technical and marketing and
sales assistance. The fee for services provided under the
overhead services agreement is the actual cost incurred by Nextel
 Communications, which is billed monthly and payable in
45&nbsp;days. Under the overhead services agreement, Nextel
Communications has agreed to apportion the aggregate cost
incurred by it to provide the services to us and its other
subsidiaries on a basis that Nextel Communications determines in
good faith, from time to time, represents the relative portion of
 the services provided by Nextel Communications and used by each
subsidiary, including us, for the relevant period. We have the
right to review Nextel Communications&#146; determination and to
discuss with Nextel Communications adjustments that we consider
appropriate in light of the services provided to us. Nextel
Communications&#146; good faith determination after that
consultation is final and binding. The overhead services
agreement has a ten-year term, which commenced on March&nbsp;3,
1997, and, with the consent of Nextel Communications, we may
elect to discontinue a particular service or

<P align="center">95

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<DIV align="left">
services provided by Nextel Communications and/or obtain any
service from an independent third party. We incurred costs under
the overhead services agreement of $1.2&nbsp;million during 1999.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the overhead services agreement, we have agreed that the
legal counsel employed by Nextel Communications as part-time or
full-time employees will provide legal services to us as well as
to other subsidiaries of Nextel Communications and potentially to
 other entities in which Nextel Communications holds an ownership
 interest. We have agreed that the legal counsel may represent us
 as well as Nextel Communications or any of its other
subsidiaries.

<P align="left"><B>Right of First Opportunity Agreement</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We entered into a right of first opportunity agreement with
Nextel Communications dated as of March&nbsp;6, 1997, as amended,
 under which Nextel Communications has agreed that neither Nextel
 Communications nor any affiliate, as defined in the agreement,
controlled by Nextel Communications (other than our group of
affiliates, as defined in the agreement) will in the future
participate in the ownership or management of two-way
terrestrial-based mobile wireless communications systems,
referred to as wireless entities, anywhere other than in the
United States unless the future wireless opportunities have first
 been presented to us. This restriction does not apply to, among
other things, any commercial relationship with any wireless
entity, including channel or frequency sharing, roaming, purchase
 or sale of goods or services, licensing of intellectual property
 or other intangible rights or similar business related
arrangement, that does not involve the directing or participating
 in the management of that wireless entity. We have agreed that,
without the consent of Nextel Communications, we, our restricted
affiliates and our unrestricted affiliates each as defined in the
 indentures governing our outstanding notes will not participate
in the ownership or management of any wireless communications
service business in the United States. These restrictions
terminate upon the earliest to occur of (1)&nbsp;April&nbsp;15,
2007 and (2)&nbsp;a change of control, as defined in the
indentures governing our outstanding notes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If Nextel Communications gives us notice of a future wireless
opportunity, we will have 60&nbsp;days to notify Nextel
Communications that we intend to pursue the opportunity and how
we intend to finance our participation. We must have secured a
financing commitment within 90&nbsp;days of the date of the
notice and we must consummate the future wireless opportunity
within nine months of the date of the notice. If we fail to
respond to Nextel Communications within the 60 and 90&nbsp;day
time frames or fail to consummate the transaction within the
nine-month period, Nextel Communications may pursue freely the
future wireless opportunity.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreed with Nextel Communications not to make any
amendment to the right of first opportunity agreement that is
materially adverse to the holders of the March&nbsp;1997 Notes
and March&nbsp;1998 Notes and to provide those holders with
written notice 30&nbsp;days prior to any amendment. We and Nextel
 Communications have entered into a further amendment to the
right of first opportunity agreement to extend its benefits to
the holders of our August 2000 Notes, which will become effective
 August&nbsp;31, 2000.

<P align="left"><B>Transactions with Parent</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;4, 2000, we received an advance of
$77.7&nbsp;million from a wholly owned subsidiary of Nextel
Communications in connection with the anticipated purchase of
Motorola International&#146;s common equity in companies in
Nextel Brazil, Nextel Peru and three SMR Chilean companies. On
June&nbsp;2, 2000, we issued 777 shares of our series A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications as repayment of this
intercompany advance. Additionally, on April&nbsp;7, 2000, we
issued 1,500 shares of our series A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications in exchange for cash proceeds of
$150.0&nbsp;million. On June&nbsp;12, 2000, all of the then
outstanding shares of our series A exchangeable redeemable
preferred stock were exchanged for shares of our common

<P align="center">96

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<DIV align="left">
stock. On June&nbsp;29, 2000, we issued 2,150 shares of our
series A exchangeable redeemable preferred stock to a wholly
owned subsidiary of Nextel Communications in exchange for cash
proceeds of $215.0&nbsp;million. In connection with the
offerings, these 2,150 shares of our series&nbsp;A exchangeable
redeemable preferred stock, including accrued dividends, will be
exchanged for &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
 our class&nbsp;B common stock, assuming the exchange occurred on
 June&nbsp;30, 2000 and based on the accreted value of the
series&nbsp;A preferred stock at that date of $215.1&nbsp;million
 and an assumed initial public offering price for the
class&nbsp;A common stock of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the range set forth on the cover.
</DIV>

<P align="left"><B>Motorola Relationships</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motorola, a significant stockholder of Nextel Communications,
provides equipment and vendor financing to the Operating
Companies. For a description of the Motorola financing
facilities, see &#147;Description of Our Indebtedness.&#148;
During 1999, we purchased about $155.4&nbsp;million in digital
infrastructure equipment, subscriber units and related services
from Motorola and have continued these purchases in 2000. At
December&nbsp;31, 1999, we had accounts payable to Motorola of
$15.8 million and had guaranteed additional amounts outstanding
of Nextel Philippines of $6.2&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;2000, we purchased all of the equity interests of
Motorola International in Nextel Peru and Nextel S.A., the parent
 company of Nextel Brazil. We also purchased all of Motorola
International&#146;s equity interests in three Chilean analog SMR
 companies, which were wholly owned by Motorola International.
The aggregate purchase price for these acquisitions was about
$77.7&nbsp;million in cash. In connection with our purchase of
the three Chilean analog SMR companies, we entered into an
agreement with Motorola International to manage these companies
for a fee of $1,000 per business day during a transition period,
the initial term of which expires on October&nbsp;31, 2000,
unless terminated earlier by us. We have the right to extend the
term of this agreement for one additional term of six months upon
 at least 60&nbsp;days&#146; notice prior to the end of the
initial term. We can terminate the agreement at any time upon
45&nbsp;days&#146; prior written notice to Motorola.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On August 14, 2000, we and some of our Operating Companies
entered into equipment purchase agreements with Motorola under
which Motorola will provide us with infrastructure equipment and
services. We and Motorola have also agreed to warranty and
maintenance programs and specified indemnity arrangements. In
addition, under some circumstances, we have agreed to purchase at
 least 50% of our infrastructure equipment from Motorola. These
agreements also contain other minimum purchase commitments that
if not met subject us to penalties based on a percentage of the
commitment shortfall.

<P align="center">97

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<!-- link1 "DESCRIPTION OF OUR INDEBTEDNESS" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center"><B>DESCRIPTION OF OUR INDEBTEDNESS</B>

<P align="left"><B>12.75% Senior Serial Notes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;2000, we completed the sale of $650.0&nbsp;million
 aggregate principal amount of our August 2000 Notes, generating
about $623.8&nbsp;million in net cash proceeds. Cash interest
will be payable semiannually beginning February&nbsp;1, 2001 at a
 rate of 12.75% per year. The August 2000 Notes are redeemable in
 whole or in part, at our option, at any time on or after
August&nbsp;1, 2005. Up to 35% of the aggregate accreted value of
 these outstanding senior notes may be redeemed using the
proceeds of one or more sales of qualified equity securities
prior to August&nbsp;1, 2003, at our option, at 112.750% of their
 principal amount, plus accrued interest. Upon a change of
control, as defined in the indenture governing the August 2000
Notes, we must make an offer to repurchase all the outstanding
August 2000 Notes at 101% of their principal amount, plus accrued
 and unpaid interest to the date of repurchase. The notes are
senior unsecured indebtedness and rank equal in right of payment
with all our other unsubordinated, unsecured indebtedness.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture pursuant to which the August 2000 Notes were issued
 contains various restrictive covenants applicable to us and to
our restricted group members. For this purpose, all of our
subsidiaries in which we own a greater than 50% interest, other
than those subsidiaries we have designated as unrestricted, and
those of our affiliates in which we own a 50% or less interest
that we have designated as restricted, are restricted group
members. These restrictions, among other things, limit our and
the restricted group members&#146; ability to do any of the
following, subject to specified exceptions:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	incur additional debt and issue redeemable preferred stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	pay dividends or make other distributions in respect of capital
	stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	purchase, redeem or retire our capital stock or the capital stock
	 of any of our unrestricted subsidiaries;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	voluntarily prepay, redeem or retire for value any our
	indebtedness that is subordinate to the August 2000 Notes;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	make investments, other than in our restricted subsidiaries;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	create or permit restrictions on the ability of any restricted
	group member to:</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="6%"></TD>
	<TD width="1%"></TD>
	<TD width="93%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	pay dividends to us or to any restricted group member;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	pay indebtedness owed to us or to any restricted group member;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	make loans or advances to us or to any restricted group member;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	transfer any of its property or assets to us or to any restricted
	 group member;</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	sell the capital stock of any of restricted group member;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	guaranty any indebtedness;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	enter into transactions with any of our affiliates;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	incur any liens on our assets or the assets of the restricted
	group members;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	sell our assets or the assets of the restricted group members;
	and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	merge or consolidate with or transfer all or substantially all of
	 our assets to another person.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot assure you that these restrictions will not limit our
ability to conduct or expand our business or to take advantage of
 business opportunities or transactions that we otherwise

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<DIV align="left">
could if these restrictions did not exist. However, all of these
restrictions are subject to a number of important qualifications.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Events of default under the indenture relating to the August 2000
 Notes, which are also subject to a number of important
qualifications, include the following:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a default in the payment of principal or premium, if any, when
	due;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a default continuing for 30&nbsp;days in the payment of interest
	when due;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the failure to comply with the limitations on our and the
	restricted group members&#146; ability to engage in a merger,
	consolidation or sale of substantially all assets, other asset
	sales, or undergo a change of control;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the failure to comply for 60&nbsp;days after receiving notice
	with the other covenants;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	specified events of default under other indebtedness of us or any
	 significant restricted group member;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	failure to pay within 30&nbsp;days specified judgements or orders
	 against us or any significant restricted group member; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	specified events of bankruptcy, insolvency or reorganization of
	us or our significant restricted group members.</TD>
</TR>

</TABLE>

<P align="left"><B>12.125% Senior Discount Notes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;1998, we completed the sale of $730.0&nbsp;million
in principal amount at maturity of our March 1998 Notes,
generating about $387.0&nbsp;million in net cash proceeds. Cash
interest will not accrue prior to April&nbsp;15, 2003, and will
be payable semiannually beginning October&nbsp;15, 2003 at a rate
 of 12.125% per year. The March 1998 Notes are redeemable in
whole or in part, at our option, at any time on or after April
15, 2003 at specified redemption prices, plus accrued and unpaid
interest. Up to 35% of the aggregate accreted value of these
outstanding senior notes may be redeemed using the proceeds of
one or more sales of qualified equity securities prior to
April&nbsp;15, 2001, at our option under specified circumstances,
 at 112.125% of their accreted value on the date of redemption,
plus accrued interest. Upon a change of control, as defined in
the indenture governing the March 1998 Notes, and subject to
specified conditions, we must make an offer to repurchase all the
 outstanding March 1998 Notes at 101% of their accreted value,
plus accrued and unpaid interest, if any, to the date of
redemption. The notes are senior unsecured indebtedness and rank
equal in right of payment with all our other unsubordinated,
unsecured indebtedness.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture pursuant to which the March 1998 Notes were issued
contains restrictive covenants and events of default similar to
those contained in the indenture governing the August 2000 Notes.

<P align="left"><B>13.0% Senior Discount Notes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;1997, we completed the sale of 951,463 units,
generating $482.0 million in net proceeds. Each unit was
comprised of a 10-year senior discount note with a principal
amount due at maturity of $1,000 and one warrant to purchase
1.5499 shares of our common stock at an exercise price of $2.50
per share at any time after March&nbsp;6, 1998 and prior to
March&nbsp;6, 2007. Cash interest on the March 1997 Notes does
not accrue until April&nbsp;15, 2002, and then is payable
semiannually beginning October&nbsp;15, 2002 at a rate of 13.0%
per year. These notes are redeemable in whole or in part, at our
option, at any time on or after April 15, 2002 at specified
redemption prices plus accrued and unpaid interest. Upon a change
 of control, as defined in the indenture governing the March 1997
 Notes, and subject to specified conditions, we must make an
offer to repurchase all the outstanding March&nbsp;1997 Notes of
their accreted value, plus accrued

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<DIV align="left">
and unpaid interest, if any, to the date of redemption The notes
are senior unsecured indebtedness and rank equal in right of
payment with all our other unsubordinated, unsecured
indebtedness.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture pursuant to which the March 1997 Notes were issued
contains restrictive covenants and events of default similar to
those contained in the indenture covering the August 2000 Notes.

<P align="left"><B>International Motorola Financing Facility</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;4, 1999, we entered into the International
Motorola Financing Facility providing for $225.0&nbsp;million of
secured term loan financing consisting of (i)&nbsp;up to
$100.0&nbsp;million in loans to reimburse us for payments we made
 to Motorola Credit after January&nbsp;1, 1997 for the purchase
of network equipment and related services, including ancillary
products and services, by or for the benefit of our Operating
Companies, referred to as Reimbursement Loans, and (ii)&nbsp;up
to $225.0&nbsp;million in loans, less the amount of Reimbursement
 Loans advanced to (a)&nbsp;finance the cost of qualifying future
 purchases of network equipment and related services and
(b)&nbsp;provide funds to: (1)&nbsp;repay the principal amounts
outstanding under the existing financing facility between
Motorola Credit and Nextel Philippines and (2)&nbsp;reimburse us
for repaying the principal amounts outstanding under a bridge
financing facility between us and Motorola Credit for the benefit
 of Nextel Philippines that was terminated in February&nbsp;1999.
 Our Operating Companies that are entitled to access amounts
available under the International Motorola Financing Facility are
 Nextel Mexico, Nextel Peru, Nextel Philippines, NEXNET and other
 entities, if any, in which we hold an equity interest and that
may be so designated by agreement between us and Motorola Credit.
 These companies are referred to as eligible borrowers. Advances
are available under this facility until December&nbsp;31, 2000.
Amounts borrowed under this facility are payable in eight equal
semiannual installments beginning June&nbsp;30, 2001, mature
December&nbsp;31, 2004, and bear interest at variable rates based
 upon either the U.S. prime rate or LIBOR. This facility is
secured by, among other things, a pledge of our equity interests
in the eligible borrowers and the related holding companies, as
well as a pledge by some of the minority stockholders of their
equity interests in Nextel Philippines and NEXNET.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, approximately $172.6&nbsp;million had
been borrowed under this facility, including the entire
$100.0&nbsp;million of Reimbursement Loans relating to the
purchase of equipment and related services by or for the benefit
of certain Operating Companies, with $52.4&nbsp;million remaining
 available for borrowing. The availability of borrowings under
this facility is subject to the satisfaction or waiver of
applicable borrowing conditions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;22, 1999, we notified Motorola Credit of our
anticipated noncompliance with financial covenants applicable to
the fourth quarter of 1999. On December&nbsp;27, 1999, Motorola
Credit agreed to waive compliance with the financial covenants on
 the condition that the parties enter into an amendment to the
International Motorola Financing Facility during the first
quarter of 2000. On March&nbsp;22, 2000, we and Motorola Credit
entered into the contemplated amendment to the International
Motorola Financing Facility, which, among other things,
eliminates the 1999 issues related to financial covenant
compliance and addresses cure mechanisms for any future financial
 covenant compliance issues. This facility was also amended in
July&nbsp;2000 to permit the issuance of our August 2000 Notes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The International Motorola Financing Facility contains
restrictive covenants which impose restrictions on our ability
and the ability of our Operating Companies or eligible borrowers
to (i)&nbsp;create or incur indebtedness subject to certain
exceptions, (ii)&nbsp;assume or otherwise guarantee the
indebtedness of others, (iii)&nbsp;dispose of any material part
of our or their assets, (iv)&nbsp;create liens or other
encumbrances on our or their assets or properties,
(v)&nbsp;engage in merger or acquisition transactions, create
subsidiaries or amend or modify in a material way our or their
organizational documents, (vi)&nbsp;declare or pay dividends or
redeem stock, (vii)&nbsp;make

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<DIV align="left">
investments or loans, (viii)&nbsp;enter into transactions with
affiliates other than on terms at least as favorable to us or our
 Operating Companies except as we or they could obtain on an
arm&#146;s length basis, or (ix)&nbsp;change the nature of our or
 their business. In addition to the foregoing, the International
Motorola Financing Facility requires us to maintain, on a
consolidated basis with our Operating Companies, specified
financial ratios and meet certain tests, including a minimum
fixed charge coverage ratio, a maximum leverage ratio, minimum
adjusted recurring revenues, minimum EBITDA, and minimum
additional paid-in capital. We have the ability to adjust the
EBITDA used to measure our compliance with certain of the
financial ratios with a portion of the difference between the
minimum required additional paid in capital and the actual
paid-in capital to the extent such adjustment would enable us to
remain in compliance with the financial covenants contained in
the agreement.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Events of default under the International Motorola Financing
Facility include: (i)&nbsp;a default by us in the payment when
due of any principal of any loan under the International Motorola
 Financing Facility, (ii) a default by us in the payments when
due of any interest or other amounts payable under the
International Motorola Financing Facility for five days after the
 due date thereof, (iii) our failure, or the failure of our
Operating Companies, to comply with certain negative and
affirmative covenants contained in the International Motorola
Financing Facility, subject in certain instances to grace
periods, (iv) our failure, or the failure of our Operating
Companies, to pay at maturity or upon acceleration any
indebtedness in excess of $5,000,000, or the existence of any
event which would permit the holders of any such indebtedness to
accelerate the maturity thereof, (v) an admission by us or any of
 our operating subsidiaries of an inability to pay its debts as
such debts become due, (vi) certain events of bankruptcy,
insolvency, reorganization, dissolution or winding up with
respect to us or our Operating Companies, (vii) certain events
with respect to multi-employer plans pursuant to which we or our
Operating Companies incur a liability to such plans which would
have a material liability on us, (viii) a change of control, (ix)
 the occurrence of a condemnation or similar appropriation action
 by any governmental authority with respect to our assets or the
assets of our Operating Companies, (x) our failure, or the
failure of our Operating Companies to continue to operate our
systems or exercise actual day to day control over the operations
 of our Operating Companies.

<P align="left"><B>Brazil Motorola Financing</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In October&nbsp;1997, McCaw Brazil and Motorola Credit
Corporation entered into an equipment financing agreement
pursuant to which Motorola Credit agreed to provide up to
$125.0&nbsp;million in multi-draw term loans to McCaw Brazil to
be used to acquire infrastructure equipment and related services
from Motorola. The financing advanced under this agreement is
repayable in U.S. dollars in semiannual installments over
42&nbsp;months beginning June&nbsp;30, 2000 and bears interest at
 an adjustable rate equal to either the prime rate plus 2.5% or
LIBOR plus 4.625%. The loans made under this agreement are
secured by a first priority lien on substantially all of McCaw
Brazil&#146;s assets, a pledge of all of the stock of McCaw
Brazil and its subsidiaries and our guarantee of the obligations.
 The financing contains specified financial and operating
covenants. In the event of noncompliance with certain financial
covenants, McCaw Brazil may cure any such noncompliance by
receiving additional equity contributions. As of June&nbsp;30,
2000, $112.5&nbsp;million was outstanding under this facility.
Further advances are no longer available under this facility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, McCaw Brazil notified Motorola Credit of its
noncompliance with some of the financial covenants under the
Brazil Motorola Financing. Motorola Credit agreed to waive
compliance with those financial covenants on the condition that
we agree to committed capital contributions and the parties enter
 into an amendment to this agreement during the first quarter of
2000. On March&nbsp;24, 2000, McCaw Brazil and Motorola Credit
entered into this amendment, which, among other things,
eliminates the 1999 issues with respect to financial covenant
compliance and addresses cure mechanisms for any future financial
 covenant compliance issues.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;28, 2000, the Brazil Motorola Financing was amended
 and restated to, among other things, permit McCaw Brazil to make
 a final advance under this facility and apply these proceeds to
finance the purchase by McCaw Brazil of iDEN equipment and
services in Brazil.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Brazil Motorola Financing contains restrictive covenants
which impose restrictions on the ability of McCaw Brazil to
(i)&nbsp;create or incur indebtedness subject to certain
exceptions, (ii)&nbsp;assume or otherwise guarantee the
indebtedness of others, (iii)&nbsp;dispose of any material part
of its assets, (iv)&nbsp;create liens or other encumbrances on
its assets or properties, (v)&nbsp;engage in merger or
acquisition transactions, create subsidiaries or amend or modify
in a material way its organizational documents, (vi)&nbsp;declare
 or pay dividends or redeem stock, (vii)&nbsp;make investments or
 loans, (viii)&nbsp;enter into transactions with affiliates other
 than on terms at least as favorable to it except as we or they
could obtain on an arm&#146;s length basis, or (ix)&nbsp;change
the nature of its business. In addition to the foregoing, the
Brazil Motorola Financing requires McCaw Brazil to maintain
specified financial ratios and meet certain tests, including a
minimum fixed charge coverage ratio, a maximum leverage ratio,
minimum recurring revenues, minimum EBITDA, minimum subscribers
and minimum additional paid-in capital.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Events of default under the Brazil Motorola Financing include:
(i)&nbsp;a default by McCaw Brazil in the payment when due of any
 principal of any loan under the Brazil Motorola Financing,
(ii)&nbsp;a default by McCaw Brazil in the payments when due of
any interest or other amounts payable under the Brazil Motorola
Financing for three days after the due date thereof,
(iii)&nbsp;the failure of McCaw Brazil or us to comply with
certain negative and affirmative covenants contained in the
Brazil Motorola Financing, subject in certain instances to grace
periods, (iv)&nbsp;the failure of McCaw Brazil to pay at maturity
 or upon acceleration any indebtedness in excess of $1,000,000,
or our failure to pay at maturity or upon acceleration any
indebtedness in excess of $10,000,000, or the existence of any
event which would permit the holders of any such indebtedness to
accelerate the maturity thereof, (v)&nbsp;an admission by us or
McCaw Brazil of an inability to pay its debts as such debts
become due, (vi)&nbsp;certain events of bankruptcy, insolvency,
reorganization, dissolution or winding up, (vii)&nbsp;certain
events with respect to multi-employer plans pursuant to which we
or our Operating Companies incur a liability to such plans which
would have a material liability on us, (viii)&nbsp;the occurrence
 of a condemnation or similar appropriation action by any
governmental authority with respect to the assets of McCaw
Brazil, (ix)&nbsp;the revocation, termination or other loss of
material licenses or concessions, (x)&nbsp;the occurrence of an
event which results in our owning less than 51% of McCaw Brazil
or our failing to exercise actual control of the operations of
McCaw Brazil.

<P align="left"><B>Argentina Credit Facility</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February&nbsp;1998, Nextel Argentina entered into the
Argentina Credit Facility which, as amended, provides up to
$100.0&nbsp;million in term loans. Loans under this facility bear
 interest at a rate equal to, at our option, either (1)&nbsp;the
ABR plus 2.75%, where ABR is the highest of the U.S. prime rate,
the base CD rate plus 1.0% or the federal funds rate plus 0.5%,
or (2)&nbsp;the Eurodollar rate plus 3.75%, where the Eurodollar
rate is LIBOR multiplied by the statutory reserve rate. Loans
under this facility are repayable in quarterly installments
beginning September 30, 2000 through March&nbsp;31, 2003. The
first nine installments will be equal to 1/18 of the
then-outstanding balance and the final installment will be in an
amount equal to the then-outstanding balance. Borrowings under
this facility are secured by a pledge of stock of, and a first
priority lien on the assets of, Nextel Argentina. The facility
also requires Nextel Argentina to meet financial and operating
ratios.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;1999, Nextel Argentina notified the administrative
agent of the Argentina Credit Facility of its anticipated
noncompliance with some of the financial covenants under the
facility. Nextel Argentina received a waiver from the lenders
with regard to those covenants for the first quarter of 1999.
Effective May&nbsp;26, 1999, Nextel Argentina and the lenders
under the Argentina Credit Facility amended the facility to
modify several financial covenants.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November&nbsp;1999, Nextel Argentina notified the
administrative agent of its anticipated noncompliance with some
of the financial covenants under the Argentina Credit Facility
applicable in the fourth quarter of 1999. Effective
December&nbsp;8, 1999, Nextel Argentina and the lenders amended
the Argentina Credit Facility to modify several financial
covenants applicable to the fourth quarter of 1999 and the first
quarter of 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As contemplated in December 1999, on June&nbsp;20, 2000, in
conformity with our business plan, Nextel Argentina and the
lenders under the Argentina Credit Facility amended the facility
to modify several financial covenants. As a condition to the
effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of $84.1
 million to Nextel Argentina during 1999 and are now required to
contribute equity of $134.5 million during 2000, $110.0 million
during 2001 and $117.0 million during 2002, all subject to
adjustment in case of certain events.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2000, Nextel Argentina had borrowed the full
$100.0&nbsp;million available under the Argentina Credit
Facility. Nextel Argentina is in compliance with all financial
covenants contained in the facility, as amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Argentina Credit Facility contains restrictive covenants
which impose restrictions on the ability of Nextel Argentina to
(i)&nbsp;create or incur indebtedness subject to certain
exceptions, (ii)&nbsp;assume or otherwise guarantee the
indebtedness of others, (iii)&nbsp;dispose of any material part
of its assets, (iv)&nbsp;create liens or other encumbrances on
its assets or properties, (v)&nbsp;engage in merger or
acquisition transactions, create subsidiaries or amend or modify
in a material way its organizational documents, (vi)&nbsp;declare
 or pay dividends or redeem stock, (vii)&nbsp;make investments or
 loans, (viii)&nbsp;enter into transactions with affiliates other
 than on terms at least as favorable to it except as it could
obtain on an arm&#146;s length basis, (ix)&nbsp;consent to any
modification to any of the agreements pursuant to which Nextel
Argentina has obtained licenses and concessions to operate, or
pursuant to which Nextel Argentina is developing the iDEN
infrastructure, or (x)&nbsp;change the nature of its business. In
 addition to the foregoing, the Argentina Credit Facility
requires Nextel Argentina to maintain specified financial ratios
and meet certain tests, including a minimum interest coverage
ratio, maximum capital expenditures, a maximum leverage ratio,
minimum revenues, minimum subscribers and minimum additional
equity contributions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Events of default under the Argentina Credit Facility include:
(i)&nbsp;a default by Nextel Argentina in the payment when due of
 any principal of any loan under the Argentina Credit Facility,
(ii)&nbsp;a default by Nextel Argentina in the payments when due
of any interest or other amounts payable under the Argentina
Credit Facility for five days after the due date thereof,
(iii)&nbsp;the failure of Nextel Argentina or us to comply with
certain negative and affirmative covenants contained in the
Argentina Credit Facility, subject in certain instances to grace
periods, (iv)&nbsp;the failure of Nextel Argentina or us to pay
at maturity or upon acceleration any indebtedness in excess of
$3,000,000, or the existence of any event which would permit the
holders of any such indebtedness to accelerate the maturity
thereof, (v)&nbsp;an admission by us or Nextel Argentina of an
inability to pay its debt as such debts become due,
(vi)&nbsp;certain events of bankruptcy, insolvency,
reorganization, dissolution or winding up, (vii)&nbsp;certain
events with respect to multi-employer plans pursuant to which we
or our Operating Companies incur a liability to such plans which
would have a material liability on us, (viii)&nbsp;the occurrence
 of a condemnation or similar appropriation action by any
governmental authority with respect to the assets of Nextel
Argentina, (ix)&nbsp;the revocation, termination or other loss of
 material licences or concessions, (x)&nbsp;the failure of Nextel
 Argentina to provide certain interconnection services in
Argentina for a period of 45&nbsp;days, or (xi)&nbsp;a default by
 us in the performance of our obligations under the capital
subscription agreements.

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<P align="left"><B>Motorola Argentina Incremental Facility</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective May&nbsp;26, 1999, and concurrent with the then current
 modification of the Argentina Credit Facility, Motorola Credit
agreed to provide up to $50.0 million in loans to Nextel
Argentina as incremental term loans under the Argentina Credit
Facility for purchase from Motorola of qualifying network
equipment and related services. As of June&nbsp;30, 2000,
$18.6&nbsp;million had been borrowed under this incremental
facility.

<P align="left"><B>International Motorola Incremental Facility</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;16, 1999, we entered into an agreement with
Motorola Credit under which Motorola Credit committed to provide
up to $56.6&nbsp;million in incremental term loans to us to
acquire infrastructure equipment and related services from
Motorola. Loans under this facility, referred to as the Motorola
International Incremental Facility, mature December&nbsp;31, 2001
 and bear interest at variable rates based upon either the U.S.
prime rate or LIBOR. Loans under this facility are secured by a
pledge of all of our shares of stock of Clearnet. On
January&nbsp;6, 2000, we borrowed the full $56.6&nbsp;million
available under this facility. The Motorola International
Incremental Facility was amended in July 2000 to permit the
offering of our August 2000 Notes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Motorola International Incremental Facility contains
restrictive covenants similar to those contained in the Motorola
International Financing Facility. In addition, the Motorola
International Incremental Facility requires us to meet certain
financial tests and ratios, including a maximum leverage ratio
and minimum EBITDA. As in the Motorola International Financing
Facility, we have the ability to include in the EBITDA used to
measure our compliance with certain of the financial ratios a
portion of the difference between the minimum required additional
 paid-in-capital and the actual paid-in-capital to the extent
such adjustment would enable us to remain in compliance with the
financial covenants contained in the agreement.

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<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center"><B>DESCRIPTION OF CAPITAL STOCK</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The following description is only a summary of the material
provisions of our corporate charter and bylaws. We refer you to
the more detailed provisions of our corporate charter and bylaws,
 copies of which will be filed with the Securities and Exchange
Commission as exhibits to the registration statement of which
this prospectus is a part and applicable law.</I>

<P align="left"><B>General</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to completion of these offerings, we intend to:
<P>

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	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	exchange all 2,150 outstanding shares of series&nbsp;A
	exchangeable redeemable preferred stock for shares of
	class&nbsp;B common stock; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	amend our corporate charter and bylaws to reclassify our common
	stock into class&nbsp;A and class&nbsp;B common stock and to
	eliminate the authorized shares of series&nbsp;A and
	series&nbsp;B preferred stock and replace them with undesignated
	preferred stock.</TD>
</TR>

</TABLE>

<P align="left">
All of our outstanding shares of common stock will be
reclassified into an equal number of shares of class&nbsp;B
common stock. Holders of class&nbsp;B common stock will have more
 voting power per share than holders of the class&nbsp;A common
stock, as described below, and the class&nbsp;B common stock
will, upon the events described below, convert to class&nbsp;A
common stock. In addition, prior to completion of the offerings,
we plan to reincorporate in Delaware. The following description
of our capital stock gives effect to the reclassification, the
exchange of the series&nbsp;A preferred stock, the
reincorporation and the reclassification of the shares of common
stock issuable upon exercise of our options and warrants into
shares of class&nbsp;B common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our authorized capital stock consists of 1,500,000,000 shares of
common stock, no par value, and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
preferred stock, par value $10.00 per share.

<P align="left"><B>Common Stock</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Of the 1,500,000,000 shares of authorized common stock,
1,000,000,000 are designated as class&nbsp;A common stock and
500,000,000 are designated as class&nbsp;B common stock. There
are 180,691,155 outstanding shares of class&nbsp;B common stock
held by about 20 persons and no outstanding shares of
class&nbsp;A common stock. Each of the class&nbsp;A common stock
and the class&nbsp;B common stock constitutes a series of common
stock under the General Corporation Law of the State of Delaware,
 or the DGCL.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of class&nbsp;A common stock and holders of class&nbsp;B
common stock generally have identical rights, except with respect
 to voting and conversion as described below.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of common stock have no preemptive rights to purchase
shares of our stock. All outstanding shares of common stock are,
and the shares of class&nbsp;A common stock to be sold in the
offerings upon receipt of payment will be, fully paid and
nonassessable.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Voting</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The class&nbsp;A common stock and class&nbsp;B common stock vote
as a single class on all matters, except as otherwise required by
 law, with each share of class&nbsp;A common stock entitling its
holder to one vote and each share of class&nbsp;B common stock
entitling its holder to ten votes. In addition to voting together
 with holders of class&nbsp;A common stock on most matters,
holders of class&nbsp;B common stock will be entitled to vote as
a separate class on amendments to our certificate of
incorporation that would alter or adversely affect the powers,
preferences or special rights of the class&nbsp;B common stock
that would not also adversely affect the holders of class&nbsp;A
common stock. Holders of our common stock do not have the right
to cumulative voting in the election of directors.

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<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Dividends</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the rights and preferences of any preferred stock then
 outstanding and after compliance with any provision for any
sinking or purchase fund or funds for any series of preferred
stock, the holders of common stock are entitled to receive
dividends as may be declared in the discretion of our board of
directors from time to time out of assets or funds legally
available for these payments. We have not paid any dividends on
our capital stock, and we do not plan to pay any dividends on
either class of our common stock for the foreseeable future. If
any cash dividends are paid, they will be paid ratably among all
holders of our common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the case of a dividend payable in kind, shares of class&nbsp;A
 common stock will be distributed with respect to shares of
class&nbsp;A common stock on which the dividend is declared, and
shares of class&nbsp;B common stock will be distributed with
respect to shares of class&nbsp;B common stock on which the
dividend is declared. The number of shares of each class of
common stock payable per share of each class of common stock will
 be equal.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Liquidation</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of a liquidation, dissolution or winding-up, the
holders of class&nbsp;A common stock and the holders of
class&nbsp;B common stock will be entitled to share ratably, as a
 single class, in all of our assets remaining after payment of
our liabilities and the liquidation preferences of any preferred
stock then outstanding. There are no redemption or sinking fund
provisions applicable to the common stock.

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Conversion of
Class&nbsp;B Common Stock</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares of class&nbsp;B common stock are convertible, on a
one-on-one basis, into an equal number of fully paid and
non-assessable shares of class&nbsp;A common stock, if:
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	<TD>&#149;&nbsp;</TD>
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	a holder surrenders shares of class&nbsp;B common stock to us for
	 conversion into shares of class&nbsp;A common stock; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a holder transfers shares of class&nbsp;B common stock, directly
	or indirectly, to anyone who is not a specified permitted
	transferee, which principally includes other holders of shares of
	 class&nbsp;B common stock and parties related to these holders.</TD>
</TR>

</TABLE>

<P align="left">
In addition, if at any time the aggregate number of shares of
class&nbsp;B common stock owned by Nextel Communications, or its
successor, its subsidiaries and any person which acquires all or
substantially all of the assets of Nextel Communications,
constitutes in the aggregate, less than 30% of all of our issued
and outstanding shares of common stock for a period of greater
than 90 days, all outstanding shares of class&nbsp;B common stock
 automatically convert into shares of class&nbsp;A common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon any reclassification or other similar transaction that
results in the shares of class&nbsp;A common stock being
converted into or exchanged for another security, holders of
class&nbsp;B common stock will be entitled to receive, upon
subsequent conversion or exchange of the class&nbsp;B common
stock, the amount of the other security that the holder would
have received if the conversion or exchange had occurred
immediately prior to the record date for the reclassification or
other similar transaction.

<P align="left"><B>Preferred Stock</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the time of completion of the offerings, no shares of
preferred stock will be outstanding. Thereafter, our board of
directors will have the authority, without further action by our
stockholders, to issue shares of undesignated preferred stock
from time to time in one or more series and to fix the related
number of shares and the designations, voting powers,
preferences,

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<DIV align="left">
optional and other special rights, and restrictions or
qualifications of that preferred stock. The rights, preferences,
privileges and restrictions or qualifications of different series
 of preferred stock may differ with respect to dividend rates,
amounts payable on liquidation, voting rights, conversion rights,
 redemption provisions, sinking fund provisions and other
matters. The issuance of preferred stock could:
</DIV>
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	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	decrease the amount of earnings and assets available for
	distribution to holders of common stock;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	adversely affect the rights and powers, including voting rights,
	of holders of common stock; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	have the effect of delaying, deterring or preventing a change in
	control.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have no present plans to issue any shares of undesignated
preferred stock.

<P align="left"><B>Warrants</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 1997, in connection with the issuance of our
March&nbsp;1997 Notes, we issued 951,463 warrants. Each warrant
entitles the holder to purchase 1.5499 shares of our class&nbsp;B
 common stock at an exercise price of $2.50 per common share. The
 warrants expire on April&nbsp;15, 2007 and may be exercised any
time after the effectiveness of a registration statement relating
 to the warrant shares or pursuant to an exemption from the
registration requirements of the Securities Act, if available. We
 are obligated under a registration rights agreement entered into
 with the warrant agent on behalf of the warrant holders to file
such a registration statement and have it declared effective
180&nbsp;days after the closing of the offerings. Subject to
limited exceptions, the warrant holders also have a right to have
 the warrant shares included in some of our registered offerings.

<P align="left"><B>Transfer Agent and Registrar</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The transfer agent and registrar for our common stock is
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

<P align="left"><B>Relevant Provisions of Our Certificate of Incorporation,
Restated Bylaws and Delaware Law</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation and bylaws contain provisions
that could make more difficult an acquisition of us by means of a
 tender offer, a proxy contest or otherwise. These provisions are
 expected to discourage specific types of coercive takeover
practices and inadequate takeover bids and to encourage persons
seeking to acquire control to first negotiate with us. Although
these provisions may have the effect of delaying, deferring or
preventing a change in control, we believe that the benefits of
increased protection of our potential ability to negotiate with
the proponent of an unfriendly or unsolicited proposal to acquire
 or restructure our company outweigh the disadvantages of
discouraging these proposals because, among other things,
negotiation of such proposals could result in an improvement of
their terms. The description below is intended as a summary only
and is qualified in its entirety by reference to our certificate
of incorporation and bylaws.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Board of Directors</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to our bylaws, our board of directors must be composed
of not less than one nor more than ten directors. Our board
currently consists of seven directors. The number of directors
may be changed from time to time by amendment to our restated
bylaws, but no decrease in the number of directors may shorten
the term of any incumbent director. Unless a director dies,
resigns or is removed, his or her term of office will expire at
the next annual meeting of stockholders; provided, however, that
a director will continue to serve until his or her successor is
elected or until there is a decrease in the authorized number of
directors. Directors need not

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<DIV align="left">
be stockholders of the corporation or residents of the State of
Delaware and need not meet any other qualifications.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Stockholder Actions and Special Meetings</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with Delaware law, our certificate of incorporation
 provides that any action required or permitted to be taken at a
stockholders&#146; meeting may be taken without a meeting or a
vote if the action is taken by a majority of the stockholders
entitled to vote on the action. Our bylaws provide that the
Chairman of the Board, our President or our board of directors
may call special meetings of the stockholders for any purpose.
Further, a special meeting of the stockholders must be held if
the holders of not less than 10% of all the votes entitled to be
cast on any issue proposed to be considered at that special
meeting have dated, signed and delivered to our Secretary one or
more written demands that describe the purpose or purposes for
which that special meeting is to be held.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Anti-Takeover Statute</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our company is a Delaware corporation and subject to
Section&nbsp;203 of DGCL. Generally, Section&nbsp;203 prohibits a
 publicly held Delaware company from engaging in a &#147;business
 combination&#148; with an &#147;interested stockholder&#148; for
 a period of three&nbsp;years after the time such stockholder
became an interested stockholder unless, as described below,
specified conditions are satisfied. Thus, it may make acquisition
 of control of our company more difficult. The prohibitions in
Section&nbsp;203 of the DGCL do not apply if:
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	prior to the time the stockholder became an interested
	stockholder, the board of directors of the corporation approved
	either the business combination or the transaction which resulted
	 in the stockholder becoming an interested stockholder;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	upon consummation of the transaction, which resulted in the
	stockholder becoming an interested stockholder, the interested
	stockholder owned at least 85% of the voting stock of the
	corporation outstanding at the time the transaction commenced; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	at or subsequent to the time the stockholder became an interested
	 stockholder, the business combination is approved by the board
	of directors and authorized by the affirmative vote of at least
	66&nbsp; 2/3% of the outstanding voting stock that is not owned
	by the interested stockholder.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section&nbsp;203 of Delaware corporate law, a
&#147;business combination&#148; includes:
<P>

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	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any merger or consolidation of the corporation with the
	interested stockholder;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any sale, lease, exchange or other disposition, except
	proportionately as a stockholder of such corporation, to or with
	the interested stockholder of assets of the corporation having an
	 aggregate market value equal to 10% or more of either the
	aggregate market value of all the assets of the corporation or
	the aggregate market value of all the outstanding stock of the
	corporation;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	transactions resulting in the issuance or transfer by the
	corporation of stock of the corporation to the interested
	stockholder;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	transactions involving the corporation, which have the effect of
	increasing the proportionate share of the corporation&#146;s
	stock of any class or series that is owned by the interested
	stockholder; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	transactions in which the interested stockholder receives
	financial benefits provided by the corporation.</TD>
</TR>

</TABLE>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section&nbsp;203 of Delaware corporate law, an
&#147;interested stockholder&#148; generally is
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	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any person that owns 15% or more of the outstanding voting stock
	of the corporation;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	any person that is an affiliate or associate of the corporation
	and was the owner of 15% or more of the outstanding voting stock
	of the corporation at any time within the three-year period
	immediately prior to the date on which it is sought to be
	determined whether or not such person is an interested
	stockholder; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the affiliates or associates of either of the above categories of
	 persons.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because Nextel Communications already owns more than 15% of our
voting stock, Section&nbsp;203 of the DGCL will not apply to any
business combination with Nextel Communications even though
Nextel Communications owns 15% or more of our outstanding voting
stock. If any other person acquires 15% or more of our
outstanding voting stock, that person, however, will be subject
to the provisions of Section&nbsp;203 of the DGCL.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under some circumstances, Section&nbsp;203 of the DGCL makes it
more difficult for an &#147;interested stockholder&#148; to
effect various business combinations with us for a three-year
period, although our stockholders may elect to exclude us from
the restrictions imposed thereunder. By virtue of its beneficial
ownership of our class&nbsp;B common stock, Nextel Communications
 is in a position to elect to exclude us from the restrictions
under Section&nbsp;203.

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<!-- link1 "SHARES ELIGIBLE FOR FUTURE SALE" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center"><B>SHARES ELIGIBLE FOR FUTURE SALE</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Before the offerings, there has been no market for our common
stock. Future sales of substantial amounts of common stock in the
 public market could adversely affect the prevailing market price
 of our common stock and impair our ability to raise equity
capital in the future.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of the offerings, we will have
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding
 shares of common stock giving effect to the exchange of our
series&nbsp;A exchangeable redeemable preferred stock for
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our
class&nbsp;B common stock. Of these shares,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 of class&nbsp;A common stock sold in the offerings, plus any
shares issued upon exercise of the underwriters&#146;
over-allotment options, will be freely tradable without
restriction under the Securities Act, unless purchased by our
affiliates. The term affiliates is defined in Rule&nbsp;144 under
 the Securities Act. In general, affiliates include officers,
directors or 10% stockholders.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Of the remaining
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 outstanding,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 will be freely tradeable and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 are restricted securities within the meaning of Rule&nbsp;144.
Restricted securities may be sold in the public market only if
registered or if they qualify for an exemption from registration
under Rule&nbsp;144 promulgated under the Securities Act, which
are summarized below. Sales of restricted securities in the
public market, or the availability of these shares for sale,
could adversely affect the market price of the common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel International and its officers, directors and specified
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of its
common stock or securities convertible into or exchangeable for
shares of common stock for 180&nbsp;days after the date of this
prospectus. However, this agreement will be subject to a number
of exceptions and qualifications. In addition, Goldman, Sachs
&#38; Co. may in its sole discretion release any or all of the
securities subject to these restrictions at any time without
notice. The representatives may, in their sole discretion,
release any or all of the securities subject to these
restrictions at any time without notice. Assuming the
representatives do not release any of the securities subject to
these agreements, the following restricted shares will be
eligible for sale in the public market at the following times:
<P>

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	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	beginning on the effective date of this prospectus, approximately

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 will be immediately available for sale in the public market;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	beginning 180&nbsp;days after the effective date, approximately
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 will be eligible for sale, approximately
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
	which will be subject to volume, manner of sale and other
	limitations under Rule 144; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the remaining
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 will become eligible for sale under Rule&nbsp; 144, subject to
	volume, manner of sale and other limitations under Rule&nbsp;144,
	 upon the expiration of various one-year holding periods.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, under Rule&nbsp;144 a person who has beneficially
owned restricted securities for at least one year would be
entitled to sell within any three-month period a number of shares
 that does not exceed the greater of:
<P>

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	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	1% of the number of shares of common stock then outstanding,
	which will equal approximately
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
	 immediately after the offerings; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the average weekly trading volume of the common stock during the
	four calendar weeks preceding the sale.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales under Rule&nbsp;144 are also subject to requirements which
govern the manner of sale, notice and the availability of current
 public information about our company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Rule&nbsp;144(k), a person who is not considered to have
been our affiliate at any time during the three months preceding
a sale, and who has beneficially owned the shares proposed

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<DIV align="left">
to be sold for at least two years, is entitled to sell his shares
 without complying with the manner of sale, public information,
volume limitation or notice provision of Rule&nbsp;144.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we have filed a registration statement for our 1997
Stock Option Plan, and we intend to file a registration statement
 under the Securities Act as promptly as possible after the
effective date to register shares to be issued under our
incentive equity plans. As a result, any options or rights
exercised under any of our existing stock option plans or any
other benefit plan after the effectiveness of the registration
statements relating to those plans will also be freely tradable
in the public market. However, shares held by affiliates will
still be subject to the volume limitation, manner of sale, notice
 and public information requirements of Rule 144. As of
June&nbsp;30, 2000 there were outstanding options for the
purchase of 7,002,084 shares of common stock, of which options to
 purchase 4,402,936 shares were exercisable.

<P align="left"><B>Registration Rights</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the issuance of our warrants in conjunction with our
March&nbsp;1997 Notes, we entered into an agreement with the
warrant agent on behalf of the holders of the warrants under
which we:
<P>

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	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	agreed to file and have declared effective a registration
	statement with respect to the warrant shares within 180&nbsp;days
	 after completion of the offerings; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	granted the warrant holders the right, subject to some
	exceptions, in the event we propose to register any shares of our
	 common stock under the Securities Act, to include the warrant
	shares in the registration.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are generally required to bear the expenses of all
registrations effected on behalf of the warrant holders, except
underwriting discounts and commissions in connection with an
underwritten offering in which warrant shares are included.

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<!-- link1 "PRINCIPAL UNITED STATES FEDERAL TAX CONSEQUENCES TO NON-U.S. HOLDERS" -->
<DIV align="left"><A NAME="016"></A></DIV>

<P align="center"><B>PRINCIPAL UNITED STATES FEDERAL TAX CONSEQUENCES</B>

<DIV align="center">
<B>TO NON-U.S. HOLDERS</B>
</DIV>

<P align="left"><B>General</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a general discussion of the principal United
States federal income and estate tax consequences of the
ownership and disposition of our common stock that may be
relevant to you if you are a non-U.S. holder. For purposes of
this summary, a non-U.S. holder is a beneficial owner of our
common stock that is not, for United States federal income tax
purposes:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a citizen or individual resident of the United States;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a corporation, or other entity treated as a corporation, created
	in or under the laws of the United States or of any state;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	an estate, the income of which is subject to United States
	federal income taxation regardless of its source;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a trust if a court within the United States is able to exercise
	primary supervision over the administration of the trust and one
	or more United States persons have the authority to control all
	substantial decisions of the trust, or a trust in existence on
	August&nbsp;20, 1996 and treated as a United States person before
	 this date that timely elected to continue to be treated as a
	United States person; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	a partnership that is created or organized in or under the laws
	of the United States or of any state, except as Treasury
	regulations may provide.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This discussion does not address all aspects of United States
federal income and estate taxation that may be relevant to
non-U.S. holders in light of their particular circumstances or to
 non-U.S. holders that may be subject to special treatment under
United States federal income or estate tax laws. In addition,
this discussion does not address any foreign, state or local tax
consequences. Furthermore, this discussion is based on provisions
 of the Internal Revenue Code, Treasury regulations and
administrative and judicial interpretations as of the date of
this prospectus. All of these are subject to change, possibly
with retroactive effect, or different interpretations. If you are
 considering buying our common stock you should consult your own
tax advisor about current and possible future tax consequences of
 holding and disposing of our common stock in your particular
situation.

<P align="left"><B>Distribution</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not paid any cash dividends on our outstanding capital
stock, and do not plan to pay any dividends on our common stock
for the foreseeable future. However, if we do pay dividends on
our common stock, those distributions generally will constitute
dividends for United States federal income tax purposes to the
extent paid from our current or accumulated earnings and profits,
 as determined under United States federal income tax principles.
 To the extent the distributions exceed those earnings and
profits, the distributions will constitute a return of capital
that will be applied against and will reduce your basis in our
common stock, and then will be treated as gain from the sale of
the stock to the extent the distributions exceed your basis.
Dividends paid to a non-U.S. holder that are not effectively
connected with a United States trade or business of the non-U.S.
holder will, to the extent paid out of earnings and profits, be
subject to United States withholding tax at a 30 percent rate or,
 if a tax treaty applies, a lower rate specified by the treaty.
To receive a reduced treaty rate, a non-U.S. holder must furnish
to us or our paying agent a duly completed Form&nbsp;W-8BEN, or
other appropriate documentation, certifying to its qualification
for the reduced rate.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, withholding generally is imposed on the gross amount
of a distribution, regardless of whether we have sufficient
earnings and profits to cause the distribution to be a dividend
for

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<DIV align="left">
United States federal income tax purposes. However, withholding
on distributions made after December&nbsp;31, 2000 may be on less
 than the gross amount of the distribution if the distribution
exceeds a reasonable estimate made by us of our accumulated and
current earnings and profits.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends that are effectively connected with the conduct of a
United States trade or business of a non-U.S. holder and, if a
tax treaty applies, are attributable to a United States permanent
 establishment of the non-U.S. holder, are exempt from United
States federal withholding tax, provided that the non-U.S. holder
 furnishes to us or our paying agent a duly completed Form
W-8ECI, or other appropriate documentation, certifying the
exemption. However, dividends exempt from United States
withholding because they are effectively connected or they are
attributable to a United States permanent establishment are
subject to United States federal income tax on a net income basis
 at the regular graduated United States federal income tax rates.
 Any such effectively connected dividends received by a foreign
corporation may, under specified circumstances, be subject to an
additional &#147;branch profits tax&#148; at a 30&nbsp;percent
rate or a lower rate specified by an applicable income tax
treaty.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under current United States Treasury regulations, dividends paid
before January&nbsp;1, 2001 to an address outside the United
States are presumed to be paid to a resident of the country of
address for purposes of the withholding discussed above and for
purposes of determining the applicability of a tax treaty rate.
However, United States Treasury regulations applicable to
dividends paid after December&nbsp;31, 2000 eliminate this
presumption, subject to transition rules.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For dividends paid after December&nbsp;31, 2000, a non-U.S.
holder generally will be subject to United States backup
withholding tax at a 31&nbsp;percent rate under the backup
withholding rules described below, rather than at a
30&nbsp;percent rate or a reduced rate under an income tax
treaty, as described above, unless the non-U.S. holder complies
with Internal Revenue Service, or IRS, certification procedures
or, in the case of payments made outside the United States with
respect to an offshore account, specified IRS documentary
evidence procedures. Further, to claim the benefit of a reduced
rate of withholding under a tax treaty for dividends paid after
December&nbsp;31, 2000, a non-U.S. holder must comply with
certain modified IRS certification requirements. Special rules
also apply to dividend payments made after December&nbsp;31, 2000
 to foreign intermediaries, United States or foreign wholly owned
 entities that are disregarded for United States federal income
tax purposes and entities that are treated as fiscally
transparent in the United States, the applicable income tax
treaty jurisdiction, or both. You should consult your own tax
advisor concerning the effect, if any, of the rules affecting
post-December&nbsp;31, 2000 dividends on your investment in our
common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A non-U.S. holder may obtain a refund of any excess amount
withheld by filing an appropriate claim for refund along with the
 required information with the IRS.

<P align="left"><B>Gain on Disposition of Common Stock</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A non-U.S. holder generally will not be subject to United States
federal income tax with respect to gain recognized on a sale or
other disposition of our common stock unless one of the following
 applies:
<P>

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	<TD width="1%"></TD>
	<TD width="96%"></TD>
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	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the gain is effectively connected with a United States trade or
	business of the non-U.S. holder and, if a tax treaty applies, the
	 gain is attributable to a United States permanent establishment
	maintained by the non-U.S. holder. In this case, the non-U.S.
	holder will, unless an applicable treaty provides otherwise, be
	taxed on its net gain derived from the sale under regular
	graduated United States federal income tax rates. If the non-U.S.
	 holder is a foreign corporation, it may be subject to an
	additional branch profits tax equal to 30&nbsp;percent of its
	effectively connected earnings and profits within the meaning of
	the Internal Revenue Code for the taxable year, as adjusted for
	specified items, unless it qualifies for a lower rate under an
	applicable income tax treaty and duly demonstrates the
	qualification;</TD>
</TR>

</TABLE>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the non-U.S. holder is an individual, holds our common stock as a
	 capital asset, is present in the United States for 183 or more
	days in the taxable year of the disposition, and other conditions
	 are met. In this case, the non-United States holder will be
	subject to a flat 30 percent tax on the gain derived from the
	sale, which may be offset by specified United States capital
	losses; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	we are or have been a &#147;United States real property holding
	corporation&#148; for United States federal income tax purposes
	at any time during the shorter of the five-year period ending on
	the date of the disposition or the period during which the
	non-United States holder held our common stock. We believe that
	we will not constitute a United States real property holding
	corporation immediately after the offerings and we do not expect
	to become a United States real property holding corporation for
	the foreseeable future. Even if we are or were to become a United
	 State real property holding corporation, any gain recognized by
	a non-U.S. holder still would not be subject to United States
	federal income tax if our common stock is &#147;regularly traded
	on an established securities market&#148; and the non-U.S. holder
	 did not own, actually or constructively, at any time during the
	shorter of the periods described above, more than five percent of
	 this class of our common stock.</TD>
</TR>

</TABLE>

<P align="left"><B>Federal Estate Tax</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Common stock owned or treated as owned by an individual non-U.S.
holder at the time of death, or common stock as to which the
non-U.S. holder made specified lifetime transfers, will be
included in that holder&#146;s gross estate for United States
federal estate tax purposes, unless an applicable estate tax
treaty provides otherwise.

<P align="left"><B>Information Reporting and Backup Withholding Tax</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under United States Treasury regulations, we must report annually
 to the IRS and to each non-U.S. holder the amount of dividends
paid to that holder and the tax withheld with respect to the
dividends. These information reporting requirements apply even if
 withholding was not required because the dividends were
effectively connected dividends or withholding was reduced by an
applicable income tax treaty. Pursuant to an applicable tax
treaty, information may also be made available to the tax
authorities in the country in which the non-United States holder
resides.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
United States federal backup withholding generally is a
withholding tax imposed at the rate of 31&nbsp;percent on
specified payments to persons that fail to furnish required
information. Backup withholding generally will not apply to
dividends paid before January&nbsp;1, 2001 to non-United States
holders. See the discussion under &#147;&#151; Distribution&#148;
 above for rules regarding reporting requirements to avoid backup
 withholding on dividends paid after December&nbsp;31, 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a general matter, information reporting and backup withholding
 will not apply to a payment by or through a foreign office of a
foreign broker of the proceeds of a sale of our common stock
effected outside the United States. However, information
reporting requirements, but not backup withholding, will apply to
 a payment by or through a foreign office of a broker of the
proceeds of a sale of our common stock effected outside the
United States if that broker:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	is a United States person for United States federal income tax
	purposes;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	is a foreign person that derives 50&nbsp;percent or more of its
	gross income for specified periods from the conduct of a trade or
	 business in the United States;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	is a &#147;controlled foreign corporation&#148; as defined in the
	 Internal Revenue Code; or</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	is a foreign partnership with specified United States
	connections, for payments made after December&nbsp;31, 2000.</TD>
</TR>

</TABLE>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information reporting requirements will not apply in the above
cases if the broker has documentary evidence in its records that
the holder is a non-U.S. holder and specified conditions are met
or the holder otherwise establishes an exemption.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payment by or through a United States office of a broker of the
proceeds of a sale of our common stock is subject to both backup
withholding and information reporting unless the holder certifies
 to the payor in the manner required as to its status as a
non-U.S. holder under penalties of perjury or otherwise
establishes an exemption.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Amounts withheld under the backup withholding rules do not
constitute a separate United States federal income tax. Rather,
any amounts withheld under the backup withholding rules will be
refunded or allowed as a credit against the holder&#146;s United
States federal income tax liability, if any, provided the
required information or appropriate claim for refund is filed
with the IRS.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The above discussion is a summary of some principal United
States federal income and estate tax consequences of the
ownership, sale or other disposition of our common stock by
non-U.S. holders. You are urged to consult your own tax advisor
with respect to the particular tax consequences to you of
ownership and disposition of our common stock, including the
effect of any state, local, foreign or other tax laws.</B>

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<!-- link1 "UNDERWRITING" -->
<DIV align="left"><A NAME="017"></A></DIV>

<P align="center"><B>UNDERWRITING</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel International and the underwriters for the U.S. offering
named below, referred to as the U.S. underwriters, will enter
into an underwriting agreement with respect to the shares being
offered in the United States. Subject to certain conditions, each
 U.S. underwriter has severally agreed to purchase the number of
shares indicated in the following table. Goldman,
Sachs&nbsp;&#38; Co., Morgan Stanley&nbsp;&#38; Co. Incorporated,
 Credit Suisse First Boston Corporation, Deutsche Bank Securities
 Inc., Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith
Incorporated and PaineWebber Incorporated are the representatives
 of the U.S. underwriters.

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="73%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="9%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="9%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2">Underwriters</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">Number of Shares</FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Goldman, Sachs &#38; Co.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Morgan Stanley &#38; Co. Incorporated</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Credit Suisse First Boston Corporation</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Deutsche Bank Securities Inc.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith<BR>
	Incorporated</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	PaineWebber Incorporated</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the U.S. underwriters sell more shares than the total number
set forth in the table above, the U.S. underwriters have an
option to buy up to an additional
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares from Nextel
International to cover such sales. They may exercise that option
for 30&nbsp;days. If any shares are purchased pursuant to this
option, the U.S. underwriters will severally purchase shares in
the same proportion as set forth in the table above.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the per share and total underwriting
discounts and commissions to be paid to the U.S. underwriters by
Nextel International. Such amounts are shown assuming both no
exercise and full exercise of the U.S. underwriters&#146; options
 to purchase
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
 shares.

<P align="center"><U>Paid by Nextel International</U>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="63%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">No Exercise</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">Full Exercise</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Per Share</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares sold by the underwriters to the public will initially be
offered at the initial public offering price set forth on the
cover of this prospectus. Any shares sold by the underwriters to
securities dealers may be sold at a discount of up to
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share from the initial
public offering price. Any such securities dealers may resell any
 shares purchased from the underwriters to certain other brokers
or dealers at a discount of up to
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share from the initial
public offering price. If all the shares are not sold at the
initial public offering price, the representatives may change the
 offering price and the other selling terms.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel International will enter into underwriting agreements with
 the underwriters for the sale of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
 outside of the United States. The terms and conditions of both
offerings are the same and the sale of the shares in both
offerings are conditioned on each other. Goldman

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<DIV align="left">
Sachs International, Morgan Stanley &#38; Co. International
Limited, Credit Suisse First Boston (Europe) Limited, Deutsche
Bank AG London, Merrill Lynch International and PaineWebber
International (U.K.) Ltd. are representatives of the underwriters
 for the international offering outside the United States,
referred to as the international underwriters. Nextel
International has granted the international underwriters a
similar option to purchase up to an aggregate of an additional
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters for both of the offerings will enter into an
agreement in which they will agree to restrictions on where and
to whom they and any dealer purchasing from them may offer shares
 as a part of the distribution of the shares. The underwriters
will also agree that they may sell shares among each of the
underwriting groups.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel International and its officers, directors and specified
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of their
common stock or securities convertible into or exchangeable for
shares of common stock during the period from the date of this
prospectus continuing through the date 180&nbsp;days after the
date of this prospectus, except with the prior written consent of
 the representatives.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The restrictions described in the previous paragraph do not apply
 to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the issuance by Nextel International of any shares of
	class&nbsp;A common stock offered in the offerings;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the issuance by Nextel International of shares of any class of
	common stock upon exercise of an option or a warrant or the
	conversion of a security outstanding on the date of this
	prospectus;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the granting by Nextel International of any options, deferred
	shares or other equity awards under the Nextel International
	equity incentive plans, so long as such options do not vest and
	become exercisable or such deferred shares or other awards do not
	 vest, in each case, in the absence of extraordinary events or
	occurrences beyond the control of the grantee or recipient, until
	 after the expiration of the 180&nbsp;day period;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	the issuance by Nextel International of shares of any class of
	common stock in connection with acquisitions of businesses or
	portions thereof, or in connection with any strategic investment
	in Nextel International by any third party on terms approved by
	Nextel International&#146;s board of directors provided the
	parties in any such acquisition or investment transaction agree
	to be bound by the foregoing restrictions or will not receive any
	 shares of common stock until after the expiration of such
	180&nbsp;day period; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	transactions relating to shares of class&nbsp;A common stock or
	other securities acquired in open market transactions after the
	completion of the offerings by persons other than Nextel
	International and Nextel Communications.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the offerings, there has been no public market for any
of Nextel International&#146;s equity securities, including the
class&nbsp;A common stock. The initial public offering price will
 be negotiated among the representatives and Nextel
International. Among the factors to be considered in determining
the initial public offering price of the shares, in addition to
prevailing market conditions, will be Nextel International&#146;s
 historical performance, estimates of the business potential and
earnings prospects of Nextel International, an assessment of
Nextel International&#146;s management and the consideration of
the above factors in relation to market valuation of companies in
 related businesses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Application has been made for quotation of the class A common
stock on the Nasdaq National Market under the symbol
&#147;NXTI.&#148;

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the offerings, the underwriters may purchase
and sell shares of class&nbsp;A common stock in the open market.
These transactions may include short sales, stabilizing

<P align="center">117
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<DIV align="left">
transactions and purchases to cover positions created by short
sales. Shorts sales involve the sale by the underwriters of a
greater number of shares than they are required to purchase in
the offerings. &#147;Covered&#148; short sales are sales made in
an amount not greater than the underwriters&#146; option to
purchase additional shares from Nextel International in the
offerings. The underwriters may close out any covered short
position by either exercising their option to purchase additional
 shares or purchasing shares in the open market. In determining
the source of shares to close out the covered short position, the
 underwriters will consider, among other things, the price of
shares available for purchase in the open market as compared to
the price at which they may purchase shares through the
over-allotment options. &#147;Naked&#148; short sales are any
sales in excess of such option. The underwriters must close out
any naked short position by purchasing shares in the open market.
 A naked short position is more likely to be created if the
underwriters are concerned that there may be downward pressure on
 the price of the class&nbsp;A common stock in the open market
after pricing that could adversely affect investors who purchase
in the offerings. Stabilizing transactions consist of various
bids for or purchases of class&nbsp;A common stock made by the
underwriters in the open market prior to the completion of the
offerings.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters may also impose a penalty bid. This occurs when
a particular underwriter repays to the underwriters a portion of
the underwriting discount received by it because the
representatives have repurchased shares sold by or for the
account of such underwriter in stabilizing or short covering
transactions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Purchases to cover a short position and stabilizing transactions
may have the effect of preventing or retarding a decline in the
market price of the class&nbsp;A common stock, and together with
the imposition of the penalty bid, may stabilize, maintain or
otherwise affect the market price of the class&nbsp;A common
stock. As a result, the price of the class&nbsp;A common stock,
including the shares of the class&nbsp;A common stock offered in
the offerings, may be higher than the price that otherwise might
exist in the open market. If these activities are commenced, they
 may be discontinued at any time. These transactions may be
effected on the NASDAQ National Market, in the over-the-counter
market or otherwise.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters do not expect sales to discretionary accounts to
 exceed five percent of the total number of shares offered.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel International has agreed to indemnify the several
underwriters against certain liabilities, including liabilities
under the Securities Act of 1933.

<!-- link1 "VALIDITY OF COMMON STOCK" -->
<DIV align="left"><A NAME="018"></A></DIV>

<P align="center"><B>VALIDITY OF COMMON STOCK</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Jones, Day, Reavis &#38; Pogue, Atlanta, Georgia will pass upon
the validity of the class&nbsp;A common stock offered by this
prospectus. Shearman &#38; Sterling, New York, New York, will
pass upon specified legal matters for the underwriters.

<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="019"></A></DIV>

<P align="center"><B>EXPERTS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The financial statements as of December&nbsp;31, 1999 and 1998,
and for each of the three years in the period ended
December&nbsp;31, 1999 and related financial statement schedules,
 included in this prospectus, have been audited by
Deloitte&nbsp;&#38; Touche LLP, independent auditors, as stated
in their report appearing herein and are included in reliance
upon the report of such firm given upon their authority as
experts in accounting and auditing.

<P align="center">118

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->
<DIV align="left"><A NAME="020"></A></DIV>

<P align="center"><B>WHERE YOU CAN FIND MORE INFORMATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed with the Securities and Exchange Commission, 450
Fifth Street, N.W., Washington, D.C. 20549, a registration
statement on Form&nbsp;S-1 under the Securities Act of 1933 with
respect to the offerings. As permitted by the rules and
regulations of the Securities and Exchange Commission, this
prospectus does not contain all the information contained in the
Registration Statement. For further information about us and the
offerings, you can read the registration statement and the
exhibits and financial statement schedules filed with the
registration statement. The statements contained in this
prospectus about the contents of any contract or other document
are not necessarily complete. You can read a copy of each
contract or other document filed as an exhibit to the
registration statement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are currently subject to some of the informational reporting
requirements of the Securities Exchange Act of 1934 and we file
periodic reports and other information with the Securities and
Exchange Commission. After the offering we will also file proxy
statements with the Securities and Exchange Commission.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You can inspect the registration statement and the exhibits and
schedules to the registration statement, as well as the periodic
reports, proxy statements and other information we file with the
Securities and Exchange Commission, without charge, at the Public
 Reference Room of the Securities and Exchange Commission located
 at Room&nbsp;1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, D.C. 20549. You can obtain copies of all or any
portion of these filings from the Public Reference Room of the
Securities and Exchange Commission upon payment of prescribed
fees. You may obtain information on the operation of the Public
Reference Room of the Securities and Exchange Commission by
calling the Securities and Exchange Commission at 1-800-SEC-0330.
 Electronic filings made through the Electronic Data Gathering,
Analysis, and Retrieval system are also publicly available
through the Securities and Exchange Commission&#146;s Web site
(http://www.sec.gov).

<P align="center">119

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<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV>&nbsp;</DIV>

<!-- link1 "INDEX TO CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="021"></A></DIV>

<DIV align="center"><B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<DIV align="center">
<B>AND FINANCIAL STATEMENT SCHEDULES</B>
</DIV>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="88%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>INDEPENDENT AUDITORS&#146; REPORT</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-2</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consolidated Balance Sheets&nbsp;&#151;<BR>
	As of December&nbsp;31, 1999 and 1998</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-3</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consolidated Statements of Operations&nbsp;&#151;<BR>
	For the Years Ended December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-4</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consolidated Statements of Changes in Stockholders&#146;
	(Deficit) Equity&nbsp;&#151;<BR>
	For the Years Ended December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-5</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consolidated Statements of Cash Flows&nbsp;&#151;<BR>
	For the Years Ended December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-6</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Notes to Consolidated Financial Statements&nbsp;&#151;<BR>
	For the Years Ended December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-7</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Condensed Consolidated Balance Sheets&nbsp;&#151;<BR>
	As of June&nbsp;30, 2000 and December&nbsp;31, 1999</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-36</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Condensed Consolidated Statements of Operations and Comprehensive
	 Loss&nbsp;&#151;<BR>
	For the Six and Three Months Ended June&nbsp;30, 2000 and 1999</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-37</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Condensed Consolidated Statement of Changes in Stockholders&#146;
	 Deficit&nbsp;&#151;<BR>
	For the Six Months Ended June&nbsp;30, 2000</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-38</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Condensed Consolidated Statements of Cash Flows&nbsp;&#151;<BR>
	For the Six Months Ended June&nbsp;30, 2000 and 1999</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F39</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Notes to Condensed Consolidated Financial Statements&nbsp;&#151;<BR>
	For the Six and Three Months Ended June&nbsp;30, 2000 and 1999</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-40</FONT></TD>
</TR>

<TR>
	<TD colspan="4">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>FINANCIAL STATEMENT SCHEDULES</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Schedule&nbsp;I&nbsp;&#151; Condensed Financial Information of
	Registrant</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-48</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Schedule&nbsp;II&nbsp;&#151; Valuation and Qualifying Accounts</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">
	F-52</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">F-1

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<P align="center">
<B>INDEPENDENT AUDITORS&#146; REPORT</B>

<P align="left">To the Board of Directors of <BR>
 Nextel International, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited the accompanying consolidated balance sheets of
Nextel International, Inc. and subsidiaries (Nextel
International), a substantially wholly owned subsidiary of Nextel
 Communications, Inc., as of December&nbsp;31, 1999 and 1998, and
 the related consolidated statements of operations, changes in
stockholders&#146; (deficit)&nbsp;equity and cash flows for each
of the three years in the period ended December&nbsp;31, 1999.
Our audits also included the financial statement schedules listed
 on page&nbsp;F-1. These consolidated financial statements and
financial statement schedules are the responsibility of Nextel
International&#146;s management. Our responsibility is to express
 an opinion on these consolidated financial statements and
financial statement schedules based on our audits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
 also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
 audits provide a reasonable basis for our opinion.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of
Nextel International, Inc. and subsidiaries at December&nbsp;31,
1999 and 1998, and the results of their operations and their cash
 flows for each of the three years in the period ended
December&nbsp;31, 1999 in conformity with generally accepted
accounting principles. Also, in our opinion, such financial
statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present
fairly in all material respects, the information set forth
therein.

<P align="left">
DELOITTE &#38; TOUCHE LLP <BR>
 McLean, Virginia

<P align="left">
February&nbsp;22, 2000 (March&nbsp;24, 2000 as to Note&nbsp;7<BR>and
 the last paragraph of Note&nbsp;3,<BR>June&nbsp;29, 2000 as to the
first four paragraphs of Note&nbsp;15 and<BR>August&nbsp;4, 2000 as
to the last six paragraphs of Note&nbsp;15)

<P align="center">F-2

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>CONSOLIDATED BALANCE SHEETS</B>

<DIV align="center">
<B>As of December&nbsp;31, 1999 and 1998</B>
</DIV>

<DIV align="center">
<B>(in thousands, except share amounts)</B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="64%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="7" align="center" valign="top"><FONT size="2">
	<B>ASSETS</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Current assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cash and cash equivalents (of which $16,223 and $8,961, is
	restricted)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,028</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">121,116</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts receivable, less allowance for doubtful accounts of
	$8,815 and $6,391</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,041</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,247</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory inventory</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,185</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,914</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Prepaid expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,868</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,902</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total current assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">161,122</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">212,179</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Property, plant and equipment, net</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">530,571</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Investments in unconsolidated affiliates, </B>less equity in
	net losses of $46,129 and $17,867</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">428,971</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">202,728</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Intangible assets, net</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">454,657</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">552,419</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Other assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">97,587</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,239</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,601,136</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="7" align="center" valign="top"><FONT size="2">
	<B>LIABILITIES AND STOCKHOLDERS&#146; (DEFICIT) EQUITY</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Current liabilities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts payable</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63,224</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62,436</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accrued expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">61,835</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,149</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accrued interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Due to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,847</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Current portion of long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,739</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,061</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total current liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">179,445</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">132,646</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Long-term debt</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,514,757</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,254,882</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Deferred income taxes</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141,943</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90,194</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,836,145</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,477,722</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Commitments and contingencies (Notes&nbsp;2, 7, 9, 12 and 15)
	</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Minority interest</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,237</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,516</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Stockholders&#146; (deficit)&nbsp;equity</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Series&nbsp;A exchangeable redeemable preferred stock, accreted
	liquidation preference of $337,737 and $110,456 (12,500 shares
	authorized, $10.00 par value, 2,988.86 and 988.86 shares issued
	and outstanding)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">298,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,886</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Common stock (200,000,000 shares authorized, no par value,
	146,893,236 and 146,094,716 shares issued and outstanding)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">399,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">396,574</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accumulated deficit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(859,970</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(339,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accumulated other comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,907</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(59,738</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total stockholders&#146; (deficit)&nbsp;equity</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95,898</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,601,136</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
 financial statements.

<P align="center">F-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF OPERATIONS</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<DIV align="center">
<B>(in thousands, except share amounts)</B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="53%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating revenues</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104,528</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,015</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating expenses</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,085</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,424</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">226,379</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,768</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">375,469</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">219,222</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,573</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating loss</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(270,941</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(176,734</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(39,558</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Other income (expense)</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,604</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(56,583</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,442</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,666</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(31,469</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,193</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,401</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction (loss)&nbsp;gain and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65,905</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,561</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,314</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,085</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(249,222</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(82,759</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(40,672</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Loss before income tax benefit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,163</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(259,493</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(80,230</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Income tax benefit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Net loss</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Net loss per common share, basic and diluted</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3.56</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Weighted average number of common shares outstanding</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,239,544</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,013,684</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
 financial statements.

<P align="center">F-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146;
(DEFICIT)&nbsp;EQUITY</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<DIV align="center">
<B>(in thousands, except share amounts)</B>
</DIV>

<TABLE width="80%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="27%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Series A</B></FONT></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Preferred Stock</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Common Stock</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Accumulated</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Deficit</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, January&nbsp;1, 1997</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,043</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28,741</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized gain on available for sale securities, net of
	income&nbsp; taxes</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Capital contributions from parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">315,585</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of warrants in connection with private placement</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1997</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">395,428</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,689</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized loss on available for sale securities, net of income
	tax&nbsp;benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of Series&nbsp;A preferred stock to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">988.86</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">94,716</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,146</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">988.86</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,094,716</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">396,574</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(339,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized gain on available for sale securities, net of
	income&nbsp; taxes</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of Series&nbsp;A preferred stock to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,000.00</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">798,520</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,988.86</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">298,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,893,236</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">399,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(859,970</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="60%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="33%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Accumulated Other</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Comprehensive</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Income&nbsp;(Loss)</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unrealized</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cumulative</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Gain (Loss)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Translation</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>on Investments</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustment</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, January&nbsp;1, 1997</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,901</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,203</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized gain on available for sale securities, net of
	income&nbsp; taxes</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">389</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">389</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,559</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Capital contributions from parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">315,585</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of warrants in connection with private placement</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,800</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1997</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,290</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">296,029</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized loss on available for sale securities, net of income
	tax&nbsp;benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(38,978</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(38,978</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(24,050</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(24,050</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(300,163</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of Series&nbsp;A preferred stock to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,886</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,146</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,688</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(24,050</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95,898</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized gain on available for sale securities, net of
	income&nbsp; taxes</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155,370</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155,370</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(113,539</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(113,539</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(478,315</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of Series&nbsp;A preferred stock to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, December&nbsp;31, 1999</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119,682</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(137,589</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>

<P align="center">
The accompanying notes are an integral part of these consolidated
 financial statements.

<P align="center">F-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="55%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Cash flows from operating activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Adjustments to reconcile net loss to net cash used in operating
	activities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Interest accretion on long-term debt, net of capitalization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">129,377</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,069</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53,681</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net foreign currency transaction loss (gain)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">60,793</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,506</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,561</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Provision for losses on accounts receivable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,219</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,127</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,131</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,469</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,193</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,401</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(19,314</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,131</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,085</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Deferred income tax benefit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(25,185</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(22,358</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,292</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Asset impairment charge</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,950</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,823</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Change in assets and liabilities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Accounts receivable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,013</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,932</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,374</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory inventory</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,507</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27,081</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">586</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Prepaid expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,034</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,510</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,167</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Accounts payable, accrued expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,001</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54,571</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,052</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Prepaid value-added taxes and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,857</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(61,130</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,017</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net cash used in operating activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,360</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(176,961</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,464</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Cash flows from investing activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(144,976</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(371,223</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(101,892</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Investments in unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(38,406</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(97,632</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(120,976</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Purchase of marketable securities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(93,997</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(227,957</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Proceeds from sale of marketable securities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">221,225</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,729</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Acquisition of additional equity interests in consolidated
	subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(67,251</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,131</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Proceeds from sale of equity interest in subsidiary</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,976</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,933</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,926</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net cash used in investing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(185,315</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(402,902</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(389,153</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Cash flows from financing activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Capital contributions from parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,366</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net proceeds from issuance of long-term debt and warrants</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">132,924</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">532,634</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">532,628</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Repayment of long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,198</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,047</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,447</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Capital contributions from minority stockholders</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,035</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,387</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Repayments to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(25,624</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(23,556</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Proceeds from exercise of stock options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">237</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net cash provided by financing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">310,134</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">542,225</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">512,378</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Effect of exchange rate changes on cash and cash equivalents
	</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,547</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,036</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Net (decrease)&nbsp;increase in cash and cash equivalents</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,088</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(38,674</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106,761</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, beginning of year</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">121,116</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">159,790</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53,029</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, end of year</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,028</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">121,116</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">159,790</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Supplemental disclosure of cash flow information:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cash paid during the year for interest</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,510</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,247</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,993</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cash paid during the year for income taxes</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,805</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,773</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
 financial statements.

<P align="center">F-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<P align="left"><B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Operations. </B>As used in these consolidated financial
statements, references to &#147;Nextel International,&#148;
&#147;we,&#148; &#147;our&#148; or &#147;us&#148; are intended to
 include Nextel International, Inc. and its consolidated
subsidiaries. Nextel International is an indirect, substantially
wholly owned subsidiary of Nextel Communications, Inc. Unless the
 context requires otherwise, references to Nextel Communications
refers to Nextel Communications, Inc. and its consolidated
subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We offer a differentiated, integrated package of analog and
digital wireless communications services under the
&#147;Nextel&#153;&#148; brand name, primarily to customers in
five of the largest cities in Latin America and three of the
largest cities in Asia. Our digital mobile network uses iDEN, or
integrated Digital Enhanced Network technology, developed by
Motorola, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A customer using our digital mobile network is able to access:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	digital mobile telephone service;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	digital two-way radio dispatch service, which provides instant
	conferencing capabilities and is marketed as &#147;Nextel Direct
	Connect&#148; service;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	paging; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	short-messaging service.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We refer to the handset device on which we deliver these services
 as a subscriber unit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our primary business strategy is to serve the mobile wireless
communications needs of business customers in various emerging
international markets, with a particular emphasis on Latin
America, where we currently own and operate mobile wireless
service providers in Mexico, Brazil, Argentina and Peru. We also
hold minority investor positions in wireless communications
companies in Canada, Japan, and the Philippines, and have
participated as a minority investor in a Chinese joint venture
formed to construct and operate a Global System for Mobile
Communications, referred to as GSM, cellular network in Shanghai,
 Peoples Republic of China, referred to as the Shanghai GSM
System.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To execute our strategy, we are using our strong specialized
mobile radio, referred to as SMR, channel positions in Latin
America as well as Nextel Communications&#146; marketing
expertise, product development skills and purchasing power to
provide integrated digital wireless services to our growing
subscriber base of business customers and to expand our digital
mobile networks in our markets. Through our operating
subsidiaries and affiliates, we launched commercial digital
wireless services in S&#227;o Paolo and Buenos Aires in the
second quarter of 1998; Rio de Janeiro, Manila and Mexico City in
 the third quarter of 1998; Rosario in the second half of 1998;
and Lima during the second quarter of 1999. Additionally, in the
second half of 1998, our Japanese affiliate, NEXNET Co., Ltd.,
formerly known as J-Com Co., Ltd., introduced commercial digital
services under the brand name &#147;NEXNET&#153;&#148; in the
Kanto region of Japan, which includes Tokyo. We also provide
analog SMR communications services, principally in those markets
in Latin America where we have not yet deployed digital
technology.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our 2000 business plan has been developed based on our strategy,
and we will require a significant amount of cash for expansion
and improvement of our digital mobile network coverage in our
existing or targeted future markets, acquisition of additional
spectrum, debt service obligations, and working capital
requirements associated with our expanding operations. Based on
our current estimate of our planned cash needs, we believe that
we will be able to fully fund operations through calendar year
2000. We expect that our cash needs will be met through

<P align="center">F-7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
utilization of a variety of financing sources, including vendor
and bank financing, potential private and/or public issuance of
securities, and lastly, if required, potential issuance of
additional preferred stock to a wholly owned subsidiary of Nextel
 Communications. To the extent that we are unable, for any
reason, to utilize the financing sources described, we will
revise our business plan to accommodate such reduced funding.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Use of Estimates. </B>The preparation of financial statements
in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and disclosure of
 contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from
those estimates.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the laws and regulations governing
telecommunication services in effect in each of the countries in
which we operate. These laws and regulations can have a
significant influence on our results of operations and are
subject to change by the responsible governmental agencies. The
financial statements as presented reflect certain assumptions
based on laws and regulations currently in effect in each of the
countries. We cannot predict what future laws and regulations
might be passed that could have a material effect on our results
of operations. We assess the impact of significant changes in
laws and regulations on a regular basis and update the
assumptions used to prepare our financial statements accordingly.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Principles of Consolidation. </B>The consolidated financial
statements include the accounts of Nextel International, Inc. and
 its majority owned subsidiaries. All significant intercompany
transactions and balances have been eliminated in consolidation.
Our majority owned subsidiaries consist of:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="74%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Effective Ownership</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>as of</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Comunicaciones Nextel de Mexico, S.A. de C.V.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Nextel Argentina S.R.L.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.0%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Nextel Telecomunica&#231;&#245;es Ltda. (Brazil)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">87.7%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">77.0%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Nextel del Peru, S.A.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63.5%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62.0%</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We use the equity method to account for unconsolidated
investments in companies in which we exercise significant
influence over operating and financial policies but do not have a
 controlling interest.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accounts of our consolidated foreign subsidiaries and foreign
 subsidiaries accounted for under the equity method are presented
 utilizing accounts as of a date one month earlier than the
accounts of our U.S. subsidiaries to ensure timely reporting of
consolidated results.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We acquired a controlling interest in Comunicaciones Nextel de
Mexico, S.A. de C.V., which we refer to as Nextel Mexico, on
September&nbsp;1, 1997, prior to which time we accounted for our
investment under the equity method. We acquired a controlling
interest in Nextel Argentina S.R.L. on January&nbsp;30, 1998,
prior to which time we accounted for our investment under the
equity method, except for the period from January&nbsp;1, 1997
through May&nbsp;5, 1997, during which time Nextel Argentina was
controlled by us and included in the consolidated financial
statements. We

<P align="center">F-8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
acquired a controlling interest in Nextel del Peru, S.A., which
we refer to as Nextel Peru, on February&nbsp;1, 1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Foreign Currency. </B>Results of operations for foreign
subsidiaries are translated from the designated functional
currency to the U.S. dollar using average exchange rates during
the period, while assets and liabilities are translated at the
exchange rate in effect at the reporting date. Resulting gains or
 losses from translating foreign currency financial statements
are included in accumulated other comprehensive loss in
stockholders&#146; (deficit) equity. The financial statements of
the following foreign subsidiaries were prepared using the U.S.
dollar as the functional currency due to economic environments in
 which they operate: McCaw International (Brazil), Ltd., which we
 refer to as McCaw Brazil, during 1997, Nextel Mexico during 1997
 and 1998, and Nextel Peru during 1998 and 1999. As a result,
during the specified years, the transactions of these operations
that are denominated in the foreign currencies have been
remeasured in U.S. dollars, and any resulting gains or losses are
 recorded in foreign currency transaction (loss) gain and other,
net in the consolidated statements of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1999, there was a devaluation and significant fluctuations
 in the value of the Brazilian currency, the real, relative to
the U.S. dollar. As a result of the devaluation, we recorded a
pre-tax charge of about $57.0&nbsp;million in our consolidated
statement of operations for 1999, related to foreign currency
transaction losses associated with our Brazilian operations. In
addition, we recorded a negative translation adjustment as an
other comprehensive loss in stockholders&#146;
(deficit)&nbsp;equity of about $126.5&nbsp;million based on the
exchange rate as of the reporting period ending December&nbsp;31,
 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Cash and Cash Equivalents. </B>We consider all highly liquid
investments with an original maturity of three months or less at
the time of purchase to be cash equivalents. Our subsidiaries
held cash and cash equivalents of $16.2&nbsp;million as of
December&nbsp;31, 1999 and $9.0&nbsp;million as of
December&nbsp;31, 1998, which are not available to fund any of
the cash needs of any of our other subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Supplemental Cash Flow Information. </B>We incurred capital
expenditures of $173.4&nbsp;million (including an increase of
$28.5&nbsp;million in amounts that were accrued and unpaid or
financed) during 1999, $376.0&nbsp;million (including an increase
 of $4.8&nbsp;million in amounts that were accrued and unpaid or
financed) during 1998, and $101.9&nbsp;million during 1997. There
 were no amounts that were accrued and unpaid or financed during
1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total interest costs were $190.0&nbsp;million during 1999 of
which $10.4&nbsp;million was capitalized, $130.6&nbsp;million
during 1998 of which $23.8&nbsp;million was capitalized, and
$59.1&nbsp;million during 1997 of which $2.5&nbsp;million was
capitalized.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Subscriber Unit and Accessory Inventory. </B>Subscriber units
and related accessories are valued at the lower of cost or
market. Cost is determined using the first-in, first-out method.
Cost for the related accessories is determined by the weighted
average method.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Property, Plant and Equipment. </B>We record property, plant
and equipment, including improvements that extend useful lives,
at cost, while maintenance and repairs are charged to operations
as incurred. We calculate depreciation and amortization using the
 straight-line method based on estimated useful lives of 3 to
10&nbsp;years for network equipment and 3 to 5&nbsp;years for
office equipment, furniture and fixtures, and other. We amortize
leasehold improvements over the shorter of the respective lives
of the leases or the useful lives of the improvements.

<P align="center">F-9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Construction in progress includes labor, materials, transmission
and related equipment, engineering, site development, interest
and other costs relating to the construction and development of
the digital mobile network. Assets under construction are not
depreciated until placed into service. We capitalize interest
that is applicable to the construction of significant additions
to network equipment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Intangible Assets. </B>Intangible assets consist of licenses,
goodwill and trademarks that are recorded at cost. In the
countries in which we operate, licenses are customarily issued
conditionally for specified periods of time. The licenses are
generally renewable providing the licensee has complied with
applicable rules and policies. In most instances, we believe we
have complied and intend to comply with these standards; however,
 in some cases, we currently are not in compliance with
applicable requirements and, where appropriate, we have filed
requests for waivers and/or extensions with the appropriate
government agency (See Note&nbsp;9). We expect that such
extension requests will be granted and that the resolution of
this matter will not have a material adverse effect on our
financial condition, results of operations or cash flows.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We begin amortizing the cost of licenses upon commencement of
commercial operations in each market over their estimated useful
lives of 20&nbsp;years. The excess of the purchase price paid
over the fair value of net assets acquired (goodwill) is
amortized using the straight-line method over an estimated useful
 life of 20&nbsp;years. Trademarks are amortized over their
respective estimated useful lives, generally 10&nbsp;years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investments. </B>We report realized gains or losses, as
determined on a specific identification basis, and declines in
value, if any, judged to be other than temporary on
available-for-sale securities in other income (expense). Because
they do not have readily determinable fair values, we record
investments in privately held companies at cost, adjusted for
other-than-temporary declines in value, if any.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Revenue Recognition. </B>We recognize revenue for airtime and
other services over the service period, net of credits and
adjustments. We establish an allowance for doubtful accounts
sufficient to cover probable losses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Digital Subscriber Unit and Accessory Sales and Related Costs.
 </B>The loss generated from the sale of subscriber units used in
 the digital mobile network primarily results from our subsidy of
 digital subscriber units and accessories and represents
marketing costs. Consolidated digital subscriber unit and
accessory sales and the related cost of sales, which includes
current period order fulfillment and installation related
expenses and write downs of digital subscriber unit inventory and
 related accessories for shrinkage and obsolescence, are
classified within selling, general and administrative expenses as
 follows:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="69%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory sales</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,836</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,415</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cost of subscriber unit and accessory sales</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">55,200</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">37,127</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,364</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,712</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were no sales of digital subscriber units for the year
ended December&nbsp;31, 1997.

<P align="center">F-10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of the digital subscriber units issued to customers are
 sold or leased with terms requiring up to 24&nbsp;monthly
payments. We have recorded such transactions as equipment sales
at the time of delivery and recorded an allowance for estimated
sales returns. As of December&nbsp;31, 1999, accounts receivable
includes $0.9&nbsp;million and investments and other assets
includes $1.0&nbsp;million related to such sales, which are
expected to be billed and collected over the next 24&nbsp;months.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We recognize sales of subscriber units and accessories when the
subscriber units and accessories are delivered. Some of our
subscriber unit sales are made through independent distributors
under agreements allowing rights of return on merchandise unsold
by distributors, and as a result, sales are recorded when
distributors sell the merchandise.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Stock-based Compensation. </B>We account for stock-based
compensation for employees in accordance with Accounting
Principles Board Opinion No.&nbsp;25, &#147;Accounting for Stock
Issued to Employees,&#148; and comply with the disclosure
provisions of Statement of Financial Accounting Standards
No.&nbsp;123, &#147;Accounting for Stock-Based
Compensation.&#148; Under APB No.&nbsp;25, compensation expense
is based on the difference, if any, on the measurement date,
between the fair value of the common stock and the exercise
price. We account for stock issued to non-employees in accordance
 with the provisions of SFAS No.&nbsp;123 and other applicable
accounting principles. Stock-based compensation expense of $0.8
million during 1999 and $1.0&nbsp;million during 1998 has been
charged to operations. There was no stock-based compensation
expense during 1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Advertising Costs. </B>Costs related to advertising and other
promotional expenditures are expensed as incurred. Advertising
costs totaled approximately $23.3&nbsp;million during 1999 and
$20.5&nbsp;million during 1998. No advertising costs were
incurred during 1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Income Taxes. </B>Deferred tax assets and liabilities are
determined based on the temporary difference between the
financial reporting and tax bases of assets and liabilities,
applying enacted statutory tax rates in effect for the year in
which the differences are expected to reverse. Future tax
benefits, such as net operating loss carryforwards, are
recognized to the extent that realization of such benefits is
considered to be more likely than not. Our financial results are
included in the consolidated tax return of Nextel Communications;
 however, our income tax accounts are stated as if we filed a
separate return, which is consistent with our tax sharing
agreement with Nextel Communications.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Loss per Share, Basic and Diluted. </B>Basic loss per share
includes no dilution and is computed by dividing net loss by the
weighted average number of common shares outstanding for the
period. Diluted loss per share reflects the potential dilution of
 securities that could share in the earnings of an entity. As
presented, our basic and diluted net loss per share attributable
to common stockholders is based on the weighted average number of
 common shares outstanding during the period and does not include
 other potential common shares (including shares issuable upon
exercise of options, warrants or conversion rights) since their
effect would be antidilutive.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Reclassifications. </B>Certain prior year amounts have been
reclassified to conform to the current year presentation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Concentrations of Risk. </B>Substantially all of our revenues
are generated from our operations located in Brazil, Argentina,
Mexico and Peru. Regulatory entities in each country regulate the
 licensing, construction, acquisition, ownership and operation of
 our digital mobile networks

<P align="center">F-11

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
system, and certain other aspects of our business, including the
rates we charge our customers. Changes in the current
telecommunications statutes or regulations in any of these
countries could adversely affect our business. In addition, as of
 December&nbsp;31, 1999, about $1,143.2&nbsp;million of our
assets are located in Brazil, Argentina, Mexico and Peru (see
Note&nbsp;13) and another $141.1&nbsp;million relates to our
investments in unconsolidated subsidiaries located in Japan,
China and the Philippines (See Notes 3&nbsp;and 4). Political and
 economic developments in any of these countries could impact the
 recoverability of our assets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motorola is currently our sole source for network and subscriber
unit equipment we use throughout our markets. We expect to rely
principally on Motorola for the manufacture of a substantial
portion of the equipment necessary to construct, enhance and
maintain our digital mobile network and subscriber unit equipment
 for the next several years. If Motorola does not provide the
necessary equipment to us, we may not be able to service our
existing customers or add new customers. We expect that for the
next few years, Motorola and competing manufacturers who are
licensed by Motorola will be the only manufacturers of subscriber
 unit equipment that is compatible with our digital mobile
network.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>New Accounting Pronouncements. </B>In June&nbsp;1998, the
Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No.&nbsp;133, &#147;Accounting for
 Derivative Instruments and Hedging Activities,&#148; which
establishes accounting and reporting standards for derivative
instruments (including some derivatives embedded in other
contracts) and for hedging activities by requiring that all
derivatives be recognized in the balance sheet and measured at
fair value. In June&nbsp;1999, the FASB issued SFAS No. 137,
&#147;Deferral of the Effective Date of FASB Statement
No.&nbsp;133&nbsp;&#151; an Amendment of FASB Statement
No.&nbsp;133,&#148; which deferred the effective date for us
until January&nbsp;1, 2001. We are in the process of evaluating
the potential impact of this standard on our financial position
and results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;1998, the American Institute of Certified Public
Accountants issued Statement of Position 98-1, &#147;Accounting
for the Costs of Computer Software Developed or Obtained for
Internal Use.&#148; This statement establishes accounting
standards for costs incurred in the acquisition or development
and implementation of computer software. These new standards
require the capitalization of software implementation costs
relating to software acquired or developed and implemented for
internal use. The adoption of this statement, effective
January&nbsp;1, 1999, had no impact on our financial position or
results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April&nbsp;1998, the AICPA issued Statement of Position 98-5,
&#147;Reporting on the Costs of Start-Up Activities.&#148; This
statement requires costs of start-up activities and organization
costs to be expensed as incurred. The adoption of this statement
did not impact our financial position or result of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December&nbsp;1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No.&nbsp;101, &#147;Revenue
Recognition in Financial Statements,&#148; which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No.&nbsp;101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that SAB
No.&nbsp;101 will have a material impact on our financial
position or results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2000, the Financial Accounting Standards Board issued
Interpretation No.&nbsp;44, &#147;Accounting for Certain
Transactions involving Stock Compensation, an Interpretation of
APB Opinion No.&nbsp;25,&#148; which clarifies the application of
 Opinion&nbsp;25 for certain issues including:&nbsp;(1)&nbsp;the

<P align="center">F-12

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>1.&nbsp;&nbsp;Summary of Operations and Significant Accounting
 Policies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
definition of an employee for purposes of applying APB
Opinion&nbsp;25, (2)&nbsp;the criteria for determining whether a
plan qualifies as a noncompensatory plan, (3)&nbsp;the accounting
 consequences of various modifications to the terms of a
previously fixed stock option or award and (4)&nbsp;the
accounting for an exchange of stock compensation awards in a
business combination. Interpretation No.&nbsp;44 is effective
July&nbsp;1, 2000, but certain conclusions cover specific events
that occur either after December&nbsp;15, 1998 or
January&nbsp;12, 2000. We do not expect that the adoption of this
 guidance on July&nbsp;1, 2000 will have a material impact on our
 financial position or results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;2000, the Emerging Issues Task Force reached a
consensus on EITF Issue No.&nbsp;00-14: &#147;Accounting for
Certain Sales Incentives,&#148; which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No.&nbsp;00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.

<P align="left"><B>2.&nbsp;&nbsp;Significant Business Combinations and
Investments</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Brazil. </B>On January&nbsp;30, 1997, we purchased
81.0% of the outstanding capital stock of McCaw Brazil from
Telcom Ventures, LLC and various affiliated and unaffiliated
investors which, collectively with Telcom Ventures, we refer to
as the Founders Group. McCaw Brazil owns, through Nextel S.A., a
95.0% ownership interest in Nextel Telecomunica&#231;&#245;es
Ltda., which we refer to as Nextel Brazil, our principal
operating company in Brazil. Under a shareholders agreement among
 the shareholders of McCaw Brazil dated January&nbsp;29, 1997,
the Founders Group, acting through Telcom Ventures, had the right
 to defer until April&nbsp;29, 1999 the contribution of its pro
rata share of any capital contributions that we made to McCaw
Brazil up to that date without suffering any dilution of the
Founders Group&#146;s ownership interest or right to receive
dividends and other cash or noncash distributions. The Founders
Group ultimately did not make these capital contributions by
April&nbsp;29, 1999 in accordance with the relevant terms of this
 shareholders agreement, which has resulted in the proportionate
dilution of its equity interest in McCaw Brazil. Consequently,
our capital contributions to McCaw Brazil through April&nbsp;29,
1999 have increased our ownership interest in McCaw Brazil to
about 92.0% of contributed capital and have diluted the ownership
 interest of the Founders Group in McCaw Brazil to about 8.0% of
contributed capital. The capital contributions, in turn, have
increased our ownership in Nextel Brazil, through Nextel S.A., to
 about 88.0%. Telcom Ventures, in its individual capacity as a
member of the Founders Group, is disputing the resulting
reduction in its ownership interest in McCaw Brazil. (See
Note&nbsp;9 and Note&nbsp;15.)

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Founders Group has the right at any time between
October&nbsp;31, 2001 and November&nbsp;1, 2003, or at any time
after a change of control of McCaw Brazil, to require McCaw
Brazil to redeem the Founders Group&#146;s entire interest at its
 appraised fair market value at the time of exercise, as defined
in the relevant documents. The redemption price is payable in
cash, or, at McCaw Brazil&#146;s election, publicly traded common
 stock of any entity owning 50.0% or more of McCaw Brazil or a
combination thereof.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Argentina. </B>On January&nbsp;30, 1998, we acquired a
50.0% interest in Nextel Argentina from Wireless Ventures of
Argentina, L.L.C. for a purchase price of $46.0&nbsp;million in
cash. As a result of the purchase, our effective ownership
interest in Nextel Argentina increased from 50.0% to 100.0%. We
began consolidating the accounts of Nextel Argentina on
February&nbsp;1, 1998. From

<P align="center">F-13

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>2.&nbsp;&nbsp;Significant Business Combinations and
Investments&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
May&nbsp;6, 1997 through January&nbsp;30, 1998, we accounted for
our 50.0% investment in Nextel Argentina under the equity method
of accounting.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Mexico. </B>During the year ended December&nbsp;31,
1997, through a series of transactions, we increased our equity
interest in Nextel Mexico from 30.1% to 100.0% for consideration
of approximately $132.2&nbsp;million. As a result of such
transactions, we began consolidating Nextel Mexico on
September&nbsp;1, 1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Peru. </B>On January&nbsp;29, 1998, we acquired a 70.1%
 interest in Nextel Peru for $27.9&nbsp;million. Motorola
International Development Corporation, an indirect wholly owned
subsidiary of Motorola, referred to as Motorola International,
held a 19.9% interest in Nextel Peru.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On October&nbsp;30, 1998, we exercised an option to sell
approximately 10.0% of our shares of Nextel Peru to Motorola
International for about $6.0&nbsp;million. Additionally, as a
result of the decision of the other minority stockholder of
Nextel Peru not to contribute its pro rata share of capital
contributions to Nextel Peru during 1998 and 1999, such
stockholder&#146;s equity interest in Nextel Peru has been
diluted, and ours and Motorola International&#146;s equity
interests in Nextel Peru have increased. Immediately following
the closing of that transaction, and giving effect to the
dilution of the equity interest of the other minority stockholder
 during 1998, we held about 62.1% and Motorola International held
 about 30.9%. As of December&nbsp;31, 1999, and giving effect to
the further dilution of the equity interest of the other minority
 shareholder during 1999, we and Motorola International held
about 63.5% and 30.6%, respectively, of the outstanding shares of
 Nextel Peru.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motorola International has the right to cause Nextel Peru to
acquire all shares of Nextel Peru held by Motorola International
and its affiliates at the appraised fair market value if Nextel
Peru does not purchase network equipment from Motorola
International, provided that the network equipment is
technologically competitive and is offered to Nextel Peru on
competitive terms.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Pro forma Information. </B>The following summarized pro forma
(unaudited) information is for the year ended December&nbsp;31,
1997 and assumes that the business combinations and transactions
associated with Nextel Argentina, Nextel Mexico and McCaw Brazil
had occurred on January&nbsp;1, 1997, and reflects adjustments
for the recognition of the minority ownership interests and the
amortization of licenses and goodwill.

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="71%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="13%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="12%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>(in thousands, except</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>per share amounts)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,312</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(89,717</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Net loss per share, basic and diluted</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.61</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Weighted average shares outstanding</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,000,000</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma information is not necessarily indicative of the
results that would actually have occurred had the transactions
been consummated on the date indicated, nor are they necessarily
indicative of our future operating results.

<P align="center">F-14

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>3.&nbsp;&nbsp;Investments in Unconsolidated Affiliates</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December 31, 1999 and 1998, our investments in unconsolidated
affiliates consist of:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="77%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Effective</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Ownership</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Equity Method Investments</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Nextel Communications Philippines, Inc.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38.0%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	NEXNET Co., Ltd.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21.0%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21.0%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Marketable Equity Securities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Clearnet Communications, Inc.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14.5%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.4%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Nonmarketable Equity Securities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Shanghai CCT McCaw Telecommunications Systems Co.,&nbsp;
	Ltd.&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.1%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.1%</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For equity method investments, the percentage ownership
represents the percentage of the investee&#146;s earnings or
losses recognized.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized financial information for our investments in
unconsolidated affiliates accounted for using the equity method,
which include our investments in Nextel Philippines and NEXNET,
is as follows:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="71%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">218,539</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">229,725</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">371,939</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">289,427</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(52,502</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(26,257</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(105,832</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(66,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The excess of the cost of our equity method investments over the
net assets acquired is being amortized over 20&nbsp;years.
Amortization of this excess totaled $0.8&nbsp;million during
1999, $1.2&nbsp;million during 1998 and $3.1&nbsp;million during
1997, and is reflected in the accompanying consolidated
statements of operations within equity in losses of
unconsolidated affiliates.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Philippines. </B>In 1996, we acquired a 30.0% interest
in Nextel Philippines, for $16.0&nbsp;million. On August&nbsp;21,
 1998, Gamboa Holdings, Inc., which is 60.0% owned by ACCRA
Investments Corporation, a corporation organized under the laws
of the Philippines and owned by Philippine nationals (referred to
 as ACCRAIN), and 40.0% owned by one of our indirect
subsidiaries, purchased 20.0% of Nextel Philippines for
$9.0&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Funds used by Gamboa Holdings to consummate the acquisition of
the 20.0% of Nextel Philippines were derived from equity
contributions by shareholders of Gamboa Holdings and proceeds of
loans made by a lending institution. These loans to Gamboa
Holdings and to ACCRAIN are secured by our cash collateral
deposits in the amount of the loans and a pledge of Gamboa
Holdings&#146; shares of Nextel Philippines. As a result of
Gamboa Holdings&#146;s acquisition of 20.0% of Nextel
Philippines, our aggregate equity interest in Nextel Philippines,
 which includes our direct and indirect holdings, increased from
30.0% to 38.0%.

<P align="center">F-15

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>3.&nbsp;&nbsp;Investments in Unconsolidated
Subsidiaries&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ACCRAIN is a Philippine holding company with investments in a
number of Philippine companies. Pursuant to an agreement, dated
August&nbsp;21, 1998 between our indirect wholly owned subsidiary
 and ACCRAIN, ACCRAIN granted us a call right on its shares in
Gamboa Holdings, exercisable at any time, provided that we are
the actual purchaser of the shares or a qualified purchaser in
accordance with applicable Philippine foreign corporate ownership
 rules. Upon expiration of the agreement, ACCRAIN may put to us,
or any of our qualified designees, its shares in Gamboa Holdings
for approximately $8.0&nbsp;million. The ACCRAIN Agreement has
been extended until August 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Japan. </B>In March&nbsp;1998, we purchased a 21.0% equity
interest in NEXNET, a wireless communications services provider
in Japan, for a purchase price of $0.6&nbsp;million. We also
loaned NEXNET $31.5&nbsp;million. DJSMR Business Partnership, a
Japanese partnership in which an affiliate of Motorola is the
majority partner, holds a 49.0% equity interest in NEXNET.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Shanghai CCT McCaw. </B>As of December&nbsp;31, 1999 and 1998,
 we own a 30.0% interest in Shanghai CCT McCaw Telecommunications
 Systems Co., Ltd., a joint venture that currently participates
in the Shanghai GSM System in Shanghai, China through a profit
sharing arrangement with China United Telecommunications
Corporation, referred to as Unicom, the owner of the Shanghai GSM
 System. Under the profit sharing agreement, Shanghai CCT McCaw
has the right to receive about 40.0% of the profits, as defined,
of the Shanghai GSM System. Through our interest in Shanghai CCT
McCaw, we have the right to receive about 12.1% of those profits.
 Foreign entities or individuals are not permitted to directly
own or operate telecommunications systems in China under current
law. As a result, we do not have the right to influence the
operations of the Shanghai GSM System and therefore, we account
for this investment using the cost method. Our carrying value in
our minority interest in Shanghai CCT McCaw is about
$15.0&nbsp;million at December&nbsp;31, 1999 and about
$15.7&nbsp;million at December&nbsp;31, 1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September&nbsp;1999, Unicom advised Shanghai CCT McCaw and all
 similarly situated investors in Unicom, that under a new policy
of the Chinese government, all existing arrangements between
Unicom and joint ventures in which foreign companies had invested
 needed to be terminated. On March&nbsp;17, 2000, Shanghai CCT
McCaw and Unicom executed a termination agreement setting forth
the terms and conditions for the termination of the cooperation
agreement with Unicom.

<P align="left"><B>4.&nbsp;&nbsp;Fair Value of Financial Instruments</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have determined the estimated fair value amounts using
available market information and appropriate valuation
methodologies. However, considerable judgment is required in
interpreting market data to develop the estimates of fair value.
Accordingly, the estimates presented below are not necessarily
indicative of the amounts that we could realize in a current
market exchange.

<P align="center">F-16

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>4.&nbsp;&nbsp;Fair Value of Financial
Instruments&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
The use of different market assumptions as well as estimation
methodologies may have a material effect on the estimated fair
value amounts.

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="44%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Carrying</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Estimated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Carrying</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Estimated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fair Value</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fair Value</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Marketable equity securities included within Investments in
	unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">287,851</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">287,851</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,037</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,037</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,548,496</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,428,790</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,256,943</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,087,943</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Cash and Cash Equivalents, Accounts Receivable, Accounts
Payable and Accrued Expenses. </B>The carrying amounts of these
items are a reasonable estimate of their fair value.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Shanghai CCT McCaw. </B>It is impracticable to estimate the
fair value of our nonmarketable investment in Shanghai CCT McCaw,
 as there is no active market for this investment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Marketable Equity Securities. </B>Included in investments in
unconsolidated affiliates is our investment in Clearnet
Communications, Inc., a wireless communications services provider
 in Canada, which is accounted for at fair value based on quoted
market prices. The market value of Clearnet common stock at
December&nbsp;31, 1999 and 1998 was $34.375 and $8.125 per share,
 respectively. At December&nbsp;31, 1999 and 1998, marketable
equity securities consist of the following:

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="52%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Gross Unrealized</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cost</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fair Value</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Gain (Loss)</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Available-for-sale:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Equity securities, included within Investments in unconsolidated
	affiliates</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,725</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">287,851</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">184,126</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Available-for-sale:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Equity securities, included within Investments in unconsolidated
	affiliates</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,725</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,037</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,688</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Long-Term Debt. </B>The fair value of our long-term debt is
based on quoted market prices for the senior discount notes.
Carrying value approximates fair value for our bank and vendor
credit facilities, as interest rates are reset periodically. (See
 Note&nbsp;7).

<P align="center">F-17

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>5.&nbsp;&nbsp;Property, Plant and Equipment</B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="72%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Land</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,583</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Leasehold improvements</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,483</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,599</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Network equipment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">442,013</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">243,519</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Office equipment, furniture and fixtures, and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92,003</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,921</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Less accumulated depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(95,449</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(25,773</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">454,633</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">260,916</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Construction in progress</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">84,822</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">269,655</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">530,571</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>6.&nbsp;&nbsp;Intangible Assets</B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="72%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Licenses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">415,050</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">479,727</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Goodwill</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">99,083</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113,546</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Trademarks and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,629</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,629</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">515,762</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">594,902</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Less accumulated amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(61,105</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(42,483</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">454,657</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">552,419</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>7.&nbsp;&nbsp;Long-term Debt</B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="70%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>13.0% Senior Redeemable Discount Notes due 2007, </B>net of
	unamortized discount of $252,323 and $337,065</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">699,140</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">614,398</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>12.125% Senior Serial Redeemable Discount Notes due 2008, </B>
	net of unamortized discount of $234,280 and $289,349</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">495,720</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">440,651</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>International Motorola Financing Facility, </B>interest
	payable semiannually at 2.5% over on the U.S. prime rate or LIBOR
	 (10.5% to 11%&nbsp;&#151;&nbsp;1999)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">139,146</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Brazil Motorola Financing, </B>interest payable semiannually
	at 2.5% over on the U.S. prime rate or LIBOR
	(10.28%&nbsp;&#151;&nbsp;1999; 10.25% to
	11%&nbsp;&#151;&nbsp;1998)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,757</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">102,196</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Argentina Credit Facility, </B>interest payable quarterly at
	adjustable rates calculated either on the ABR or the Eurodollar
	rate (8.13% to 9.0%&nbsp;&#151;&nbsp;1999; 8.75% to
	9.50%&nbsp;&#151;&nbsp;1998)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,500</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Motorola Argentina Incremental Facility, </B>interest payable
	quarterly at adjusted rates calculated either on the ABR or the
	Eurodollar rate (10.5% to 12.25%&nbsp;&#151;&nbsp;1999)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,330</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Philippines Motorola Bridge Financing Agreement </B>
	(10.25%&nbsp;&#151;&nbsp;1998)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,575</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Nextel Mexico Equipment Financing </B>(10.4% to
	16.5%&nbsp;&#151;&nbsp;1998)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,623</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Other</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,403</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,548,496</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,256,943</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Less current portion</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(33,739</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,061</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,514,757</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,254,882</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>13.0% Senior Redeemable Discount Notes.</B> In
March&nbsp;1997, we completed the sale of 951,463 units,
generating $482.0&nbsp;million in net proceeds. Each unit is
comprised of a 10-year senior discount note with a principal due
at maturity of $1,000 and one warrant to purchase 1.54992 shares
of our common stock at an exercise price of $2.50 per share at
any time after March&nbsp;6, 1998 and prior to March&nbsp;6,
2007. The warrants entitle the holders to purchase an aggregate
of about 1,474,700 shares of our common stock that approximates
less than 1% of our outstanding common stock on a diluted basis
and were valued at $14.8&nbsp;million based on the difference
between the gross proceeds and the present value of the accreted
amount of the notes at time of first call including the call
premium. Cash interest will not accrue prior to April&nbsp;15,
2002, and will be payable semiannually beginning October&nbsp;15,
 2002 at a rate of 13.0% per year. These notes are redeemable in
whole or in part, at our option, at any time on or after
April&nbsp;15, 2002 at specified redemption prices plus accrued
and unpaid interest. Up to 35.0% of the aggregate accreted value
of these outstanding senior notes may be redeemed (using the
proceeds of one of more sales of qualified equity securities)
prior to April&nbsp;15, 2000, at our option under specified
circumstances, at 113.0% of their accreted value on the date of
redemption. The

<P align="center">F-19

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>7.&nbsp;&nbsp;Long-term Debt&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
notes are senior unsecured indebtedness of ours and rank equal in
 right of payment with all our other unsubordinated, unsecured
indebtedness.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>12.125% Senior Serial Redeemable Discount Notes.</B> In
March&nbsp;1998, we completed the sale of $730.0&nbsp;million in
principal amount at maturity of our 12.125% senior serial
redeemable discount notes due 2008, generating $387.0 million in
net cash proceeds. Cash interest will not accrue prior to
April&nbsp;15, 2003, and will be payable semiannually beginning
October&nbsp;15, 2003 at a rate of 12.125% per year. The 12.125%
senior notes are redeemable in whole or in part, at our option,
at any time on or after April&nbsp;15, 2003 at specified
redemption prices, plus accrued and unpaid interest. Up to 35.0%
of the aggregate accreted value of these outstanding senior notes
 may be redeemed (using the proceeds of one or more sales of
qualified equity securities) prior to April&nbsp;15, 2001, at our
 option under specified circumstances, at 112.125% of their
accreted value on the date of redemption. The notes are senior
unsecured indebtedness of ours and rank equal in right of payment
 with all our other unsubordinated, unsecured indebtedness.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>International Motorola Financing Facility. </B>On
February&nbsp;4, 1999, we entered into definitive agreements with
 Motorola Credit Corporation providing for $225.0&nbsp;million of
 secured term loan financing consisting of (i)&nbsp;up to $100.0
million in loans to reimburse us for payments we made to Motorola
 Credit after January&nbsp;1, 1997 for the purchase of network
equipment and related services, including ancillary products and
services, by or for the benefit of our operating subsidiaries,
referred to as Reimbursement Loans, and (ii)&nbsp;up to
$225.0&nbsp;million in loans, less the amount of Reimbursement
Loans advanced to (a)&nbsp;finance the cost of qualifying future
purchases of network equipment and related services and
(b)&nbsp;provide funds to: (1)&nbsp;repay the principal amounts
outstanding under the existing financing facility between
Motorola Credit and Nextel Philippines and (2)&nbsp;reimburse us
for repaying the principal amounts outstanding under a bridge
financing facility between us and Motorola Credit for the benefit
 of Nextel Philippines that was terminated in February 1999. We
refer to this facility as the International Motorola Financing
Facility. Our designated operating companies that are entitled to
 access amounts available under the International Motorola
Financing Facility are Nextel Mexico, Nextel Peru, Nextel
Philippines, NEXNET and other entities, if any, in which we hold
an equity interest and that may be so designated by agreement
between us and Motorola Credit. The amount borrowed under this
facility is payable in eight equal semiannual installments
beginning June&nbsp;30, 2001, will mature December&nbsp;31, 2004,
 and bears interest at variable rates based upon either the U.S.
prime rate or the London Interbank Offered Rate, referred to as
LIBOR. This facility is secured by, among other things, a pledge
of the shares of stock of the designated operating companies held
 by specified third party shareholders.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, approximately $139.1&nbsp;million
had been borrowed under this facility, including the entire
$100.0&nbsp;million of reimbursement loans relating to the
purchase of equipment and related services by or for the benefit
of certain operating subsidiaries, with $85.9&nbsp;million
remaining available for borrowing. The availability of borrowings
 under this facility is subject to the satisfaction or waiver of
applicable borrowing conditions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;22, 1999, we notified Motorola Credit of our
anticipated noncompliance with financial covenants applicable to
the fourth quarter of 1999. On December&nbsp;27, 1999, Motorola
Credit agreed to waive compliance with the financial covenants on
 the condition that the parties enter into an amendment to the
International Motorola Financing Facility during the first
quarter of 2000. On March&nbsp;22, 2000, we and Motorola Credit
entered into the contemplated amendment to the International
Motorola Financing Facility, which, among other things,
eliminates the 1999

<P align="center">F-20

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>7.&nbsp;&nbsp;Long-term Debt&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
issues related to financial covenant compliance and addresses
cure mechanisms for any future financial covenant compliance
issues.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Brazil Motorola Financing.</B> In 1997, McCaw Brazil and
Motorola Credit Corporation entered into an equipment financing
agreement pursuant to which Motorola Credit agreed to provide up
to $125.0&nbsp;million in multi-draw term loans to McCaw Brazil
to be used to acquire infrastructure equipment and related
services from Motorola. The financing advanced under this
agreement is repayable in U.S. dollars in semiannual installments
 over 42&nbsp;months beginning June&nbsp;30, 2000 and bears
interest at an adjustable rate equal to either the prime rate
plus 2.5% or LIBOR plus 4.625%. The loans made under this
agreement are secured by a first priority lien on substantially
all of McCaw Brazil&#146;s assets, a pledge of all of the stock
of McCaw Brazil and its subsidiaries, and guarantees by us of
94.0%, and by Motorola International Development Corporation of
6.0%, of McCaw Brazil&#146;s obligations under this financing.
The financing contains certain financial and operating covenants.
 In the event of noncompliance with certain financial covenants,
McCaw Brazil may cure any such noncompliance by receiving
additional equity contributions. The availability of borrowings
under this facility, referred to as the Brazil Motorola
Financing, is subject to the satisfaction or waiver of applicable
 borrowing conditions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, McCaw Brazil notified Motorola Credit of its
noncompliance with some of the financial covenants under the
Brazil Motorola Financing. Motorola Credit agreed to waive
compliance with those financial covenants on the condition that
we agree to committed capital contributions and the parties enter
 into an amendment to this agreement during the first quarter of
2000. On March&nbsp;24, 2000, McCaw Brazil and Motorola Credit
entered into this amendment to the Brazil Motorola Financing,
which, among other things, eliminates the 1999 issues with
respect to financial covenant compliance and addresses cure
mechanisms for any future financial covenant compliance issues.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Argentina Credit Facility.</B> In February&nbsp;1998, Nextel
Argentina entered into a senior secured credit facility which, as
 amended, provides up to $100.0 million in term loans. Loans
under this facility, referred to as the Argentina Credit
Facility, bear interest at a rate equal to, at our option, either
 (1)&nbsp;the ABR plus 2.75% (ABR is the highest of the U.S.
prime rate, the base CD rate plus 1.0% or the federal funds rate
plus 0.5%) or (2)&nbsp;the Eurodollar rate plus 3.75% (the
Eurodollar rate is LIBOR multiplied by the statutory reserve
rate). Loans under this facility are repayable in quarterly
installments beginning September&nbsp;30, 2000 through
March&nbsp;31, 2003. The first nine installments will be equal to
 1/18 of the then-outstanding balance and the final installment
will be in an amount equal to the then-outstanding balance.
Borrowings under this facility are secured by a pledge of stock
of Nextel Argentina, has a first priority lien on the assets of
Nextel Argentina, and requires Nextel Argentina to meet financial
 and operating ratios.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;1999, Nextel Argentina notified the administrative
agent of the Argentina Credit Facility of its anticipated
noncompliance with some of the financial covenants under the
facility. Nextel Argentina received a waiver from the lenders
with regard to those covenants for the first quarter of 1999.
Effective May&nbsp;26, 1999, Nextel Argentina and the lenders
under the Argentina Credit Facility amended the facility to
modify several financial covenants. As a condition to the
effectiveness of those amendments, we entered into capital
subscription agreements under which we contributed equity of
$84.1&nbsp;million to Nextel Argentina during 1999 and are
required to contribute additional equity of $83.5&nbsp;million
during 2000, $19.5&nbsp;million during 2001 and
$49.5&nbsp;million during the first nine months of 2002.

<P align="center">F-21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>7.&nbsp;&nbsp;Long-term Debt&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November&nbsp;1999, Nextel Argentina notified the
administrative agent of its anticipated noncompliance with some
of the financial covenants under the Argentina Credit Facility
applicable in the fourth quarter of 1999. Effective
December&nbsp;8, 1999, Nextel Argentina and the lenders amended
the Argentina Credit Facility to modify several financial
covenants applicable to the fourth quarter of 1999 and the first
quarter of 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, Nextel Argentina had borrowed
$100.0&nbsp;million under the Argentina Credit Facility. Nextel
Argentina is in compliance with all financial covenants contained
 in the facility, as amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Motorola Argentina Incremental Facility. </B>Effective
May&nbsp;26, 1999, and concurrent with the then current
modification of the Argentina Credit Facility, Motorola Credit
agreed to provide up to $50.0&nbsp;million in loans to Nextel
Argentina as incremental term loans under the Argentina Credit
Facility for purchase from Motorola of qualifying network
equipment and related services. As of December&nbsp;31, 1999,
$8.3&nbsp;million had been borrowed under this incremental
facility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Philippines Motorola Bridge Financing. </B>On August&nbsp;27,
1998, Motorola Credit agreed to provide up to $12.0&nbsp;million
in term loans to us to finance the cost of network equipment and
related services purchased from Motorola by Nextel Philippines
and to reimburse us for payments made by us to Motorola for the
purchase of network equipment and related services for the
benefit of Nextel Philippines. At December&nbsp;31, 1998, the
outstanding balance on the financing agreement was
$8.6&nbsp;million. During February&nbsp;1999, the outstanding
balance was repaid with proceeds from the International Motorola
Financing Facility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Mexico Equipment Financing. </B>At December&nbsp;31,
1998, Nextel Mexico was a party to several secured financing
agreements, with various payment terms and maturities through
2007. The term loans were secured by a first priority lien on
substantially all of Nextel Mexico&#146;s assets and were payable
 in U.S. dollars. In February&nbsp;1999, in conjunction with the
International Motorola Financing Facility, the principal and
unpaid interest under these financing agreements were paid in
full.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>International Motorola Incremental Facility. </B>On
December&nbsp;16, 1999, we entered into an agreement with
Motorola Credit under which Motorola Credit committed to provide
up to $56.6&nbsp;million in incremental term loans to us to
acquire intrastructure equipment and related services from
Motorola. Loans under this facility mature December&nbsp;31, 2001
 and bear interest at variable rates based upon either the U.S.
prime rate or LIBOR. Loans under this facility are secured by a
pledge of all of our shares of stock of Clearnet. On
January&nbsp;6, 2000, we borrowed the full $56.6&nbsp;million
available under this facility.

<P align="center">F-22

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>7.&nbsp;&nbsp;Long-term Debt&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the years subsequent to December&nbsp;31, 1999, annual
maturities of long-term obligations are as follows (in
thousands):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="81%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2000</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,739</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2001</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80,560</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2002</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90,487</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2003</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2004</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">58,865</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Thereafter</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,463</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,035,099</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Less unamortized discount</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(486,603</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,548,496</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>8.&nbsp;&nbsp;Income Taxes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The components of the income tax benefit were as follows:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="61%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year ended December 31,</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Current:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,247</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,745</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Deferred:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,264</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,027</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Income tax benefit</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reconciliation of taxes computed at the statutory rate to the
 income tax benefit is as follows:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="59%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year ended December 31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Income tax benefit at statutory rate</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">182,057</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">88,180</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,095</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Nonconsolidated subsidiary adjustments</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,014</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,268</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,559</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	High yield discount obligations</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,486</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,912</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,621</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Increase in valuation allowance</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(150,470</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(66,207</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,784</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,070</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,565</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">151</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,358</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,282</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-23

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>8.&nbsp;&nbsp;Income Taxes&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred tax assets and liabilities consist of the following:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="67%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Deferred tax assets:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating loss carryforwards</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">157,863</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,332</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Deferred interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82,533</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54,104</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized loss on investment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,491</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,969</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,220</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">259,365</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">143,147</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Valuation allowance</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(243,228</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(119,352</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,137</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,795</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Deferred tax liabilities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Intangible assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90,607</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113,989</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized gain on investment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">64,444</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,029</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">158,080</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113,989</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net deferred tax liability</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141,943</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">90,194</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December&nbsp;31, 1999, we had about $52.8&nbsp;million of net
 operating loss carryforwards for U.S. federal income tax
purposes that expire beginning in 2018.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December&nbsp;31, 1999, net operating loss carryforwards for
our foreign subsidiaries are about $91.1&nbsp;million for Mexican
 income tax purposes, $120.3&nbsp;million for Argentine income
tax purposes and $23.9&nbsp;million for Peruvian income tax
purposes. These carryforwards expire in various amounts through
2009. Additionally, our foreign subsidiaries had about
$176.4&nbsp;million of net operating loss carryforwards for
Brazilian income tax purposes that have no expiration date and
that can only be utilized up to the limit of 30% of taxable
income for the year. Our foreign subsidiaries may be limited in
their ability to use foreign tax net operating losses in any
single year depending on their ability to generate sufficient
taxable income.

<P align="left"><B>9.&nbsp;&nbsp;Commitments and Contingencies</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Operating Lease Commitments. </B>We lease various cell sites
and office facilities under operating leases with terms of one to
 five years which, in the case of the cell sites, are generally
renewable, at our option, for additional terms. Total rent
expense under operating leases was $13.0&nbsp;million during
1999, $11.8&nbsp;million during 1998 and $3.3&nbsp;million during
 1997.

<P align="center">F-24

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>9.&nbsp;&nbsp;Commitments and
Contingencies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For years subsequent to December&nbsp;31, 1999, future minimum
payments for all operating lease obligations that have initial
noncancelable lease terms exceeding one year, net of rental
income, are as follows (in thousands):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="84%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2000</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,720</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2001</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,981</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2002</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,192</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2003</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,139</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	2004</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,338</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Thereafter</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,534</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,904</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Brazil licenses. </B>Nextel Brazil is required to meet
installation and minimum loading requirements related to its
analog channels. Failure to comply with such requirements may
subject the licenses relating to such channels to revocation by
the Brazil Ministry of Communications. At December&nbsp;31, 1999,
 Nextel Brazil was not in compliance with applicable installation
 deadlines and minimum loading requirements with respect to
licenses covering 1,885 channels, all of which are outside of
S&#227;o Paulo and Rio de Janiero. Nextel Brazil is currently
conducting analog system installation with regard to a
significant portion of such channels and has submitted an
installation and loading plan and requests for extensions of the
applicable deadlines (except for channels where the Brazilian
operating companies failed to comply with applicable installation
 requirements due to television frequency interference, for which
 extensions were granted automatically by statute) to the
Brazilian Ministry of Communications for its review. Nextel
Brazil does not believe that any potential actions on the part of
 Anatel will have a material adverse effect on our financial
condition, results of operations or cash flows.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;16, 1999, the Brazilian Ministry of
Communication&#146;s board of directors published a proposal for
a new regulation that would be applicable to our analog and
digital specialized mobile radio operations in Brazil. The new
regulation as proposed would eliminate most of the existing
restrictions that are applicable to our analog and digital
operations in Brazil, including among others, the limitations on
interconnect traffic and subscriber units with interconnect
numbers. It is generally expected that the proposed regulation
will be enacted substantially in the form published before the
end of 2000, although there may be strong opposition by current
cellular operators, and there can be no assurance that this new
regulation will indeed be approved.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Philippines SEC Proceedings. </B>Immediately prior to
the Nextel Philippines annual shareholders meeting in
July&nbsp;1998, The Philippines Securities and Exchange
Commission issued a temporary restraining order in favor of
several Philippines shareholders. These shareholders requested
nullification of previously adopted amendments of the bylaws of
Nextel Philippines contemplated by the corporate governance
provisions of the Nextel Philippines&#146; shareholders
agreements. The temporary restraining order enjoined Nextel
Philippines from implementing those bylaw amendments for a
72-hour period. The shareholders further requested that a
preliminary injunction be issued with the same effect pending a
trial on the merits with respect to the validity of those bylaw
amendments. On July&nbsp;15, 1998, pursuant to the agreement of
Nextel Philippines and the shareholders, which agreement was
confirmed by the Philippines Securities and Exchange Commission,
the temporary restraining order was permitted to expire and,
pending

<P align="center">F-25

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>9.&nbsp;&nbsp;Commitments and
Contingencies&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
a trial on the merits as to the validity of the bylaw amendments
(1)&nbsp;the petitioners agreed to withdraw their petition for a
preliminary injunction and (2)&nbsp;Nextel Philippines agreed
that the provisions of the bylaw amendments granting Nextel
International certain veto rights in corporate government matters
 would not be implemented. Although we cannot predict the outcome
 of this proceeding, we believe that the shareholders&#146;
claims are without merit. Nextel Philippines intends to
vigorously defend against those claims.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Philippines Proceedings. </B>In mid 1998, a number of
the Philippine cellular mobile telephone companies filed
proceedings, which have since been consolidated into one
proceeding, with the Philippines National Telecommunications
Commission asserting that (1)&nbsp;the extension to
January&nbsp;20, 1999 of Nextel Philippines&#146; provisional
authority to operate its wireless communications network using
its licensed frequencies in the Philippines improperly expanded
Nextel Philippines&#146; authority to provide cellular mobile
telephone services and (2)&nbsp;if Nextel Philippines was indeed
authorized to operate cellular mobile telephone services, then
Nextel Philippines should be required to meet the other
obligations applicable to cellular mobile telephone services
operators, including specified obligations to build out local
exchange lines. Although we cannot predict the outcome of this
proceeding, we believe that the claims against Nextel Philippines
 are without merit. Nextel Philippines intends to vigorously
defend against them.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Philippines National Telecommunications Commission issued an
order in February 1999 extending Nextel Philippines&#146;
provisional authority to January&nbsp;19, 2000. On
December&nbsp;7, 1999, Nextel Philippines filed a motion to
further extend that provisional authority for one year. Based on
Nextel Philippines&#146; past experience and the Philippines
National Telecommunications Commission&#146;s usual practice,
this motion is expected to be resolved ex-parte in Nextel
Philippines&#146; favor. Based on Nextel Philippines&#146;
experience with the practice of the Philippines National
Telecommunications Commission, Nextel Philippines believes that
the issuance of the extension after the provisional
authority&#146;s expiration will not adversely affect Nextel
Philippines&#146; continued operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Philippines Arbitration. </B>On October&nbsp;30, 1998,
under the dispute resolution provisions of the Philippines
shareholders agreements, we commenced arbitration proceedings in
Hong Kong against two of the local shareholders of Nextel
Philippines, in which we assert that the shareholders have failed
 to perform their respective obligations under the Nextel
Philippines agreements. We seek equitable and legal relief,
including, but not limited to, compensatory damages and
injunctive relief.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>McCaw Brazil. </B>On August&nbsp;16, 1999, we and McCaw Brazil
 filed a Motion for Judgment in the Circuit Court for the City of
 Alexandria, Virginia, against Telcom Ventures, seeking a
declaration from the court that the Founders Group&#146;s option
to make its pro rata share of capital contributions was not
properly exercised. As a result of having failed to make such
payment, the Founders Group&#146;s ownership interest in McCaw
Brazil has fallen below 10% and they are no longer entitled to
designate a director to serve on the McCaw Brazil board of
directors. On September&nbsp;15, 1999, Telcom Ventures filed its
answer denying the material allegations made in the Motion for
Judgment, and asserted a counterclaim alleging that we breached a
 fiduciary duty to Telcom Ventures and that McCaw Brazil breached
 a contract with Telcom Ventures by allegedly issuing shares for
less than fair market value without the informed consent of the
director designated by the Founders Group. Telcom Ventures&#146;
counterclaim seeks damages in the amount of $100&nbsp;million,
plus punitive damages. We and McCaw Brazil have timely filed a
denial of the material allegations made in the counterclaim.
Although we cannot predict the

<P align="center">F-26

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
outcome of this proceeding, we believe the claims against us are
without merit. We intend to vigorously defend against these
claims. (See Note&nbsp;15.)

<P align="left"><B>10.&nbsp;&nbsp;Issuance of Preferred Stock</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1999, 2,000 shares of our series A exchangeable redeemable
 preferred stock were issued to a wholly owned subsidiary of
Nextel Communications in exchange for cash proceeds of
$200.0&nbsp;million. During 1998, 988.86 shares were issued to
Nextel Communications in exchange for an investment in Clearnet
and other consideration of $8.3&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The series&nbsp;A exchangeable redeemable preferred stock was
issued at an original liquidation preference of $100,000 per
share and thereafter, the liquidation preference on the
series&nbsp;A preferred stock accretes at an annual rate equal to
 13.625%. At December&nbsp;31, 1999, the accreted liquidation
preference on the series&nbsp;A preferred stock was about
$337.7&nbsp;million. Except as required by law, the holders of
the series&nbsp;A preferred stock are not entitled to receive
dividends or other distributions. We have the right at any time
to redeem the series&nbsp;A preferred stock in full (or with the
consent of the holder of the affected shares of series&nbsp;A
preferred stock, in part) at a redemption price equal to 100% of
the accreted liquidation preference thereof on the redemption
date and, under certain circumstances, the holders of the
series&nbsp;A preferred stock have the right to exchange the
series&nbsp;A preferred stock for shares of our series&nbsp;B
redeemable preferred stock, par value $10.00 per share, having a
liquidation preference equal to the accreted liquidation
preference of the series&nbsp;A preferred stock so exchanged.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The series B preferred stock to be issued in exchange for shares
of series A preferred stock will have an initial annual dividend
rate equal to 13.625%, increasing to 18.0% on March&nbsp;13,
2010. The series&nbsp;B preferred stock will have terms
substantially similar to those of the series&nbsp;A preferred
stock, except that the series&nbsp;B preferred stock has the
right to elect one director to the board of directors and to the
accrual of cumulative dividends payable quarterly in cash. In
addition, we may not issue shares of our series&nbsp;B preferred
stock, except in exchange for shares of our series&nbsp;A
preferred stock, without the consent of the holder of a majority
of the outstanding shares of our series&nbsp;A preferred stock
and our series&nbsp;B preferred stock, voting together as a
class.

<P align="left"><B>11.&nbsp;&nbsp;Employee Stock and Benefit Plans</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel Communications Employee Stock Option Plan. </B>Some of
our employees participate in the Nextel Communications, Inc.
Incentive Equity Plan. Generally, non qualified stock options
outstanding under this Plan:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	are granted at prices equal to the market value of Nextel
	Communications&#146; stock on the grant date;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	vest ratably over either a four or a five year service period;
	and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	expire ten years subsequent to the award date.</TD>
</TR>

</TABLE>

<P align="center">F-27

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
<B>11.&nbsp;&nbsp;Employee Stock and Benefit
Plans&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of the activity under the Nextel Communications, Inc.
Incentive Equity Plan related to our employees is as follows:

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="40%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="9"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><FONT size="2"><B>Option</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><FONT size="2"><B>Price Range</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, January&nbsp;1, 1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">272,200</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.19</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.72</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">351,100</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.91</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.76</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">623,300</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.91</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">770,020</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.35</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13.19</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Transferred</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(109,796</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.75</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercised</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(41,326</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8.07</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.59</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Canceled</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(178,836</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.86</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,063,362</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.56</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.01</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,226,990</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.52</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Transferred</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,082,474</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.75</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.31</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercised</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(762,668</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.75</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.15</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Canceled</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(413,416</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.57</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.87</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,196,742</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.75</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.04</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Exercisable, December&nbsp;31, 1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">139,040</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.75</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.41</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following is a summary of the status of employee stock options
outstanding at December&nbsp;31, 1999:

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="11%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="10%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price of</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Life</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Average</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price Range</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Remaining</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="right" valign="top"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&nbsp;6.75&nbsp;&#150;&nbsp;$&nbsp;7.82</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">255,920</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.9 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.58</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">61,710</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.62</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="right" valign="top"><FONT size="2">8.07&nbsp;&#150;&nbsp;&nbsp;13.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">769,452</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8.2 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.97</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">68,330</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12.29</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="right" valign="top"><FONT size="2">15.28&nbsp;&#150;&nbsp;&nbsp;15.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">885,370</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.1 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.30</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.32</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="right" valign="top"><FONT size="2">24.00&nbsp;&#150;&nbsp;&nbsp;43.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">286,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.7 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29.18</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,196,742</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8.6 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.04</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">139,040</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10.41</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Nextel International Employee Stock Option Plan. </B>In
June&nbsp;1997, our board of directors adopted the 1997 Nextel
International Employee Stock Option Plan, under which eligible
employees participate. Generally, options outstanding under this
plan:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	are granted at fair value, based on periodic valuations of Nextel
	 International in accordance with the terms of the plan;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	vest over a four year service period; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	expire ten years subsequent to the award date.</TD>
</TR>

</TABLE>

<P align="center">F-28
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>11.&nbsp;&nbsp;Employee Stock and Benefit
Plans&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of Nextel International Stock Option Plan activity is
as follows:

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="40%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="9"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><FONT size="2"><B>Option</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><FONT size="2"><B>Price Range</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="9"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, January&nbsp;1, 1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,484,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercised</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(120,000</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,364,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,450,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15.71</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercised</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(94,716</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Canceled</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(713,716</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.10</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1998</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,005,568</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4.97</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Granted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,134,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.01</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.99</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercised</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(798,520</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Canceled</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,414,372</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.89</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Outstanding, December&nbsp;31, 1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,926,676</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.09</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Exercisable, December&nbsp;31, 1999</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,654,176</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="bottom"><FONT size="2">
	&#150;</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.77</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following is a summary of the status of employee stock options
outstanding at December&nbsp;31, 1999:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="9%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="8%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price of</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Weighted Life</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Average</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Remaining</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="right" valign="top"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,170,016</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.3 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,850,072</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2.50</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">6.01</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,050,916</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.4 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.01</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">507,880</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.01</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">705,744</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8.6 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">296,224</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16.44</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,926,676</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.8 years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.09</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,654,176</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.77</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-29

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>11.&nbsp;&nbsp;Employee Stock and Benefit
Plans&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consistent with the provisions of SFAS No.&nbsp;123, had
compensation costs been determined based on the fair value of the
 awards granted in 1999, 1998 and 1997, our loss and loss per
common share attributable to common stockholders would have been
as follows:

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="56%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>(in thousands, except share amounts)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	As reported</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Pro forma</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(529,920</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(243,376</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(76,024</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Loss per common share, basic and diluted:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	As reported</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3.56</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.51</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Pro forma</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3.62</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.67</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.52</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Weighted average fair value of options granted</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.06</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.07</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1.65</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Weighted average remaining contractual life</FONT></TD>
	<TD></TD>
	<TD colspan="3" align="center" valign="bottom"><FONT size="2">8.2 years</FONT></TD>
	<TD></TD>
	<TD colspan="3" align="center" valign="bottom"><FONT size="2">7.6 years</FONT></TD>
	<TD></TD>
	<TD colspan="3" align="center" valign="bottom"><FONT size="2">8.2 years</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value of each Nextel International and Nextel
Communications, Inc. option grant is estimated on the date of
grant using the Black-Scholes option-pricing model as prescribed
by SFAS No.&nbsp;123 using the following: assumptions:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="52%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Expected stock price volatility</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">53%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Risk-free interest rate</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.67&nbsp;&#150;&nbsp;5.93%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.01&nbsp;&#150;&nbsp;5.08%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6.6%</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Expected life in years</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Expected dividend yield</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.00%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.00%</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0.00%</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our stock options are non transferable (except to family members
or by will, as provided for in the Nextel International Employee
Stock Option Plan), and the actual value of the stock options
that an employee may realize, if any, will depend on the excess
of the market price on the date of exercise over the exercise
price. We have based our assumption for stock price volatility on
 the historical variance of weekly closing prices of Nextel
Communications&#146; class&nbsp;A common stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Stock Appreciation Rights. </B>On November&nbsp;1, 1996, we
adopted a Stock Appreciation Rights Plan, whereby some of our
employees and consultants of Nextel International were granted
rights to share in the future appreciation in the value of Nextel
 International. Such rights do not represent an equity interest
in Nextel International, only a right to compensation under the
terms of the plan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In conjunction with adoption of the Nextel International Employee
 Stock Option Plan, our board of directors also approved a plan
to terminate the Stock Appreciation Rights Plan. Each holder of
previously granted stock appreciation rights was given the option
 to exchange their stock appreciation rights for stock options to
 be granted under the Nextel International Employee Stock Option
Plan. As of December&nbsp;31, 1998, 20,000 stock appreciation
rights were outstanding. All outstanding stock appreciation
rights had been exchanged for Nextel International options during
 1999.

<P align="center">F-30

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>11.&nbsp;&nbsp;Employee Stock and Benefit
Plans&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Employee Benefit Plan. </B>Some of our officers and employees
are eligible to participate in Nextel Communications&#146;
defined contribution plan established pursuant to
Section&nbsp;401(k) of the Internal Revenue Code. We provide a
matching contribution of 50% of the first 4% of salary
contributed by the employee. Our contributions were about $49,000
 during 1999, $41,000 during 1998 and $29,000 during 1997.

<P align="left"><B>12.&nbsp;&nbsp;Related Party Transactions</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Communications performs accounting, legal and other
services for us under a service agreement. We reimburse Nextel
Communications for costs incurred, which totaled
$1.2&nbsp;million during 1999, $0.4&nbsp;million during 1998 and
$0.3&nbsp;million during 1997. We also reimburse Nextel
Communications for some vendor payments made on our behalf. At
December&nbsp;31, 1999, amounts due to parent of
$8.8&nbsp;million consist primarily of reimbursement due to
Nextel Communications for vendor payments made on our behalf
during the fourth quarter of 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December&nbsp;31, 1999, Motorola beneficially owned
approximately 15.0% of Nextel Communications&#146; outstanding
common stock. We maintain various business relationships with
Motorola, including purchases of infrastructure equipment and
subscriber units, equipment financing agreements, and shareholder
 relationships and agreements. (See Notes&nbsp;2 and 7).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We purchased approximately $155.4&nbsp;million during 1999 and
$162.6&nbsp;million during 1998, in digital infrastructure
equipment, subscriber units and related services from Motorola.
As of December&nbsp;31, 1999 and 1998, our consolidated balance
sheets include amounts payable to Motorola related to such
purchases of $15.8&nbsp;million and $14.8&nbsp;million,
respectively, in accounts payable and $242.9 million and
$102.2&nbsp;million in long-term debt (see Note&nbsp;7).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At various points during 1999, we entered into subscriber unit
purchase agreements with Motorola which established payment terms
 for purchases of subscriber units and related accessories by our
 consolidated subsidiaries. Amounts outstanding under these
subscriber unit purchase agreements total $15.8&nbsp;million and
are included in accounts payable at December&nbsp;31, 1999, as
noted above.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nextel Philippines also entered into a subscriber unit purchase
agreement with terms substantially identical to those described
above. Amounts outstanding under this agreement total
$6.2&nbsp;million at December&nbsp;31, 1999, and are guaranteed
by us.

<P align="left"><B>13.&nbsp;&nbsp;Segment Information</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the years ended December&nbsp;31, 1999 and December&nbsp;31,
1998, we have four reportable operating segments: 1)&nbsp;Brazil,
 2)&nbsp;Argentina, 3)&nbsp;Mexico, and 4)&nbsp;Peru. The
operations of our corporate entities, which hold equity
investments in the Philippines and Japan, are included in the
Corporate and Other segment below. For the year ended
December&nbsp;31, 1997, we have two reportable operating
segments: 1)&nbsp;Brazil, in which we obtained a controlling
interest as of January 1997 and 2)&nbsp;Mexico, in which we
obtained a controlling interest effective September&nbsp;1997.
During 1997, Corporate and Other includes equity method
investments in Argentina and the Philippines.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our segments reflect our geographic focus and are defined as
operating segments immediately subsequent to our obtaining a
controlling interest in the entity. We evaluate performance based
 on losses before interest, taxes, depreciation and amortization
and other

<P align="center">F-31

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>13.&nbsp;&nbsp;Segment
Information&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<P align="left">
non-recurring charges, referred to as EBITDA. The accounting
policies of these segments are the same as those described in the
 summary of significant accounting policies. Intercompany
eliminations have been included in Corporate and Other.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="36%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Corporate</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Brazil</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Argentina</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Mexico</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Peru</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>and&nbsp;Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">34,917</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,767</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24,937</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,907</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">104,528</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	EBITDA</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(68,554</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(36,979</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28,813</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,579</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,925</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(162,850</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,253</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,903</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,381</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,633</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,921</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">108,091</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,150</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,863</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(431</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(549</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(152,611</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,604</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,409</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">215</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">167</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,479</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,442</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(31,469</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(31,469</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction (loss) gain and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(59,899</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,194</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(417</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(866</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,529</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65,905</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,712</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,602</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,314</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax benefit</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(156,735</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(83,767</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(54,827</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,858</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(209,976</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,163</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,216</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">130,428</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">131,320</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54,956</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,535</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Identifiable assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">403,291</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">248,959</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">410,510</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80,444</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">538,588</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">57,461</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">55,423</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,914</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,966</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,679</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">173,443</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,480</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,662</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,412</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,934</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,488</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	EBITDA</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(60,945</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,353</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,253</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,007</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,137</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(120,695</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24,828</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,678</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,902</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,043</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">588</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,039</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,676</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">388</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,572</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,587</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(116,047</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,210</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">440</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">164</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,676</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,655</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,193</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,193</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction (loss) gain and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,299</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,138</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,760</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(379</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,528</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,472</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,819</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,687</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(375</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,131</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax benefit</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(71,367</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(52,616</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,383</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(991</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(123,136</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(259,493</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">259,610</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">109,284</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,637</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">40,825</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,215</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">530,571</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Identifiable assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">579,429</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">237,542</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">377,952</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62,434</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">343,779</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,601,136</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">188,383</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">77,983</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">72,336</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,780</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,542</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">376,024</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-32

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>13.&nbsp;&nbsp;Segment
Information&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="55%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Corporate</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Brazil</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Mexico</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>and&nbsp;Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>1997</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,605</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,348</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,015</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	EBITDA</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,145</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,067</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,177</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,403</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,499</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,479</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,381</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,577</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(548</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(57,612</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(56,583</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">363</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">128</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,175</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,666</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,401</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,401</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction (loss)&nbsp;gain and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(137</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,968</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,730</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,561</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,710</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">375</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,085</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax benefit</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,035</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,916</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(60,279</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(80,230</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113,769</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,040</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">136,210</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Identifiable assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">420,242</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">288,695</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">414,101</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,123,038</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">87,370</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,938</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">584</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">101,892</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>14.&nbsp;&nbsp;Quarterly Financial Data (Unaudited)</B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="45%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>First</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Second</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Third</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fourth</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="15"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><FONT size="2"><B>(in thousands, except per share amounts)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,861</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,899</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,345</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,423</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(69,404</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(75,012</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(64,480</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(62,045</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(165,282</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,726</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,719</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(122,419</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net loss per common share, basic and diluted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.13</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.70</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.89</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.84</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,558</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,189</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,850</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,891</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Operating loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(19,413</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,730</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(60,454</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(67,137</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28,569</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,810</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(69,864</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(92,892</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net loss per common share, basic and diluted</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.20</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.32</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.48</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.64</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The sum of the per share amounts do not equal the annual amounts
due to changes in the number of weighted average number of common
 shares outstanding during the year.

<P align="left"><B>15.&nbsp;&nbsp;Subsequent Events</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Purchase of Minority Owner&#146;s Investment in Nextel
Peru.</I></B> In May&nbsp;2000, we purchased another
shareholder&#146;s interest in Nextel Peru for about
$2.8&nbsp;million in cash and increased our ownership from about
63% to about 69%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Purchase of Motorola International&#146;s Common Equity
Shares in Companies in Brazil, Peru and Chile.</I></B> In
May&nbsp;2000, we purchased all of the equity interests of
Motorola International in Nextel Peru, which increased our
ownership interest from about 69% to 100%. At the same time, we
purchased all of Motorola International&#146;s equity interests
in Nextel&nbsp;S.A., which increased our ownership of Nextel
Brazil from about 88% to about 92%. We also purchased all of
Motorola International&#146;s equity interests in three Chilean
analog SMR companies, which were wholly

<P align="center">F-33

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>15.&nbsp;&nbsp;Subsequent Events&nbsp;&#151;&nbsp;(Continued)
</B>
</DIV>

<P align="left">
owned by Motorola International. We have entered into an
agreement with Motorola International to manage these three
companies during a transition period. The aggregate purchase
price for these acquisitions was about $77.7&nbsp;million in
cash.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Capital Stock Issuances.</I></B> On April&nbsp;4, 2000, we
received an advance of $77.7&nbsp;million from a wholly owned
subsidiary of Nextel Communications in connection with the
anticipated purchase of Motorola International&#146;s common
equity shares in Nextel Brazil, Nextel Peru and three Chilean
companies as discussed above. On June&nbsp;2, 2000, we issued
777&nbsp;shares of our series&nbsp;A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications as repayment of this intercompany advance.
Additionally, on April&nbsp;7, 2000, we issued 1,500 shares of
our series&nbsp;A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications in exchange for
cash proceeds of $150.0&nbsp;million. On June&nbsp;12, 2000, all
of our shares of series&nbsp;A exchangeable redeemable preferred
stock outstanding at that time were exchanged for shares of our
common stock. On June&nbsp;29, 2000, we issued 2,150 shares of
our series&nbsp;A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications in exchange for
cash proceeds of $215.0&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Stock Options and Split.</I></B> On June&nbsp;2, 2000, our
board of directors approved an increase in the number of
authorized shares of common stock from 73,000,000 to 200,000,000,
 enabling us to complete a 4-for-1 stock split effective
June&nbsp;20, 2000. Information presented throughout these
financial statements and related notes has been adjusted to
reflect the 4-for-1 common stock split. At the same time, our
board of directors approved a new incentive equity plan that was
adopted by the plan administration committee on May&nbsp;25,
2000. The plan provides for awards of option rights, appreciation
 rights, restricted shares, deferred shares and performance
shares to our nonaffiliate directors, officers, including
officers who are members of our board of directors, and other key
 employees, consultants and advisors with respect to
20,000,000&nbsp;shares of common stock. Options to purchase
shares of common stock may be at prices equal to or greater than
market value on the date of grant. If an option holder&#146;s
employment is involuntarily terminated within one year after the
effective date of a change of control of Nextel International,
Inc., then that holder&#146;s unvested options and other equity
awards will immediately vest or otherwise become payable, subject
 to some limitations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;25, 2000, we granted options to purchase
6,968,500&nbsp;shares of common stock to employees and advisors
at an exercise price of $17.75 per common share. The options
granted expire ten years subsequent to award. Each grant becomes
exercisable with respect to 50% of the shares of common stock
covered by the grant on the second anniversary of the date of
grant and with respect to 25% of the shares of common stock
covered by the grant on each of the third and fourth
anniversaries of the date of grant for so long as the optionee
remains in our continuous employ. However, in the event of an
initial public offering or change of control, as defined in the
plan, prior to the first anniversary of the date of grant, 25% of
 the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of

<P align="center">F-34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<DIV align="left">
<B>15.&nbsp;&nbsp;Subsequent Events&nbsp;&#151;&nbsp;(Continued)
</B>
</DIV>

<P align="left">
common stock covered by the grant become exercisable on each of
the second, third, and fourth anniversaries of the date of grant
for so long as the optionee remains in our continuous employ.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>McCaw Brazil Ownership.</I></B> We entered into a purchase,
 release and settlement agreement dated as of July&nbsp;21, 2000
with the Founders Group, who collectively were the minority
stockholders in McCaw Brazil, which indirectly owns 100% of
Nextel Brazil. Under that agreement, on August&nbsp;4, 2000, we
(1)&nbsp;made a cash payment to members of the Founders Group
totaling $146.0&nbsp;million, (2)&nbsp;received all of the equity
 interests held by the Founders Group in McCaw Brazil and
(3)&nbsp;exchanged mutual releases with all of the members of the
 Founders Group. In addition, all pending court disputes between
us and Telcom Ventures, a member of the Founders Group, have been
 permanently dismissed. For a description of these disputes, see
Notes&nbsp;2 and 9. As a result, all rights of the Founders Group
 as minority stockholders in McCaw Brazil, including their rights
 to put their equity interests to us beginning in
October&nbsp;2001, have terminated. We will account for this
additional investment in McCaw Brazil using the purchase method.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Credit Facility Amendments.</I></B> On June&nbsp;20, 2000,
in conformity with our 2000 operating plan, Nextel Argentina and
the lenders under the Argentina Credit Facility amended the
facility to modify several financial covenants. As a condition to
 the effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of
$84.1&nbsp;million to Nextel Argentina during 1999 and are now
required to contribute equity of $134.5&nbsp;million during 2000,
 $110.0&nbsp;million during 2001 and $117.0&nbsp;million during
2002, all subject to adjustment in case of certain events.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Also in the second quarter of 2000, we amended and restated the
$125.0&nbsp;million equipment financing agreement between McCaw
Brazil (International), Ltd., referred to as McCaw Brazil, and
Motorola Credit Corporation to effect certain administrative
changes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Debt Issuance.</I></B> On August&nbsp;1, 2000, we completed
 the issuance and sale in a private placement of an aggregate of
$650.0&nbsp;million in principal amount of our 12.75% senior
serial notes due 2010, generating about $623.8&nbsp;million in
net cash proceeds.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Nextel Philippines.</I></B> On July&nbsp;28, 2000, we
increased our direct and indirect ownership interests in Nextel
Communications Philippines, Inc., referred to as Nextel
Philippines, from about 38% to about 51% through the purchase of
some of the minority owners&#146; equity interests in Nextel
Philippines for about $9.8&nbsp;million.

<P align="center">F-35

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONDENSED CONSOLIDATED BALANCE SHEETS" -->
<DIV align="left"><A NAME="022"></A></DIV>

<DIV align="center">
<B>CONDENSED CONSOLIDATED BALANCE SHEETS</B>
</DIV>

<DIV align="center">
<B>As of June&nbsp;30, 2000 and December&nbsp;31, 1999</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<DIV align="center">
<B>Unaudited</B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="64%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>ASSETS</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Current assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cash and cash equivalents, of which $10,487 and $6,179 is
	restricted</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">267,435</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,028</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Short-term investments</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,949</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts receivable, less allowance for doubtful accounts of
	$14,143 and $8,815</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,127</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,041</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory inventory</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,185</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Prepaid expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,808</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,868</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total current assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">400,819</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">161,122</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Property, plant and equipment, </B>net of accumulated
	depreciation of $141,105 and $95,449</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">755,229</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Investments in unconsolidated affiliates, </B>less equity in
	net losses of $63,413 and $46,129</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">350,084</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">428,971</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Intangible assets, </B>net of accumulated amortization of
	$66,934 and $61,105</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">505,675</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">454,657</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Other assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">112,203</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">97,587</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,124,010</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>LIABILITIES AND STOCKHOLDERS&#146; DEFICIT</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Current liabilities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts payable</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62,209</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">44,210</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accrued expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">74,873</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">61,448</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accrued interest</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,476</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,423</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Due to related party</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119,060</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,778</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Due to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,261</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,847</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Current portion of long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">67,098</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,739</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total current liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">334,977</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">179,445</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Long-term debt</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,666,634</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,514,757</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Deferred income taxes</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">126,570</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141,943</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,128,181</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,836,145</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Contingencies (Note&nbsp;4)</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Minority interest</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">25,237</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Stockholders&#146; deficit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Series&nbsp;A exchangeable redeemable preferred stock, 2&nbsp;
	shares and 3&nbsp;shares issued and outstanding, accreted
	liquidation preference of $215,081 and $337,737</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">215,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">298,886</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Common stock, 180,691 and 146,893&nbsp;shares issued and
	outstanding</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">927,693</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">399,401</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accumulated deficit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,100,900</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(859,970</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accumulated other comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,964</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,907</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total stockholders&#146; deficit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,124,010</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these condensed
consolidated financial statements.

<P align="center">F-36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS" -->
<DIV align="left"><A NAME="023"></A></DIV>

<DIV align="center">
<B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS</B>
</DIV>

<DIV align="center">
<B>For the Six and Three Months Ended June&nbsp;30, 2000 and 1999
</B>
</DIV>

<DIV align="center">
<B>(in thousands, except per share amounts)</B>
</DIV>

<DIV align="center">
<B>Unaudited</B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="48%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Six Months Ended</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Three Months Ended</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating revenues</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110,800</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,760</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63,625</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,899</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating expenses</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Cost of revenues</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,652</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,072</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,690</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,106</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">148,650</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">116,222</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">81,390</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">59,337</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,183</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,882</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32,682</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28,468</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">243,485</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">186,176</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">129,762</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">96,911</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating loss</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(132,685</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(144,416</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(66,137</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(75,012</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Other income (expense)</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,660</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(82,220</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(53,945</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(43,526</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,547</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,199</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,289</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,520</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,869</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains (losses), net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,922</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,864</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,615</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,833</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,504</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,299</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,754</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,258</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,906</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">325</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,542</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(539</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(107,877</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(123,153</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(63,320</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27,554</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Loss before income tax provision</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,562</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(267,569</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,457</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,566</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Income tax provision</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(368</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(439</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(580</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(160</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Net loss</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(130,037</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,726</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Accretion of series A redeemable preferred stock to value of
	liquidation preference (Note&nbsp; 2)</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(61,334</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(61,334</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Loss attributable to common stockholders</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(302,264</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(191,371</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,726</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Loss per share attributable to common stockholders, basic and
	diluted</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2.01</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.83</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1.24</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(0.70</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Weighted average number of common shares outstanding</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">150,422</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,130</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">153,942</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,163</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Comprehensive loss, net of income tax</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(130,037</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,726</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Unrealized (loss)&nbsp;gain on available-for-sale securities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,975</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">42,087</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,055</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,956</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,918</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(110,079</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,920</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,018</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Comprehensive loss</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,987</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(336,000</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(214,012</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(71,752</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these condensed
consolidated financial statements.

<P align="center">F-37

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS&#146; DEFICIT" -->
<DIV align="left"><A NAME="024"></A></DIV>

<DIV align="center">
<B>CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS&#146; DEFICIT</B>
</DIV>

<DIV align="center">
<B>For the Six Months Ended June&nbsp;30, 2000</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<DIV align="center">
<B>Unaudited</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="12%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Accumulated Other</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Comprehensive</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Income (Loss)</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Series A</B></FONT></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Preferred Stock</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Common Stock</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unrealized</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cumulative</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Accumulated</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Gain (Loss) on</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Translation</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Deficit</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Investments</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustment</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, January&nbsp; 1, 2000</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">298,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">146,893</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">399,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(859,970</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119,682</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(137,589</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Unrealized loss on available-for-sale securities, net of income
	tax</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,975</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,975</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Foreign currency translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,918</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,918</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of series A redeemable preferred stock to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">442,685</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">442,685</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Issuance of common stock:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Conversion of series A redeemable preferred stock at accreted
	liquidation preference value</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(526,571</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,121</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">526,571</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Exercise of stock options and warrants</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">677</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,721</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,721</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	<B>Balance, June&nbsp;30, 2000</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">215,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">180,691</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">927,693</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,100,900</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83,707</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,671</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these condensed
consolidated financial statements.

<P align="center">F-38

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<!-- link1 "CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS" -->
<DIV align="left"><A NAME="025"></A></DIV>

<P align="center">
<B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B>

<DIV align="center">
<B>For the Six Months Ended June&nbsp;30, 2000 and 1999</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<DIV align="center">
<B>Unaudited</B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="60%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from operating activities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,930</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(268,008</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Adjustments to reconcile net loss to net cash used in operating
	activities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Amortization of deferred financing costs and accretion of senior
	notes</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">71,645</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,588</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65,183</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">51,882</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Provision for losses on accounts receivable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,690</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,377</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Loss on write-off of assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">570</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,898</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Deferred income tax provision</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">368</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">439</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,284</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,520</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Net foreign currency transaction (gains)&nbsp;losses</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,922</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">45,864</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,504</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,299</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(431</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Change in assets and liabilities, net of effects from
	acquisitions:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts receivable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,312</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,432</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory inventory</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,310</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,772</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Other assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,399</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,319</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts payable, accrued expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">48,294</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,387</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash used in operating activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(101,774</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(100,105</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from investing activities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(141,380</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(86,906</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Investments in consolidated subsidiaries, net of cash acquired</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(80,466</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Purchase of short-term investments</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,518</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Investments in unconsolidated affiliates and other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,619</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,903</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash used in investing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(254,983</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(116,809</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from financing activities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Proceeds from issuance of series A redeemable preferred stock to
	parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">442,685</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Borrowings under long-term credit facilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">88,142</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">135,079</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Repayments under long-term credit facilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,240</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,623</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Capital contributions from minority stockholders</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,223</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,403</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	(Repayments to) borrowings from parent, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,586</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,809</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Deferred financing costs</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,609</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Exercise of stock options and warrants</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,721</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash provided by financing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">523,945</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">242,169</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Effect of exchange rate changes on cash and cash equivalents
	</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">219</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,184</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Net increase in cash and cash equivalents</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">167,407</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,071</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, beginning of period</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,028</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">121,116</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, end of period</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">267,435</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141,187</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Supplemental disclosure of cash flow information</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Cash paid for interest</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">45,962</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,559</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these condensed
consolidated financial statements.

<P align="center">F-39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="026"></A></DIV>

<DIV align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<DIV align="center">
<B>Unaudited</B>
</DIV>

<P align="left"><B>Note&nbsp;1.&nbsp;&nbsp;Basis of Presentation.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used in these condensed consolidated financial statements, the
 terms &#147;we,&#148; &#147;us,&#148; &#147;our&#148; and
&#147;Nextel International,&#148; refer to Nextel International,
Inc. and our consolidated subsidiaries. Nextel International is
an indirect, substantially wholly owned subsidiary of Nextel
Communications, Inc. Unless the context requires otherwise,
references to Nextel Communications refer to Nextel
Communications, Inc. and its consolidated subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our unaudited condensed consolidated financial statements have
been prepared under the rules and regulations of the Securities
and Exchange Commission and reflect all adjustments that are
necessary for a fair presentation of the results for interim
periods. All adjustments made were normal recurring accruals.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the condensed consolidated financial statements
in conjunction with the consolidated financial statements and
notes contained in our Annual Report on Form&nbsp;10-K for the
year ended December&nbsp;31, 1999. You should not expect results
of operations of interim periods to be an indication of the
results for a full year.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Restricted Cash and Cash Equivalents.</I></B> Some of our
subsidiaries held cash and cash equivalents of $10.5&nbsp;million
 as of June&nbsp;30, 2000 and $6.2&nbsp;million as of
December&nbsp;31, 1999, that were not available to fund any of
the cash needs of Nextel International, Inc. or any of our other
subsidiaries due to restrictions contained in some of our debt
agreements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Short-Term Investments.</I></B> Short-term investments
consist of commercial paper with original maturities of greater
than three months and less than one year.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Supplemental Cash Flow Information.</I></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="73%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Six Months</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Ended</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Capital expenditures</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Cash paid for capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">141,380</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">86,906</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Change in capital expenditures accrued and unpaid or financed</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">111,304</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,313</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">252,684</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92,219</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Interest costs</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106,660</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82,220</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest capitalized</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,121</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,963</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">113,781</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">86,183</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Digital Subscriber Unit and Accessory Sales and Related
Costs.</I></B> We deliver our wireless service through handset
devices, which we refer to as subscriber units. The loss
generated from the sale of subscriber units used in our digital
enhanced specialized mobile radio, referred to as ESMR, networks
primarily results from our subsidy of digital subscriber units
and accessories and represents marketing costs. Consolidated
digital subscriber unit and accessory sales and the related cost
of sales, including current period order fulfillment and
installation related expenses,

<P align="center">F-40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
and write downs of digital subscriber unit inventory and related
accessories for shrinkage and obsolescence, are classified within
 selling, general and administrative expenses as follows:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="53%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Six Months Ended</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Three Months Ended</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="15"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber unit and accessory sales</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,830</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,388</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,221</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,229</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Cost of subscriber unit and accessory sales</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">45,476</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,854</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,174</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,546</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28,646</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,466</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,953</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,317</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>New Accounting Pronouncements.</I></B> In June&nbsp;1998,
the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No.&nbsp;133, &#147;Accounting for
 Derivative Instruments and Hedging Activities,&#148; which, as
amended by SFAS No.&nbsp;138 in June&nbsp;2000, establishes
accounting and reporting standards for derivative instruments,
including some derivatives embedded in other contracts, and for
hedging activities by requiring that all derivatives be
recognized on the balance sheet and measured at fair value. In
June&nbsp;1999, the FASB issued SFAS No.&nbsp;137, &#147;Deferral
 of the Effective Date of FASB Statement No.&nbsp;133&nbsp;&#151;
 an Amendment of FASB Statement No.&nbsp;133,&#148; which
deferred the effective date for us until January&nbsp;1, 2001. We
 are in the process of evaluating the potential impact of this
statement on our financial position and results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December&nbsp;1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No.&nbsp;101, &#147;Revenue
Recognition in Financial Statements,&#148; which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No.&nbsp;101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that SAB
No.&nbsp;101 will have a material impact on our financial
position or results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;2000, the FASB issued Interpretation No.&nbsp;44,
&#147;Accounting for Certain Transactions involving Stock
Compensation, an Interpretation of APB Opinion No.&nbsp;25,&#148;
 which clarifies the application of APB Opinion No.&nbsp;25 for
certain issues including: (1)&nbsp;the definition of an employee
for purposes of applying APB Opinion No.&nbsp;25, (2)&nbsp;the
criteria for determining whether a plan qualifies as a
noncompensatory plan, (3)&nbsp;the accounting consequences of
various modifications to the terms of a previously fixed stock
option or award and (4)&nbsp;the accounting for an exchange of
stock compensation awards in a business combination.
Interpretation No.&nbsp;44 is effective July&nbsp;1, 2000, but
certain conclusions cover specific events that occur either after
 December&nbsp;15, 1998 or January&nbsp;12, 2000. We do not
expect the adoption of this guidance on July&nbsp;1, 2000 will
have a material impact on our financial position or results of
operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;2000, the Emerging Issues Task Force reached a
consensus on Issue No.&nbsp;00-14, &#147;Accounting for Certain
Sales Incentives,&#148; which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No.&nbsp;00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Reclassifications.</I></B> Certain prior period amounts
have been reclassified to conform to our current year
presentation.

<P align="center">F-41

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>Note&nbsp;2.&nbsp;&nbsp;Significant Transactions and
Developments.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Increase in Ownership Interest in NEXNET.</I></B> In
March&nbsp;2000, as a consequence of capital contributions made
to our Japanese affiliate, NEXNET Co., Ltd., by some of its
stockholders to supply funds that a stockholder was required but
declined to contribute, the stockholder transferred a portion of
its shares to the contributing stockholders, including us. On
March&nbsp;30, 2000, we purchased additional shares for about
$0.4&nbsp;million in cash and were granted an option, exercisable
 at any time prior to March&nbsp;31, 2001, to purchase any or all
 of the remaining shares of NEXNET stock owned by the same
stockholder. As a result of these share acquisitions, our equity
ownership interest in NEXNET has increased from about 21% to
about 32%. If we exercise the option, our equity ownership
interest would increase to about 44%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Purchase of Common Equity Shares in Companies in Brazil,
Peru and Chile.</I></B> In May&nbsp;2000, we purchased another
stockholder&#146;s interest in Nextel del Peru, S.A., referred to
 as Nextel Peru, for about $2.8&nbsp;million in cash and
increased our ownership from about 63% to about 69%.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Also in May&nbsp;2000, we purchased all of the equity interests
of Motorola International Development Corporation, referred to as
 Motorola International, in Nextel Peru, which increased our
ownership from about 69% to 100%. At the same time, we purchased
all of Motorola International&#146;s equity interests in our
Brazilian operations, which increased our effective ownership in
our Brazilian operations from about 88% to about 92%. In
August&nbsp;2000, we purchased the remaining 8% from the
remaining minority stockholders, as described in Note&nbsp;4,
increasing our ownership interest in McCaw International
(Brazil), Ltd., referred to as McCaw Brazil, to 100%. In
May&nbsp;2000, we also purchased all of Motorola
International&#146;s equity interests in three Chilean analog
specialized mobile radio, referred to as SMR, companies, which
were wholly owned by Motorola International. We have entered into
 an agreement with Motorola International to manage these three
Chilean SMR companies during a transition period. The aggregate
purchase price paid to Motorola International for these
acquisitions in Brazil, Peru and Chile was about
$77.7&nbsp;million in cash.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Shanghai, People&#146;s Republic of China Negotiations.</I>
</B> As a result of recent changes to the regulatory environment
in China, Shanghai CCT-McCaw Telecommunications Systems Co.,
Ltd., a joint venture in which we own a 30% interest, referred to
 as Shanghai CCT McCaw, terminated an agreement with China United
 Telecommunications Corporation, referred to as Unicom, under
which we had the right to share in the profits of the cellular
network in Shanghai, referred to as the Shanghai GSM System. In
consideration for entering into this termination agreement,
Shanghai CCT McCaw received about $61.3&nbsp;million in cash, and
 we received warrants to purchase shares of Unicom stock. The
warrants are exercisable for about 8.2&nbsp;million shares during
 the period commencing in December&nbsp;2000 and ending in
June&nbsp;2001 at the initial public offering price of HK$15.58
or US$2.00&nbsp;per share. In May&nbsp;2000, we received a
reimbursement of $7.5&nbsp;million for advances we previously
made to Shanghai CCT McCaw. We are currently working with the
other stockholders of the joint venture to arrange for the
reimbursement of expenses incurred by the stockholders related to
 their investment in Shanghai CCT McCaw and the sale of our
interests in the joint venture. Any funds remaining after payment
 of these expenses and satisfaction of other existing obligations
 will be distributed among the stockholders of Shanghai CCT
McCaw. We would be entitled to receive 30% of the total amount
distributed based on our ownership interest. The carrying value
of our investment in Shanghai CCT McCaw was about
$7.3&nbsp;million as of June&nbsp;30, 2000, which we expect to
fully recover based on the terms of the agreement. This
investment is included in the prepaid expenses and other caption
in the accompanying balance sheet as of June&nbsp;30, 2000.

<P align="center">F-42

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Additional Capital.</I></B> On April&nbsp;4, 2000, we
received an advance of $77.7&nbsp;million from a wholly owned
subsidiary of Nextel Communications in connection with the
anticipated purchase of Motorola International&#146;s equity
interest in Nextel Telecomuni&#231;&#245;es Ltda., referred to as
 Nextel Brazil, Nextel Peru and three Chilean companies as
discussed above. On June&nbsp;2, 2000, we issued 777&nbsp;shares
of our series A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications as repayment of
this intercompany advance. Additionally, on April&nbsp;7, 2000,
we issued 1,500&nbsp;shares of our series A exchangeable
redeemable preferred stock to a wholly owned subsidiary of Nextel
 Communications in exchange for cash proceeds of
$150.0&nbsp;million. On June&nbsp;12, 2000, all of the shares of
series A exchangeable redeemable preferred stock outstanding at
that time, including the accretion to liquidation preference
value of $61.3&nbsp;million, were exchanged for our common stock.
 On June&nbsp;29, 2000, we issued 2,150&nbsp;shares of our series
 A exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications in exchange for cash proceeds
 of $215.0&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Stock Options and Split.</I></B> On June&nbsp;2, 2000, our
board of directors approved an increase in the number of
authorized shares of common stock from 73,000,000 to 200,000,000,
 enabling us to complete a 4-for-1 common stock split, which was
effective June&nbsp;20, 2000. Information presented throughout
these financial statements and related notes has been adjusted to
 reflect this 4-for-1 common stock split. At the same time, our
board of directors approved a new incentive equity plan that was
adopted by the plan administration committee on May&nbsp;25,
2000. The plan provides for awards of option rights, appreciation
 rights, restricted shares, deferred shares and performance
shares to our nonaffiliate directors, officers, including
officers who are members of our board of directors, and other key
 employees, consultants and advisors with respect to
20,000,000&nbsp;shares of common stock. Options to purchase
shares of common stock may be at prices equal to or greater than
market value on the date of grant. If an option holder&#146;s
employment is involuntarily terminated within one year after the
effective date of a change of control of Nextel International,
Inc., then that holder&#146;s unvested options and other equity
awards will immediately vest or otherwise become payable, subject
 to some limitations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;25, 2000, we granted options to purchase
6,968,500&nbsp;shares of common stock to employees and advisors
at an exercise price of $17.75 per common share. The options
granted expire ten years subsequent to award. Each grant becomes
exercisable with respect to 50% of the shares of common stock
covered by the grant on the second anniversary of the date of
grant and with respect to 25% of the shares of common stock
covered by the grant on each of the third and fourth
anniversaries of the date of grant for so long as the optionee
remains in our continuous employ. However, in the event of an
initial public offering or change of control, as defined in the
plan, prior to the first anniversary of the date of grant, 25% of
 the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of common stock
covered by the grant become exercisable on each of the second,
third, and fourth anniversaries of the date of grant for so long
as the optionee remains in our continuous employ.

<P align="center">F-43

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>Note&nbsp;3.&nbsp;&nbsp;Long-Term Debt.</B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="68%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>June&nbsp;30,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>13.0% Senior Redeemable Discount Notes due 2007</B>, net of
	unamortized discount of $205,593 and $252,323</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">745,870</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">699,140</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>12.125% Senior Serial Redeemable Discount Notes due 2008</B>,
	net of unamortized discount of $204,130 and $234,280</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">525,870</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">495,720</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>International Motorola Financing Facility</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172,600</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">139,146</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>International Motorola Incremental Facility</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,650</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Brazil Motorola Financing Facility</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">112,500</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">103,757</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Argentina Credit Facility</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Motorola Argentina Incremental Facility</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,580</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,330</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>Other</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,662</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,403</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,733,732</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,548,496</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Less current portion</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(67,098</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(33,739</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,666,634</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,514,757</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>International Motorola Incremental Facility.</I></B> On
December&nbsp;16, 1999, we entered into an agreement with
Motorola Credit Corporation under which Motorola Credit committed
 to provide up to $56.6&nbsp;million in incremental term loans to
 us to acquire infrastructure equipment and related services from
 Motorola. Loans under this facility mature December&nbsp;31,
2001 and bear interest payable semi annually at variable rates
based upon either the U.S.&nbsp;prime rate or the London
Interbank Offered Rate, referred to as LIBOR. Loans under this
facility are secured by a pledge of all of our shares of stock of
 Clearnet Communications, Inc, a publicly traded Canadian
wireless communications company. On January&nbsp;6, 2000, we
borrowed the full $56.6&nbsp;million available under this
facility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Credit Facility Amendments.</I></B> In December 1999,
Nextel Argentina&nbsp;S.R.L., referred to as Nextel Argentina,
and the lenders under the $100.0&nbsp;million secured credit
facility, referred to as the Argentina Credit Facility, amended
the facility to modify several financial covenants applicable to
the fourth quarter of 1999 and the first quarter of 2000. As
contemplated in December 1999, on June&nbsp;20, 2000, in
conformity with our 2000 operating plan, Nextel Argentina and the
 lenders under the Argentina Credit Facility amended the facility
 to modify several financial covenants. As a condition to the
effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of
$84.1&nbsp;million to Nextel Argentina during 1999 and are now
required to contribute equity of $134.5&nbsp;million during 2000,
 $110.0&nbsp;million during 2001 and $117.0&nbsp;million during
2002, all subject to adjustment in case of certain events. As of
June&nbsp;30, 2000, Nextel Argentina had borrowed the entire
$100.0&nbsp;million available under the Argentina Credit
Facility. Nextel Argentina is in compliance with all financial
covenants contained in the facility, as amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Also in the second quarter of 2000, we amended and restated the
$125.0&nbsp;million equipment financing agreement between McCaw
Brazil (International), Ltd., referred to as McCaw Brazil, and
Motorola Credit Corporation to effect certain administrative
changes.

<P align="left"><B>Note&nbsp;4.&nbsp;&nbsp;Contingencies.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>McCaw Brazil Ownership.</I></B> We entered into a purchase,
 release and settlement agreement dated as of July&nbsp;21, 2000
with the Founders Group, who collectively were the minority

<P align="center">F-44

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
stockholders in McCaw Brazil, which indirectly owns 100% of
Nextel Brazil. Under that agreement, on August&nbsp;4, 2000, we
(1)&nbsp;made a cash payment to members of the Founders Group
totaling $146.0&nbsp;million, (2)&nbsp;received all of the equity
 interests held by the Founders Group in McCaw Brazil and
(3)&nbsp;exchanged mutual releases with all of the members of the
 Founders Group. In addition, all pending court disputes between
us and Telcom Ventures, a member of the Founders Group, have been
 permanently dismissed. For a description of these disputes, see
Notes&nbsp;2 and 9 in our 1999 Annual Report on Form&nbsp;10-K.
As a result, all rights of the Founders Group as minority
stockholders in McCaw Brazil, including their rights to put their
 equity interests to us beginning in October&nbsp;2001, have
terminated. We will account for this additional investment in
McCaw Brazil using the purchase method.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See also Part&nbsp;II, Item&nbsp;1. &#147;Legal Proceedings&#148;
 for discussion of other legal matters.

<P align="left"><B>Note&nbsp;5.&nbsp;&nbsp;Segment Reporting.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate in four reportable segments 1)&nbsp;Brazil,
2)&nbsp;Mexico, 3)&nbsp;Argentina and 4)&nbsp;Peru. The
operations of all other businesses that fall below the reporting
thresholds are included in the &#147;Corporate and Other&#148;
segment below, which include the three Chilean analog SMR
companies purchased in May&nbsp;2000 and corporate entities which
 hold equity investments in the Philippines and Japan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our segments reflect our geographic focus and are defined as
separately reportable operating segments immediately after we
obtain a controlling interest in the entity. We evaluate
performance of these segments and allocate resources to them
based on losses before interest, taxes, depreciation and
amortization and other non-recurring charges, referred to as
segment losses. Intercompany eliminations have been included in
Corporate and Other.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="34%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Corporate</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Brazil</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Mexico</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Argentina</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Peru</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>and Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>For the Six Months Ended<BR>
	June&nbsp;30, 2000</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,115</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,940</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,347</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,243</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110,800</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,087</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(16,933</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,608</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,735</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,139</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(67,502</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(20,990</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(14,830</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(21,687</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,416</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,260</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(65,183</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,563</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,660</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(951</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(86,486</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(106,660</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">263</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">127</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">888</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">82</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,187</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,547</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains (losses), net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,986</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(110</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(19</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,922</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,783</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,504</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(684</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(30</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(637</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">197</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(752</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,906</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax provision</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(44,354</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(31,601</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(36,704</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,150</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(117,753</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(240,562</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">114,048</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">76,295</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38,293</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">23,121</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">927</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">252,684</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-45

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="34%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Corporate</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Brazil</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Mexico</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Argentina</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Peru</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>and Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>For the Six Months Ended<BR>
	June&nbsp;30, 1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,043</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,862</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,874</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41,760</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(39,439</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15,037</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(23,792</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,501</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,765</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(92,534</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(19,699</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,313</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,383</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,352</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(51,882</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,732</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(501</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,068</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(216</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(72,703</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(82,220</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,057</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">120</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">106</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,474</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,827</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,520</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,520</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction losses, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(42,848</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(269</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(415</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,329</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(45,864</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,888</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,411</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,299</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(166</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">795</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">120</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(494</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">325</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax provision</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(93,939</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27,205</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(42,056</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,680</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(97,689</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(267,569</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,797</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,436</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38,523</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,352</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,111</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92,219</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>For the Three Months Ended<BR>
	June&nbsp;30, 2000</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,278</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,759</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,111</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,322</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">63,625</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,758</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,416</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,689</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,888</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,704</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(33,455</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,660</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,589</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,185</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,427</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,821</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(32,682</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,050</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,900</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(564</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(42,431</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(53,945</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">222</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">61</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">860</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,024</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,199</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,171</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction losses, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,957</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(438</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(208</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,615</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,904</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">850</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,754</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(731</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(91</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(296</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(425</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,542</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax provision</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(29,030</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,473</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,210</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,204</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(58,540</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,457</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">62,822</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">48,336</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16,508</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,949</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">511</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">137,126</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">F-46

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)</B>
</DIV>

<P align="center">
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="34%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Corporate</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Brazil</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Mexico</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Argentina</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Peru</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>and Other</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="23"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="23"><FONT size="2"><B>(in thousands)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>For the Three Months Ended<BR>
	June&nbsp;30, 1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Operating revenues</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,491</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,021</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,864</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">523</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,899</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Segment losses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(18,245</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,599</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(13,575</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,367</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,758</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(46,544</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(11,015</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,366</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,961</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,538</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,588</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(28,468</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,053</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(182</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,079</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(216</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(37,996</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(43,526</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">638</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">509</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,289</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Equity in losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,869</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,869</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Foreign currency transaction gains (losses), net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,767</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">572</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">185</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(688</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,833</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Minority interest in losses of subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,258</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,258</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(176</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">122</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(160</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(327</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(539</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Loss before income tax provision</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(10,084</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12,395</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(23,743</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,627</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(52,717</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(102,566</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,646</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,133</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,763</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,849</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,201</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">43,592</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>As of June&nbsp;30, 2000</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">323,663</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">199,343</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">149,983</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">73,803</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,437</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">755,229</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Identifiable assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">564,080</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">495,722</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">278,237</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">123,553</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">662,418</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,124,010</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	<B>As of December&nbsp;31, 1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Property, plant and equipment, net</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">216,385</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">131,320</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">130,428</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">54,956</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,366</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">539,455</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Identifiable assets</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">419,460</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">410,510</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">248,959</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80,444</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">522,419</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,681,792</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>Note&nbsp;6.&nbsp;Subsequent Events.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Debt Issuance.</I></B> On August&nbsp;1, 2000, we completed
 the issuance and sale in a private placement of an aggregate of
$650.0&nbsp;million in principal amount of our 12.75% senior
serial notes due 2010, generating about $623.8&nbsp;million in
net cash proceeds.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Nextel Philippines.</I></B> On July&nbsp;28, 2000, we
increased our direct and indirect ownership interests in Nextel
Communications Philippines, Inc., referred to as Nextel
Philippines, from about 38% to about 51% through the purchase of
some of the minority owners&#146; equity interests in Nextel
Philippines for about $9.8&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Purchase Commitment.</I></B> On August 14, 2000, we and
some of our Operating Companies entered into equipment purchase
agreements with Motorola, Inc. under which Motorola will provide
us with infrastructure equipment and services. We and Motorola
have also agreed to warranty and maintenance programs and
specified indemnity arrangements. In addition, under some
circumstances, we have agreed to purchase at least 50% of our
infrastructure equipment from Motorola. These agreements also
contain minimum purchase commitments that if not met subject us
to penalties based on a percentage of the commitment shortfall.

<P align="center">F-47
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC.</B>

<DIV align="center">
<B>(Parent Only)</B>
</DIV>

<P align="center">
<B>SCHEDULE I&nbsp;&#151; CONDENSED FINANCIAL INFORMATION OF
REGISTRANT</B>

<P align="center">
<B>CONDENSED BALANCE SHEETS</B>

<DIV align="center">
<B>As of December&nbsp;31, 1999 and 1998</B>
</DIV>

<DIV align="center">
<B>(in thousands, except per share amounts)</B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="62%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="6%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="12" align="center" valign="top"><FONT size="2">
	<B>ASSETS</B></FONT></TD>
</TR>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Current assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Cash and cash equivalents</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,952</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,698</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accounts receivable, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Prepaid expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">352</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total current assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">22,319</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,767</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Property, plant, and equipment, net</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,782</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">161</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Investments in and advances to subsidiaries</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">884,582</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,011,148</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Intangible assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,306</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,469</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Investment and other assets</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">317,932</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">96,900</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,229,921</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,162,445</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="12" align="center" valign="top"><FONT size="2">
	<B>LIABILITIES AND STOCKHOLDERS&#146; (DEFICIT) EQUITY</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Current liabilities</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accounts payable</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,625</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,042</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accrued expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">590</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">882</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Due to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,847</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Total current liabilities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,062</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,924</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Deferred income taxes</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">64,444</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Long-term debt</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,334,005</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,063,623</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	<B>Stockholders&#146; (deficit) equity</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Series&nbsp;A exchangeable redeemable preferred stock, accreted
	liquidation preference of $337,737 and $110,456 (12,500 shares
	authorized, $10.00 par value, 2,988.86 and 988.86 shares issued
	and outstanding)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">298,886</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98,886</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Common stock (200,000,000 shares authorized, no par 146,893,236
	and 146,094,716 shares issued and outstanding)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">399,401</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">396,574</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accumulated deficit</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(859,970</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(339,824</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Accumulated other comprehensive loss:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Unrealized gain (loss)&nbsp;on investment, net of tax</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119,682</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(35,688</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Cumulative translation adjustment</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(137,589</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(24,050</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Accumulated other comprehensive loss</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,907</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(59,738</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Total stockholders&#146; (deficit)equity</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(179,590</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95,898</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,229,921</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,162,445</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="4"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center">F-48

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center">
<B>(Parent Only)</B>
</DIV>

<P align="center">
<B>SCHEDULE I&nbsp;&#151; CONDENSED FINANCIAL INFORMATION OF
REGISTRANT&nbsp;&#151;&nbsp;(Continued)</B>

<P align="center">
<B>CONDENSED STATEMENTS OF OPERATIONS</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<DIV align="center">
<B>(dollars in thousands)</B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="61%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating revenues</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating expenses</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Selling, general and administrative</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,377</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,029</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,175</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,173</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">555</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,550</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,584</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,347</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Operating loss</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(20,550</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7,584</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(5,344</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Other income (expense):</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest expense</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(153,595</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(117,291</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(56,241</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interest income</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,408</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,065</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,303</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Equity in net losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(346,368</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(129,627</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(27,720</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Other, net</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,034</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,302</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(15</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(499,589</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(229,551</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(66,673</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Loss before income tax provision</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,139</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(72,017</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Income tax provision</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(7</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,931</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Net loss</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center">F-49

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center">
<B>(Parent Only)</B>
</DIV>

<P align="center">
<B>SCHEDULE I&nbsp;&#151; CONDENSED FINANCIAL INFORMATION OF
REGISTRANT&nbsp;&#151;&nbsp;(Continued)</B>

<P align="center">
<B>CONDENSED STATEMENTS OF CASH FLOWS</B>

<DIV align="center">
<B>For the Years Ended December&nbsp;31, 1999, 1998 and 1997</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="52%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from operating activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Net loss</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(520,146</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(237,135</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(73,948</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Adjustments to reconcile net loss to net cash provided by
	(used&nbsp;in) operating activities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Depreciation and amortization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,173</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">555</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Interest accretion on long-term debt, net of capitalization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">139,811</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,069</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">56,241</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Equity in net losses of unconsolidated affiliates</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">346,368</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">131,111</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,720</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="left" valign="top"><FONT size="2">
	Change in current assets and liabilities:</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts receivable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">41</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(12</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">339</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Prepaid expenses and other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(50</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">38</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Investment and other assets</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6,618</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(9,004</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,221</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Accounts payable</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">34,592</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(235</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,477</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,048</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,983</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash provided by (used in) operating activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,219</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(17,637</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,018</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from investing activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Capital expenditures</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(4,231</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(78</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(152</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Purchase of marketable securities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(93,997</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(227,957</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Proceeds from sale of marketable securities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">221,225</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,729</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Investments in and advances to subsidiaries</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(321,053</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(567,482</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(246,230</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Other</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(624</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash used in investing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(325,284</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(440,332</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(374,234</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash flows from financing activities:</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Repayments to parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(25,624</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(23,556</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Capital contributions from parent</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,366</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Proceeds from the issuance of preferred stock and warrants</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,800</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Proceeds from the issuance of long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">124,521</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">409,455</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">467,578</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Repayment of long-term debt</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(8,575</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD colspan="4" align="left" valign="top"><FONT size="2">
	Proceeds from exercise of stock options</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,997</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">237</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Net cash provided by financing activities</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">292,319</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">409,692</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">465,188</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>(Decrease) Increase in cash and cash equivalents</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(30,746</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(48,277</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,972</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, beginning of year</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,698</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,975</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="5" align="left" valign="top"><FONT size="2">
	<B>Cash and cash equivalents, end of year</B></FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,952</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">52,698</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100,975</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="5"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center">F-50

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>NEXTEL INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center">
<B>(Parent Only)</B>
</DIV>

<P align="center">
<B>SCHEDULE I&nbsp;&#151; CONDENSED FINANCIAL INFORMATION OF
REGISTRANT&nbsp;&#151;&nbsp;(Continued)</B>

<P align="center">
 <B>NOTES TO CONDENSED FINANCIAL STATEMENTS</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>1.&nbsp;</TD>
	<TD align="left">
	For accounting policies and other information, see the Notes to
	the Consolidated Financial Statements of Nextel International,
	Inc. and Subsidiaries included elsewhere herein.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>2.&nbsp;</TD>
	<TD align="left">
	The parent company accounts for its investments in subsidiaries
	by the equity method of accounting.</TD>
</TR>

</TABLE>

<P align="center">F-51

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES</B>

<DIV align="center">
<B>(A Substantially Wholly Owned Subsidiary of Nextel
Communications Inc.)</B>
</DIV>

<P align="center"><B>SCHEDULE II&nbsp;&#151;&nbsp;VALUATION AND QUALIFYING ACCOUNTS
</B>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="38%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="4%">&nbsp;</TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Balance,</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Allowance of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Charged to</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Balance at</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>beginning of</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>acquired</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>costs and</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>End</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>period</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>companies(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>expenses</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Deductions</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>of Period</B></FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Year Ended December&nbsp;31, 1999</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Allowance for Doubtful Accounts</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,391</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33,219</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(30,795</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,815</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Reserve for inventory obsolescence</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,593</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,732</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(1,957</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,368</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Year Ended December&nbsp;31, 1998</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Allowance for Doubtful Accounts</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,003</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">604</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,127</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,343</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,391</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Reserve for inventory obsolescence</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,334</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,475</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,232</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,593</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD colspan="2" align="left" valign="top"><FONT size="2">
	<B>Year Ended December&nbsp;31, 1997</B></FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Allowance for Doubtful Accounts</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,241</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,131</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(3,369</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,003</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

<TR>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Reserve for inventory obsolescence</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">449</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">885</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;&nbsp;</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,334</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Represents allowance of majority-owned subsidiaries acquired
	during the years ended December&nbsp;31, 1998 and 1997.</TD>
</TR>

</TABLE>

<P align="center">F-52

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>Art Work</B>

<P align="center">
<B>[People talking on subscriber units]</B>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">SUMMARY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">DIVIDEND POLICY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">CAPITALIZATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">DILUTION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">SELECTED CONSOLIDATED HISTORICAL FINANCIAL INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">BUSINESS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">INDUSTRY OVERVIEW</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">MANAGEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">PRINCIPAL STOCKHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">DESCRIPTION OF OUR INDEBTEDNESS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">DESCRIPTION OF CAPITAL STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">SHARES ELIGIBLE FOR FUTURE SALE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">PRINCIPAL UNITED STATES FEDERAL TAX CONSEQUENCES TO NON-U.S. HOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">UNDERWRITING</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">VALIDITY OF COMMON STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#019">EXPERTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#020">WHERE YOU CAN FIND MORE INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#021">INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">CONDENSED CONSOLIDATED BALANCE SHEETS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#023">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#024">CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS&#146; DEFICIT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#026">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="ex4-3.txt">EX-4.3 REGISTRATION RIGHTS AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="ex10-26.txt">EX-10.26 EMPLOYMENT AGREEMENT - JOSE FELIPE</A></TD></TR>
<TR><TD colspan="9"><A HREF="ex21-1.txt">EX-21.1 SUBSIDIARIES OF NEXTEL INTERNATIONAL, INC.</A></TD></TR>
<TR><TD colspan="9"><A HREF="ex23-2.txt">EX-23.2 CONSENT OF DELOITTE & TOUCHE LLP</A></TD></TR>
<TR><TD colspan="9"><A HREF="ex24-1.txt">EX-24.1 POWER OF ATTORNEY</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No dealer, salesperson or other person is authorized to give any
information or to represent anything not contained in this
prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the
shares offered hereby, but only under circumstances and in
jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date.

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
TABLE OF CONTENTS

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="90%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="2%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">Page</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Summary</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Risk Factors</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Use of Proceeds</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Dividend Policy</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Capitalization</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Dilution</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Selected Consolidated Historical Financial Data</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Management&#146;s Discussion and Analysis of Financial Condition
	and Results of Operations</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Business</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Industry Overview</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">80</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Management</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Principal Stockholders</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">94</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Certain Relationships and Related Transactions</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Description of Our Indebtedness</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">98</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Description of Capital Stock</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">105</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Shares Eligible for Future Sale</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">110</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Principal United States Federal Tax Consequences to Non-U.S.
	Holders</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">112</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Underwriting</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">116</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Validity of Common Stock</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">118</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Experts</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">118</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Where You Can Find More Information</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">119</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Index to Consolidated Financial Statements</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">F-1</FONT></TD>
	<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through and including
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
 2000 (the 25th day after the date of this prospectus), all
dealers effecting transactions in these securities in the United
States, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to a
dealer&#146;s obligation to deliver a prospectus when acting as
an underwriter and with respect to an unsold allotment or
subscription.

<DIV align="center">
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</DIV>

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<HR size="1" width="100%" align="center">
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>

<DIV align="center">
<FONT size="4">Shares</FONT>
</DIV>

<DIV align="center">
<B><FONT size="4">Nextel International, Inc.</FONT></B>
</DIV>

<DIV align="center">
<FONT size="4">Class A Common Stock</FONT>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center">

<P align="center">
<FONT size="4">[LOGO]</FONT>

<DIV align="center">
<HR size="1" width="30%" align="center">
</DIV>

<P align="center">
<B><FONT size="4">Goldman, Sachs &#38; Co.</FONT></B>

<DIV align="center">
<B><FONT size="4">Morgan Stanley Dean Witter</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">Credit Suisse First Boston</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">Deutsche Banc Alex. Brown</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">Merrill Lynch &#38; Co.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">PaineWebber Incorporated</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">Representatives of the Underwriters</FONT>
</DIV>

<P align="center">
<HR size="1" width="100%" align="center">

<DIV align="center">
<HR size="1" width="100%" align="center">
</DIV>

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>PART II</B>

<P align="center">
<B>Information Not Required In Prospectus</B>

<P align="left"><B>Item&nbsp;13. <I>Other Expenses of Issuance and Distribution
</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fees and expenses in connection with the issuance and
distribution of the class A common stock to be registered are as
follows:

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="86%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="5%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Item</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Securities and Exchange Commission registration fee</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">242,880</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	NASD fee</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,500</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Blue sky fees and expenses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Printing expenses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Legal fees and expenses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Accounting fees and expenses</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Transfer agent fees</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="1"></TD>
	<TD></TD>

</TR>

<TR>
	<TD align="left" valign="top"><FONT size="2">
	Miscellaneous</FONT></TD>
	<TD></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="2%"></TD>
	<TD width="98%"></TD>
</TR>

<TR valign="top">
	<TD>*&nbsp;</TD>
	<TD align="left">
	To be supplied by amendment.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing items, except the Securities and Exchange
Commission registration fee and NASD fee, are estimated. These
fees will be paid by the registrant.

<P align="left"><B>Item&nbsp;14. <I>Indemnification of Directors and Officers</I>
</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Article&nbsp;TENTH of the registrant&#146;s Restated Articles of
Incorporation, as amended (the &#147;Articles of
Incorporation&#148;), provides that no director of the registrant
 will have liability to the registrant or its shareholders for
monetary damages for conduct as a director, except for acts or
omissions that involve intentional misconduct or for conduct
violating Revised Code of Washington 23B.08.310 or for any
transaction from which the director will personally receive a
benefit in money, property, or services to which the director is
not legally entitled. If the Washington Business Corporation Act
is hereinafter amended to authorize corporate action further
eliminating or limiting the personal liability of directors, then
 the liability of a director will be eliminated or limited to the
 full extent permitted by the Washington Business Corporation
Act, as so amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;Eight of the registrant&#146;s Bylaws (the
&#147;Bylaws&#148;) provides that a director or officer of the
registrant shall be indemnified by the registrant against all
expense, liability and loss (including attorney&#146;s fees,
judgments, fines, ERISA excise taxes or penalties and amounts to
be paid in settlement) actually and reasonably incurred in
connection with any threatened, pending or completed action, suit
 or proceeding, whether civil, criminal, administrative or
investigative and whether formal or informal, brought against him
 or her or otherwise involving him or her (including as a
witness) by virtue of his or her position as a director or
officer of the registrant. Notwithstanding the foregoing, the
registrant shall indemnify an officer or director in connection
with a proceeding initiated by such director or officer only if
such proceeding was authorized or ratified by the board of
directors of the registrant. The right to indemnification
includes the right to be paid expenses incurred in defending any
proceeding in advance of its final disposition, provided that
such director or officer undertakes to repay all amounts advanced
 if it is ultimately determined by final judicial decision that
he or she is not entitled to indemnification under
Section&nbsp;Eight of the Bylaws.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the registrant fails to make an indemnification payment within
 60&nbsp;days (20&nbsp;days in the case of a claim for expenses
incurred in defending any proceeding in advance of its final
disposition) after receipt of a written claim for such payment,
the director or officer may bring suit against the

<P align="center">II-1

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<DIV align="left">
registrant to recover the unpaid amount of the claim, and to the
extent successful, may also recover the expense of prosecuting
such claim. A director or officer will be presumed to be entitled
 to indemnification upon submission of a written claim, and the
registrant will have the burden of proof to overcome such
presumption.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;Eight of the Bylaws further provides that the
indemnification therein is not exclusive of any other right such
officer or director may have or thereafter acquire under any
statute, provision in the Articles of Incorporation of the
registrant or the registrant&#146;s parent or the Bylaws of the
registrant or the registrant&#146;s parent.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chapter&nbsp;23B.08.510 of the Washington Business Corporation
Act provides that a corporation has the power to indemnify a
director of the corporation against reasonable expenses incurred
in connection with a proceeding to which he or she is made a
party by reason of such position, if such person shall have acted
 in good faith and reasonably believed, in the case of conduct in
 the director&#146;s official capacity, that such conduct was in
the best interests of the corporation, and in all other cases,
that such person&#146;s conduct was at least not opposed to the
best interests of the corporation, and, in any criminal
proceeding, that such person had no reasonable cause to believe
his conduct was unlawful; provided that, in the case of actions
brought by or in the right of the corporation, no indemnification
 shall be made with respect to any matter as to which such person
 shall have been adjudged to be liable to the corporation or in
connection with any proceeding charging improper personal benefit
 to the director, whether or not involving action in the
director&#146;s official capacity, in which the director was
adjudged liable on the basis of an improper personal benefit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chapter&nbsp;23B.08.570 of the Washington Business Corporation
Act provides that the corporation may indemnify an officer,
employee or agent of the corporation for expenses to the same
extent as a director.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in the prospectus included in this registration, we
intend to reincorporate in the State of Delaware prior to the
completion of the offerings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;102 of the Delaware General Corporation Law,
referred to as the DGCL, allows a corporation to eliminate the
personal liability of directors of a corporation to the
corporation or its stockholders for monetary damages for a breach
 of fiduciary duty as a director, except where the director
breached his duty of loyalty, failed to act in good faith,
engaged in intentional misconduct or knowingly violated a law,
authorized the payment of a dividend or approved a stock
repurchase in violation of the DGCL or obtained an improper
personal benefit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;145 of the DGCL provides, among other things, that a
 company may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or
completed action, suit or proceeding (other than an action by or
in the right of the company) by reason of the fact that the
person is or was a director, officer, agent or employee of the
company or is or was serving at the company&#146;s request as a
director, officer, agent, or employee of another corporation,
partnership, joint venture, trust or other enterprise, against
expenses, including attorneys&#146; fees, judgments, fines and
amounts paid in settlement actually and reasonably incurred by
the person in connection with such action, suit or proceeding.
The power to indemnify applies (a)&nbsp;if such person is
successful on the merits or otherwise in defense of any action,
suit or proceeding, or (b)&nbsp;if such person acted in good
faith and in a manner he or she reasonably believed to be in the
best interest, or not opposed to the best interest, of the
company, and with respect to any criminal action or proceeding,
had no reasonable cause to believe his or her conduct was
unlawful. The power to indemnify applies to actions brought by or
 in the right of the company as well, but only to the extent of
defense expenses (including attorneys&#146; fees but excluding
amounts paid in settlement) actually and reasonably incurred and
not to any satisfaction of judgment or settlement of the claim
itself, and with the further limitation that in such actions no
indemnification shall be made in the event of any adjudication of

<P align="center">II-2

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<DIV align="left">
negligence or misconduct in the performance of his or her duties
to the company, unless the court believes that in the light of
all the circumstances indemnification should apply.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;174 of the DGCL provides, among other things, that a
 director, who willfully or negligently approves of an unlawful
payment of dividends or an unlawful stock purchase or redemption,
 may be held liable for such actions. A director who was either
absent when the unlawful actions were approved or dissented at
the time may avoid liability by causing his or her dissent to
such actions to be entered in the books containing the minutes of
 the meetings of the board of directors at the time such action
occurred or immediately after such absent director receives
notice of the unlawful acts.

<P align="left"><B>Item&nbsp;15. <I>Recent Sales of Unregistered Securities</I>
</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We sold securities that were not registered under the Securities
Act of 1933 in the following transactions since August&nbsp;1,
1997:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;12, 1998, we completed the issuance and sale in a
private placement of $730 million in principal amount of our
12.125% senior discount notes due 2008 for net cash proceeds of
about $387 million. Morgan Stanley Dean Witter, Chase Securities
Inc. and Goldman, Sachs &#38; Co. acted as principal placement
agents and received about $23&nbsp;million in fees in connection
with the sale of these notes. On August&nbsp;1, 2000, we
completed the issuance and sale in a private placement of $650
million in principal amount of our 12.75% senior serial notes due
 2010. Morgan Stanley Dean Witter, Banc of America Securities
LLC, Barclays Capital, Chase Securities Inc., Credit Suisse First
 Boston, Deutsche Banc Alex. Brown and Goldman, Sachs &#38; Co.
acted as principal placement agents and received about
$16&nbsp;million in fees in connection with the sale of these
notes. These transactions were effected pursuant to the exemption
 of Section&nbsp;4(2) of the Securities Act and Rule 144A and
Regulation S under that act, in reliance upon the representations
 of the placement agents in each of the offerings described
above.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Between March&nbsp;12, 1998 and June&nbsp;2, 2000, we issued
5,265.71 shares of our series&nbsp;A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications for aggregate cash proceeds of $427,685,000,
6,777,778 shares of class&nbsp;D stock of Clearnet and
reimbursement of $8,254,000 of costs incurred by Nextel
Communications under our overhead services agreement. On
June&nbsp;12, 2000, this subsidiary exchanged all of these shares
 of series&nbsp;A exchangeable redeemable preferred stock for
shares of our common stock. On June&nbsp;29, 2000, we issued
2,150 additional shares of our series&nbsp;A exchangeable
redeemable preferred stock to this subsidiary for aggregate cash
proceeds of $215,000,000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;13, 2000, we issued 12&nbsp;shares of our common
stock to PNC Bank and 384 shares of our common stock to
Silkcap&nbsp;&#38; Co. pursuant to their respective exercises of
warrants issued in connection with the issuance of the March 1997
 Notes for aggregate proceeds of $2,598.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All of these issuances of our series&nbsp;A exchangeable
redeemable preferred stock and our common stock were made in
transactions not involving a public offering pursuant to the
exemption offered by Section&nbsp;4(2) of the Securities Act.

<P align="left"><B>Item&nbsp;16. <I>Exhibits and Financial Statement Schedules
</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp; Exhibits

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="8%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="81%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**1.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Underwriting Agreement.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Restated Certificate of Incorporation of Nextel International,
	Inc. (filed as Exhibit&nbsp;3.2 to the Quarterly Report on
	Form&nbsp;10-Q filed on August&nbsp;14, 2000 for the quarter
	ended June&nbsp;30, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">II-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="82%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Restated By-laws of Nextel International, Inc. (filed as
	Exhibit&nbsp;3.2 to Nextel International&#146;s Annual Report on
	Form&nbsp;10-K filed on March&nbsp;31, 1999 for the fiscal year
	ended December&nbsp;31, 1998 and incorporated herein by
	reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">4.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Indenture, dated as of March&nbsp;3, 1997, by and between McCaw
	International, Ltd. and The Bank of New York (including form of
	note) (filed as Exhibit&nbsp;4.1 to the Registration Statement on
	 Form&nbsp;S-4 (file no. 333-26649), as amended, filed on
	May&nbsp;7, 1997 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Warrant Agreement, dated as of March&nbsp;6, 1997, by and between
	 Nextel International, Inc., and The Bank of New York (filed on
	July&nbsp;18, 1997 as Exhibit&nbsp;4.4 to the Registration
	Statement on Form&nbsp;S-4 (file no. 333-26649), as amended,
	originally filed on May&nbsp;7, 1997 and incorporated herein by
	reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*4.3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Warrant Registration Rights Agreement, dated as of March&nbsp;3,
	1997, by and between Nextel International, Inc. and The Bank of
	New York.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Indenture, dated as of March&nbsp;12, 1998, by and between Nextel
	 International, Inc. and The Bank of New York (including form of
	note) (filed as Exhibit&nbsp;4.1 to the Quarterly Report on
	Form&nbsp;10-Q filed on May&nbsp;14, 1998 for the quarter ended
	March&nbsp;31, 1998 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">4.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Indenture, dated as of August&nbsp;1, 2000, by and between Nextel
	 International, Inc. and The Bank of New York (including form of
	note) (filed as Exhibit&nbsp;4.1 to the Current Report on
	Form&nbsp;8-K filed on August&nbsp;2, 2000 and incorporated
	herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">4.6</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Registration Rights Agreement, dated as of August&nbsp;1, 2000,
	by and among Nextel International Inc. and the Placement Agents
	named therein (filed as Exhibit&nbsp;4.2 to the Current Report on
	 Form&nbsp;8-K filed on August&nbsp;2, 2000 and incorporated
	herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**5.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Jones, Day, Reavis &#38; Pogue opinion regarding
	validity.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**8.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Jones, Day, Reavis &#38; Pogue opinion regarding certain
	tax matters.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Tax Sharing Agreement, dated January&nbsp;1, 1997, by and between
	 Nextel Communications, Inc. and its subsidiaries named therein
	(filed on July&nbsp;18, 1997 as Exhibit 10.18 to the Registration
	 Statement on Form&nbsp;S-4 (file no.&nbsp; 333-26649), as
	amended, originally filed on May&nbsp;7, 1997 and incorporated
	herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Overhead Services Agreement, dated March&nbsp;3, 1997, by and
	between Nextel Communications, Inc. and Nextel International,
	Inc. (filed on July&nbsp;18, 1997 as Exhibit 10.19 to the
	Registration Statement on Form&nbsp;S-4 (file no. 333-26649), as
	amended, originally filed on May&nbsp;7, 1997 and incorporated
	herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Indemnification Agreement, dated March&nbsp;6, 1997, by and
	between Nextel Communications, Inc. and Nextel International,
	Inc. (filed on July&nbsp;18, 1997 as Exhibit 10.21 to the
	Registration Statement on Form&nbsp;S-4 (file no. 333-26649), as
	amended, originally filed on May&nbsp;7, 1997 and incorporated
	herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.4</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Second Amended and Restated Right of First Opportunity Agreement,
	 dated August&nbsp;1, 2000, by and between Nextel Communications,
	 Inc. and Nextel International, Inc. (filed as Exhibit 10.4 to
	the Quarterly Report on Form 10-Q filed on August&nbsp;14, 2000
	for the quarter ended June&nbsp;30, 2000 and incorporated herein
	by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.5</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Master Equipment Financing Agreement, dated as of February&nbsp;
	4, 1999, by and among Nextel International, Inc., the Lenders
	named therein and Motorola Credit Corporation, as Administrative
	Agent and Collateral Agent (filed as Exhibit&nbsp; 99.1 to the
	Current Report on Form&nbsp;8-K filed on February&nbsp; 19, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.6</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Second Amendment to Master Equipment Financing Agreement, dated
	as of March&nbsp;22, 2000, by and between Nextel International,
	Inc., the Lenders named therein and Motorola Credit Corporation,
	as Administrative Agent and Collateral Agent (filed as
	Exhibit&nbsp;10.46 to the Annual Report on Form 10-K filed on
	March&nbsp;30, 2000 for the year ended December&nbsp; 31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">II-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="82%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.7</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Third Amendment to Master Equipment Financing Agreement, dated as
	 of July 26, 2000, by and between Nextel International, Inc. and
	Motorola Credit Corporation, as Administrative Agent and
	Collateral Agent (filed as Exhibit 10.1 to the Quarterly Report
	on Form&nbsp;10-Q filed on August&nbsp; 14, 2000 for the quarter
	ended June&nbsp;30, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.8</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Guaranty, effective as of July&nbsp;23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit&nbsp;10.38 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.9</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Guaranty, effective as of July&nbsp;23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit&nbsp;10.41 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.10</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Guaranty, effective as of July&nbsp;23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit&nbsp;10.42 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.11</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Secured Loan Agreement, dated December&nbsp;16, 1999, by and
	between Nextel International, Inc., the Lenders named therein and
	 Motorola Credit Corporation, as Collateral Agent (filed as
	Exhibit 10.2 to the Quarterly Report on Form&nbsp;10-Q filed on
	August&nbsp;14, 2000 for the quarter ended June 30, 2000 and
	incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.12</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;1 to Secured Loan Agreement, dated
	July&nbsp;26, 2000, by and between Nextel International, Inc. the
	 Lenders named therein and Motorola Credit Corporation, as
	Collateral Agent (filed as Exhibit 10.3 to the Quarterly Report
	on Form&nbsp;10-Q filed on August&nbsp;14, 2000 for the quarter
	ended June&nbsp;30, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.13</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amended and Restated Equipment Financing Agreement, dated as of
	April&nbsp;28, 2000, by and between McCaw International (Brazil),
	 Ltd. and Motorola Credit Corporation (filed as Exhibit 10.6 to
	the Quarterly Report in Form 10-Q filed on August&nbsp;14, 2000
	for the quarter ended June&nbsp;30, 2000 and incorporated herein
	by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.14</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Credit Agreement, dated as of February&nbsp;27, 1998, by and
	among Nextel Argentina S.R.L., the Lenders named therein and The
	Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit&nbsp;10.1 to the Quarterly Report on Form&nbsp;10-Q filed
	 on May&nbsp;14, 1998 for the quarter ended March&nbsp;31, 1998
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.15</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;1 and Waiver, dated May&nbsp;8, 1998, by and
	among Nextel Argentina S.R.L., the Lenders named therein and The
	Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit&nbsp;10.19 to the Registration Statement on Form&nbsp;S-4
	 (file no. 333-55877), as amended, originally filed on June&nbsp;
	 3, 1998 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.16</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;2, dated September&nbsp;30, 1998, by and among
	 Nextel Argentina S.R.L., the Lenders named therein and The Chase
	 Manhattan Bank as Administrative Agent (filed as
	Exhibit&nbsp;10.1 to the Quarterly Report on Form&nbsp;10-Q filed
	 on November&nbsp;16, 1998 for the quarter ended
	September&nbsp;30, 1998 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.17</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;3, dated May&nbsp;12, 1999, by and among
	Nextel Argentina S.R.L., the Lenders named therein and The Chase
	Manhattan Bank as Administrative Agent (filed as Exhibit&nbsp;
	99.1 to the Current Report on Form&nbsp;8-K filed on
	June&nbsp;11, 1999 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.18</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;4, dated as of December&nbsp;8, 1999, by and
	among Nextel Argentina S.R.L., and the Lenders named therein and
	The Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit&nbsp;10.36 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">II-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="82%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.19</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;5, dated June&nbsp;20, 2000, by and among
	Nextel Argentina S.R.L., the Lenders named therein and The Chase
	Manhattan Bank as Administrative Agent (filed as Exhibit&nbsp;
	10.7 to the Quarterly Report on Form&nbsp;10-Q filed on
	August&nbsp; 14, 2000 for the quarter ended June&nbsp;30, 2000
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.20</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Stockholders Agreement, dated June&nbsp;21, 1996, between Infocom
	 Communications Network, Inc and the stockholders of Infocom
	Communications Network, Inc. (filed on July&nbsp;18, 1997 as
	Exhibit&nbsp;10.11 to the Registration Statement on Form&nbsp;S-4
	 (file no. 333-26649), as amended, originally filed on
	May&nbsp;7, 1997 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.21</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Restructuring Agreement, dated as of April&nbsp;2, 1998, by and
	among Foodcamp Industries and Marketing, Inc., Chan Chon Siong,
	Nextel International, Inc., Top Mega Enterprises Ltd. and Infocom
	 Communications Network, Inc. (filed as Exhibit&nbsp; 10.26 to
	the Registration Statement on Form&nbsp;S-4 (file no. 333-55877),
	 as amended, originally filed on June&nbsp;3, 1998 and
	incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.22</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Restructuring Agreement, dated as of April&nbsp;2, 1998, by and
	among Jetcom Inc., Nextel International, Inc., Top Mega
	Enterprises, Ltd. and Infocom Communications Network, Inc. (filed
	 as Exhibit&nbsp;10.28 to the Registration Statement on
	Form&nbsp;S-4 (file no. 333-55877), as amended, originally filed
	on June&nbsp;3, 1998 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.23</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Pledge Agreement, dated as of April&nbsp;2, 1998, by and among
	Infocom Communications Network, Inc., Nextel International, Inc.
	and Jetcom, Inc. (filed as Exhibit&nbsp;10.29 to the Registration
	 Statement on Form&nbsp;S-4 (file no. 333-55877), as amended,
	originally filed on June&nbsp;3, 1998 and incorporated herein by
	reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.24</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Agreement, dated as of August&nbsp;21, 1998, by and between ACCRA
	 Investments Corporation and Top Mega Enterprises Ltd. (filed as
	Exhibit&nbsp;10.2 to the Quarterly Report on Form&nbsp; 10-Q
	filed on November&nbsp;16, 1998 for the quarter ended
	September&nbsp;30, 1998 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.25</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Borrowing Affiliate Note, dated June&nbsp;18, 1999, by and
	between Infocom Communications Network, Inc., as Borrowing
	Affiliate, and Nextel International, Inc., as Lender (filed as
	Exhibit&nbsp;10.35 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*10.26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Employment Agreement, dated May&nbsp;7, 1999, by and between
	Nextel International, Inc. and Jose Felipe.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.27</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Nextel International 1997 Stock Option Plan (filed as
	Exhibit&nbsp;10.9 to the Annual Report on Form&nbsp;10-K filed on
	 March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.28</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Nextel International, Inc. Incentive Equity Plan, dated as of
	May&nbsp;25, 2000 (filed as Exhibit&nbsp;10.5 to the Quarterly
	Report on Form 10-Q filed on August&nbsp;14, 2000 for the quarter
	 ended June&nbsp;30, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.29</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber Unit Purchase Agreement, dated as of July&nbsp;23,
	1999, by and between Motorola, Inc. and Comunicaciones Nextel de
	Mexico S.A. de C.V. (filed as Exhibit&nbsp;10.37 to the Annual
	Report on Form&nbsp;10-K filed on March&nbsp;30, 2000 for the
	year ended December&nbsp;31, 1999 and incorporated herein by
	reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.30</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber Unit Purchase Agreement, dated July&nbsp;23, 1999, by
	and between Motorola, Inc. and Nextel del Peru, S.A. (filed as
	Exhibit&nbsp;10.44 to the Annual Report on Form&nbsp;10-K filed
	on March&nbsp;30, 2000 for the year ended December&nbsp;31, 1999
	and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.31</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber Unit Purchase Agreement, dated as of August&nbsp;4,
	1999, by and between Motorola, Inc. and Infocom Communications
	Network, Inc. (filed as Exhibit 10.43 to the Annual Report on
	Form&nbsp;10-K filed on March&nbsp;30, 2000 for the year ended
	December&nbsp;31, 1999 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.32</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber Unit Purchase Agreement, dated as of September&nbsp;
	7, 1999, by and between Motorola Industrial LTDA and Nextel
	International, Inc. (filed as Exhibit 10.39 to the Annual Report
	on Form&nbsp;10-K for the year ended December&nbsp;31, 1999 and
	incorporated herein by reference).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">II-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="82%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.33</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subscriber Unit Purchase Agreement, dated as of September&nbsp;
	7, 1999, by and between Motorola, Inc. and Nextel International,
	Inc. (filed as Exhibit&nbsp;10.40 to the Annual Report on
	Form&nbsp;10-K filed on March&nbsp;30, 2000 for the year ended
	December&nbsp;31, 1999 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.34</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amended and Restated Capital Subscription Agreement, dated as of
	May&nbsp;12, 1999, by and among Nextel Argentina S.R.L., Nextel
	International (Argentina), Ltd. and Nextel International, Inc.
	(filed as Exhibit&nbsp;10.34 to the Annual Report on
	Form&nbsp;10-K filed on March&nbsp;30, 2000 for the year ended
	December&nbsp;31, 1999 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">10.35</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Amendment No.&nbsp;1 to the Amended and Restated Capital
	Subscription Agreement, dated as of June&nbsp;20, 2000, by and
	among Nextel Argentina S.R.L., Nextel International (Argentina),
	Ltd. and Nextel International, Inc. (filed as Exhibit&nbsp;10.8
	to the Quarterly Report on Form&nbsp;10-Q filed on
	August&nbsp;14, 2000 for the quarter ended June&nbsp;30, 2000 and
	 incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.36</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of iDEN Infrastructure Equipment Supply Agreement dated
	August&nbsp;14, 2000 by and between Nextel International, Inc.,
	Motorola, Inc. and each of Nextel Telecommunicacoes Ltda., Nextel
	 Argentina S.R.L., Nextel de Mexico, S.A. de C.V., Nextel del
	Peru, S.A. and Nextel Communications Philippines, Inc. (filed as
	Exhibit 10.2 to the Current Report on Form&nbsp; 8-K filed on
	August 17, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">&#134;10.37</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of iDEN Installation Services Agreement, dated August&nbsp;
	14, 2000 by and between Nextel International, Inc., Motorola,
	Inc. and each of Nextel, Telecomunica&#231;&#245;es Ltda., Nextel
	 Argentina S.R.L., Nextel de Mexico, S.A. de C.V., Nextel del
	Peru, S.A. and Nextel Communications Philippines, Inc. (filed as
	Exhibit 10.1 to the Current Report on Form&nbsp; 8-K filed on
	August 17, 2000 and incorporated herein by reference).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*21.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subsidiaries of Nextel International, Inc.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**23.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consent of Jones, Day, Reavis &#38; Pogue (included in
	Exhibits&nbsp; 5.1 and 8.1).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*23.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consent of Deloitte &#38; Touche LLP.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*24.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Powers of Attorney.</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; *&nbsp;</TD>
	<TD align="left">
	Filed herewith.</TD>
</TR>

</TABLE>

<P align="left">
**&nbsp; To be filed by amendment.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; &#134;&nbsp;</TD>
	<TD align="left">
	Portions of this exhibit have been omitted and filed separately
	with the Securities and Exchange Commission pursuant to a request
	 for confidential treatment.</TD>
</TR>

</TABLE>

<P align="left"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>(b)&nbsp; Financial
Statement Schedules

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Schedule of Condensed Financial Information of the Registrant
and a schedule of Valuation and Qualifying Accounts have been
included in the prospectus beginning on page&nbsp;F-48.

<P align="left"><B>Item&nbsp;17. <I>Undertakings</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or
 paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.

<P align="center">II-7
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrant hereby undertakes that:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(1)&nbsp; For purposes of determining any liability under the
	Securities Act of 1933, the information omitted from the form of
	prospectus filed as part of this registration statement in
	reliance upon Rule&nbsp;430A and contained in a form of
	prospectus filed by the registrant pursuant to
	Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities
	Act shall be deemed to be part of this registration statement as
	of the time it was declared effective.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	(2)&nbsp; For the purposes of determining any liabilities under
	the Securities Act of 1933, each post-effective amendment that
	contains a form of prospectus shall be deemed to be a new
	registration statement relating to the securities offered
	therein, and the offering of such securities at that time shall
	be deemed to be the initial bona fide offering thereof.</TD>
</TR>

</TABLE>

<P align="center">II-8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>SIGNATURES</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Pursuant to the requirements of the Securities Act of 1933,
the registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Reston, State of Virginia, on
August&nbsp;17, 2000.</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	NEXTEL INTERNATIONAL, INC.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="3%"></TD>
	<TD width="59%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>By:&nbsp;</TD>
	<TD align="center">
	/s/ BYRON R. SILIEZAR</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<HR size="1" align="left"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="center">
	Byron R. Siliezar</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="center">
	Chief Financial Officer</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed by the following
persons in the capacities indicated on August&nbsp;17, 2000.</B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="45%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="46%">&nbsp;</TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Title</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Timothy M. Donahue</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chairman of the Board and Director</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Steven M. Shindler</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Interim Chief Executive Officer and Director (Principal Executive
	 Officer)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Lo van Gemert</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Chief Operating Officer (Principal Executive
	Officer)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Byron R. Siliezar</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President and Chief Financial Officer (Principal Financial
	and Accounting Officer)</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Keith D. Grinstein</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice Chairman of the Board and Director</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Daniel F. Akerson</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Steven P. Dussek</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">C. James Judson</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" valign="top"><FONT size="2">
	*<BR>
	<HR size="1">Dennis M. Weibling</FONT></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="59%"></TD>
	<TD width="38%"></TD>
</TR>

<TR valign="top">
	<TD>*By:&nbsp;</TD>
	<TD align="center">
	/s/ BYRON R. SILIEZAR</TD>
	<TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="62%"></TD>
	<TD width="38%"></TD>
</TR>

<TR valign="top">
	<TD align="left">
	<HR size="1" align="left"></TD>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD align="center">
	Byron R. Siliezar</TD>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD align="center">
	Attorney-in-fact</TD>
	<TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center">II-9
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>EXHIBIT INDEX</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%">&nbsp;</TD>
	<TD width="1%">&nbsp;</TD>
	<TD width="7%">&nbsp;</TD>
	<TD width="3%">&nbsp;</TD>
	<TD width="82%">&nbsp;</TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Description of Exhibits</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="3"><HR size="1"></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**1.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Underwriting Agreement.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*4.3</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Warrant Registration Rights Agreement, dated as of March&nbsp;3,
	1997, by and between Nextel International, Inc. and The Bank of
	New York.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**5.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Jones, Day, Reavis &#38; Pogue opinion regarding
	validity.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**8.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Form of Jones, Day, Reavis &#38; Pogue opinion regarding certain
	tax matters.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*10.26</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Employment Agreement, dated May&nbsp;7, 1999, by and between
	Nextel International, Inc. and Jose Felipe.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*21.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Subsidiaries of Nextel International, Inc.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">**23.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consent of Jones, Day, Reavis &#38; Pogue (included in
	Exhibits&nbsp; 5.1 and 8.1).</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*23.2</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Consent of Deloitte &#38; Touche LLP.</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">*24.1</FONT></TD>
	<TD></TD>
	<TD></TD>
	<TD align="left" valign="top"><FONT size="2">
	Powers of Attorney.</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left">
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; *&nbsp;</TD>
	<TD align="left">
	Filed herewith.</TD>
</TR>

</TABLE>

<P align="left">
**&nbsp; To be filed by amendment.

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s-1
Table of Contents
As filed with the Securities and Exchange
Commission on August 17, 2000
Registration
No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
NEXTEL INTERNATIONAL, INC.
(Exact name of registrant as specified in its
charter)
Washington
(State or other jurisdiction of
incorporation or organization)
4812
(Primary Standard Industrial
Classification Code Number)
91-1671412
(I.R.S. Employer
Identification Number)
10700 Parkridge Boulevard, Suite 600,
Reston, Virginia 20191
(703) 433-4000
(Address, including zip code, and telephone
number, including area code, of registrant's principal
executive offices)
Robert B. Shanks, Esq.
Vice President
Nextel International, Inc.
10700 Parkridge Boulevard, Suite 600
Reston, Virginia 20191
(703) 433-4000
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Copies to:
Lisa A. Stater, Esq.
Jones, Day, Reavis & Pogue
3500 SunTrust Plaza
303 Peachtree Street
Atlanta, Georgia 30308
(404) 521-3939
Andrew R. Schleider, Esq.
Shearman & Sterling
599 Lexington Avenue
New York, New York 10022
(212) 848-4000
Approximate date of commencement of proposed sale to the
public:
As soon as practicable after this registration statement becomes
effective.
If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant
to Rule 415 under the Securities Act of 1933, check the
following box. [   ]
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the
 Securities Act, please check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same offering.  
[   ]
If this Form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same offering.   [   ]
If this Form is a post-effective amendment filed
pursuant to Rule 462(d) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same offering.   [   ]
If delivery of the prospectus is expected to be
made pursuant to Rule 434, please check the following
box. [   ]
CALCULATION OF REGISTRATION FEE
Title of each class of securities to be registered
Proposed maximum aggregate offering price(1)
Amount of registration fee
Class A Common Stock, no par value
$920,000,000
$242,880
(1)
Estimated solely for the purpose of calculating
	the registration fee pursuant to Rule 457(o) of the
	Securities Act of 1933. A portion of the shares to be registered
	represents shares that are to be offered outside of the United
	States but that may be resold from time to time in the United
	States. Such shares are not being registered for the purpose of
	sales outside the United States.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION
STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS
EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER
AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE
REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE
 COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY
DETERMINE.
Table of Contents
The information in this preliminary
prospectus is not complete and may be changed. These securities
may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This preliminary
 prospectus is not an offer to sell nor does it seek an offer to
buy these securities in any jurisdiction where the offer or sale
is not permitted.
Subject to Completion. Dated August 17, 2000.
Shares
Nextel International, Inc.
Class A Common Stock
This is an initial public offering of shares of class A common
stock of Nextel International, Inc. This prospectus relates to an
 offering of
                    shares
 in an offering inside the United States. In addition,
                    shares
 are being offered in an international offering outside of the
United States. All of the
          shares
 of class A common stock are being sold by Nextel International.
Prior to this offering, there has been no public market for the
class A common stock. It is currently estimated that the
initial public offering price per share will be between
$          and
$          .
Application has been made for quotation of the class A common
stock on the Nasdaq National Market under the symbol
"NXTI."
Following this offering, Nextel International will have
outstanding two classes of authorized common stock, the
class A common stock and the class B common stock. The
rights of holders of the class A common stock and the
class B common stock are identical except with respect to
voting and conversion.
See "Risk Factors" beginning on page 10 to read
 about factors you should consider before buying shares of the
class A common stock.
Neither the Securities and Exchange Commission nor any other
regulatory body has approved or disapproved of these securities
or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
Per Share
Total
Initial public offering price
$
$
Underwriting discount
$
$
Proceeds, before expenses, to Nextel International
$
$
To the extent that the U.S. underwriters sell more than
           shares
 of class A common stock, the U.S. underwriters have the
option to purchase up to an additional
      shares from Nextel
International at the initial public offering price less the
underwriting discount. The international underwriters may
similarly purchase up to an additional
     shares.
The underwriters expect to deliver the shares against payment in
New York, New York on
               ,
 2000.
Goldman, Sachs & Co.
Morgan Stanley Dean Witter
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
PaineWebber Incorporated
Prospectus dated
          ,
2000.
Table of Contents
Art Work
[Map of Latin America and Asia with
countries and cities in which we operate
color coded and stating populations which
our licenses cover]
Table of Contents
You should rely only on the information contained in this
prospectus. We have not authorized anyone to provide you with
information different from that contained in this prospectus. We
are offering to sell shares of class A common stock and seeking
offers to buy shares of class A common stock only in
jurisdictions where offers and sales are permitted. The
information contained in this prospectus is accurate only as of
the date of this prospectus, regardless of the time of delivery
of this prospectus or any sale of the class A common stock.
MARKET AND INDUSTRY DATA
Market and industry data used throughout this prospectus were
obtained from market research, publicly available information and
 industry publications. Industry publications generally state
that the information contained in those publications has been
obtained from sources believed to be reliable, but that the
accuracy and completeness of the information is not guaranteed.
Although we believe the market and industry data are reliable, we
 have not independently verified this information, and we do not
make any representation as to the accuracy of the information.
Often interviews with corporate leaders in emerging industries,
such as ours, form the basis for much statistical market and
industry data. Thus, statistical and industry data for emerging
industries, such as ours, are much less likely to be accurate.
"Nextel", "Nextel Direct Connect" and
"Nextel Worldwide" are trademarks or service marks of
Nextel Communications, Inc. Nextel Communications allows us to
use the "Nextel" tradename in jurisdictions outside of
the United States on a royalty-free basis, but we cannot assure
you that our rights to use the "Nextel" tradename will
continue or will continue on terms not involving the payment of
royalties or other amounts to Nextel Communications.
"Motorola," "iDEN" and "i2000" are
trademarks or service marks of Motorola, Inc.
"Clearnet" and "Mike" are trademarks of
Clearnet Communications, Inc.
i
Table of Contents
SUMMARY
The following summary highlights basic information about us
and the class A common stock that we are offering but does not
contain all the information you should consider before investing
in our class A common stock. You should read the entire
prospectus carefully, especially "Risk Factors." As
used in this prospectus, the terms "we,"
"us," "our" and "Nextel
International" refer to Nextel International, Inc. and our
Operating Companies, as described below, except where the context
 otherwise requires or as otherwise indicated.
Except as otherwise indicated, all dollar amounts are
expressed in U.S. dollars and references to "dollars"
and "$" are to U.S. dollars. All consolidated
historical financial statements contained in this prospectus have
 been prepared in accordance with accounting principles generally
 accepted in the United States of America.
NEXTEL INTERNATIONAL
Overview
We provide integrated digital wireless communications services
targeted at meeting the needs of business customers in selected
international markets. Our principal operations are in major
business centers and related transportation corridors of Brazil,
Mexico, Argentina and Peru. As part of our growth strategy, we
have recently expanded our wireless coverage in Latin America by
purchasing companies with specialized mobile radio, or SMR,
licenses in Chile. In addition to our wholly owned Latin American
 operations, we are also significant equity participants in
digital wireless communications providers in the Philippines and
Japan, and we have an equity interest in Clearnet Communications,
 a leading publicly-held digital wireless communications provider
 in Canada.
Our operating subsidiaries and affiliates, which we refer to as
our Operating Companies, have SMR licenses in markets that cover
about 382 million persons, or Pops, of which about
149 million are in Latin America. Our Operating Companies
currently provide integrated digital wireless communications
services in the five largest cities in Latin America and two of
the ten largest cities in Asia. We believe, based on the
magnitude of our license holdings and our subscriber base, that
we currently are the largest digital enhanced SMR, or ESMR,
provider, and operate one of the largest integrated digital
wireless communications systems utilizing a single transmission
technology, in Latin America. Our parent, Nextel Communications,
operates one of the largest integrated digital wireless
communications systems utilizing a single transmission technology
 in the United States.
Our networks use a single transmission technology called
integrated digital enhanced network, or iDEN, developed by
Motorola, to provide digital ESMR services on 800 MHz spectrum
holdings in Latin America, the Philippines and Canada and on 1.5
GHz spectrum holdings in Japan. Digital ESMR allows us to use our
 spectrum more efficiently and offer enhanced services. Our
Operating Companies offer a differentiated package of services
under the "Nextel" name in Latin America and the
Philippines and under the "Mike" name in Canada. We are
 designing our digital ESMR networks to support a full complement
 of digital wireless services, including:
•
digital mobile, or interconnect, telephone service;
•
advanced calling features, such as two-way calling, voicemail and
	 call forwarding;
•
international roaming capabilities;
•
Nextel Direct Connect service that allows users to contact
	co-workers instantly, on a private one-to-one call or on a
	one-to-many group call, without interconnecting to the public
	switched telephone network; and
•  paging and short-text messaging.
1
Table of Contents
In addition, we plan to offer users access to digital two-way
mobile data and Internet connectivity services in the future.
Our customers may roam throughout the iDEN 800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800 MHz technology. To further
enhance our roaming services, during the second quarter of 2000,
we launched Nextel Worldwide with the introduction of the i2000,
a digital dual-mode subscriber unit manufactured by Motorola that
 operates on both iDEN 800 MHz and Global System for Mobile
Communications, or GSM, 900 MHz technologies. This service
allows our customers to roam internationally when traveling
between our markets and other cities or countries in which either
 iDEN 800 MHz or GSM 900 MHz networks are operating and
 which are covered by our roaming arrangements. We currently have
 over 70 roaming agreements in effect with operators of iDEN
800 MHz and GSM 900 MHz networks in over 40 countries.
Our senior management team has substantial operating experience
in the telecommunications industry both internationally and in
the United States. Many of our key executives and directors have
significant experience working at AT&T Wireless Services,
Inc., McCaw Cellular Communications, Inc. or Nextel
Communications. In addition, we have assembled regional
management teams with substantial local telecommunications
experience that oversee the local operations of our Operating
Companies.
As of June 30, 2000, our Operating Companies had an
aggregate of about 1,225,900 digital subscriber units in service
in the countries indicated below. Our proportionate share, based
on our current ownership percentage of these Operating Companies,
 was about 599,900 digital subscriber units in service. Since the
 launch of our commercial ESMR operations in 1998, we have
experienced significant and rapid growth in digital subscriber
units in service. From June 30, 1999 to June 30, 2000,
our Operating Companies increased the total number of their
digital subscriber units in service in the countries indicated
below by 97%. In Latin America, our Operating Companies increased
 the total number of digital subscriber units in service by 205%
during the same period.
Operating Companies Overview
The following table provides an overview of our Operating
Companies in the countries indicated, giving effect to recent
acquisitions as described below.
Total
Proportionate
Digital
Digital
Nextel
Total
Subscriber
Subscriber
Start Date of
International
Licensed
Units in Service at
Units in Service at
Initial Commercial
Country
Ownership
Pops
June 30, 2000
June 30, 2000
ESMR Services
(in millions)
(in thousands)
Brazil
100.0%
62
204
204
May 1998
Mexico
100.0%
50
133
133
September 1998
Argentina
100.0%
23
90
90
June 1998
Peru
100.0%
7
42
42
June 1999
Chile
100.0%
7
—
—
—
Total Latin America
149
469
469
Philippines
51.1%
75
37
19
July 1998
Japan
32.1%
127
48
15
July 1998
Canada
14.4%
31
672
97
October 1996
Total
382
1,226
600
2
Table of Contents
Business Strategy
Our principal objective is to become the leading provider of
integrated digital wireless communication services to business
customers in selected international markets. We believe the
following elements of our strategy will distinguish us from our
competitors and will enable us to compete successfully:
•
Focus on Major Business Centers in Emerging Markets.
We operate primarily in Latin America in markets that we
	believe offer favorable long-term growth prospects for wireless
	communications services. We believe that there are significant
	opportunities for growth in these markets due to relatively low
	wireless and wireline penetration rates and increasing income
	levels. In a given market, we initially focus on highly
	concentrated business centers such as Mexico City, São
	Paulo, Rio de Janeiro, Buenos Aires and Lima. These areas have
	high population densities and, we believe, a concentration of the
	 country's business users and economic activity. To capture
	the benefits of the projected growth in the demand for wireless
	services in our current markets and to increase our market share,
	 we intend to continue to enhance and expand our networks, to
	leverage our existing customer base and to continue developing
	innovative products and services.
•
Provide Differentiated Package of Wireless Services.
We offer a package of services and features that combines
	multiple communications services in a single wireless subscriber
	unit, including Nextel Direct Connect, which allows users to
	contact co-workers instantly, on a private one-to-one call or on
	a one-to-many group call. In addition, we offer billing based
	upon actual seconds of airtime after the first minute and rate
	plans that do not distinguish between "peak" and
	"off-peak" minutes. We also offer international roaming
	 in selected iDEN 800 MHz and GSM 900 MHz markets. We believe
	that none of our competitors currently offers a similar package
	of services. We intend to continue to emphasize the
	differentiated features of iDEN technology and our networks and
	to continue to enhance our service offerings such as the
	anticipated future availability of regional Nextel Direct Connect
	 and wireless data services in selected markets.
•
Target Business Customers.
We believe that our
	focus on business customers will result in higher average monthly
	 revenue per digital subscriber unit and lower subscriber unit
	cancellations. Based on the experience of Nextel Communications
	in the United States, we believe business customers are more
	likely to recognize the advantages and value of our integrated
	service offerings. Further, we believe that we are the only major
	 wireless service provider in our markets directing
	fully-integrated digital offerings principally to the business
	segment. To increase our subscriber base, our Operating Companies
	 are continuing to implement marketing programs and promotions
	that have been proven successful in Nextel Communications'
	markets in the United States.
•
Offer International Roaming.
We are deploying
	international digital ESMR networks that will provide roaming
	capabilities to our customers on a single digital subscriber unit
	 as they travel in iDEN 800 MHz or GSM 900 MHz markets where we
	operate or have roaming agreements. We believe that offering
	international roaming capabilities with one phone, one number and
	 one bill distinguishes our service offerings from those of other
	 wireless operators in our markets.
•
Expand and Strengthen Our Geographic Footprint.
We
	intend to selectively expand our coverage in those markets in
	which we currently operate. In addition, we may pursue new
	investments in high growth international markets that complement
	our existing operations and offer the opportunity to further our
	business strategy. We believe our established presence in Latin
	America and Asia, our strategic affiliations with Nextel
	Communications and Motorola, and our acquisition experience will
	enable us to capitalize on opportunities in our existing as well
	as selected new markets. In addition, as opportunities arise, we
	may also increase our ownership of our Operating Companies that
	are not wholly owned.
3
Table of Contents
•
Leverage our Relationship with Nextel Communications.
Our relationship with Nextel Communications is important as
	we continue to upgrade and deploy our digital ESMR networks and
	provide new products and services to expand our subscriber base.
	Access to the technology, supplier relationships, network
	development and marketing expertise of Nextel Communications has
	afforded us significant competitive advantages. We intend to
	continue to leverage Nextel Communications' expertise in the
	 future as we enhance and expand our networks and launch new
	products and services. In addition, we currently utilize the
	"Nextel" brand name in Latin America and the
	Philippines. We also benefit from Nextel Communications'
	relationship with Motorola, which supplies us with network
	equipment, subscriber units and related services, generally at
	the same basic prices extended to Nextel Communications.
Recent Developments
McCaw Brazil.
We entered into a purchase, release and
settlement agreement dated as of July 21, 2000 with the
Founders Group, who collectively were the minority stockholders
in McCaw International (Brazil), Ltd., which is referred to as
McCaw Brazil and which indirectly owns 100% of Nextel
Telecomunicações Ltda., our primary Brazilian Operating
 Company and referred to as Nextel Brazil. Under that agreement,
on August 4, 2000, we made a cash payment to members of the
Founders Group totaling $146.0 million, received all of the
equity interests held by the Founders Group in McCaw Brazil and
exchanged mutual releases with all of the members of the Founders
 Group. In addition, all pending court disputes between us and
Telcom Ventures, a member of the Founders Group, were permanently
 dismissed. For a description of these disputes, see
"Business — Legal Proceedings — Telcom
Ventures." As a result, we own 100% of McCaw Brazil and all
rights of the Founders Group as minority stockholders in McCaw
Brazil, including their rights to put their equity interests to
us beginning in October 2001, were terminated.
Increase in Our Investment in Nextel Philippines.
On
July 28, 2000, we increased our direct and indirect
ownership interests in Nextel Communications Philippines, Inc.,
referred to as Nextel Philippines, from about 38% to about 51%
through the purchase of some of the minority owners' equity
interests for about $9.8 million.
12.75% Senior Serial Notes.
On August 1, 2000, we
completed the issuance and sale in a private placement of
$650.0 million aggregate principal amount of our 12.75%
senior serial notes due 2010, generating about
$623.8 million of net cash proceeds.
Acquisitions.
On August 11, 2000, we entered into an
agreement with Cordillera Communications Corporation, referred to
 as CCC, under which we agreed to purchase all of CCC's
equity ownership in several analog SMR companies in Chile and
Peru for about $66.5 million. The purchase price is subject
to reduction in the event we are unable to obtain within the next
 24 months the regulatory relief necessary to provide our
integrated digital ESMR services in Chile. Consummation of these
acquisitions is subject to various conditions, and we cannot
assure you when or whether these acquisitions will occur.
We have also entered into term sheets or are negotiating
agreements regarding additional potential investments to increase
 our spectrum position or make strategic acquisitions. However,
we cannot assure you that definitive agreements will be reached
regarding any of these potential investments or as to their
terms.
Our principal executive office is located at 10700 Parkridge
 Boulevard, Suite 600, Reston, Virginia 20191. Our
telephone number is (703) 433-4000.
4
Table of Contents
THE OFFERINGS
Class A common stock offered by Nextel International:
U.S. offering
shares
International offering
shares
Total
shares
Common stock to be outstanding after the offerings:
Class A common stock
shares
Class B common stock
shares
Total
shares
Voting rights
The class A common stock and class B common stock vote as a
	single class on all matters, except as otherwise required by law,
	 with each share of class A common stock entitling its holder to
	one vote and each share of class B common stock entitling its
	holder to ten votes. After the offerings, Nextel Communications
	will own class B common stock representing about
	     % of our equity value, or about
	     % if the underwriters exercise
	their over-allotment options in full, and about
	     % of the combined voting power of
	our outstanding common stock, or about
	     % if the underwriters exercise
	their over-allotment options in full.
Net proceeds
About $      million, or about
	$      million if the underwriters
	exercise their over-allotment options in full.
Use of proceeds
We intend to use the net proceeds from the offerings to finance
	network expansion, acquisitions of additional spectrum, working
	capital needs or debt service requirements or for other general
	corporate purposes.
Proposed Nasdaq National Market symbol
NXTI
The number of shares of common stock to be outstanding after the
offerings is based on the number of shares of common stock
outstanding as of June 30, 2000 and assumes the exchange of
all outstanding shares of our series A exchangeable
redeemable preferred stock into
        shares of our
class B common stock at June 30, 2000, as described
below. The number of shares of common stock to be outstanding
after the offerings excludes:
•
30,900,000 shares of our class B common stock reserved for
	issuance under our equity incentive plans as of June 30,
	2000, of which 13,970,584 shares were subject to outstanding
	options at a weighted average exercise price of $11.54 per share;
	 and
•
1,474,304 shares of class B common stock reserved for issuance as
	 of June 30, 2000 upon exercise of outstanding warrants at
	an exercise price of $2.50 per share.
Unless otherwise specifically stated, all of the information in
this prospectus:
5
Table of Contents
•
reflects the reclassification of all of our existing shares of
	common stock into an equal number of shares of our class B
	common stock;
•
reflects the reclassification of all of the shares of our common
	stock issuable upon the exercise of options and warrants
	outstanding prior to the offerings into an equal number of shares
	 of our class B common stock;
•
reflects the exchange of all 2,150 shares of our outstanding
	series A exchangeable redeemable preferred stock prior to
	completion of the offerings into a number of shares of our
	class B common stock that will be equal to the accreted
	value of the series A preferred stock on the date of the
	exchange. For this purpose the class B common stock will be
	valued at the initial public offering price per share of the
	class A common stock. Assuming the exchange occurred on
	June 30, 2000 and assuming an initial public offering price
	for the class A common stock of
	$     per share, the midpoint of the
	range set forth on the cover, the outstanding shares of
	series A preferred stock would have been exchanged into
	           shares
	 of class B common stock. Since the liquidation preference
	of the series A preferred stock accretes at an annual rate
	equal to 13.625%, the actual number of shares of class B
	common stock issuable in the exchange will depend upon the amount
	 of accreted value of the liquidation preference on the date the
	exchange takes place, as well as the actual initial public
	offering price;
•
reflects our reincorporation in Delaware, which we intend to
	effect prior to completion of the offerings; and
•
assumes that the underwriters do not exercise their
	over-allotment options.
Throughout this prospectus, references to our common stock
include both our class A common stock and our class B
common stock, unless the context otherwise indicates.
RISK FACTORS
You should read the "Risk Factors" following this
summary, as well as the other cautionary statements throughout
the entire prospectus, to ensure that you understand the risks
associated with an investment in our class A common stock.
6
Table of Contents
SUMMARY CONSOLIDATED FINANCIAL INFORMATION
The financial information presented below for the years ended
December 31, 1997, 1998 and 1999 has been derived from our
audited consolidated financial statements. The financial
information as of June 30, 2000 and for the six months ended
 June 30, 1999 and 2000 has been derived from our unaudited
financial information and reflects only normal recurring
adjustments necessary for the fair presentation of this
information. You should not expect the results of operations of
interim periods to be an indication of results for a full year.
This information is only a summary and should be read in
conjunction with our consolidated historical financial statements
 appearing elsewhere in this prospectus.
Acquisitions.
Our results were affected by business
combinations, acquisitions and investments. Additional
information regarding acquisition and investment activity during
1997, 1998 and 1999 can be found in Notes 2, 3 and 15 to the
audited consolidated financial statements and related notes
appearing elsewhere in this prospectus.
Other Income (Expense), Net.
Other income (expense), net
consists primarily of foreign currency transaction losses, of
which $42.8 million in the six months ended June 30,
1999 and $57.0 million in the year ended December 31,
1999 relate to losses associated with the devaluation of the
Brazilian real.
Stock Splits.
The weighted average number of common shares
 outstanding reflects a 100,000-for-1 common stock split
effective March 6, 1997, a 3.65-for-1 common stock split
effective August 25, 1997 and a 4-for-1 common stock split
effective June 20, 2000. Information presented throughout
this prospectus has been adjusted to reflect these stock splits.
Income Tax Benefit (Provision).
We recognized an income
tax benefit during 1998 of $22.4 million related to net
operating losses of our subsidiaries in Brazil, Mexico and
Argentina. Changes in tax legislation in Argentina and Mexico,
and depletion of temporary differences in Brazil, have
contributed to the decrease in the income tax benefit for 1999
for those Operating Companies. Additionally, we are precluded
from recognizing any income tax benefits associated with U.S. net
 operating losses because we cannot presently conclude that it is
 more likely than not that we will generate taxable income during
 periods prior to the expiration of our accumulated net operating
 losses.
EBITDA.
Earnings before interest, taxes, depreciation and
amortization, or EBITDA, consists of loss before income tax
benefit (provision), interest expense, interest income,
depreciation and amortization, equity in losses of unconsolidated
 affiliates, other income (expense), net and minority interest in
 losses of subsidiaries. EBITDA is provided because it is a
measure commonly used in the telecommunications industry. It is
presented to enhance an understanding of our operating results
and is not intended to represent cash flow or results of
operations for the periods presented. EBITDA is not a measurement
 under accounting principles generally accepted in the United
States and may not be similar to EBITDA measures of other
companies.
As Adjusted.
At June 30, 2000, the as adjusted
balance sheet data reflects:
•
the receipt of about $623.8 million in net proceeds from the
	 issuance of our 12.75% senior serial notes, referred to as our
	August 2000 Notes, on August 1, 2000;
•
the acquisition on August 4, 2000 of additional ownership
	interests in McCaw Brazil and the related payment of about $146.0
	 million;
•
the exchange by Nextel Communications of 2,150 shares of series A
	 exchangeable redeemable preferred stock into about
	           shares
	 of our class B common stock, assuming the exchange occurred on
	June 30, 2000 and based on the accreted value of the
	series A preferred stock at that date of about
	$215.1 million and an assumed initial public offering price
	for the class A common stock of
	$              per
	 share, the midpoint of the range set forth on the cover.
7
Table of Contents
•
the reclassification of all of our existing shares of common
        stock into an equal number of shares of our class B common
        stock; and
•
the receipt of about
        $        million in
        estimated net proceeds from the sale of
              shares of our class A common
        stock in the offerings, assuming an initial public offering price
         of $     per share, the midpoint of the
         range set forth on the cover.
Six months ended
Year ended December 31,
June 30,
1997
1998
1999
1999
2000
(in thousands, except per share and average monthly revenue per digital
subscriber unit data)
Consolidated Statement of Operations Data:
Operating revenues
$
13,015
$
42,488
$
104,528
$
41,760
$
110,800
Cost of revenues
7,424
20,085
40,999
18,072
29,652
Selling, general and administrative
26,768
143,098
226,379
116,222
148,650
Depreciation and amortization
18,381
56,039
108,091
51,882
65,183
Operating loss
(39,558
)
(176,734
)
(270,941
)
(144,416
)
(132,685
)
Interest expense
(56,583
)
(106,824
)
(179,604
)
(82,220
)
(106,660
)
Interest income
19,666
16,655
8,442
2,827
5,547
Equity in losses of unconsolidated affiliates
(11,401
)
(12,193
)
(31,469
)
(11,520
)
(17,284
)
Other income (expense), net
5,561
2,472
(65,905
)
(45,539
)
4,016
Minority interest in losses of subsidiaries
2,085
17,131
19,314
13,299
6,504
Loss before income tax benefit (provision)
(80,230
)
(259,493
)
(520,163
)
(267,569
)
(240,562
)
Income tax benefit (provision)
6,282
22,358
17
(439
)
(368
)
Net loss
(73,948
)
(237,135
)
(520,146
)
(268,008
)
(240,930
)
Accretion of series A redeemable preferred stock to value of
        liquidation preference
—
—
—
—
(61,334
)
Loss attributable to common stockholders
$
(73,948
)
$
(237,135
)
$
(520,146
)
$
(268,008
)
$
(302,264
)
Loss per share attributable to common stockholders, basic and
        diluted
$
(0.51
)
$
(1.62
)
$
(3.56
)
$
(1.83
)
$
(2.01
)
Weighted average number of common shares outstanding
146,000
146,014
146,240
146,130
150,422
Selected Financial Data:
Cash flows used in operating activities
$
(16,464
)
$
(176,961
)
$
(129,360
)
$
(100,105
)
$
(101,774
)
Cash flows used in investing activities
(389,153
)
(402,902
)
(185,315
)
(116,809
)
(254,983
)
Cash flows provided by financing activities
512,378
542,225
310,134
242,169
523,945
EBITDA
(21,177
)
(120,695
)
(162,850
)
(92,534
)
(67,502
)
Selected Operating Data:
Total digital subscriber units in service, at end of period
—
619
1,245
852
1,226
Proportionate digital subscriber units in service, at end of
        period
—
167
404
249
578
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June 30, 2000
Actual
As Adjusted
(in thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents and short-term investments, including
	restricted portion of $10,487
$
297,384
$
Property, plant and equipment, net
755,229
755,229
Intangible assets, net
505,675
Total assets
2,124,010
Long-term debt, including current portion of $67,098
1,733,732
2,374,775
Stockholders' (deficit) equity
(4,171
)
9
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RISK FACTORS
Investing in shares of our class A common stock involves
a high degree of risk. You should carefully consider the risks
described below as well as all the other information in this
prospectus—including our consolidated financial statements
and related notes— before investing in our class A
common stock. Our business, operating results and financial
condition could be seriously harmed due to any of the following
risks. The trading price of our class A common stock could
decline due to any of these risks, and you could lose all or part
 of your investment.
Risk Factors Relating to Nextel International
We have a short operating history and a history of net
losses, and we expect losses to continue for several years.
Each of our Operating Companies has been operating for a
relatively short time. Additionally, if we acquire or commence
operations in new markets, any of these new operations is likely
to have little or no operating history. Our prospects, therefore,
 must be considered in light of the risks, expenses,
uncertainties and obstacles of establishing a new business in a
rapidly changing industry such as wireless telecommunications. We
 have never been profitable, and we have experienced negative
EBITDA since we began operating. Our accumulated deficit was
about $860.0 million at December 31, 1999 and about
$1,100.9 million at June 30, 2000. For the six months
ended June 30, 2000, we had negative EBITDA of
$67.5 million and our earnings were insufficient to cover
our fixed charges by $236.9 million. We expect that losses
will continue for the next several years as we build, expand and
enhance our digital ESMR networks. We do not know when, if ever,
our cash flow from operations will support our growth and
continued operations.
We will need substantial amounts of financing over the next
 several years.
Reasons we will need financing.
We anticipate that we will need substantial amounts of financing
over the next several years for, among other things, the
following:
•
capital expenditures to build, expand and enhance our digital
	ESMR networks;
•
spectrum acquisitions;
•
funding operating losses and other working capital needs;
•
funding capital contributions, including acquisitions of
	additional equity interests in our Operating Companies, including
	 potential puts and/or calls under our joint venture
	arrangements;
•
debt service requirements; and
•
other general corporate purposes.
Amounts available to us under our existing financing
	agreements may be insufficient to meet our long-term cash needs.
Our long-term cash needs are much greater than our current
resources. In the future, we will have to raise substantial
amounts of additional funds to support our growth and operations.
Based on our assessment of the business activity and related cash
 needs of our Operating Companies, with the net proceeds of the
offerings, our available cash on hand and assuming the continued
availability of borrowings under our existing financing
agreements, we believe that we will have adequate funding to
continue our operations through the end of 2001. After that, we
expect that we will need to obtain additional funding to meet the
 anticipated cash needs associated with implementing our business
 plan. We may raise this funding in the form of public
10
Table of Contents
or private issuances of debt or equity. We may also seek to
obtain additional financing from various sources, including
additional vendor financing provided by equipment suppliers such
as Motorola, project financing from commercial banks and bank
lines of credit. We currently are exploring a number of these
alternative sources of funds. If we incur additional debt, our
leverage and debt service obligations will increase. Moreover,
our ability to access additional funds may be limited by the
terms of our existing financing agreements, including covenants
that restrict:
•
the amount of additional borrowings that we can incur;
•
our ability to grant liens on the assets of our Operating
	Companies;
•
sales or transfers of assets of our Operating Companies; and
•
the ability of our Operating Companies to pay dividends to us to
	supply us with funds needed to service debt or for other
	purposes.
Our ability to raise additional funds also may be affected by:
•
general market conditions in the U.S. and in our international
	markets that may adversely affect the availability or cost of
	capital;
•
volatility in the economies of Latin America and Asia, or in the
	local markets in which we operate, which may make lenders less
	likely to extend credit to us or our relevant subsidiaries and
	affiliates;
•
our high level of indebtedness, which may affect our
	attractiveness as a potential borrower; and
•
the market's perception of our performance in each of our
	markets.
Other than our existing debt financing arrangements, we have no
legally binding commitments or agreements with any third parties
to obtain additional debt or equity financing. Although our
parent, Nextel Communications, has provided us with significant
financing in the past, Nextel Communications is not obligated to
provide any additional funds to us. We cannot assure you that we
will be able to raise additional debt or equity funding when
needed in sufficient amounts or on acceptable terms. If we are
unable to obtain the necessary funding, we may be required to
reduce the scope of our build-out, expansion and enhancement of
our digital ESMR networks and to curtail our operations
significantly, which could have a material adverse effect on our
ability to compete as well as our financial condition and results
 of operations.
Our high level of indebtedness could adversely
affect your investment.
At June 30, 2000, after giving effect to the issuance of our
 August 2000 Notes, we would have had about $2,374.8 million
 of outstanding long-term debt. Furthermore, subject to
restrictions contained in the agreements governing our
outstanding debt, we, along with our Operating Companies, may
incur additional indebtedness from time to time to finance the
further deployment of our digital ESMR networks, provide for
working capital or capital expenditures or for other purposes. We
 anticipate that we and our Operating Companies will incur
substantial additional indebtedness in the future in connection
with the future build-out, expansion and enhancement of our
digital ESMR networks and funding cash flow deficits.
Our high level of indebtedness could have important consequences
to purchasers of the class A common stock, including limiting our
 ability to:
•
obtain additional financing for acquisitions, working capital,
	capital expenditures or other purposes;
11
Table of Contents
•
use operating cash flow in other areas of our business because we
	 must dedicate a substantial portion of these funds to make cash
	interest payments and fund required principal payments on our
	debt;
•
borrow additional funds or to dispose of assets;
•
compete with others in our industry who are not as highly
	leveraged; and
•
react to changing market conditions, changes in our industry and
	economic downturns.
Limitations imposed by restrictive covenants could limit how
	we conduct business and a default under our indentures and
	financing agreements could adversely impact your investment.
The indentures governing our August 2000 Notes, our 13.0% senior
discount notes due 2007, referred to as our March 1997 Notes, and
 our 12.125% senior discount notes due 2008, referred to as our
March 1998 Notes, all of which are referred to as our outstanding
 notes, contain covenants that restrict our ability to:
•
incur or guarantee additional indebtedness;
•
pay dividends and make other distributions;
•
prepay subordinated indebtedness;
•
make investments and other restricted payments;
•
enter into sale and leaseback transactions;
•
create liens;
•
sell assets; and
•
engage in transactions with affiliates.
Our other financing agreements contain, and any future financing
agreements are expected to contain, similar or more restrictive
covenants, as well as other covenants that will require us to
maintain specified financial ratios and satisfy financial tests.
As a result of these restrictions, we are limited in how we
conduct business and we may be unable to raise additional debt or
 equity financing, to compete effectively or to take advantage of
 new business opportunities. This may affect our ability to
generate revenues and profits.
Our failure to comply with the covenants and restrictions
contained in our indentures and other financing agreements could
lead to a default under the terms of these agreements. If such a
default occurs, the other parties to these agreements could
declare all amounts borrowed to become due and payable. This in
turn could cause all amounts borrowed under other instruments
that contain provisions of cross-acceleration or cross-default to
 become due and payable. In addition, lenders under our future
financing agreements could terminate their commitments to lend to
 us. If that occurs, we cannot assure you that we would be able
to make payments on our indebtedness, meet our working capital
and capital expenditure requirements or find additional
alternative financing. Even if we could obtain additional
alternative financing, we cannot assure you that it would be on
terms that will be acceptable to us. While we are currently in
compliance with the covenants under our financing agreements, in
anticipation of our non-compliance with financial covenants under
 some of our financing agreements, we have in the past notified
the lenders and obtained waivers and/or amended covenants. We
cannot assure you that we will be able to remain in compliance
with the covenants in our financing agreements in the future or,
if we fail to do so, that we will be able to obtain waivers from
the lenders or amend the covenants as we have in the past.
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Table of Contents
Our prospects depend on government regulations in various
countries.
In each market in which we operate, one or more regulatory
entities regulate the licensing, construction, acquisition,
ownership and operation of our wireless communications systems.
Additionally, other aspects of our wireless communications system
 operations, including the rates we charge subscribers and the
resale of our communications services, may be governed by public
utility regulations. Further, in some of the countries in which
we conduct business, local statutes and regulations impose
foreign ownership limitations upon telecommunications companies.
Changes in the current telecommunications statutes or regulations
 in any one or more of these countries could adversely affect our
 business.
Wireless communications licenses and spectrum allocations are
subject to ongoing review and, in some cases, to modification or
early termination for failure to comply with applicable
regulations. Most of our wireless communications licenses have
fixed terms and are not renewed automatically. In cases where
license terms are fixed, we cannot assure you that our licenses
will be renewed or, if renewed, that renewal will be on
acceptable economic terms.
Because of the uncertainty as to the interpretation of
regulations in some countries in which we operate, we cannot
assure you that we will always be able to provide the services we
 have planned in each market. In some markets, we are unable, or
have limitations on our ability, to offer some services, such as
interconnection to other telecommunications networks and
participation in calling party pay programs. For example, our
licenses in Chile currently do not allow us to offer ESMR
services. It is possible that, in the future, we may face
additional regulatory prohibitions or limitations on our
services. Inability to provide planned services could make it
more difficult for us to compete in the affected markets. We have
 provided a detailed description of the regulatory environment in
 each of the countries in which our Operating Companies conduct
business under the "Regulatory and Legal Overview"
discussion for each Operating Company under
"Business — Operating Companies."
Our Operating Companies that hold licenses must comply with the
terms of their licenses and regulatory requirements, including
installation deadlines and minimum loading and/or service
availability requirements. We cannot assure you that those
companies will always be able to comply with these requirements.
If our Operating Companies do not comply they could lose their
applicable licenses.
Our future performance depends on our ability to compete in
 the highly competitive wireless communications industry.
Our success will depend on the ability of our Operating Companies
 to compete effectively with other communications services
providers, including landline telephone companies and other
wireless communications companies, in the markets in which they
operate.
Some of our competitors are financially stronger
than we are.
Many of our competitors are well-established companies with
substantially greater financial and marketing resources, larger
customer bases, better name recognition, bundled service
offerings, larger spectrum positions and larger coverage areas
than those of our Operating Companies. Because of their financial
 resources, these competitors may be able to offer services to
customers at prices that are below the prices that our Operating
Companies can offer for comparable services. As a result, our
ability to compete based on the price of our service offerings
will be limited. In addition, we anticipate that our Operating
Companies will face future market pressure to reduce the prices
charged for their products and services over the next few years
because of increased competition in our markets.
13
Table of Contents
Our Operating Companies may face disadvantages when competing
	against government-owned or affiliated telecommunications
	companies and wireline monopoly operators.
In some markets, our Operating Companies compete against an
incumbent government-owned telecommunications company, or a
formerly government-owned company in which the government may or
may not retain a significant interest. Our Operating Companies
may be at a competitive disadvantage in these markets because
government-owned or affiliated competitors may have:
•
close ties with national regulatory authorities;
•
control over connections to local telephone lines; or
•
the ability to subsidize competitive services with revenues
	generated from services they provide on a monopoly basis.
To the extent government-owned wireline companies are privatized
or join with an established foreign telecommunications partner,
competition from these companies may increase due to infusions of
 capital and managerial and technical talent. These companies may
 also continue to enjoy the legacy of their pre-privatization
privileges. Our Operating Companies may encounter obstacles and
setbacks if local governments adopt policies favoring these
competitors or otherwise afford them preferential treatment.
In some markets, our Operating Companies compete against an
incumbent monopoly wireline company in the provision of some
services. In most of these markets, the monopoly wireline
provider is also a wireless operator competing directly with the
wireless operations of our Operating Companies. Often, the
monopoly provider enjoys competitive advantages similar to the
advantages described above that government-owned and affiliated
providers may enjoy. As a result, our Operating Companies may be
at a competitive disadvantage to monopoly providers, particularly
 as the Operating Companies seek to offer new telecommunications
services.
Our coverage is not as extensive as those of other
 wireless service providers in our markets.
We focus on providing our services to business customers in major
 business centers and related transportation corridors. Our ESMR
networks do not offer nationwide coverage in the countries in
which we operate. Many of the cellular/personal communications
services, or PCS, providers in our markets have entered into
roaming agreements with each other, which permit these providers
to offer coverage to their subscribers in each other's
markets. The iDEN technology that we deploy is not compatible
with other wireless technologies such as digital cellular or PCS
technologies or with other iDEN networks not operating in the 800
 MHz spectrum. As a result, with the exception of GSM 900 MHz
systems, we cannot enter into roaming agreements with the
operators of these other cellular networks. Although the i2000
subscriber unit is compatible with iDEN 800 MHz and GSM 900 MHz
systems, our customers will not be able to roam on other iDEN 800
 MHz or GSM 900 MHz systems where we do not have a roaming
agreement. As a result, we will not be able to provide coverage
to our subscribers outside of our currently operating digital
ESMR markets until:
•
we build out additional digital ESMR networks in areas outside
	our existing markets;
•
other operators deploy iDEN 800 MHz or GSM 900 MHz technology in
	markets outside of our coverage areas and we enter into roaming
	agreements with those operators; or
•
multi-band and/or multi-mode subscriber units that can be used on
	 both iDEN 800 MHz and non-GSM 900 MHz wireless communications
	networks become available and we enter into roaming agreements
	with the operators of those networks.
Because of the above factors, we cannot assure you that we will
be able to compete effectively with cellular and PCS providers in
 our markets. We have provided a more detailed
14
Table of Contents
description of the competitive factors affecting each of our
Operating Companies under the "Competition" discussion
for each Operating Company under "Business — Operating
Companies."
We must keep pace with rapid technological
changes.
Our digital ESMR technology could become obsolete. We rely on
digital technology that is not compatible with, and competes
with, other forms of digital and non-digital voice communication
technology. Competition among these differing technologies can:
•
segment the user markets, thereby reducing demand for specific
	technologies, including the iDEN digital technology that we use;
•
reduce the resources devoted by third-party suppliers, including
	Motorola, which supplies all of our current digital ESMR
	technology, to developing or improving the technology for our
	networks; and
•
adversely affect market acceptance of our service offerings.
We cannot assure you that the iDEN digital technology we use to
operate our ESMR networks will successfully compete with the
other forms of digital and non-digital voice communication
systems. Further, new digital or non-digital voice communication
transmission technology may develop that will cause our existing
digital ESMR networks to become obsolete or otherwise impair
market acceptance of our service offerings.
Furthermore, in the future, we plan to offer our subscribers
access to digital two-way mobile data and Internet connectivity.
Wireless data and Internet connectivity is a new service in the
wireless communications industry. Since our networks primarily
operate on 800 MHz spectrum, any digital two-way mobile data
 and Internet connectivity services that we may offer could be
significantly limited compared to those services offered by other
 wireless communications providers with larger spectrum
positions. We cannot assure you that we will provide any future
digital two-way mobile data and Internet connectivity services
or, if we do, that we will not encounter difficulties in
launching these services or that these services will perform
satisfactorily or achieve sufficient levels of customer
satisfaction.
If our wireless communications technology does not perform in a
manner that meets customer expectations, we will be unable to
attract and retain customers, which would adversely affect us.
Customer acceptance of the services we offer is and will continue
 to be affected by technology-based differences and by the
operational performance and reliability of system transmissions
on our digital ESMR networks. If we are unable to address and
resolve satisfactorily performance or other transmission quality
issues as they arise, or if these issues limit our ability to
expand our network coverage or capacity as currently planned, or
if these issues were to place us at a competitive disadvantage to
 other wireless service providers in our markets, we may have
difficulty attracting and retaining customers, which would
adversely affect us.
Our equipment is more expensive than that of some competitors,
	 which may adversely affect our growth and operating results.
We currently market multi-function digital subscriber units. Our
subscriber units are, and are likely to remain, significantly
more expensive than analog subscriber units and are, and are
likely to remain, somewhat more expensive than digital cellular
or PCS subscriber units that do not incorporate a comparable
multi-function capability. Although we believe that our
multi-function subscriber units currently are competitively
priced compared to multi-function digital cellular and PCS
subscriber units, the higher cost of our equipment may make it
more difficult or less
15
Table of Contents
profitable to attract customers who do not place a high value on
our unique multi-service offering. This may reduce our growth
opportunities or profitability.
We operate exclusively in foreign markets, and our assets,
customers and cash flows are concentrated in Latin America, which
 presents risks to our operating and financing plans.
We face political risks in our markets.
Most of our markets are considered to be "emerging
markets." Although political, economic and social conditions
 differ in each country in which we currently operate, political
and economic developments in one country may affect our business
as a whole, including our access to international capital
markets. In Peru, for example, there was significant terrorist
activity in the 1980s and the early 1990s. During that time
anti-government groups escalated violence against the government,
 the private sector and Peruvian residents. Although the
government of Peru has made progress in suppressing terrorist
activity since 1990, incidents of terrorist activity continue to
occur, including the hostage incident at the residence of the
Japanese Ambassador to Peru in 1997. Terrorist activity could
recur, and if it does, it may have a material adverse effect on
the operations of Nextel del Peru, S.A., referred to as Nextel
Peru. Similar outbreaks of terrorism or political violence have
occurred in the Philippines, Mexico and other countries in which
we operate. In addition, we are unable to predict the impact that
 presidential or other contested local or national elections,
including the recent presidential elections in Mexico and Peru,
and the associated transfer of power from incumbent officials
and/or political parties to elected victors, may have on the
local economy or the growth and development of the local
telecommunications industry and therefore on us.
Because wireless telecommunications services companies have a
	limited history in our markets, our ability to grow and develop
	our business is uncertain.
The success of our business is subject to factors that are beyond
 our control and impossible to predict due, in part, to the
limited history of wireless communications services in our
existing and targeted markets. Consequently, we face many
uncertainties in our markets, including:
•
the size of the markets for wireless communications services;
•
the penetration rates of these markets;
•
the ability of potential subscribers to pay subscription and
	other fees;
•
the extent and nature of the competitive environment in these
	markets; and
•
the immediate and long-term commercial viability of wireless
	communications services in these markets.
Risks relating to our investments in joint ventures may
	adversely affect our growth and operating results.
We have entered into contractual joint ventures regarding our
ownership interests in and arrangements with some of our
Operating Companies and may enter into other joint ventures or
similar arrangements with third parties in the future. There are
risks in participating in arrangements of these types, including
the risk that the other participants may at any time have
economic, business or legal interests or goals that are
inconsistent with our goals or those of the joint enterprise.
There also is the risk that a participant may be unable to meet
its economic or other obligations to the joint enterprise and
that we may be required to fulfill some or all of those
obligations or restrict the conduct of business of the affected
enterprise. We also may be or become obligated to acquire all or
a portion of the ownership interest of some or all of the other
participants in these joint enterprises.
16
Table of Contents
We are subject to fluctuations in currency exchange rates and
	limitations on the expatriation or conversion of currencies.
Substantially all of our revenues are denominated in non-U.S.
currencies, although a significant portion of our capital and
operating expenditures, including imported network and subscriber
 handset equipment, and substantially all of our outstanding
debt, are denominated in U.S. dollars. Accordingly, fluctuations
in exchange rates relative to the U.S. dollar could have a
material adverse effect on our earnings or assets. For example,
the economic turmoil in Asia in the late 1990s resulted in a
significant devaluation of the currencies in several countries in
 Asia and caused fluctuations in the currencies of other emerging
 countries, particularly in Latin America. Further, the recent
currency devaluation in Brazil resulted in a significant charge
against our earnings in 1999 and a negative adjustment to the
carrying value of our assets in Brazil.
Any devaluation of local currencies in the countries in which our
 Operating Companies conduct business may result in increased
costs for imported goods and services and may, as a result,
decrease demand for our products and services in the affected
markets. If our Operating Companies distribute dividends in local
 currencies in the future, the amount of cash we receive will
also be affected by fluctuations in exchange rates and currency
devaluations. In addition, some of the countries in which we have
 operations do or may restrict the expatriation or conversion of
currency. Although we routinely assess our foreign currency
exposure, we have not entered into any hedging transactions.
We are subject to fluctuating economic conditions
in the local markets in which we operate.
Our operations depend on the economies of the markets in which
our Operating Companies conduct business. These markets are in
countries with economies in various stages of development or
structural reform, some of which are subject to rapid
fluctuations in terms of consumer prices, employment levels,
gross domestic product, interest rates and inflation rates.
If these fluctuations have an effect on the ability of customers
to pay for our products and services, our business may be
adversely affected. For example, several countries in Asia,
including the Philippines, have experienced significant economic
turmoil, including bank failures, in the last several years. The
economic conditions in Asia have also affected other emerging
markets, particularly those in Latin America. As a result, our
Operating Companies may experience lower demand for their
products and services and a decline in the growth of their
customer base and in revenues.
In addition, the other stockholders in our Operating Companies
may, as a result of these fluctuating economic conditions or for
other reasons, be unable or unwilling to fund their capital
contribution requirements. We then may be required to restrict
the conduct of business of the affected Operating Company or to
assume and satisfy the funding obligations of other stockholders
as we recently did in Japan and the Philippines.
Some of our Operating Companies conduct business in countries
where the rate of inflation is significantly higher than in the
United States. We cannot assure you that any significant increase
 in the rate of inflation in any of these countries could be
offset, in whole or in part, by corresponding price increases
implemented by our Operating Companies, even over the long term.
We pay significant import duties on our network
equipment and handsets.
Our operations are highly dependent upon the successful and
cost-efficient importation of network equipment and subscriber
units from North America and, to a lesser extent, from Europe and
 Japan. In the countries in which our Operating Companies conduct
 business, network equipment and subscriber units are subject to
significant import duties and other taxes that can be as high as
50% of the purchase price. Although we believe there is a trend
away from
17
Table of Contents
increased import duties, any significant increase in the future
could have a material adverse effect on our results of
operations.
We are subject to foreign taxes in the countries
in which we operate.
Distributions of earnings and other payments, including interest,
 received from our Operating Companies may be subject to
withholding taxes imposed by the countries in which these
entities operate. Any of these taxes will reduce the amount of
after-tax cash we can receive from our Operating Companies.
In general, a U.S. corporation may claim a foreign tax credit
against its federal income tax expense for foreign withholding
taxes and for foreign income taxes paid directly by foreign
corporate entities in which the company owns 10% or more of the
voting stock. Our ability to claim foreign tax credits and to
utilize net foreign losses is, however, subject to numerous
limitations, and we may incur incremental tax costs as a result
of these limitations or because we do not have U.S. federal
taxable income.
We may also be required to include in our income for U.S. federal
 income tax purposes our proportionate share of specified
earnings of our foreign corporate subsidiaries that are
classified as "controlled foreign corporations,"
without regard to whether distributions have been actually
received from these subsidiaries.
We have entered into a number of agreements that are subject
	to enforcement in foreign countries.
A number of the agreements that we enter into with our Operating
Companies are governed by the laws of, and are subject to dispute
 resolution in the courts of or through arbitration proceedings
in, the countries or regions in which the operations are located.
 We cannot accurately predict whether these forums will provide
effective and efficient means of resolving disputes that may
arise. Even if we are able to obtain a satisfactory decision
through arbitration or a court proceeding, we could have
difficulty enforcing any award or judgment on a timely basis. Our
 ability to obtain or enforce relief in the United States is also
 uncertain.
We are subject to the Foreign Corrupt Practices
Act.
The Foreign Corrupt Practices Act generally prohibits U.S.
companies and their intermediaries from bribing foreign officials
 to obtain or keep business. Although we have taken precautions
to comply with that act, we cannot assure you that these
precautions will protect us against liability under that act,
particularly as a result of actions that may have been taken in
the past or may be taken in the future by our agents and other
intermediaries. In particular, we may be held responsible for
actions taken by our local representatives or by other
stockholders in an Operating Company despite our efforts to
control them. Any determination that we have violated that act
could affect us adversely. Additionally, some of our competitors
may not be subject to similar restrictions.
We are controlled by and dependent on Nextel
Communications.
Nextel Communications will, and its significant
stockholders may, exert control over us.
After the offerings, Nextel Communications will continue to
control us and will beneficially own
     % of the outstanding class B common
 stock, which will represent approximately
     % of the combined voting power of
all of our outstanding common stock. As a result of this
ownership, Nextel Communications generally will be able to
exercise a controlling influence over our business and affairs
and will be able to unilaterally determine the outcome of any
matter submitted to a vote of our stockholders. This
concentration of ownership by Nextel Communications may have the
effect of delaying or preventing an attempt to acquire us, even
if that would
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be in your best interests. Further, Nextel Communications has the
 power to elect all of the members of our board of directors.
Additionally, based on the ownership information relating to
Nextel Communications as of June 30, 2000, entities
controlled by Craig O. McCaw beneficially owned about 13% of the
outstanding Nextel Communications stock. Digital Radio L.L.C.,
which is controlled by Mr. McCaw, may designate at least one
 fourth of the board of directors of Nextel Communications. In
addition, Digital Radio may select, from its representatives on
the board of directors, a majority of the operations committee of
 Nextel Communications' board of directors, which has
significant authority relating to Nextel Communications'
business strategy, budgets and financing arrangements and in the
nomination and oversight of specified executive officers. As a
result, Digital Radio may exert significant influence over our
affairs as well. In addition, as of June 30, 2000, Motorola
beneficially owned about 14% of the outstanding Nextel
Communications stock. Motorola is entitled to nominate two
directors to the board of directors of Nextel Communications.
Some members of our management also serve Nextel
Communications.
Historically and currently, some of our officers have also served
 as officers of Nextel Communications, including
Mr. Shindler, who serves as our Chief Executive Officer and
also as the Chief Financial Officer of Nextel Communications.
Officers serving in dual roles spend a substantial part of their
time and effort on behalf of Nextel Communications. Further, our
officers continue to participate in Nextel Communications'
incentive equity plan. Substantial interests in the equity of
Nextel Communications may present these officers with incentives
different from those of our stockholders. In addition, six of our
 seven directors are also directors of Nextel Communications.
These directors and officers may also have conflicts of interest
in transactions in which both we and Nextel Communications are
involved.
Your interests may conflict with those of Nextel
Communications or its significant stockholders.
We have entered into an agreement with Nextel Communications that
 provides us with a right of first opportunity. Under that
agreement, Nextel Communications has agreed that neither it nor
its controlled affiliates may, for a period of time, participate
in other two-way terrestrial based mobile wireless communications
 systems in any region other than the United States unless these
opportunities have first been presented to and rejected by us. We
 have agreed that neither we nor any of our controlled affiliates
 will participate in the ownership or management of any wireless
communications service business in the United States without the
consent of Nextel Communications. This agreement terminates upon
specified change of control events.
Although Nextel Communications currently allows us to use the
"Nextel" tradename on a royalty-free basis, this
license is not in writing and we cannot assure you that our right
 to use the "Nextel" tradename will continue or will
continue on terms not involving the payment of royalties or other
 amounts to Nextel Communications. In addition, we depend upon
our roaming agreements with Nextel Communications for access to
its iDEN network in the United States.
Digital Radio, Mr. McCaw and their affiliates have and,
subject to the terms of agreements between Digital Radio and
Nextel Communications, may have other investments or interests in
 entities that provide wireless telecommunications services that
could potentially compete with Nextel Communications and with us.
 Under the agreements, Mr. McCaw, Digital Radio and their
controlled affiliates may not, for one year after termination of
the operations committee of the board of directors of Nextel
Communications, participate in other two-way terrestrial-based
mobile wireless communications systems in the region that
includes any part of North America or South America unless these
opportunities have first been presented to and waived or rejected
 by Nextel Communications. We do not have similar arrangements
with these entities, and we cannot
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assure you that Nextel Communications will be willing or able to
address these opportunities if they are presented.
Motorola and its affiliates engage in wireless communications
businesses, and may in the future engage in additional
businesses, that do or may compete with some or all of the
services that we offer. Although we believe that our relationship
 with Motorola reflects the realities of purchasing and obtaining
 financing from a competitor, we cannot assure you that the
potential conflict of interest will not adversely affect us in
the future. In addition, Motorola is a significant stockholder of
 Nextel Communications, and indirectly of us, and a significant
stockholder in our Operating Company in Japan, which creates
potential conflicts of interest, particularly with regard to
significant transactions.
We depend on Nextel Communications for many
services.
Pursuant to an overhead services agreement, Nextel Communications
 provides us many services typically performed by in-house
personnel, including various financial, human resources, audit,
legal, engineering and marketing functions. The fee for these
services is based on the actual costs incurred by Nextel
Communications as apportioned by it in good faith. While we have
the right to review and discuss adjustments to the determinations
 made by Nextel Communications, Nextel Communications'
determination is final and binding. We must continue to obtain
these services from Nextel Communications until 2007, unless
Nextel Communications consents to discontinuance of a particular
service. We cannot assure you our allocations under this
agreement will not increase as we grow or as a result of changes
in the remaining business of Nextel Communications. In addition,
if Nextel Communications' equity interest in us decreases in
 the future, we would likely have more limited access, if any, to
 its employees, services and expertise.
We are a party to a tax sharing agreement with Nextel
	Communications, which may not always be favorable to us.
We have entered into a tax sharing agreement with Nextel
Communications under which we must pay Nextel Communications an
amount equal to our tax liability as if we filed separate tax
returns. The manner in which payments are calculated may result
in higher payments to Nextel Communications than we would be
required to pay if we made separate tax filings. In addition,
Nextel Communications is entitled to utilize our tax attributes
and other items of income, gain, loss, deduction, expense, credit
 and similar treatments on behalf of the consolidated Nextel
Communications group, and we are not entitled to any compensation
 for this utilization.
Our success depends on our ability to manage the expansion
of our operations.
Since our inception, we have experienced rapid growth. We intend
to continue to grow through further expansion and enhancement of
our existing operations and may grow through acquisitions and
joint ventures and through the establishment of new operations.
Our future success depends on the expansion of our operations and
 the development of a large subscriber base on a timely basis.
Challenges associated with our digital ESMR network
	construction and expansion projects could adversely affect our
	growth plans.
Our digital ESMR network construction and expansion projects will
 be subject to numerous factors, any of which could require
substantial changes to proposed plans or otherwise alter our
currently anticipated time frames or budgets. These factors
include:
•
securing the necessary radio spectrum licenses and adhering to
	regulatory requirements relating to the licenses;
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•
locating suitable sites for communications sites or towers,
	obtaining any required zoning variances or other governmental or
	local regulatory approvals, and negotiating acceptable purchase,
	lease, joint venture or other agreements;
•
negotiating favorable interconnection agreements with local phone
	 companies;
•
delays that may be caused by frequency cross-interference with
	other radio spectrum users, such as television stations; and
•
risks typically associated with any construction project,
	including possible shortages of equipment or skilled labor,
	engineering or environmental problems, work stoppages, weather
	interference and unanticipated cost increases.
We cannot assure you that our currently planned digital ESMR
network construction and expansion activities will be completed
successfully or implemented in a timely manner.
Challenges associated with selling and marketing our digital
	ESMR services could affect our ability to establish or maintain a
	 significant subscriber base.
Once our digital ESMR network operations are in place in a
particular market, the development of a significant subscriber
base depends on the success of our sales and marketing efforts
and the receptiveness of the marketplace to our services. In most
 of our markets, our Operating Companies have limited experience
in marketing our wireless communications services and in
tailoring our sales and marketing efforts to local conditions.
Additionally, in some markets, there are restrictions on the type
 of customers to whom our Operating Companies may offer their
ESMR services. We cannot assure you that the sales and marketing
teams of our Operating Companies will be able to establish a
large subscriber base in our markets successfully.
Furthermore, in addition to increasing the size of our customer
base, our sales and marketing efforts must focus on the quality
of our customer base. In some cases, this burden is heavier than
that faced by United States companies due to the lack of business
 infrastructure in emerging markets. For example, the lack of
established credit bureaus in many of the countries in which our
Operating Companies conduct business makes it more difficult to
ascertain the creditworthiness of potential customers. As a
result, we, like other service providers in these markets, have
experienced and may continue to experience higher bad debt
expense as a percentage of revenues than U.S. companies.
In most of our markets, our Operating Companies rely in part on
the efforts of independent dealers and distributors to market our
 services. We cannot assure you that we will be able to establish
 and maintain satisfactory relationships with enough independent
dealers or distributors or that this will be a cost-effective way
 of acquiring subscribers.
Challenges associated with managing our expanded operations
	could affect our ability to manage our growth in our markets.
As a result of our aggressive construction and expansion plans,
we face significant challenges in managing our expanded
operations. Our construction and expansion plans will place
substantial burdens on our current management resources,
information systems and financial controls. To successfully
manage rapid growth, we must:
•
anticipate projected growth;
•
rapidly improve, upgrade and expand our business infrastructure;
•
deliver products and services on a timely basis;
•
maintain levels of service that meet customer expectations;
•
recruit, hire and train additional qualified employees; and
•
maintain cost controls.
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In addition, we expect significant challenges in integrating any
newly acquired businesses with our existing operations. We cannot
 assure you that we will be able to manage the growth of our
expanded operations effectively. Any failure to do so would have
an adverse effect on our results of operations.
Our networks must have sufficient capacity to
support our anticipated customer growth.
Our business plan depends on assuring that our digital ESMR
networks have adequate capacity to accommodate anticipated new
customers and related increases in usage of our networks. Our
ability to have sufficient capacity to support growth depends on:
•
our ability to obtain additional radio spectrum when and where
	required;
•
the availability of subscriber units of the appropriate models
	and types to meet the demands and preferences of our customers;
	and
•
our ability to obtain additional cell sites and other
	infrastructure equipment.
If we are unable to obtain spectrum, equipment or subscriber
units when and as required, our ability to implement our business
 plan will be adversely affected.
We rely principally on one supplier to implement our
digital ESMR networks.
Motorola is currently our sole source for the iDEN digital
network and subscriber unit equipment used throughout our ESMR
markets. If Motorola fails to deliver necessary technology
improvements and enhancements and system infrastructure and
subscriber equipment on a timely, cost-effective basis, it would
have an adverse effect on our growth and operations. We expect to
 rely principally on Motorola for the manufacture of a
substantial portion of the equipment necessary to construct,
enhance and maintain our digital ESMR networks and for the
manufacture of subscriber unit equipment for the next several
years. If Motorola does not provide the necessary equipment to
us, we may not be able to service our existing subscribers or add
 new subscribers.
Agreements with Motorola reduce our operational flexibility
and may adversely affect our growth or operating results, which
could adversely affect the value of your investment.
Our agreements with Motorola impose limitations and conditions on
 our ability to use other technologies. These terms may operate
to delay or prevent us from employing new or different
technologies that perform better or are available at a lower cost
 because of the additional economic costs and other impediments
to change arising under the Motorola agreements. For example, our
 equipment purchase agreements with Motorola provide that we must
 provide Motorola with notice of our determination that
Motorola's technology is no longer suited to our needs at
least six months before publicly announcing or entering into a
contract to purchase an alternate technology.
In addition, if Motorola manufactures, or elects to manufacture,
the alternate technology that we elect to deploy, we must give
Motorola the opportunity to supply 50% of our infrastructure
requirements for the alternate technology for three years.
Finally, if after a switch to an alternate technology we do not
maintain operational Motorola infrastructure equipment at the
majority of our cell sites that are deployed at the date the
switch to an alternate technology is first publicly announced,
Motorola may require that all financing provided by Motorola to
us be repaid.
We depend on our senior management team.
Our success and our growth strategy depend in large part on our
ability to attract and retain key management, marketing, finance
and operating personnel, both at the corporate and Operating
Company levels. In many of the countries in which our Operating
Companies conduct business, experienced management and other
highly skilled personnel are in great demand. We
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cannot assure you that we will continue to attract and retain the
 qualified personnel necessary to implement our business plan and
 strategies. In addition, the unexpected loss of the services of
one or more members of our senior management team could adversely
 affect us. We do not maintain key person life insurance on any
members of our senior management team.
We have significant intangible assets, which may not be
adequate to satisfy our obligations in the event of a
liquidation.
If we default on debt or if we were liquidated, we cannot assure
you that the value of our assets will be sufficient to satisfy
our obligations. We have a significant amount of intangible
assets, such as licenses. The value of these licenses will depend
 significantly upon the success of our digital ESMR network
business and the growth of the SMR and wireless communications
industries in general. We had a net tangible book value deficit
of about $535.4 million as of June 30, 2000.
Our prospects may be affected by concerns about health
risk.
Portable communications devices have been alleged to pose health
risks, including cancer, due to radio frequency emissions from
these devices. Studies performed by wireless telephone equipment
manufacturers have investigated these allegations and additional
studies are ongoing. The actual or perceived risk of mobile
communications devices could adversely affect us through reduced
subscriber growth rate, a reduction in subscribers, reduced
network usage per subscriber or through reduced financing
available to the mobile communications industry.
Risk Factors Relating to the Common Stock
There is no trading market for our common stock; our stock
price may be volatile.
This is the initial public offering of our class A common
stock, and no public market for any of our common stock currently
 exists. We cannot assure you that an active trading market will
develop or be sustained after the offerings are completed. The
initial public offering price will be determined through
negotiations between us and the underwriters based on several
factors and may not be indicative of the market price of the
class A common stock after the offerings. The market price of our
 class A common stock may be significantly affected by
factors including:
•
actual or anticipated fluctuations in our operating results;
•
new products or services offerings by us or our competitors;
•
changes in our customer base or those of our competitors;
•
legislative and regulatory developments;
•
conditions and trends in the telecommunications industry;
•
conditions in the local markets or regions in which we operate;
•
general market conditions; and
•
other factors beyond our control.
In addition, the stock market has periodically experienced
significant price and volume fluctuations that have particularly
affected the market prices of common stock of telecommunications
companies. These changes have often been unrelated to the
operating performance of particular companies. These broad market
 fluctuations may also adversely affect the market price of our
shares. We cannot assure you that the market price of the class A
 common stock will not decline below the initial offering price.
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Sales of large amounts of our common stock or the
perception that sales could occur may depress our stock price.
After the offerings, our existing stockholders, including Nextel
Communications, will own about      % of
 the outstanding shares of our common stock. As of June 30,
2000, there were 13,970,584 shares of our common stock
reserved for issuance upon exercise of outstanding options
granted under our equity incentive plans. In addition,
1,474,304 shares of our common stock are reserved for
issuance under warrants issued in connection with the sale of our
 March 1997 Notes. A registration rights agreement was entered in
 connection with the issuance of warrants that requires us to
file with, and have declared effective by, the Securities and
Exchange Commission a registration statement with respect to the
shares of common stock issuable upon exercise of the warrants,
referred to as the warrant shares, within 180 days after
completion of the offerings. Subject to limited exceptions, the
warrant holders also have a right to have the warrant shares
included in some of our registered offerings.
Nextel Communications and our directors, officers and selected
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of their
shares of common stock or securities convertible into or
exchangeable for shares of common stock for 180 days after
the date of this prospectus. However, this agreement will be
subject to a number of exceptions and qualifications. In
addition, Goldman, Sachs & Co. may, in its sole discretion,
release any or all of the securities subject to these
restrictions at any time without notice. See
"Underwriting."
You will experience immediate and substantial dilution in
your investment.
The initial public offering price is substantially higher than
the net tangible book value per share of our common stock. As a
result, you will experience immediate and substantial dilution in
 net tangible book value when you buy shares of our class A
common stock in the offerings. You will experience further
dilution upon the exercise of outstanding options or warrants to
purchase our common stock.
Management has broad discretion in the use of proceeds.
None of the estimated net proceeds of the offerings are allocated
 to specific purposes. Our management will have broad discretion
over the application of these funds. We cannot assure you that
management will make that application effectively or in a manner
that will not result in an adverse effect on our financial
condition or results of operations.
Disparate voting rights of class A common stock and class B
 common stock could cause an adverse effect on the value and
liquidity of class A common stock
The class A common stock and class B common stock vote as a
single class on all matters, except as otherwise required by law,
 with each share of class A common stock entitling its holder to
one vote and each share of class B common stock entitling its
holder to ten votes. In addition to voting together with holders
of class A common stock on most matters, holders of
class B common stock will be entitled to vote as a separate
class on amendments to our certificate of incorporation that
would alter or adversely affect the powers, preferences or
special rights of the class B common stock that would not also
adversely affect the holders of class A common stock. We cannot
assure you that these differences will not impact the value or
liquidity of the class A common stock. The differential in the
voting rights of the class A common stock and class B common
stock could adversely affect the value of the class A common
stock to the extent that investors or any potential future
purchaser of our common stock ascribe value to the superior
voting rights of our class B common stock. The existence of two
separate classes of common stock could also result in less
liquidity for our class A common stock than if there were
only one class of common stock.
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Some provisions of our certificate of incorporation and
Delaware law could make it more difficult for a third party to
acquire us.
Provisions of our certificate of incorporation and of Delaware
law could make it more difficult to acquire us including:
•
the voting terms of the class B common stock, which based on
	Nextel Communications' ownership interest following the
	offerings, effectively enable Nextel Communications to block a
	proposed acquisition or merger;
•
the ability of our board of directors to issue shares of
	preferred stock on terms that can be set by our board of
	directors in its sole discretion; and
•
provisions of Delaware law that impose restrictions on mergers
	and business combinations between us and a holder of
	15 percent or more of our common stock, other than Nextel
	Communications.
Our forward-looking statements are subject to a variety of
factors that could cause actual results to differ materially from
 current beliefs.
"Safe Harbor" Statement under the Private Securities
 Litigation Reform Act of 1995:
A number of the statements
made in this prospectus are not historical or current facts, but
deal with potential future circumstances and developments. They
can be identified by the use of forward-looking words such as
"believes," "expects," "plans,"
"may," "will," "would,"
"could," "should" or "anticipates"
or other comparable words, or by discussions of strategy that
involve risks and uncertainties. We warn you that these
forward-looking statements are only predictions, which are
subject to risks and uncertainties, including financial
variations, changes in the regulatory environment, industry
growth and trend predictions. We have attempted to identify, in
context, some of the factors that we currently believe may cause
actual future experience and results to differ from our current
expectations regarding the relevant matter or subject area. The
operation and results of our wireless communications business
also may be subject to the effect of other risks and
uncertainties in addition to the other qualifying factors
identified in "Risk Factors" above and elsewhere in
this prospectus, including, but not limited to:
•
general economic conditions in Latin America and Asia and in the
	market segments that we are targeting for our digital ESMR
	services;
•
the availability of adequate quantities of system network and
	subscriber equipment and components to meet our service
	deployment and marketing plans and customer demand;
•
potential currency devaluations in countries in which our
	Operating Companies conduct business;
•
the accuracy of our estimates of the impact of foreign exchange
	volatility in our markets as compared to the U.S. dollar;
•
substantive terms of any international financial aid package that
	 may be made available to any country in which our Operating
	Companies conduct business;
•
future legislation or regulatory actions relating to SMR or ESMR
	services, other wireless communication services or
	telecommunications generally;
•
the impact that economic conditions in Latin America and Asia, as
	 well as other market conditions, may have on the volatility and
	availability of equity and debt financing in domestic and
	international capital markets;
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•
the success of efforts to improve and satisfactorily address any
	issues relating to our digital ESMR network performance;
•
market acceptance of our new service offerings, including Nextel
	Worldwide and any future digital two-way mobile data or Internet
	connectivity services;
•
the continued successful performance of the technology being
	deployed in our service areas and the success of technology to be
	 deployed in connection with any future introduction of digital
	two-way mobile data or Internet connectivity services;
•
the ability to achieve and maintain market penetration and
	average subscriber revenue levels sufficient to provide financial
	 viability to our digital ESMR network business;
•
our ability to manage rapid growth, including our ability to
	timely and successfully accomplish required enhancement and
	expansion of our networks and scale-up of our billing,
	collection, customer care and similar back-room operations to
	keep pace with anticipated customer growth, increased system
	usage rates and growth in levels of accounts receivables being
	generated by the digital ESMR network customer base;
•
access to sufficient debt or equity capital to meet our operating
	 and financial needs; and
•
the quality and price of similar or comparable wireless
	communications services offered or to be offered by our
	competitors, including providers of cellular and PCS services.
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USE OF PROCEEDS
Based on an assumed initial public offering price of $
per share, the midpoint of the range set forth on the cover,
the net proceeds of the offerings received by us, after deducting
 the estimated underwriting discounts and commissions and other
expenses of the offerings, would be about $
, or about $
if the underwriters' over-allotment options are
exercised in full. We intend to use the net proceeds from the
offerings to finance network expansion, acquisitions of
additional spectrum, working capital needs or debt service
requirements or for other general corporate purposes.
DIVIDEND POLICY
We have not paid any cash dividends on our capital stock and do
not plan to pay dividends on our common stock for the foreseeable
 future. Some of our financing arrangements prohibit, and are
expected to continue to prohibit, us from paying dividends,
except in compliance with specified financial covenants. In
addition, some of the collateral security mechanisms and related
provisions associated with our financing agreements limit the
amount of cash available to make dividends, loans and cash
distributions to us from our subsidiaries. Accordingly, while
these restrictions are in place, any profits generated by our
Operating Companies will not be available to us for, among other
things, payment of dividends.
We anticipate that for the foreseeable future any cash flow
generated from our operations will be used to develop and expand
our business and operations. Any future determination as to the
payment of dividends on our common stock will be at the
discretion of our board of directors and will depend upon our
operating results, financial condition and capital requirements,
contractual restrictions, general business conditions and other
factors that our board of directors deems relevant. We cannot
assure you that we will pay dividends on our common stock at any
time in the future.
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CAPITALIZATION
The following table sets forth the consolidated cash, cash
equivalents and short-term investments, current portion of
long-term debt and capitalization of Nextel International as of
June 30, 2000 on a historical basis and as adjusted to give
effect to the following:
•
the receipt of about $623.8 million in net proceeds from the
	 issuance of our August 2000 Notes on August 1, 2000;
•
the acquisition on August 4, 2000 of additional ownership
	interests in McCaw Brazil and the related payment of about $146.0
	 million;
•
the exchange by Nextel Communications of 2,150 shares of series A
	 exchangeable redeemable preferred stock into about
	          shares
	 of our class B common stock, assuming the exchange occurred on
	June 30, 2000 and based on the accreted value of the
	series A preferred stock at that date of about $215.1
	million and an assumed initial public offering price of the
	class A common stock of $     per
	share, the midpoint of the range set forth on the cover.
•
the reclassification of all of our existing shares of common
	stock into an equal number of shares of our class B common
	stock; and
•
the receipt of about
	$           million
	 in estimated net proceeds from the sale of
	           shares
	 of our class A common stock in the offerings, assuming an
	initial public offering price of
	$     per share, the midpoint of the
	range set forth on the cover.
June 30, 2000
(unaudited)
Actual
As adjusted
(in thousands, except
share data)
Cash, cash equivalents and short-term investments(1)
$
297,384
$
Current portion of long-term debt
$
67,098
$
67,098
Long-term debt, net of current portion:
13.0% Senior Discount Notes due 2007
$
745,870
$
745,870
12.125% Senior Discount Notes due 2008
525,870
525,870
12.75% Senior Serial Notes due 2010
—
641,043
International Motorola Financing Facility
151,025
151,025
International Motorola Incremental Facility
56,650
56,650
Brazil Motorola Financing Facility
87,500
87,500
Argentina Credit Facility
83,334
83,334
Motorola Argentina Incremental Facility
15,483
15,483
Other
902
902
Total long-term debt
1,666,634
2,307,677
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June 30, 2000
(unaudited)
Actual
As adjusted
(in thousands, except
share data)
Stockholders' (deficit) equity:
Series A exchangeable redeemable preferred stock, 12,500
	shares authorized; 2,150 shares issued and outstanding, actual
	and no shares issued and outstanding, as adjusted
215,000
—
Common stock, 200,000,000 shares authorized, actual and no shares
	 authorized, as adjusted; 180,691,155 shares issued and
	outstanding actual and no shares issued and outstanding, as
	adjusted;
927,693
—
Class A common stock, no shares authorized, actual and
	1,000,000,000 shares authorized, as adjusted; no shares issued
	and outstanding, actual and    shares issued and
	outstanding, as adjusted
—
Class B common stock, no shares authorized, actual and
	500,000,000 shares authorized, as adjusted; no shares issued and
	outstanding, actual and    shares issued and
	outstanding, as adjusted
—
1,142,774
Accumulated deficit
(1,100,900
)
(1,100,900
)
Net unrealized gain on investments
83,707
83,707
Foreign currency translation adjustment
(129,671
)
(129,671
)
Total stockholders' (deficit) equity
(4,171
)
Total capitalization
$
1,662,463
$
(1)
Included in cash and cash equivalents is about $10.5 million
	 that was not available to fund any of the cash needs of Nextel
	International or any of its other subsidiaries due to
	restrictions contained in specified debt agreements.
29
Table of Contents
DILUTION
The pro forma net tangible book value as of June 30, 2000
was $(535.3) million or approximately
$(       ) per share, giving
effect to the exchange of all outstanding shares of our
series A preferred stock for shares of our class B
common stock, assuming the exchange occurred on June 30,
2000 and based on the accreted value of the series A
preferred stock at that date of about $215.1 million and an
assumed initial public offering price for the class A common
 stock of $     per share, the midpoint
of the range set forth on the cover. Net tangible book value per
share represents the amount of our stockholders' (deficit)
equity, less intangible assets, divided by the number of shares
of common stock outstanding on June 30, 2000.
Net tangible book value dilution per share represents the
difference between the following:
(1)
the amount paid per share by purchasers of common stock in the
	offerings; and
(2)
the adjusted pro forma net tangible book value per share of
	common stock as of June 30, 2000.
After giving effect to our sale of
          shares
 of our class A common stock in the offerings, our adjusted
pro forma net tangible book value as of June 30, 2000, based
 on an assumed initial public offering price of
$          per
share, the midpoint of the range set forth on the cover, would
have been
$(          )
or
$(          )
per share of common stock. This represents an immediate increase
in net tangible book value of
$          per
share to existing stockholders and an immediate dilution of net
tangible book value of
$          per
share to you. The following table illustrates this dilution:
Assumed initial public offering price per share of class A
	common stock
$
Pro forma net tangible book value per share of common stock as of
June 30, 2000.
$
(
)
Increase in pro forma net tangible book value per share of common
	 stock attributable to the offerings
Pro forma net tangible book value per share as of June 30,
	2000 after giving effect to the offerings
Dilution per share to new investors
$
The table below summarizes on a pro forma basis as of
June 30, 2000, giving effect to the exchange of all
outstanding shares of our series A exchangeable redeemable
preferred stock for shares of our class B common stock on the
basis described above, the difference between our existing
stockholders and the new investors in the offerings with respect
to the number of shares purchased from us, the total
consideration paid and the average price per share paid.
Total
Shares Purchased
Consideration
Average
Price Per
Number
Percent
Amount
Percent
Share
Existing stockholders
%
%
$
New investors
Total
100
%
100
%
The tables above assume no exercise of outstanding options and
warrants. As of June 30, 2000, there were
13,970,584 shares of common stock reserved for issuance upon
 exercise of outstanding options at a weighted average exercise
price of $11.54 per share and 1,474,304 shares of common
stock reserved for issuance upon exercise of outstanding warrants
 at an exercise price of $2.50 per share. The tables above also
assume no exercise of the underwriters' over-allotment
options. To the extent that any shares are issued in connection
with outstanding warrants or options, you will experience further
 dilution. See "Management" and
"Underwriting."
30
Table of Contents
SELECTED CONSOLIDATED HISTORICAL FINANCIAL INFORMATION
The financial information presented below for the years ended
December 31, 1995, 1996, 1997, 1998 and 1999 has been
derived from our audited consolidated financial statements. Our
consolidated financial statements as of and for the years ended
December 31, 1995, 1996, 1997, 1998 and 1999 have been
audited by Deloitte & Touche LLP, our independent auditors.
Our audited financial statements as of December 31, 1998 and
 1999 and for the years ended December 31, 1997, 1998 and 1999
are included at the end of this prospectus. The financial
information as of June 30, 2000 and for the six months ended
 June 30, 1999 and 2000 has been derived from our unaudited
financial information, included at the end of this prospectus,
and reflects only normal recurring adjustments necessary for the
fair presentation of this information. You should not expect the
results of operations of interim periods to be an indication of
results for a full year.
Acquisitions.
Our results were affected by business
combinations, acquisitions and investments. Additional
information regarding acquisition and investment activity during
1997, 1998 and 1999 can be found in Notes 2, 3 and 15 to the
audited consolidated financial statements and related notes
appearing elsewhere in this prospectus.
Other (Expense) Income, Net.
Other (expense) income, net
consists primarily of foreign currency transaction losses, of
which $42.8 million in the six months ended June 30,
1999 and $57.0 million in the year ended December 31,
1999 relate to losses associated with the devaluation of the
Brazilian real. In 1995, other (expense) income, net
includes a $15.0 million charge representing an other than
temporary decline in the fair value of our investment in
Comunicaciones Nextel de Mexico S.A. de C.V., referred to as
Nextel Mexico, as a result of a decline in the Mexican peso.
Stock Splits.
The weighted average number of common shares
 outstanding reflects a 100,000-for-1 common stock split
effective March 6, 1997, a 3.65-for-1 common stock split
effective August 25, 1997 and a 4-for-1 common stock split
effective June 20, 2000. Information presented throughout
this prospectus has been adjusted to reflect these stock splits.
Income Tax (Provision) Benefit.
We recognized an income
tax benefit during 1998 of $22.4 million related to net
operating losses of our subsidiaries in Brazil, Mexico and
Argentina. Changes in tax legislation in Argentina and Mexico,
and depletion of temporary differences in Brazil, have
contributed to the decrease in the income tax benefit for 1999
for those Operating Companies. Additionally, we are precluded
from recognizing any income tax benefits associated with U.S. net
 operating losses because we cannot presently conclude that it is
 more likely than not that we will generate taxable income during
 periods prior to the expiration of our accumulated net operating
 losses.
EBITDA.
EBITDA consists of loss before income tax
(provision) benefit, interest expense, interest income,
depreciation and amortization, equity in losses of unconsolidated
 affiliates, other (expense) income, net and minority interest in
 losses of subsidiaries. EBITDA is provided because it is a
measure commonly used in the telecommunications industry. It is
presented to enhance an understanding of our operating results
and is not intended to represent cash flow or results of
operations for the periods presented. EBITDA is not a measurement
 under accounting principles generally accepted in the United
States and may not be similar to EBITDA measures of other
companies.
31
Table of Contents
Six months ended
Year ended December 31,
June 30,
1995
1996
1997
1998
1999
1999
2000
(in thousands, except per share data)
Consolidated Statement of Operations Data:
Operating revenues
$
—
$
—
$
13,015
$
42,488
$
104,528
$
41,760
$
110,800
Cost of revenues
—
—
7,424
20,085
40,999
18,072
29,652
Selling, general and administrative
277
9,318
26,768
143,098
226,379
116,222
148,650
Depreciation and amortization
19
168
18,381
56,039
108,091
51,882
65,183
Operating loss
(296
)
(9,486
)
(39,558
)
(176,734
)
(270,941
)
(144,416
)
(132,685
)
Interest expense
—
(323
)
(56,583
)
(106,824
)
(179,604
)
(82,220
)
(106,660
)
Interest income
6,233
4,300
19,666
16,655
8,442
2,827
5,547
Equity in losses of unconsolidated affiliates
(6,853
)
(5,991
)
(11,401
)
(12,193
)
(31,469
)
(11,520
)
(17,284
)
Other (expense) income, net
(15,002
)
379
5,561
2,472
(65,905
)
(45,539
)
4,016
Minority interest in losses of subsidiaries
—
—
2,085
17,131
19,314
13,299
6,504
Loss before income tax (provision) benefit
(15,918
)
(11,121
)
(80,230
)
(259,493
)
(520,163
)
(267,569
)
(240,562
)
Income tax (provision) benefit
(2,119
)
(1,355
)
6,282
22,358
17
(439
)
(368
)
Net loss
(18,037
)
(12,476
)
(73,948
)
(237,135
)
(520,146
)
(268,008
)
(240,930
)
Accretion of series A redeemable preferred stock to value of
	liquidation preference
—
—
—
—
—
—
(61,334
)
Loss attributable to common stockholders
$
(18,037
)
$
(12,476
)
$
(73,948
)
$
(237,135
)
$
(520,146
)
$
(268,008
)
$
(302,264
)
Loss per share attributable to common stockholders, basic and
	diluted
$
(0.12
)
$
(0.09
)
$
(0.51
)
$
(1.62
)
$
(3.56
)
$
(1.83
)
$
(2.01
)
Weighted average number of common shares outstanding
146,000
146,000
146,000
146,014
146,240
146,130
150,422
Selected Financial Data:
Cash flows provided by (used in) operating activities
$
6,063
$
(2,983
)
$
(16,464
)
$
(176,961
)
$
(129,360
)
$
(100,105
)
$
(101,774
)
Cash flows used in investing activities
(47,895
)
(72,286
)
(389,153
)
(402,902
)
(185,315
)
(116,809
)
(254,983
)
Cash flows provided by financing activities
1,592
42,996
512,378
542,225
310,134
242,169
523,945
EBITDA
(277
)
(9,318
)
(21,177
)
(120,695
)
(162,850
)
(92,534
)
(67,502
)
December 31,
June 30,
1995
1996
1997
1998
1999
2000
(in thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents and
short-term investments,
including restricted portion
$
85,302
$
53,029
$
288,350
$
121,116
$
100,028
$
297,384
Property, plant and equipment, net
36
8,703
136,210
530,571
539,455
755,229
Intangible assets, net
10,135
10,878
526,000
552,419
454,657
505,675
Total assets
169,675
199,367
1,123,038
1,601,136
1,681,792
2,124,010
Long-term debt, including
current portion
—
—
600,020
1,256,943
1,548,496
1,733,732
Stockholders' equity (deficit)
11,939
39,203
296,029
95,898
(179,590
)
(4,171
)
32
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The following is a discussion and analysis of our consolidated
financial condition and results of operations for the three years
 ended December 31, 1999 and for the six and
three months ended June 30, 1999 and 2000, as well as
significant factors that could affect our prospective financial
condition and results of operations. Historical results may not
indicate future performance. See "Risk Factors —
Our forward looking statements are subject to a variety of
factors that could cause actual results to differ materially from
 current beliefs."
Six and Three Months Ended June 30, 1999 vs. Six and
Three Months Ended June 30, 2000
Operating Revenues
Operating revenues include service revenues, which consist
primarily of charges for airtime usage and monthly network access
 fees from providing mobile wireless services.
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
June 30,
Operating
June 30,
Operating
1999
Revenues
2000
Revenues
Dollars
Percent
(dollars in thousands)
Six Months Ended
Operating revenues
$
41,760
100%
$
110,800
100%
$
69,040
165%
Brazil
16,043
38%
35,115
32%
19,072
119%
Argentina
15,874
38%
31,347
28%
15,473
98%
Mexico
8,862
21%
35,940
33%
27,078
306%
Peru
981
3%
8,243
7%
7,262
NM
Corporate & Other
—
—
155
0%
155
NM
Three Months Ended
Operating revenues
$
21,899
100%
$
63,625
100%
$
41,726
191%
Brazil
7,491
34%
20,278
32%
12,787
171%
Argentina
8,864
41%
17,111
27%
8,247
93%
Mexico
5,021
23%
20,759
33%
15,738
313%
Peru
523
2%
5,322
8%
4,799
NM
Corporate & Other
—
—
155
0%
155
NM
NM — Not Meaningful
Operating revenues increased primarily due to growth in the
number of our digital subscriber units in service and higher
average monthly revenue per digital subscriber unit. The growth
in the number of digital subscriber units in service of our
consolidated subsidiaries, primarily in Brazil, Mexico and
Argentina, from 154,000 at June 30, 1999 to about 469,100 at
 June 30, 2000 is the result of a number of factors,
principally:
•
the introduction of new products and services, such as
	international roaming services;
•
an increased number of indirect distributors;
•
the expansion of coverage in existing markets;
•
a continued emphasis on increasing brand awareness, primarily
	through increased advertising; and
33
Table of Contents
•
the launch of digital interconnect ESMR service in Peru during
	June 1999. Prior to June 1999, only two-way radio digital
	dispatch service was available from Nextel Peru, and the
	potential customer base expanded significantly with the addition
	of interconnect service.
The higher average monthly revenue per digital subscriber unit is
 the result of a number of factors, principally:
•
the establishment of the calling party pays program in Argentina,
	 resulting in additional revenue via fees paid by non-subscribers
	 placing calls to our subscribers in Argentina;
•
the introduction of digital interconnect ESMR service in Peru
	during June 1999, which has generated higher revenues per
	digital subscriber unit than the two-way radio digital dispatch
	service previously available; and
•
a shift in our customer use patterns away from use of digital
	two-way radio only to full use of our integrated services, with a
	 corresponding increase in number of minutes of use of our
	digital services.
Cost of Revenues
Cost of revenues consists primarily of network operating costs,
including site rent and utilities, and interconnection fees
assessed by local exchange carriers.
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
June 30,
Operating
June 30,
Operating
1999
Revenues
2000
Revenues
Dollars
Percent
(dollars in thousands)
Six Months Ended
Cost of revenues
$
18,072
43
%
$
29,652
27
%
$
11,580
64
%
Brazil
6,873
16
%
10,278
9
%
3,405
50
%
Argentina
6,060
15
%
8,448
8
%
2,388
39
%
Mexico
4,586
11
%
8,482
8
%
3,896
85
%
Peru
553
1
%
2,418
2
%
1,865
337
%
Corporate & Other
—
—
26
0
%
26
100
%
Three Months Ended
Cost of revenues
$
9,106
42
%
$
15,690
25
%
$
6,584
72
%
Brazil
3,545
16
%
5,729
9
%
2,184
62
%
Argentina
3,096
14
%
4,409
7
%
1,313
42
%
Mexico
2,071
10
%
4,113
7
%
2,042
99
%
Peru
394
2
%
1,413
2
%
1,019
259
%
Corporate & Other
—
—
26
0
%
26
100
%
The increase in cost of revenues is primarily attributable to
interconnect costs on higher minutes of use and increased site
lease costs and utilities that we incurred due to an increase of
about 80% in the number of cell sites we placed in service from
June 30, 1999 to June 30, 2000.
34
Table of Contents
Selling, General and
Administrative Expenses
Increase
% of
% of
(Decrease) from
Consolidated
Consolidated
Previous Year
June 30,
Operating
June 30,
Operating
1999
Revenues
2000
Revenues
Dollars
Percent
(dollars in thousands)
Six Months Ended
Selling, general and administrative
$
116,222
278
%
$
148,650
134
%
$
32,428
28
%
Selling and marketing
49,758
119
%
91,861
83
%
42,103
85
%
General and administrative
66,464
159
%
56,789
51
%
(9,675
)
(15
)%
Three Months Ended
Selling, general and administrative
$
59,337
271
%
$
81,390
128
%
$
22,053
37
%
Selling and marketing
25,616
117
%
51,854
82
%
26,238
102
%
General and administrative
33,721
154
%
29,536
46
%
(4,185
)
(12
)%
The increase in selling and marketing expenses primarily reflects
 increased costs incurred in connection with higher consolidated
sales of digital subscriber units across all of our reportable
segments during the six and three months ended June 30,
2000, including:
•
$20.8 million and $12.6 million of additional
	advertising costs;
•
$15.2 million and $8.6 million of increased losses due
	to subsidies generated from increased sales of digital subscriber
	 units and related accessories; and
•
$6.1 million and $5.0 million of increased commissions
	earned by employees, indirect dealers and distributors as a
	result of increased digital subscriber unit sales.
The decrease in general and administrative expenses during the
six and three months ended June 30, 2000 is due primarily to
 a $13.7 million and $10.1 million reduction of bad
debt expense due to increased focus on credit and collection
activities. This decrease was partially offset by a
$4.0 million and a $5.9 million increase in expenses
related to billing and customer care as a result of a larger
customer base, as well as increases in personnel, facilities and
general corporate expenses.
Depreciation and
Amortization
Increase
% of
% of
(Decrease) from
Consolidated
Consolidated
Previous Year
June 30,
Operating
June 30,
Operating
1999
Revenues
2000
Revenues
Dollars
Percent
(dollars in thousands)
Six Months Ended
Depreciation and amortization
$
51,882
124
%
$
65,183
59
%
$
13,301
26
%
Depreciation
38,524
92
%
52,058
47
%
13,534
35
%
Amortization
13,358
32
%
13,125
12
%
(233
)
(2
)%
Three Months Ended
Depreciation and amortization
$
28,468
130
%
$
32,682
51
%
$
4,214
15
%
Depreciation
21,736
99
%
25,948
41
%
4,212
19
%
Amortization
6,732
31
%
6,734
10
%
2
0
%
Depreciation and amortization increased primarily due to
increased depreciation as a result of placing additional cell
sites into service in existing markets to improve and enhance
coverage of our digital ESMR networks. System assets relating to
the development and expansion of our
35
Table of Contents
digital ESMR networks represent the largest portion of our
capital expenditures during the period. Depreciation begins when
system assets are placed into service in the relevant markets.
Segment Losses, Interest
Expense, Interest Income and Other
Increase
% of
% of
(Decrease) from
Consolidated
Consolidated
Previous Year
June 30,
Operating
June 30,
Operating
1999
Revenues
2000
Revenues
Dollars
Percent
(dollars in thousands)
Six Months Ended
Segment losses
$
92,534
222
%
$
67,502
61
%
$
(25,032
)
(27
)%
Brazil
39,439
94
%
21,087
19
%
(18,352
)
(47
)%
Argentina
23,792
57
%
7,608
7
%
(16,184
)
(68
)%
Mexico
15,037
36
%
16,933
15
%
1,896
13
%
Peru
6,501
16
%
7,735
7
%
1,234
19
%
Corporate and other
7,765
19
%
14,139
13
%
6,374
82
%
Interest expense
82,220
197
%
106,660
96
%
24,440
30
%
Interest income
2,827
7
%
5,547
5
%
2,720
96
%
Equity in losses of unconsolidated affiliates
11,520
28
%
17,284
16
%
5,764
50
%
Foreign currency transaction (losses) gains, net
(45,864
)
(110
)%
5,922
5
%
51,786
113
%
Minority interest in losses of subsidiaries
13,299
32
%
6,504
6
%
(6,795
)
(51
)%
Three Months Ended
Segment losses
$
46,544
213
%
$
33,455
53
%
$
(13,089
)
(28
)%
Brazil
18,245
83
%
7,758
12
%
(10,487
)
(57
)%
Argentina
13,575
62
%
4,689
7
%
(8,886
)
(65
)%
Mexico
6,599
30
%
9,416
15
%
2,817
43
%
Peru
3,367
15
%
3,888
6
%
521
15
%
Corporate and other
4,758
22
%
7,704
12
%
2,946
62
%
Interest expense
43,526
199
%
53,945
85
%
10,419
24
%
Interest income
1,289
6
%
5,199
8
%
3,910
303
%
Equity in losses of unconsolidated affiliates
6,869
31
%
10,171
16
%
3,302
48
%
Foreign currency transaction gains (losses), net
20,833
95
%
(6,615
)
(10
)%
(27,448
)
(132
)%
Minority interest in losses of subsidiaries
1,258
6
%
3,754
6
%
2,496
198
%
We define segment losses as losses before interest, taxes,
depreciation and amortization and other non-recurring charges. We
 incurred segment losses across all of our consolidated
subsidiaries during the six and three months ended June 30,
1999 and 2000. Segment losses in Brazil and Argentina decreased
for the six and three months ended June 30, 2000 as a
result of increases in revenue due to subscriber growth in
Brazil, subscriber growth and average revenue per unit increases
in Argentina and reductions in bad debt expense in both markets.
We expect these segment losses to continue for the next several
years while we expand our digital ESMR networks and business
activities, grow our subscriber base and strengthen the support
systems necessary to service our growing number of subscribers.
36
Table of Contents
The increase in interest expense for the six and three months
ended June 30, 2000, resulted from higher levels of outstanding
debt drawn primarily to finance our current expansion and
improvement of digital ESMR network coverage in our Latin
American markets.
The increase in interest income for the six and three months
ended June 30, 2000 is primarily due to higher average
outstanding cash balances as a result of $442.7 million in
proceeds received from the issuance of series A exchangeable
redeemable preferred stock in the second quarter of 2000.
The increase in equity in losses of unconsolidated affiliates for
 the six and three months ended June 30, 2000 is
attributable to increased operating losses incurred by Nextel
Philippines and NEXNET.
The foreign currency transaction gain for the six months ended
June 30, 2000 is due primarily to the strengthening of the
Brazilian real relative to the U.S. dollar during the first
quarter of 2000 offset by the weakening of the Brazilian real
relative to the U.S. dollar during the second quarter of 2000.
The foreign currency transaction loss for the six months ended
June 30, 1999 is due primarily to the weakening of the
Brazilian real relative to the U.S. dollar during the first
quarter of 1999 slightly offset by the strengthening of the
Brazilian real relative to the U.S. dollar during the second
quarter of 1999.
The decrease in minority interest in losses of subsidiaries for
the six months ended June 30, 2000 is attributable primarily
 to the reductions in minority stockholders' percentage
shares of net operating losses in Nextel Brazil and Nextel Peru.
Year Ended December 31, 1998 vs. Year Ended December 31, 1999
Operating Revenues
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1998
Revenues
1999
Revenues
Dollars
Percent
(dollars in thousands)
Operating revenues
$
42,488
100
%
$
104,528
100
%
$
62,040
146
%
Brazil
17,480
41
%
34,917
33
%
17,437
100
%
Argentina
10,662
25
%
40,767
39
%
30,105
282
%
Mexico
12,412
29
%
24,937
24
%
12,525
101
%
Peru
1,934
5
%
3,907
4
%
1,973
102
%
Operating revenues include service revenues, which consist
primarily of charges for airtime usage and monthly network access
 fees, derived from providing mobile wireless services. Operating
 revenues increased for the year ended December 31, 1999 due
 primarily to an increased number of digital subscriber units in
service and higher average monthly revenue per digital subscriber
 unit.
The increased number of digital subscriber units in service is
the primary reason for the increase in consolidated operating
revenues in 1999. The growth in the number of digital subscriber
units in service is the result of a number of factors,
principally:
•
the expansion of coverage in existing markets;
•
higher average subscriber units in service during 1999 as a
	result of the inclusion of a full year of attracting new
	subscribers to our digital ESMR services in markets where we
	launched service during 1998, including Sao Paulo and Rio de
	Janeiro, Brazil; Buenos Aires and Rosario, Argentina; and Mexico
	City, Mexico, compared to 1998, which included new subscriber
	loading activities for only that portion of the year following
	the initial launches of our digital ESMR services in these
	markets;
37
Table of Contents
•
a continued emphasis on increasing brand awareness, primarily
	through increased advertising; and
•
the launch of digital interconnect service in Peru during
	June 1999. Prior to June 1999, only two-way radio
	digital dispatch service was available from Nextel Peru, and the
	potential customer base expanded significantly with the addition
	of interconnect service.
The higher average monthly revenue per digital subscriber unit
also contributed to the increase in operating revenues in 1999.
The higher average monthly revenue is the result of a number of
factors, principally:
•
the establishment of the calling-party-pays program in Argentina,
	 resulting in additional revenue via fees paid by non-subscribers
	 placing calls to subscribers of Nextel Argentina S.R.L.,
	referred to as Nextel Argentina;
•
the introduction of digital interconnect ESMR service in Peru
	during June 1999, which generates significantly higher
	revenues per subscriber than the two-way radio digital dispatch
	service previously available; and
•
a shift in our customer mix away from use of digital two-way
	radio only to full use of our integrated services with a
	corresponding increase in minutes of use of our digital services.
Cost of Revenues
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1998
Revenues
1999
Revenues
Dollars
Percent
(dollars in thousands)
Cost of revenues
$
20,085
47
%
$
40,999
39
%
$
20,914
104
%
Brazil
8,916
21
%
16,064
15
%
7,148
80
%
Argentina
5,324
13
%
14,092
13
%
8,768
165
%
Mexico
5,332
13
%
9,175
9
%
3,843
72
%
Peru
513
—
1,668
2
%
1,155
225
%
Cost of revenues consists primarily of network operating costs
and interconnection fees assessed by local exchange carriers.
Cost of revenues increased during 1999 in comparison to 1998
primarily due to interconnect costs on higher minutes of use and
increased site lease costs, technical expenses and utilities that
 we incurred due to an increase in the number of switches and
cell sites on air during 1999.
Selling, General and
Administrative Expenses
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1998
Revenues
1999
Revenues
Dollars
Percent
(dollars in thousands)
Selling, general and administrative
$
143,098
337
%
$
226,379
217
%
$
83,281
58
%
Selling and marketing
65,154
153
%
112,116
107
%
46,962
72
%
General and administrative
77,944
184
%
114,263
110
%
36,319
47
%
Selling and marketing expenses increased across all of our
reportable segments during 1999, due to the following:
•
$24.6 million of increased losses due to subsidies generated
	 from increased sales of digital subscriber units and related
	accessories;
38
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•
$11.2 million of increased commissions earned by employees,
	indirect dealers and distributors as a result of increased
	digital subscriber unit sales;
•
$8.4 million of increased costs related to additional
	employees necessary to support marketing and fulfillment
	functions for the expanded subscriber base; and
•
$2.8 million of additional advertising costs.
The increase in general and administrative expenses during 1999
is due to the following:
•
$26.1 million of increased bad debt expense, which is
	discussed below;
•
$7.8 million of increased expenses related to billing and
	customer care as a result of a larger customer base; and
•
$2.4 million increase in personnel, facilities and general
	corporate expenses primarily reflecting increased staffing for
	support of company wide initiatives, including negotiating
	contracts with key vendors to take advantage of volume discounts,
	 as well as coordinating the technology needs for future programs
	 such as international roaming and prepaid calling cards.
Bad debt expense increased $26.1 million from
$7.1 million during 1998 to $33.2 million during 1999.
This increase is a result of a focused program to aggressively
take action on delinquent paying customers and to strengthen
credit and collection procedures in Brazil and Argentina. As part
 of this program, we suspended and/or deactivated nonpaying
customers and implemented procedures to minimize credit risk,
such as requiring deposits, requesting bank statements and/or
requesting current credit references from prospective customers.
Following the institution of this program, bad debt expense
decreased from $22.4 million during the first six months of
1999 to $10.8 million during the last six months of 1999.
Depreciation and
Amortization
% of
% of
Increase from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1998
Revenues
1999
Revenues
Dollars
Percent
(dollars in thousands)
Depreciation and amortization
$
56,039
132
%
$
108,091
103
%
$
52,052
93
%
Depreciation and amortization increased for 1999 as compared to
1998 primarily due to:
•
increased depreciation as a result of placing additional cell
	sites into service in existing markets to improve and expand
	coverage during 1999; and
•
the recording of a full year of depreciation during 1999 on cell
	sites and switches placed into service at various dates during
	1998.
System assets relating to the development and expansion of our
digital ESMR networks represent the largest portion of capital
expenditures during 1999. We begin depreciating an asset when it
is placed into service.
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Table of Contents
Segment Losses, Interest
Expense, Interest Income, and Other
Increase(Decrease)
% of
% of
from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1998
Revenues
1999
Revenues
Dollars
Percent
(dollars in thousands)
Segment losses
$
120,695
284
%
$
162,850
156
%
$
42,155
35
%
Brazil
60,945
143
%
68,554
66
%
7,609
12
%
Argentina
35,353
83
%
36,979
35
%
1,626
5
%
Mexico
10,253
24
%
28,813
28
%
18,560
181
%
Peru
3,007
7
%
12,579
12
%
9,572
318
%
Corporate and other
11,137
26
%
15,925
15
%
4,788
43
%
Interest expense
106,824
251
%
179,604
172
%
72,780
68
%
Interest income
16,655
39
%
8,442
8
%
(8,213
)
(49
)%
Equity in losses of unconsolidated affiliates
12,193
29
%
31,469
30
%
19,276
158
%
Foreign currency transaction gains (losses)  and other, net
2,472
6
%
(65,905
)
(63
)%
(68,377
)
NM
Minority interest in losses of subsidiaries
17,131
40
%
19,314
18
%
2,183
13
%
NM — Not Meaningful
We define segment losses as earnings before interest, taxes,
depreciation and amortization and other non-recurring charges. We
 incurred segment losses across all of our consolidated
subsidiaries for 1999. We expect these segments losses to
continue while we are expanding digital ESMR networks and
business activities, expanding our subscriber base and expanding
the support systems necessary to service our growing number of
subscribers.
The increase in interest expense during 1999 in comparison to
1998 is due to higher levels of outstanding debt throughout the
year. Draws were made on our $225.0 million equipment
financing facility with Motorola Credit, referred to as the
International Motorola Financing Facility, and Nextel
Argentina's $100.0 million secured credit facility,
referred to as the Argentina Credit Facility, to fund network
expansion during 1999. In addition, capitalized interest
decreased during 1999 as average construction in progress
balances decreased from 1998, when the balances consisted
primarily of costs associated with the subsequent launches of
markets in Brazil, Argentina and Mexico, to 1999, when the
balances consisted primarily of costs associated with expanding
and enhancing coverage in existing markets.
We attribute the decrease in interest income to the lower average
 cash balances on hand during 1999 in comparison to 1998. During
1999, our primary funding sources consisted of borrowings under
long-term debt facilities and capital contributions from a wholly
 owned subsidiary of Nextel Communications, both of which
occurred immediately prior to, or simultaneously with, our
anticipated uses of the funds. During 1998, however, our primary
funding source was the net proceeds from the issuance of our
March 1998 Notes, which generated interest income prior to
their utilization in our business.
Our equity in losses of unconsolidated affiliates increased
primarily due to a $16.4 million increase in the loss from
our investment in Nextel Philippines. The loss from this
investment was caused both by an increase in our ownership during
 1998 and an increase in the net losses of Nextel Philippines.
Digital ESMR service was launched in Manila during the third
quarter of 1998. The increase in the net losses of Nextel
Philippines was due primarily to higher interest expense
40
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and depreciation and amortization related to the build-out of its
 network and higher selling and marketing costs associated with
equipment subsidies and advertising during 1999. Increased losses
 in NEXNET caused the remaining increase in equity in losses of
unconsolidated affiliates during 1999.
Our foreign currency transaction gains (losses) and other,
net of $(65.9) million was related primarily to the devaluation
during 1999 of the Brazilian real relative to the U.S. dollar.
The increase in our minority interest in losses of subsidiaries
was directly related to increased losses attributable to minority
 stockholders of Nextel Brazil and Nextel Peru.
We recognized an income tax benefit during 1998 of
$22.4 million related to net operating losses of our
subsidiaries in Brazil, Mexico and Argentina. Changes in tax
legislation in Argentina and Mexico, and depletion of temporary
differences in Brazil, have contributed to the decrease in the
income tax benefit for 1999 for those segments. Additionally, we
are precluded from recognizing any income tax benefits associated
 with U.S. net operating losses, because we cannot presently
conclude that it is more likely than not that we will generate
taxable income during periods prior to the expiration of our
accumulated net operating losses.
Year Ended December 31, 1997 vs. Year Ended
December 31, 1998
Our 1997 consolidated financial statements include the accounts
and balances of Nextel Brazil from January 30, 1997 through
year end, of Nextel Mexico from September 1, 1997 through
year end, and of Nextel Argentina from January 1, 1997
through May 5, 1997. From May 6, 1997 through
January 30, 1998, Nextel Argentina was accounted for under
the equity method. Our 1998 consolidated financial statements
include the accounts and balances of Nextel Brazil and Nextel
Mexico for the entire year, and of Nextel Argentina and Nextel
Peru for the eleven months ended December 31, 1998.
Increase(Decrease)
% of
% of
from
Consolidated
Consolidated
Previous Year
December 31,
Operating
December 31,
Operating
1997
Revenues
1998
Revenues
Dollars
Percent
(dollars in thousands)
Operating revenues
$
13,015
100
%
$
42,488
100
%
$
29,473
226
%
Cost of revenues
7,424
57
%
20,085
47
%
12,661
171
%
Selling, general and administrative
26,768
206
%
143,098
337
%
116,330
435
%
Depreciation and amortization
18,381
141
%
56,039
132
%
37,658
205
%
Interest expense
56,583
435
%
106,824
251
%
50,241
89
%
Interest income
19,666
151
%
16,655
39
%
(3,011
)
(15
)%
Equity in losses of unconsolidated affiliates
11,401
88
%
12,193
29
%
792
7
%
Foreign currency transaction gains and other, net
5,561
43
%
2,472
6
%
(3,089
)
(56
)%
Minority interest in losses of subsidiaries
2,085
16
%
17,131
40
%
15,046
722
%
Income tax benefit
6,282
48
%
22,358
53
%
16,076
256
%
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Operating Revenues
In 1998, operating revenues increased by $29.5 million as
compared to 1997. This increase is primarily attributable to fees
 generated from digital ESMR service and analog SMR service
provided in Brazil in 1998 by affiliates of Nextel Brazil and
from analog SMR services provided in Mexico in 1998 by affiliates
 of Nextel Mexico. A portion of the increase is also attributable
 to the greater number of months Mexico was consolidated during
1998, and to the purchase of the majority interest in Nextel
Argentina and Nextel Peru in January 1998. During 1997,
revenues were primarily attributable to analog SMR service
provided in Mexico and Brazil. As we launched digital ESMR
service in Brazil, Argentina and Mexico during 1998, fees were
generated predominantly by digital ESMR service.
Cost of Revenues
In 1998, cost of revenues increased $12.7 million as
compared to 1997. This increase relates primarily to increases in
 site and switch operating costs, including site rents, utilities
 and maintenance, increases in interconnect costs related to our
digital networks and increases in the cost of equipment sales and
 maintenance. The increase in cost of revenues is also
attributable to Nextel Mexico's full year of consolidated
operations during 1998 compared to only four months in 1997 and
the addition of Nextel Argentina and Nextel Peru as consolidated
subsidiaries during 1998.
Selling, General and
Administrative Expenses
The $116.3 million increase in selling, general and
administrative expense in 1998 as compared to 1997 is
attributable to market growth, the launch of the digital ESMR
networks, an increase in staffing and other costs required to
support the digital ESMR service, increased subsidies on sales of
 subscriber units and advertising and marketing costs incurred to
 create brand awareness in each of the markets that launched
digital ESMR service during 1998.
Depreciation and
Amortization
The $37.6 million increase in depreciation and amortization
expense to $56.0 million in 1998 from $18.4 million in
1997 is primarily attributable to amortization of licenses in
Nextel Argentina, Nextel Brazil, and Nextel Mexico, an increase
in depreciation expense related to the launch of our digital ESMR
 networks during 1998 and depreciation and amortization expense
related to the consolidation of the operating results of Nextel
Argentina for the full year in 1998 and Nextel Peru commencing in
 February 1998.
Interest Income, Interest
Expense and Other
Interest expense increased $50.2 million to
$106.8 million in 1998 from $56.6 million in 1997. This
 increase is attributable to accretion of interest and related
amortization of debt issue costs on the March 1998 Notes, a
full year of interest accretion and amortization of debt issue
costs on the March 1997 Notes, and increased interest expense due
 to the greater amount of outstanding borrowings under the
equipment facility agreement, referred to as the Brazil Motorola
Financing, between McCaw Brazil and Motorola Credit Corporation,
referred to as Motorola Credit, and the Argentina Credit Facility
 during 1998. These increased costs were partially offset by an
increase in the amount of interest capitalized in connection with
 the construction and development of our digital ESMR networks
during 1998.
Interest income decreased $3.0 million to $16.7 million
 during 1998 from $19.7 million during 1997. The decrease is
 primarily attributable to a reduction of income recognized on
the investment of the net proceeds from the March 1998
Notes, compared to the income recognized on the investment of the
 net proceeds from the issuance of the March 1997 Notes,
prior to their utilization in our business.
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Table of Contents
Equity in losses of unconsolidated affiliates increased
$0.8 million to $12.2 million in 1998 from
$11.4 million in 1997. The loss in 1998 was primarily
attributable to about $5.8 million in losses associated with
 our 38% interest (30% through August 1998) in Nextel
Philippines and $5.5 million in losses associated with our
21% interest in NEXNET. During 1997, the equity in losses of
unconsolidated affiliates also includes $4.5 million of
losses associated with our 50% interest in Nextel Argentina which
 was accounted for using the equity method for the majority of
1997.
Foreign currency transaction gains and other, net decreased
$3.1 million during 1998 as compared to 1997 primarily due
to an increase in foreign currency gains recognized on the
remeasurement of Nextel Mexico's net monetary liabilities
and NEXNET's Japanese yen-denominated debt.
Minority interest in the net losses of Nextel Brazil and Nextel
Mexico totaled $17.1 million in 1998, an increase of
$15.0 million over 1997. This increase is primarily
attributable to the minority stockholders' about 23%
interest in the net loss of Nextel Brazil.
We recognized an income tax benefit of $22.4 million in 1998
 compared to an income tax benefit of $6.3 million in 1997.
The increased income tax benefit recognized in 1998 was primarily
 attributable to operating losses related to Nextel Brazil and
Nextel Mexico.
Liquidity and Capital Resources
Working capital increased by $84.1 million to
$65.8 million at June 30, 2000 compared to a working
capital deficit of $18.3 million at December 31, 1999
primarily relating to the increase in cash and cash equivalents
resulting from aggregate proceeds of $442.7 million
generated by issuances of shares of our series A
exchangeable redeemable preferred stock in the second quarter of
2000 to a wholly owned subsidiary of Nextel Communications. This
working capital increase was partially offset by the utilization
of a portion of the proceeds to fund capital expenditures and
additional investments in consolidated subsidiaries.
We incurred losses attributable to common stockholders of
$237.1 million in 1998, $520.1 million in 1999 and
$302.3 million during the six months ended June 30,
2000. The operating expenses and capital expenditures associated
with developing, enhancing and operating our digital ESMR
networks have more than offset our operating revenues. Our
operating expenses, debt service obligations and anticipated
capital expenditures are expected to continue to more than offset
 operating revenues for the next several years. We have
consistently used external sources of funds, primarily from debt
incurrences and from the issuance of our series A exchangeable
redeemable preferred stock to a wholly owned subsidiary of Nextel
 Communications, to fund operations, capital expenditures,
acquisitions and other nonoperating needs.
Cash Flows
Net cash used in operating activities for 1999 improved by
$47.6 million compared to 1998 primarily due to improvements
 in working capital management, including improved cash
collections and increased inventory turnover.
Capital expenditures to fund the continued expansion and
enhancement of our digital ESMR networks continue to represent
the largest use of our funds for investing activities. Cash
payments for capital expenditures increased $54.5 million to
 $141.4 million for the six months ended June 30, 2000.
 The increase in capital expenditures is part of our strategy to
focus on aggressive expansion and improvement of digital ESMR
network coverage in our Latin American markets, primarily in
Brazil and Mexico. During the first half of 2000, we used
$80.5 million of cash to increase our ownership interests in
 Nextel Brazil and in Nextel Peru and to acquire three companies
with SMR licenses in Chile. During 1998, significant capital
expenditures were made
43
Table of Contents
in advance of the commercial launch of digital interconnect
service in São Paulo, Buenos Aires, Rio de Janeiro, Mexico
City and Rosario, all of which occurred during the middle to
latter part of 1998. Capital expenditures during 1999 were
$226.2 million lower than during 1998. The lower amount of
capital expenditures in 1999 is related to a commensurately
reduced network construction program. In contrast to the five
markets launched during 1998 in major metropolitan areas of Latin
 America, in 1999, we launched only one new market in Lima, Peru.
 In addition, the principal focus of our capital expenditures and
 our digital ESMR network construction program in 1999 was to
improve the quality of service in our existing coverage areas
rather than to expand our wireless service area. Investments in
unconsolidated affiliates decreased from $97.6 million in
1998 to $38.4 million in 1999. The lower investment amount
in 1999 resulted from reduced investment activity in Japan and a
temporary reduction in investment activity in the Philippines.
Net cash provided by financing activities for the six months
ended June 30, 2000 consisted primarily of aggregate net proceeds
 of $442.7 million from issuances of shares of our series A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications, and $88.1 million from
borrowings under vendor credit facilities offset by repayment of
$13.2 million of long-term debt. Net cash provided by
financing activities for the year ended December 31, 1999
consisted primarily of the following:
•
$200.0 million in aggregate net proceeds from issuances of
	shares of our series A exchangeable redeemable preferred stock to
	 a wholly owned subsidiary of Nextel Communications;
•
$132.9 million from additional borrowings under our
	long-term debt facilities;
•
$17.0 million of contributions from minority stockholders of
	 our majority owned consolidated subsidiaries; and
•
$2.0 million in proceeds from the exercise of stock options;
offset by:
•
$25.6 million in payments to Nextel Communications as
	reimbursement of costs incurred on our behalf; and
•
$16.2 million of repayment of principal amounts outstanding
	under our long-term debt facilities.
During 1998, cash provided by financing activities consisted
primarily of proceeds from the issuance of the March 1998
Notes, borrowings under the Argentina Credit Facility and
additional financing from the Brazil Motorola Financing. For more
 information, see "Description of Our Indebtedness."
Future Capital Needs and Resources
Our strategy is focused on aggressive expansion and improvement
of digital ESMR coverage in our Latin American markets, expansion
 into new markets and continued support as appropriate in light
of perceived future prospects of our investments in Asia. Our
business plan, which has been developed based on this strategy,
is designed to improve subscriber unit growth, revenues and other
 key financial performance measurements. We have already begun to
 take the actions necessary to achieve the business plan. These
actions include:
•
improving digital ESMR network coverage within our existing
	markets in Latin America;
•
expanding our digital ESMR network service to reach new areas in
	Latin America;
•
improving brand awareness;
•
introducing innovative pricing plans;
44
Table of Contents
•
working closely with industry associations and local government
	offices to eliminate anti-competitive and anti-consumer
	regulations;
•
developing new and strengthening existing distribution channels;
	and
•
introducing new products and services.
Our business plan has been developed in anticipation of the
continuing acceleration of the growth, and continuing
improvements in the financial and operating performance, of our
digital ESMR networks. Accordingly, we expect that anticipated
cash expenditures during the remainder of 2000 and 2001 will be
focused on the following items:
•
capital expenditures to continue to expand and improve digital
	ESMR network coverage in existing or targeted future markets,
	primarily in Latin America;
•
acquisition of additional spectrum to support entry into new
	digital ESMR network markets and/or to support increased network
	capacity and reduce future network construction expenditures in
	our existing digital ESMR markets;
•
acquisition of additional ownership interests in existing
	Operating Companies;
•
debt service requirements;
•
capital contributions to support and develop our investment
	positions in Asia as appropriate in light of perceived future
	prospects; and
•
working capital requirements.
Based on our assessment of the business activity and related cash
 needs of our Operating Companies, we believe that the net
proceeds from the offerings, together with our available cash on
hand and borrowings expected to be available under our existing
financing agreements, will be sufficient to continue our
operations through the end of 2001. This conclusion is based on:
•
our $297.4 million of available cash, cash equivalents and
	short-term investments, and continued availability of about $83.8
	 million of borrowing capacity under our existing financing
	facilities, at June 30, 2000;
•
the receipt of about $623.8 million of net proceeds in
	August 2000 from the issuance of our August 2000 Notes;
•
the receipt of an estimated
	$          million
	 of net proceeds from the sale of shares of class A common
	stock in the offerings; and
•
the payment in August 2000 of about $146.0 million to members of
	the Founders Group and the related increase in our ownership
	interest in McCaw Brazil.
Beginning in 2002, we expect that we will need to obtain
additional funding to meet the anticipated cash needs associated
with implementing our business plan. In making this assessment we
 have also considered:
•
the increase in our cash needs attributable to our potential
	acquisitions that are already subject to binding agreements or
	those which we are currently negotiating, including the payment
	of about $66.5  million to purchase all of CCC's equity
	 interests in several analog SMR companies in Chile and Peru; and
•
the future reductions in capital contributions from Motorola as a
	 result of Motorola no longer being a minority owner in Nextel
	Peru and Nextel Brazil and from the former minority stockholders
	in Nextel Philippines whose equity interests we recently
	acquired.
The availability of borrowings under our financing agreements is
subject to specified conditions and limitations, and we cannot
provide assurance that those conditions will be met at the times
that we need to access borrowings under the relevant facilities.
The terms of our
45
Table of Contents
financing agreements also require us at specified times to
maintain compliance with various operating and financial
covenants or ratios, which may become more stringent over time.
Any failure to meet these covenants or ratios could have adverse
effects on us and our ability to implement our current business
plan, such as making future borrowings under those agreements
unavailable or requiring repayment of amounts previously borrowed
 under those agreements in advance of their currently scheduled
maturities. In addition, our capital needs and our ability to
adequately address those needs through existing or any future
potential debt or equity funding sources are subject to a variety
 of factors that cannot presently be predicted with certainty,
including, for example, the commercial success of our digital
ESMR networks, the amount and timing of our capital expenditures
and operating losses and the volatility and demand of the debt
and equity markets.
We have had and may in the future have discussions with third
parties regarding potential acquisitions of and/or equity
investments in those third parties or wireless communications
businesses or assets owned by them. Consideration of these
potential acquisitions and/or investments is part of our
proactive approach to expanding coverage in our principal target
markets in Latin America and also could represent financially
attractive or strategically desirable investment opportunities
elsewhere. At this time, other than the existing arrangements
that have been consummated and/or are disclosed in this
prospectus, we have no material binding commitments or
understandings with any third parties that would require us to
purchase an interest in or otherwise make any investment in or
financial commitment to any new ventures. Our current expectation
 of cash needs and anticipated availability of related required
funding during the remainder of 2000 and 2001 do not reflect the
impact of any potential acquisitions or investments that may
occur other than those described above. Any potential
acquisitions or investments could involve significant additional
funding needs in excess of those sources that we currently
anticipate to be available, and thus could require us to raise
additional equity or debt funding to successfully pursue,
consummate and realize the potential benefits of those potential
acquisitions or investments.
Our anticipated cash needs as well as our conclusions as to the
adequacy of our available sources could change significantly if:
•
our business plans change;
•
economic conditions in any of our markets or competitive
	practices in the mobile wireless telecommunications industry,
	especially in Latin America, change materially from those
	currently prevailing or anticipated; or
•
other presently unexpected circumstances are encountered that
	have a material effect on the cash flow and/or profitability of
	our mobile wireless business.
We have been and will continue to be sensitive to abrupt changes
in the financial markets and the business environments in those
countries where we have operations, and will attempt to adjust
our operating and financing plans accordingly.
We have called upon Nextel Communications to provide us with
significant financial support in the past, particularly during
2000. In the future, if we are unable to obtain necessary funding
 from other sources, we may seek additional financing from Nextel
 Communications. However, Nextel Communications has no legal
obligation to make any additional equity investments or to
otherwise advance any other funds to us. In addition to the
absence of any legal obligation of Nextel Communications to
provide funding to us, some of the agreements to which Nextel
Communications currently is a party restrict the amount available
 to Nextel Communications and its relevant subsidiaries for
specified purposes, including investments in and advances to us.
If we are unable to obtain the capital we require to implement
our business plan, or to obtain it on acceptable terms and in a
timely manner, we would attempt to take appropriate responsive
actions to tailor our activities to our available financing,
including making revisions to our
46
Table of Contents
business plan to accommodate the reduced funding. See "Risk
Factors — Our forward looking statements are subject to a
variety of factors that could cause actual results to differ
materially from current beliefs."
Effect of New Accounting Standards
Statement of Financial Accounting Standards No. 133
In June 1998, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging
Activities," which, as amended by SFAS No. 138 in
June 2000, establishes accounting and reporting standards
for derivative instruments (including some derivatives embedded
in other contracts) and for hedging activities by requiring that
all derivatives be recognized in the balance sheet and measured
at fair value. In June 1999, the FASB issued SFAS
No. 137, "Deferral of the Effective Date of FASB
Statement No. 133 — an Amendment of FASB Statement
No. 133," which deferred the effective date for us
until January 1, 2001. We are in the process of evaluating
the potential impact of this standard on our financial position
and results of operations.
Staff Accounting Bulletin No. 101
In December 1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements," which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No. 101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that
SAB No. 101 will have a material impact on our
financial position or results of operations.
FASB Interpretation No. 44, Accounting for Certain
Transactions Involving Stock Compensation, an Interpretation of
APB Opinion No. 25
In March 2000, the Financial Accounting Standards Board
issued Interpretation No. 44, "Accounting for Certain
Transactions involving Stock Compensation, an Interpretation of
APB Opinion No. 25," which clarifies the application of
 APB Opinion No. 25 for certain issues including:
(1) the definition of an employee for purposes of applying
APB Opinion No. 25, (2) the criteria for determining
whether a plan qualifies as a noncompensatory plan, (3) the
accounting consequences of various modifications to the terms of
a previously fixed stock option or award and (4) the
accounting for an exchange of stock compensation awards in a
business combination. Interpretation No. 44 became effective
 July 1, 2000, but some of the conclusions cover specific
events that occurred prior to effectiveness, but after
December 15, 1998 or January 12, 2000, as the case may
be. We do not expect the adoption of this guidance on
July 1, 2000 to have a material impact on our financial
position or results of operations.
Emerging Issues Task Force Issue 00-14
In May 2000, the Emerging Issues Task Force reached a
consensus on Issue No. 00-14: "Accounting for Certain
Sales Incentives," which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No. 00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.
Quantitative and Qualitative Disclosures About Market Risk
We finance a portion of our operations through senior notes and
bank and vendor credit facilities. These financial instruments
expose us to market risks, including interest rate risk and
foreign currency exchange risk. Our U.S. dollar denominated
borrowings and vendor equipment
47
Table of Contents
financing account for about 90% of our cross currency exposure.
The tenor of available hedging products is generally short-term
and does not match our long-term capital flows. We are also
exposed to interest rate risk due to fluctuations in the U.S.
prime rate, LIBOR, the Eurodollar rate and the Average Base Rate,
 or ABR. These rates are used to determine the variable rates of
interest that are applicable to borrowings under our bank and
vendor credit facilities.
Our debt is denominated in U.S. dollars, while our operating
revenues are denominated in foreign currencies. Fluctuations in
exchange rates relative to the U.S. dollar, primarily those
related to the Brazilian real and the Mexican peso, expose us to
significant foreign exchange risk. We attempt to protect our
revenues and earnings from foreign currency exchange risks by
periodically adjusting prices in local currencies.
As of June 30, 2000, we held about $29.9 million of
debt securities in the form of commercial paper as short-term
investments classified as available-for-sale in accordance with
Statement of Financial Standards No. 115, "Accounting
for Certain Investments in Debt and Equity Securities." As
the weighted average maturity from the date of purchase was less
than four months, these short-term investments do not expose us
to a significant amount of interest rate risk.
We hold an available-for-sale investment in the common stock of
Clearnet, a publicly traded company, which had a fair value of
$232.5 million at June 30, 2000. We report our
investment at its fair market value in our financial statements.
Negative fluctuations in the stock price of Clearnet expose us to
 equity price risks. A 10% decline in the stock price would
result in a $23.3 million decrease in the fair value of our
investment in Clearnet.
The table below presents principal cash flows by year of maturity
 for our fixed and variable rate debt obligations at June 30,
2000. Fair values are determined based on quoted market prices
for our senior notes and carrying value for our bank and vendor
credit facilities at June 30, 2000.
Descriptions of our senior notes and bank and vendor credit
facilities are contained in Note 7 to the audited consolidated
financial statements included at the end of this prospectus and
should be read in conjunction with the following table. The
change in the total and fair values of our long-term debt as
compared to December 31, 1999 reflects additional borrowings
 under the existing bank and vendor credit facilities and the
changes in the applicable market conditions.
Year of Maturity
Total Due
at
2000
2001
2002
2003
2004
Thereafter
Maturity
Fair Value
(U.S. dollars in thousands)
Long-Term Debt:
Fixed Rate
$
366
$
816
$
481
$
—
$
—
$
1,681,463
$
1,683,126
$
1,209,669
Average Interest Rate
14.5
%
14.5
%
14.5
%
—
—
12.6
%
12.6
%
Variable Rate
35,676
148,653
103,253
103,253
69,494
—
460,329
460,329
Average Interest Rate
10.9
%
11.5
%
11.0
%
11.0
%
11.3
%
—
10.8
%
48
Table of Contents
BUSINESS
Overview
We provide integrated digital wireless communications services
targeted at meeting the needs of business customers in selected
international markets. Our principal operations are in major
business centers and related transportation corridors of Brazil,
Mexico, Argentina and Peru. As part of our growth strategy, we
have recently expanded our wireless coverage in Latin America by
purchasing companies with SMR licenses in Chile. In addition to
our wholly owned Latin American operations, we are also
significant equity participants in digital wireless
communications providers in the Philippines and Japan, and we
have an equity interest in Clearnet Communications, a leading
publicly-held digital wireless communications provider in Canada.
Our Operating Companies have SMR licenses in markets that cover
about 382 million Pops of which about 149 million are
in Latin America. Our Operating Companies currently provide
integrated digital wireless communications services in the five
largest cities in Latin America and two of the ten largest cities
 in Asia. We believe, based on the magnitude of our license
holdings and our subscriber base, that we currently are the
largest digital ESMR provider, and operate one of the largest
integrated digital wireless communications systems utilizing a
single transmission technology, in Latin America. Our parent,
Nextel Communications, operates one of the largest integrated
digital wireless communications systems utilizing a single
transmission technology in the United States.
Our networks use iDEN technology to provide digital ESMR services
 on 800 MHz spectrum holdings in Latin America, the Philippines
and Canada and on 1.5 GHz spectrum holdings in Japan. Digital
ESMR allows us to use our spectrum more efficiently and offer
enhanced services. Our Operating Companies offer a differentiated
 package of services under the "Nextel" name in Latin
America and the Philippines and under the "Mike" name
in Canada. We are designing our digital ESMR networks to support
a full complement of digital wireless services, including:
•
digital mobile, or interconnect, telephone service;
•
advanced calling features, such as two-way calling, voicemail and
	 call forwarding;
•
international roaming capabilities;
•
Nextel Direct Connect service that allows users to contact
	co-workers instantly, on a private one-to-one call or on a
	one-to-many group call, without interconnecting to the public
	switched telephone network; and
•  paging and short-text messaging.
In addition, we plan to offer users access to digital two-way
mobile data and Internet connectivity services in the future.
Our customers may roam throughout the iDEN 800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800 MHz technology. To further
enhance our roaming services, during the second quarter of 2000,
we launched Nextel Worldwide with the introduction of the i2000,
a digital dual-mode subscriber unit manufactured by Motorola that
 operates on both iDEN 800 MHz and GSM 900 MHz technologies.
 This service allows our customers to roam internationally when
traveling between our markets and other cities or countries in
which either iDEN 800 MHz or GSM 900 MHz networks are
operating and which are covered by our roaming arrangements. We
currently have over 70 roaming agreements in effect with
operators of iDEN 800 MHz and GSM 900 MHz networks in over
40 countries.
49
Table of Contents
Business Strategy
Our principal objective is to become the leading provider of
integrated digital wireless communication services to business
customers in selected international markets. We believe the
following elements of our strategy will distinguish us from our
competitors and will enable us to compete successfully:
•
Focus on Major Business Centers in Emerging Markets.
We operate primarily in Latin America in markets that we
	believe offer favorable long-term growth prospects for wireless
	communications services. We believe that there are significant
	opportunities for growth in these markets due to relatively low
	wireless and wireline penetration rates and increasing income
	levels. In a given market, we initially focus on highly
	concentrated business centers such as Mexico City, São
	Paulo, Rio de Janeiro, Buenos Aires and Lima. These areas have
	high population densities and, we believe, a concentration of the
	 country's business users and economic activity. To capture
	the benefits of the projected growth in the demand for wireless
	services in our current markets and to increase our market share,
	 we intend to continue to enhance and expand our networks, to
	leverage our existing customer base and to continue developing
	innovative products and services.
•
Provide Differentiated Package of Wireless Services.
We offer a package of services and features that combines
	multiple communications services in a single wireless subscriber
	unit, including Nextel Direct Connect, which allows users to
	contact co-workers instantly, on a private one-to-one call or on
	a one-to-many group call. In addition, we offer billing based
	upon actual seconds of airtime after the first minute and rate
	plans that do not distinguish between "peak" and
	"off-peak" minutes. We also offer international roaming
	 in selected iDEN 800 MHz and GSM 900 MHz markets. We believe
	that none of our competitors currently offers a similar package
	of services. We intend to continue to emphasize the
	differentiated features of iDEN technology and our networks and
	to continue to enhance our service offerings such as the
	anticipated future availability of regional Nextel Direct Connect
	 and wireless data services in selected markets.
•
Target Business Customers.
We believe that our
	focus on business customers will result in higher monthly average
	 revenue per digital subscriber unit and lower subscriber unit
	cancellations. Based on the experience of Nextel Communications
	in the United States, we believe business customers are more
	likely to recognize the advantages and value of our integrated
	service offerings. Further, we believe that we are the only major
	 wireless service provider in our markets directing
	fully-integrated digital offerings principally to the business
	segment. To increase our subscriber base, our Operating Companies
	 are continuing to implement marketing programs and promotions
	that have been proven successful in Nextel Communications'
	markets in the United States.
•
Offer International Roaming.
We are deploying
	international digital ESMR networks that will provide roaming
	capabilities to our customers on a single digital subscriber unit
	 as they travel in iDEN 800 MHz or GSM 900 MHz markets where we
	operate or have roaming agreements. We believe that offering
	international roaming capabilities with one phone, one number and
	 one bill distinguishes our service offerings from those of other
	 wireless operators in our markets.
•
Expand and Strengthen Our Geographic Footprint.
We
	intend to selectively expand our coverage in those markets in
	which we currently operate. In addition, we may pursue new
	investments in high growth international markets that complement
	our existing operations and offer the opportunity to further our
	business strategy. We believe our established presence in Latin
	America and Asia, our strategic affiliations with Nextel
	Communications and Motorola, and our acquisition experience will
	enable us to capitalize on opportunities in our existing as well
	as selected new markets. In addition, as opportunities arise, we
	may also increase our ownership of our Operating Companies that
	are not wholly owned.
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Table of Contents
•
Leverage our Relationship with Nextel Communications.
Our relationship with Nextel Communications is important as
	we continue to upgrade and deploy our digital ESMR networks and
	provide new products and services to expand our subscriber base.
	Access to the technology, supplier relationships, network
	development and marketing expertise of Nextel Communications has
	afforded us significant competitive advantages. We intend to
	continue to leverage Nextel Communications' expertise in the
	 future as we enhance and expand our networks and launch new
	products and services. In addition, we currently utilize the
	"Nextel" brand name in Latin America and the
	Philippines. We also benefit from Nextel Communications'
	relationship with Motorola, which supplies us with network
	equipment, subscriber units and related services, generally at
	the same basic prices extended to Nextel Communications.
Recent Developments
Increase in Ownership Interest in NEXNET.
Effective in
March 2000, as a consequence of capital contributions made to
NEXNET, by some of its stockholders to supply funds that a
stockholder was required but declined to contribute, the
stockholder transferred a portion of its shares to the
contributing stockholders, including us. On March 30, 2000,
we purchased additional shares for about $0.4 million in
cash and were granted an option, exercisable at any time prior to
 March 31, 2001, to purchase any or all of the remaining
shares of NEXNET stock owned by the same stockholder. As a result
 of these share acquisitions, our equity ownership interest in
NEXNET has increased from about 21% to about 32%. If we exercise
the option, our equity ownership interest would increase to about
 44%.
Purchase of Common Equity Shares in Companies in Brazil, Peru
and Chile.
In May 2000, we purchased another
stockholder's interest in Nextel Peru for about
$2.8 million in cash and increased our ownership from about
63% to about 69%.
In May 2000, we purchased all of the equity interests of
Motorola International Development Corporation, referred to as
Motorola International, in Nextel Peru, which increased our
ownership interest from about 69% to 100%. At the same time, we
purchased all of Motorola International's equity interests
in Nextel S.A., the parent company of Nextel Brazil, which
increased our ownership of Nextel Brazil from about 88% to about
92%. In May 2000, we also purchased all of Motorola
International's equity interests in three Chilean analog SMR
 companies, which were wholly owned by Motorola International. We
 have entered into an agreement with Motorola International to
manage these three Chilean SMR companies during a transition
period. The aggregate purchase price paid to Motorola
International for these three acquisitions in Brazil, Peru and
Chile was about $77.7 million in cash.
McCaw Brazil.
We entered into a purchase, release and
settlement agreement dated as of July 21, 2000 with the
Founders Group, who collectively were the minority stockholders
in McCaw Brazil. Under that agreement, on August 4, 2000, we
 made a cash payment to members of the Founders Group totaling
$146.0 million, received all of the equity interests held by
 the Founders Group in McCaw Brazil and exchanged mutual releases
 with all of the members of the Founders Group. In addition, all
pending court disputes between us and Telcom Ventures, a member
of the Founders Group, were permanently dismissed. For a
description of these disputes, see "— Legal
Proceedings — Telcom Ventures." As a result, we
increased our ownership interest in McCaw Brazil, and therefore
our indirect ownership interest in Nextel Brazil, to 100% and all
 rights of the Founders Group as minority stockholders in McCaw
Brazil, including their rights to put their equity interests to
us beginning in October 2001, were terminated.
Increase in Investment in Nextel Philippines.
On
July 28, 2000, we increased our direct and indirect
ownership interests in Nextel Philippines from about 38% to about
 51% through the
51
Table of Contents
purchase of some of the minority owners' equity interests in
 Nextel Philippines for about $9.8 million.
Shanghai, People's Republic of China Negotiations.
As
 a result of recent changes to the regulatory environment in
China, Shanghai CCT-McCaw Telecommunications Systems Co., Ltd.,
referred to as Shanghai CCT McCaw, a joint venture in which we
own a 30% interest, terminated an agreement with China United
Telecommunications Corporation, referred to as Unicom, under
which we had the right to share in the profits of the cellular
network in Shanghai, referred to as the Shanghai GSM System. In
consideration for entering into this termination agreement,
Shanghai CCT McCaw received about $61.3 million in cash, and
 we and the other joint venture participants received warrants to
 purchase shares of Unicom stock. In May 2000, we received a
 reimbursement of $7.3 million for advances we previously made to
 Shanghai CCT McCaw. We are currently working with the other
stockholders of the joint venture to arrange reimbursement of
expenses incurred by the stockholders related to their
investments in Shanghai CCT McCaw and the sale of our interests
in the joint venture. Any funds remaining after payment of these
expenses and satisfaction of other existing obligations will be
distributed among the stockholders of Shanghai CCT McCaw. We
would be entitled to receive 30% of the total amount so
distributed based on our ownership interest.
Brazil Regulatory Development.
In April 2000,
Brazil's telecommunications regulatory agency, Agência
Nacional de Telecomunicações, referred to as Anatel,
issued new regulations relating to the provision of SMR services
in Brazil. As a result, Brazil has opened its doors wider to
competition in the mobile wireless segment where we operate.
These new regulations have relaxed restrictions that
significantly limited the ability of Nextel Brazil and its
affiliated companies to provide ESMR services to all potential
business customer groups and to be more responsive to its
customers' demands and needs for mobile wireless
communications services.
Additional Capital.
On April 4, 2000, we received an
advance of $77.7 million from a wholly owned subsidiary of Nextel
 Communications in connection with the anticipated purchase of
Motorola International's equity interest in Nextel Brazil,
Nextel Peru and three Chilean SMR companies as discussed above.
On June 2, 2000, we issued 777 shares of our series A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications as repayment of this
intercompany advance. Additionally, on April 7, 2000, we
issued 1,500 shares of our series A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications in exchange for cash proceeds of
$150.0 million. On June 12, 2000, all of the shares of
series A exchangeable redeemable preferred stock outstanding at
that time were exchanged for shares of our common stock. On
June 29, 2000, we issued an additional 2,150 shares of our
series A exchangeable redeemable preferred stock to a wholly
 owned subsidiary of Nextel Communications in exchange for cash
proceeds of $215.0 million. These additional 2,150 shares of
 our series A exchangeable redeemable preferred stock will
be exchanged for shares of our class B common stock prior to
 the completion of the offerings.
Stock Split.
On June 2, 2000, our board of directors
approved an increase in the number of authorized shares of common
 stock from 73,000,000 to 200,000,000, enabling us to complete a
4-for-1 common stock split, which was effective June 20,
2000.
August 2000 Notes.
On August 1, 2000, we completed
the issuance and sale in a private placement of
$650.0 million aggregate principal amount of our 12.75%
senior serial redeemable notes due 2010, generating about
$623.8 million in net cash proceeds.
Acquisitions.
On August 11, 2000 we entered into an
agreement with CCC under which we agreed to purchase all of
CCC's equity ownership in several analog SMR companies in
Chile and Peru for about $66.5 million. The purchase price
is subject to reduction in the event we are unable to obtain
within the next 24 months the regulatory relief necessary to
provide our integrated digital ESMR services in Chile.
Consummation of these acquisitions is subject to various
conditions, and we cannot assure you when or whether these
acquisitions will occur.
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Table of Contents
We have also entered into term sheets or are negotiating
agreements regarding additional potential investments to increase
 our spectrum position or make strategic acquisitions. However,
we cannot assure you that definitive agreements will be reached
regarding any of these potential investments or as to their
terms.
Motorola Equipment Purchase Agreements.
On August 14,
2000, we and some of our Operating Companies entered into
equipment purchase agreements with Motorola under which Motorola
will provide us with infrastructure equipment and services. We
and Motorola have also agreed to warranty and maintenance
programs and specified indemnity arrangements. In addition, under
 some circumstances, we have agreed to purchase at least 50% of
our infrastructure equipment from Motorola. These agreements also
 contain other minimum purchase commitments that if not met
subject us to penalties based on a percentage of the commitment
shortfall.
Wireless Technology
Currently, the systems that provide most mobile wireless
communications services in our markets are SMR/ ESMR, other
cellular systems or PCS. Virtually all of our Operating Companies
 utilize SMR and/ or ESMR.
Our digital ESMR networks combine the advanced iDEN technology
developed and designed by Motorola with a low-power, multi-site
transmitter/receiver configuration that permits frequency reuse.
The iDEN technology shares many common components with GSM
technology, which has been established as the current digital
cellular communications standard in Europe and elsewhere and is a
 variant of the GSM technology that is being deployed by some PCS
 operators in the United States. The design of our existing and
proposed digital ESMR networks currently is premised on dividing
a service area into multiple sites that have a typical coverage
area ranging from less than one mile to thirty miles in radius,
depending on the terrain and the power setting. Each site
contains a low-power transmitter, receiver and control equipment
referred to as the base station. The base station in each site is
 connected by microwave, fiber optic or telephone line to a
computer controlled switching center. The switching center
controls the automatic hand-off of cellular calls from site to
site as a subscriber travels, coordinates calls to and from a
subscriber unit and connects cellular calls to the public
switched telephone network. In the case of two-way dispatch, a
dispatch application processor provides a call setup, identifies
the target radio and connects the subscriber initiating the call
to the other subscriber, in the case of a private call, or to a
number of other subscribers, in the case of a group call, without
 interconnecting to the public switched telephone network, or
PSTN.
Northern Telecom, Inc. has supplied the mobile telephone switches
 for our digital ESMR networks. At June 30, 2000, our
consolidated subsidiaries had 5 operational switches and about
950 cell sites constructed and in operation in our digital ESMR
networks.
Currently, there are three principal digital technology formats
that are being assessed or proposed for deployment or have been
deployed currently by providers of cellular telephone service or
by various PCS providers or licensees: time division multiple
access, or TDMA, digital transmission technology; code division
multiple access, or CDMA, digital transmission technology; and
GSM-PCS, an updated, up-banded, PCS-adapted version of the
TDMA-based GSM digital technology format.
Although TDMA, CDMA and GSM-PCS are digital transmission
technologies that share basic characteristics and areas of
contrast to analog transmission technology, they are not
compatible or interchangeable with each other. Although
Motorola's proprietary iDEN technology is based on the TDMA
technology format, it differs in a number of significant respects
 from the TDMA technology versions being assessed or deployed by
cellular operators and PCS licensees.
53
Table of Contents
The implementation of a digital ESMR network using iDEN
technology significantly increases the capacity of our existing
SMR channels and permits us to utilize our current holdings of
ESMR spectrum more efficiently. This increase in capacity is
accomplished in two ways.
•
First, each channel on our digital ESMR networks is capable of
        carrying up to six voice and/or control paths by employing
        six-time slot TDMA digital technology or up to three voice and/or
         control paths by employing three-time slot TDMA digital
        technology. Each voice transmission is converted into a stream of
         data bits that are compressed before being transmitted, allowing
         each of the time- slotted voice and/or control paths to be
        transmitted on the same channel without causing interference.
        Upon receipt of the coded voice data bits, the digital subscriber
         unit decodes the voice signal. Using iDEN technology, we achieve
         about six times improvement over analog SMR in channel
        utilization capacity for channels used for two-way dispatch
        service and about three times improvement over analog SMR in
        channel utilization capacity for channels used for mobile
        telephone service.
•
Second, our digital ESMR networks reuse each channel many times
        throughout the market area in a manner similar to that used in
        the cellular industry.
Nextel International Overview
Networks
We are designing and constructing digital ESMR networks using
iDEN technology to support the full complement of digital
wireless services in our markets. Our digital ESMR networks
provide customers desiring mobile telephone services with access
to features competitive with those offered by other current
wireless communications services, such as the
"hand-off" of calls from one site to another and
"in-building" signal penetration for improved portable
performance in selected high usage areas. Our networks also
support two-way dispatch that allows users to contact co-workers
instantly, on a private one-to-one call or on a one-to-many group
 call. We market this service as Nextel Direct Connect. In
addition to the mobile telephone and two-way dispatch functions,
our digital ESMR networks and digital subscriber units have been
designed to include a signaling or paging capability to enable
the customer to receive alphanumeric short-text messages. Our
digital ESMR networks have been designed to offer customers
additional features, such as voice mail, call hold, call waiting,
 no answer or busy-signal transfer, call forwarding, three-way
calling and two lines.
The following table provides an overview of the mobile wireless
voice communications systems operated by our Operating Companies
in the countries indicated, giving effect to recent acquisitions:
Total
Proportionate
Digital
Digital
Subscriber
Subscriber
Units in
Units in
Nextel
Service at
Service at
Start Date of
International
June 30,
June 30,
Initial Commercial
Country
Ownership
System Type
2000
2000
ESMR Services
(in thousands)
Brazil
100.0
%
SMR/ESMR
204
204
May 1998
Mexico
100.0
%
SMR/ESMR
133
133
September 1998
Argentina
100.0
%
SMR/ESMR
90
90
June 1998
Peru
100.0
%
SMR/ESMR
42
42
June 1999
Chile
100.0
%
SMR
—
—
—
Total Latin America
469
469
Philippines
51.1
%
ESMR
37
19
July 1998
Japan
32.1
%
SMR/ESMR
48
15
July 1998
Canada
14.4
%
SMR/ESMR/PCS
672
97
October 1996
Total
1,226
600
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Spectrum Position
Through our Operating Companies, we employ iDEN technology on 800
 MHz spectrum holdings in major business centers and related
transportation corridors in Brazil, Mexico, Argentina, Peru, the
Philippines and Canada and on 1.5 GHz spectrum holdings in Japan.
To construct a viable digital ESMR network utilizing iDEN
technology, we believe that at least 100 SMR channels are
necessary in any given market. We estimate that each SMR channel
has the capacity to provide service to about 100 subscribers
using analog SMR technology. We own or have options to acquire at
 least 100 channels in most of the markets in which we have
constructed or currently intend to construct digital networks. By
 deploying digital technology, we expect to significantly
increase subscriber capacity. Moreover, our large channel
position reduces capital expenditures required to upgrade to
digital networks.
Our current spectrum strategy focuses on strengthening our
channel position in our existing markets. We also may seek to
acquire SMR channels or other mobile wireless communications
services in selected urban centers that have attractive economic
characteristics. As part of our strategy for expansion of our
networks, we may continue to purchase analog SMR channels, which
we would then convert to use in digital ESMR networks, as we have
 done in the past.
Network Implementation, Design and Construction
Our networks are in various stages of development and deployment.
 Our critical design criteria for expanding and enhancing our
digital ESMR networks include the following:
•
contiguous wide area coverage of major business centers and
	related transportation corridors in our licensed areas;
•
signal quality comparable to that currently provided by existing
	cellular/ PCS carriers in our service area;
•
call "hand-off" for mobile telephone service throughout
	 our digital ESMR networks;
•
minimization of blocked and dropped calls, consistent with
	recognized industry performance targets;
•
regulatory authorizations necessary to offer enhanced services
	such as mobile telephone service, data transmission and
	short-text messaging services; and
•
cost-efficient routing of calls to minimize local interconnection
	 costs and toll charges and to provide maximum utilization of our
	 digital ESMR network facilities.
Careful frequency planning and system design are necessary prior
to commencing digital ESMR network construction to ensure
satisfactory coverage over the entire network. Frequency planning
 involves the selection of specific areas in our markets for the
placement of transmitter sites and the identification of specific
 frequencies that will be employed at each site in the initial
configuration.
In addition to frequency planning and system design, the
implementation of our digital ESMR networks, and the conversion
of our existing analog SMR networks to digital ESMR networks,
requires site acquisition, equipment procurement, construction,
equipment installation, testing and optimization. A site is
selected on the basis of its proximity to targeted customers, the
 ability to acquire and build the site and frequency propagation
characteristics. Site procurement efforts include obtaining
leases and permits and, in many cases, zoning approvals. Once the
 requisite governmental approvals are obtained, the preparation
of each site, including grounding, ventilation, air conditioning
and construction, typically takes three months, while equipment
installation, testing and optimization generally takes at least
an additional four weeks. Following commencement of system
operations in a selected market, we expect to add new sites to
our digital ESMR networks continually to improve coverage,
quality and capacity.
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Any scheduled build-out and/or expansion may be delayed due to
the need to obtain additional financing as well as typical
construction and other delays.
International Roaming Services
Our customers may roam throughout the iDEN 800 MHz markets
we currently serve, as well as those of our parent and its
affiliates that also use iDEN 800 MHz technology. To further
 enhance our roaming services, during the second quarter of 2000,
 we launched Nextel Worldwide with the introduction of the i2000,
 a digital dual-mode subscriber unit manufactured by Motorola
that operates on both iDEN 800 MHz and GSM 900 MHz
technology. This service allows our customers to roam
internationally when traveling between our markets and other
cities or countries in which either iDEN 800 MHz or GSM
900 MHz networks are operated and covered by our roaming
agreements. We currently have over 70 roaming agreements in
effect with operators of iDEN 800 MHz and GSM 900 MHz
networks in over 40 countries. After we enter into roaming
agreements, we and our roaming partners must undertake testing
and implementation procedures before roaming can commence.
Markets
We primarily target emerging markets characterized by strong
long-term economic growth prospects, highly concentrated business
 centers and favorable competitive environments.
Strong Economic Growth Prospects.
We operate primarily in
Latin America and, to a lesser extent, in other international
markets that we believe offer favorable long-term economic growth
 prospects.
Highly Concentrated Business Centers.
We operate primarily
 in major business centers and related transportation corridors
in selected markets of Latin America, including São Paulo,
Rio de Janeiro, Buenos Aires, Mexico City and Lima. These areas
are generally characterized by high population densities and, we
believe, a concentration of the country's business users and
 economic activity. In addition, vehicle traffic congestion, low
landline penetration and unreliability of the land-based
telecommunications infrastructure encourage the use of mobile
wireless communications services in these areas.
Favorable Competitive Environments.
Compared to the United
 States, there historically were relatively few licensed wireless
 communications service providers operating in most of the
emerging markets in which we operate. With the advent of
privatization programs and the deregulation of telecommunications
 markets, competition has begun to increase.
Where we believe attractive opportunities exist, we also make
strategic investments in entities that operate digital ESMR
systems in developed markets such as Japan.
Marketing
Most of our Operating Companies market their wireless
communications services primarily to business customers and
mobile work forces, such as service companies, security firms,
contractors and delivery services. We believe that companies with
 mobile work forces represent growing sectors of the economies in
 our markets. These types of businesses often need to provide
their personnel with the ability to communicate directly with one
 another, either on a private one-to-one call or a one-to-many
group call. By expanding and enhancing our digital ESMR network,
we plan to increase significantly the quality and capacity of our
 wireless communications networks utilizing SMR frequencies and
be in a position to offer a broader array of digital wireless
services to a larger customer base. For a more detailed
description of the marketing focus of each Operating Company, see
 the "Marketing" discussion for each Operating Company
under "— Operating Companies."
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Competition
In each of the markets where our Operating Companies operate or
will operate, we compete or will compete with other
communications services providers, including landline telephone
companies and other wireless communications companies. Many of
our competitors are well-established companies with substantially
 greater financial and marketing resources, larger customer
bases, better name recognition, bundled service offerings, larger
 spectrum positions and larger coverage areas than we have. In
addition, many existing telecommunications enterprises in the
markets in which our Operating Companies conduct business have
successfully attracted significant investments from multinational
 communications companies. Because of their financial resources,
these competitors may be able to reduce prices to gain market
share. We expect that the prices we charge for our products and
services will decline over the next few years as competition
intensifies in our markets. Because the iDEN technology we deploy
 is not compatible with other wireless technologies such as
digital cellular or PCS technologies, or with other iDEN networks
 not operating in the 800 MHz spectrum, our customers will
not be able to roam on non-GSM 900 MHz or non-iDEN 800 MHz
cellular or PCS systems or any system for which we do not have a
roaming agreement. Further, they will not be able to roam on GSM
900 MHz systems unless they elect to purchase dual-band phones
that are compatible both with iDEN 800 MHz and GSM 900 MHz. At
present, the i2000 subscriber unit developed by Motorola, which
enables our customers to roam on GSM 900 MHz cellular systems
operated by other providers, is the only dual-band phone that we
expect will be available to our customers in the foreseeable
future. Accordingly, those customers will not have coverage
outside of our coverage area until:
•
we build out additional digital ESMR networks in areas outside
	our existing markets;
•
other operators deploy iDEN 800 MHz or GSM 900 MHz technology in
	markets outside of our coverage area and we enter into roaming
	agreements with those operators; or
•
multi-band and/or multi-mode subscriber units that can be used on
	 both iDEN 800 MHz and non-GSM 900MHz wireless communications
	networks become available and we enter into roaming agreements
	with the operators of those networks.
For a more detailed description of the competitive factors
affecting each Operating Company, see the "Competition"
 discussion for each Operating Company under
"— Operating Companies."
Regulation
The licensing, construction, ownership and operation of wireless
communications systems, and the grant, maintenance and renewal of
 applicable licenses and radio frequency allocations, are
regulated by governmental entities in the markets in which our
Operating Companies conduct business. In addition, these matters
and other aspects of wireless communications system operations,
including rates charged to customers and the resale of wireless
communications services, may be subject to public utility
regulation in the jurisdiction in which service is provided.
Further, statutes and regulations in some of the markets in which
 the Operating Companies conduct business impose limitations on
the ownership of telecommunications companies by foreign
entities. Changes in the current regulatory environments in those
 countries, or future judicial intervention, including with
respect to interconnection arrangements, requirements for
increased capital investments, regulations affecting prices the
Operating Companies are able to charge for their services, or
foreign ownership limitations, could have a material adverse
effect on us and our Operating Companies.
Additionally, because we utilize SMR technology, in some
jurisdictions our Operating Companies are not deemed to be, nor
is it clear whether they will be deemed to be, operators of
public communications networks. Differences in the regulatory
framework applicable to compa-
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nies who are and are not deemed to be public communications
networks may place us at a competitive disadvantage with respect
to our ability to:
•
interconnect with public switched telephone networks in those
        jurisdictions, in terms of the frequency, at competitive rates
        and with availability of the necessary numbers to undertake this
        interconnection;
•
provide services to all segments of the population, such as the
        restrictions applicable to Nextel Brazil which require it to
        offer its services only to businesses or individuals
        characterized by a common economic interest; and
•
provide services under particular programs, such as calling party
         pays programs.
These differences also may impact our flexibility in terms of
permitted foreign investment and acquisitions of additional
spectrum. In addition, as a result of the different regulatory
regimes, we may be subject to more onerous requirements under our
 licenses regarding build-out, installation and loading, among
others, than our non-SMR competitors are under their licenses.
For a more detailed description of the regulatory environment in
each of the countries in which the Operating Companies conduct
business, see the "Regulatory and Legal Overview"
discussion for each Operating Company under
"— Operating Companies."
Foreign Currency Controls and Dividends
In some of the countries in which we operate, the purchase and
sale of foreign currency is subject to governmental control.
Additionally, local law in some of these countries may limit the
ability of our Operating Companies to declare and pay dividends,
and may impose a withholding tax in connection with the payment
of dividends. For a more detailed description of the foreign
currency controls and dividend limitations and taxes in each of
the countries in which our Operating Companies conduct business,
see the "Foreign Currency Controls and Dividends"
discussion for each Operating Company under
"— Operating Companies."
Operating Company Stockholders
We do not own all of the equity interests in our Operating
Companies in the Philippines, Canada and Japan. For a description
 of the current stockholders of the Operating Companies in these
countries other than us, see the discussion of minority
stockholders for each of these Operating Companies under
"— Operating Companies."
Operating Companies
Brazil
Operating Company Overview.
Nextel Brazil currently has
licenses in markets covering about 62 million people and
provides services under the tradename "Nextel". Nextel
Brazil has licenses to provide digital ESMR and/or analog SMR
services, on a commercial basis, in the following cities:
Digital
Analog
Campinas (including Jundiai)
Aracaju
Florianópolis
Recife
Rio de Janeiro (including
Bauru
Fortaleza
Ribeirão Preto
Niterói and São Gonçalo)
Belém
Goiânia
Salvador
Santos (including São
Belo Horizonte
Juiz de Fora
São Luiz
Vicente and Guarujá)
Brasília
Londrina
Uberaba
São José dos Campos
Canoas
Manaus
Uberlândia
São Paulo
Caxias do Sul
Palmas
Curitiba
Porto Alegre
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As of June 30, 2000, Nextel Brazil, through its subsidiaries
 and affiliates, provided service to about 204,200 digital
subscriber units.
Nextel Brazil's operations are headquartered in São
Paulo, with branch offices in 14 other cities. As of
June 30, 2000, Nextel Brazil's subsidiaries and
affiliates had about 1000 employees.
Marketing.
Nextel Brazil offers both a broad range of
service options and pricing plans designed to meet the specific
needs of its targeted business customers. It currently offers
digital ESMR dispatch only plans and integrated service plans,
including dispatch and interconnect, in its digital markets, and
analog SMR dispatch in its other markets. Nextel Brazil's
target customers are businesses with mobile work forces as well
as utilities and government agencies. Nextel Brazil utilizes both
 a direct sales force as well as dealers and independent agents.
Competition.
Nextel Brazil competes with other analog SMR
and cellular service providers in Brazil. Other SMR service
providers include MComCast S.A., Splice Com S.A., referred to as
Splice do Brasil, Teleglobal S.A. and Unical S.A.
Until 1998, all local, long distance and cellular
telecommunications services in Brazil were provided by
Telecomunicações Brasileiras S.A., a government-owned
holding company known as Telebras, through its operating
subsidiaries. In July 1998, the government of Brazil
privatized Telebras by dividing Telebras into twelve separate
telecommunications companies and selling a controlling interest
in each newly created company by auction. Since the privatization
 of Telebras, each cellular market that was served by Telebras is
 now served by one of eight cellular companies created by the
privatization, including: (1) Telesp Celular S.A., which is
controlled by Portugal Telecom, in São Paulo; (2) Tele
Sudeste Celular S.A., which is controlled by a consortium led by
Telefónica de España S.A., in Rio de Janeiro and
Espirito Santo and (3) Tele Centro Oeste Celular S.A., which
 is controlled by Splice do Brasil, in Brasilia and other central
 cities. Additionally, the government of Brazil has divided the
Brazilian market into ten cellular regions, and, during 1997 and
1998, awarded band B cellular licenses covering all ten regions
in Brazil. Accordingly, in several markets in Brazil, including
the city of São Paulo, there are two cellular service
providers. In May 1998, BCP Telecomunicações S.A.,
 an affiliate of BellSouth Corp., began offering digital cellular
 service in São Paulo. In addition, as a result of the new
regulations described below, Nextel Brazil will compete with
additional providers in each of its markets.
On July 10, 2000, Brazil's telecommunications
regulatory agency, Anatel, published draft Guidelines for the
Implementation of the Personal Mobile Service, which are PCS
operations in Brazil, a service intended to succeed the cellular
services currently available in the market. The guidelines were
submitted for comment until August 7, 2000 and are expected
to be finalized and adopted in the near term.
The guidelines set forth rules regarding the selection of up to
three additional mobile telephony providers per region,
corresponding to bands (or sub-ranges) "C,"
"D" and "E." According to the guidelines,
Brazil will be divided into three regions for PCS operation
within the 1.8 GHz broadband frequency as opposed to ten regions
for the current cellular service providers. Each of the three
regions will have three new competitors in addition to the
existing two competitors, which have bands "A" and
"B." The current "A" and "B" band
cellular providers will have the right to switch to PCS. If they
elect to do so, they will have the right to acquire two 5 MHz
sub-ranges (one of which being upward/output and the other
downward/return) in the 1.9 GHz range to enable them to offer the
 same services as the PCS providers.
The PCS bidding will be conducted by auction, on a sequential
basis for each of the three bands. There are no restrictions on
the participation of companies organized and based in Brazil,
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even if they are foreign-owned. Interested companies may compete
in each of the three regions. There are, however, other
conditions to participation:
•
the same provider (controlling, controlled or affiliate company)
	may not provide PCS, cellular or both through more than one
	authorization or concession in the same service area; and
•
a company that is, directly or through its controlling,
	controlled or affiliate company, a concessionaire of switched
	fixed telephony services, or SFTS, cannot bid in the auction for
	"C" band PCS licenses.
Each successful bidder for the "C," "D" and
"E" bands will be granted three licenses from Anatel.
The first license will authorize PCS operations; the second will
permit national long distance service as of January 1, 2002;
 and the third will permit international long distance service as
 of January 1, 2002. For this purpose, the new PCS providers
 will have their own access codes to forward long distance calls.
The PCS guidelines introduce new concepts in Brazilian mobile
telephony, since the service enables the communication between
mobile stations and from mobile stations to other stations within
 the same PCS registration area and calls originated within a PCS
 registration area and having as destination a point located
outside such registration area will be treated as SFTS for
national and international long distance.
Regulatory and Legal Overview.
On April 27, 2000,
Anatel issued Resolution No. 221 approving new regulations
relating to SMR and ESMR (collectively "SMR" for
purposes of this section only) services in Brazil
("Resolution No. 221/00" or the "New SMR
Regulation"). As a result, Brazil has opened its doors to
wider competition in the mobile wireless segment where we
operate. The former regulations, set forth under Norma 14/97,
imposed various restrictions that significantly limited the
ability of Nextel Brazil and its affiliated companies to provide
ESMR services to all potential customer groups and to be fully
responsive to its customers' demands and needs for mobile
wireless communications services. Under Resolution
No. 221/00, SMR services, including our digital ESMR
services, are now defined as the "telecommunication
terrestrial mobile service of collective interest that utilizes
radiocommunication systems basically for the performance of
dispatch-type operations, and other forms of
telecommunications." This new regulation is expected to have
 a significant positive impact for our Brazilian SMR operations
principally by:
•
allowing service to be provided not only to legal entities but
	also to groups of individuals characterized by a common activity,
	 even though the group is not a formal legal entity, such as
	doctors or lawyers; however, our SMR service still may not be
	provided to stand-alone individuals;
•
lifting restrictions on the volume of interconnect traffic, which
	 previously required that the volume of traffic interconnected
	with the public switched telecommunications network, referred to
	as PSTN, could not exceed one third of the sum of intra-network
	traffic volume and outgoing calls interconnected to the PSTN;
•
allowing SMR companies to provide their users with other services
	 that are not characterized as another type of telecommunication
	service, such as short messaging and packet data and Internet
	data services; and
•
confirming that SMR networks in different service areas can
	interconnect among themselves for dispatch services, which allows
	 for long distance dispatch.
The new regulations allow for implementation of a calling party
pays program. However, the specific guidelines governing this
program are not expected to be issued until later this year. Once
 these guidelines are published, we intend to deploy calling
party pays in our markets in Brazil and currently expect to have
this service available to customers beginning in 2001.
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However, we cannot assure you as to the timing of the
implementation of calling party pays, or that calling party pays
will be implemented and, if so, as to the terms and conditions
that may apply.
The new regulations now permit affiliated companies to hold more
than one license in the same service area. However, SMR licensees
 like us, and their affiliates, are still prohibited from holding
 more than 10 MHz of spectrum in the same service area.
Although we believe that the new regulations give us
significantly greater flexibility to provide ESMR services, we
are still required to provide dispatch as a basic service before
we can provide any other service. For example, we cannot offer
interconnect without dispatch as well. In addition, we are
required to provide similarly situated customers with services on
 a similar basis.
No material changes were introduced under the proposed SMR
regulations in regard to the grant of new licenses. Any company
interested in obtaining new SMR licenses from Anatel is required
to apply and to present documentation showing the technical,
legal and financial qualifications required by the legislation.
Anatel, in turn, may also unilaterally communicate its intention
to grant new licenses and the terms and conditions applicable
thereto, including the relevant price for the license. In any
such case, Anatel is required to publish an announcement in the
official gazette so that any company willing to respond to an
Anatel unilateral invitation, or willing to render the applicable
 service in a given area claimed by another interested party, may
 have the opportunity to obtain an SMR license. Whenever the
number of claimants is larger than the available spectrum, Anatel
 is required to conduct competitive bidding to determine whom,
among all interested parties, will be granted the available
licenses.
A license for the right to render SMR services is granted for an
undetermined period of time, while the associated radio
frequencies are licensed for a period of 15 years, renewable
 only once, for an equal period. Renewal of the license is
subject to the rules set forth by Anatel under Resolution
No. 65. Renewal is required at least three years prior to
the expiration of the original term, and must be decided upon by
Anatel within 12 months. Anatel may deny a request for renewal of
 the license for the right to use associated radio frequencies,
but only if the applicant is not making rational and adequate use
 of the frequency, the applicant has committed repeated breaches
in the performance of its activities or there is a need to modify
 the radio frequency allocation.
We believe that the new framework will be more flexible in regard
 to operational requirements. However, we will still be required
to make available to Anatel, at any time, all information
regarding our client-base. In addition, the new rules also
require that the service be "available and in regular
operation" within the relevant service area, in accordance
with the terms and minimum coverage and signal requirements
provided for under the regulations (which to date have not been
enacted). Failure to meet such requirements may entail
repossession of the channel by Anatel, and forfeiture of the
license. We believe that Nextel Brazil is currently in compliance
 with all of the operational requirements of its licenses.
Foreign Currency Controls and Dividends.
The purchase and
sale of foreign currency in Brazil is subject to governmental
control. There are two foreign exchange markets in Brazil that
are subject to Central Bank of Brazil regulations. The first is
the commercial/financial floating exchange rate market, which is
reserved generally for trade-related transactions, such as import
 and export transactions, registered foreign currency investments
 in Brazil and specified other transactions involving remittances
 abroad. The second foreign exchange market is the tourism
floating exchange rate market. The commercial/financial exchange
market is restricted to transactions that require prior approval
of the Brazilian monetary authorities. Both markets operate at
floating rates freely negotiated between the parties. The
purchase of currency for repatriation of capital invested in the
country and for payment of dividends to foreign stockholders of
Brazilian companies is made in the commercial/financial floating
market, provided that the original investment of foreign capital
and capital increases were registered with
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the Central Bank of Brazil. In this case, there are no
significant restrictions on the repatriation of share capital and
 remittance of dividends. Nextel S.A., the Brazilian subsidiary
through which any dividend is expected to flow, has applied to
the Central Bank of Brazil for the registration of all of the
investments in foreign currency made by McCaw Brazil and our
indirect subsidiary, Airfone Holdings, Inc. A substantial portion
 of those applications are still pending. An administrative
decision is expected before the end of 2000 from the Brazilian
monetary authorities. Nextel S.A. intends to structure future
capital contributions to Brazilian subsidiaries to maximize the
amount of share capital and dividends that can be repatriated
through the commercial/financial exchange market. We cannot be
certain, however, that Nextel S.A. can repatriate through the
commercial/financial exchange market share capital and dividends
on foreign investments that have not been registered.
Brazilian law provides that whenever there is a material
imbalance or a serious risk of a material imbalance in
Brazil's balance of payments, the Brazilian government may,
for a limited period of time, impose restrictions on the
remittance by Brazilian companies to foreign investors of the
proceeds of investments in Brazil. The Brazilian government may
also impose restrictions on the conversion of Brazilian currency
into foreign currency. These restrictions may hinder or prevent
us from purchasing equipment required to be paid for in any
currency other than Brazilian reais.
Minority Stockholders in Brazilian Operating Companies.
As
 a result of our purchase from Motorola International of the
remaining outstanding equity interest in Nextel S.A., the parent
company of Nextel Brazil and our purchase of the remaining 8% in
McCaw Brazil from the Founders Group, we own 100% of Nextel
Brazil.
Mexico
Operating Company Overview.
Nextel Mexico, through its
subsidiaries and management agreements, provides analog and
digital SMR services under the tradename "Nextel" in
about 80 cities and along a number of major highways. We provide
ESMR service in Mexico City, Toluca, Queretaro and Puebla. Cities
 where we provide analog SMR services include Guadalajara,
Monterrey and Tijuana. Nextel Mexico operated its digital ESMR
and analog SMR networks simultaneously for several months, while
it migrated its analog SMR customers to the digital ESMR network
in Mexico City, Toluca, Queretaro and Puebla. Nextel Mexico
ceased offering analog SMR service to new customers in Mexico
City, Toluca, Queretaro and Puebla in the second half of 1999.
Nextel Mexico has licenses in markets covering about
50 million people. As of June 30, 2000, Nextel Mexico
provided service to about 132,900 digital subscriber units.
Nextel Mexico is headquartered in Mexico City and has regional
offices in Guadalajara, Monterrey, Tijuana, Toluca, Puebla and
Queretaro. As of June 30, 2000, Nextel Mexico had about
700 employees.
Marketing.
Nextel Mexico offers its digital ESMR and
analog SMR services primarily to business customers, offering a
broad range of services and pricing plans designed to meet their
specific needs.
Nextel Mexico offers integrated services, including interconnect
services, dispatch radio and paging on its digital ESMR networks
in Mexico City, Toluca, Queretaro and Puebla, and offers analog
SMR dispatch in its other markets.
Nextel Mexico markets its services through a distribution network
 that includes a variety of direct sales representatives and
independent dealers. The development of alternate distribution
channels has been a key factor in the commercial performance of
the company. Additionally, Nextel Mexico has used an advertising
campaign supported by press, radio, magazines, television and
direct marketing to develop brand awareness.
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Competition.
Nextel Mexico's SMR operations compete
with those of Radiocel, S.A. de C.V., a large analog SMR
operator, and with other analog SMR system operators in its
Mexican markets. Nextel Mexico's digital ESMR networks
compete with analog SMR system providers and also with cellular
and PCS system operators in its market areas.
The Mexican cellular market is divided into nine regions. The
Secretary of Communications and Transportation of Mexico,
referred to as SCT, has divided the cellular telephone system in
each region into the Cellular A-Band and the Cellular B-Band. In
each region, Radiomóvil Dipsa, S.A. de C.V., referred to as
Telcel, and a subsidiary of Teléfonos de México, S.A.
de C.V., referred to as Telmex, holds the Cellular B-Band
concession and its cellular competitor in each region holds the
Cellular A-Band concession. Iusacell, S.A. de C.V., a joint
venture controlled by Verizon Communications and referred to as
Iusacell, holds the right to provide cellular service in the
greater Mexico City area, as well as in the regions covering most
 of the central and southern areas of Mexico. In the northern
region of Mexico, cellular service is provided by Movitel del
Norroeste, S.A. de C.V., Celular de Telefonía, S.A. de C.V.,
 Telefonía Celular del Norte, S.A. de C.V. and Baja Celular
Mexicana, S.A. de C.V., currently owned by Motorola. Cellular
service in the southeast region of Mexico is provided by Portatel
 del Sureste, S.A. de C.V.
Pegaso Telecomunicaciones, S.A. de C.V., a joint venture among
Grupo Pegaso, Leap Wireless International Inc. and Sprint
Corporation, provides PCS services and wireless local loop
commercial services in Tijuana, Monterrey, Guadalajara and Mexico
 City. In October 1999, Sistemas Profesionales de
Comunicaciones, S.A. de C.V., referred to as Unefon, obtained a
nationwide concession in the 1.9 GHz band to provide PCS services
 and wireless local loop commercial services. Currently Unefon is
 providing services in Acapulco, Toluca, León, and Mexico
City.
Regulatory and Legal Overview.
The SCT regulates the
telecommunications industry in Mexico. The Comision Federal de
Telecomunicaciones, referred to as COFETEL, oversees specific
aspects of the telecommunications industry on behalf of the SCT.
Since early 1994, the Mexican government has been deregulating
the telecommunications industry to improve the quality and expand
 the coverage of telecommunications services. The Mexican
government has stated its intention to increase competition
within the telecommunications industry and its desire to attract
foreign investment to improve Mexico's telecommunications
infrastructure. Mexico's Federal Telecommunications Law,
which became effective in June 1995, outlines the broad
rules for opening the local and long distance service markets to
competition.
The Mexican Federal Telecommunications Law requires that all
telecommunications licenses, which are referred to as concessions
 in Mexico, must be owned by Mexican individuals or entities that
 do not have more than 49% of their voting equity interest owned
by non-Mexican entities, referred to as the 49% Rule. Although
the 49% Rule existed prior to the enactment of the Mexican
Federal Telecommunications Law for specified types of
telecommunications licenses, the Mexican Foreign Investment Law
effective as of December 28, 1993 deleted the reference to
the 49% Rule and allowed up to a 100% foreign ownership
participation in entities involved in SMR services. Due to this
change, the foreign participation in Nextel Mexico (and
subsidiaries) was increased to become a majority foreign owned
corporation. However, the Mexican Federal Telecommunications Law
enacted on June 8, 1995 reinstituted the former 49% Rule,
which did not affect Nextel Mexico and subsidiaries since they
became majority foreign owned companies during the time that such
 ownership was legally permitted. For this reason, Nextel Mexico
and its subsidiaries applied for and obtained in May 1996
the modification of all of their 800 MHz SMR licenses by
deleting, among other things, all those conditions that related
to the 49% Rule applicable to foreign participation. As a result,
 all of the 800 MHz SMR licenses in which Nextel Mexico has an
interest, except for one license covering 10 channels along a
major highway from Mexico City to Guadalajara, are not subject to
 the 49% Rule. Although licenses to provide cellular
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services are also subject to the 49% Rule, the Mexican Federal
Telecommunications Law explicitly provides a waiver for cellular
providers upon receipt of a favorable opinion from the Mexican
National Foreign Investments Commission.
The Mexican Federal Telecommunications Law provides all wireless
services providers with the right to interconnect to the PSTN
operated by Telmex. Some telecommunications companies, however,
have had difficulty obtaining interconnect services from Telmex
despite having interconnection agreements with Telmex. Nextel
Mexico has entered into commercial agreements with Telmex for its
 analog SMR networks in various cities in Mexico and for its
digital ESMR networks in Mexico City, Toluca, Queretaro and
Puebla to provide interconnect services. Nextel Mexico has a
commercial agreement with Telmex that is effective through
August 4, 2001. In the event that Nextel Mexico cannot enter
 into a new interconnection or commercial agreement with Telmex
or another PSTN or otherwise obtain interconnect services, its
results of operations would be adversely effected.
To become a concessionaire, a provider must apply to and receive
the approval of the SCT and COFETEL. To acquire spectrum, a
provider must participate in an auction process. Awarded
concessions contain requirements regarding build-out and loading
that, if not complied with, can lead to sanctions, including
revocation of the concession.
Foreign Currency Controls and Dividends.
Mexican companies
 may remit dividends and profits outside of Mexico if the Mexican
 company meets specified distribution and legal reserve
requirements. A Mexican company must distribute 10% of its pretax
 profits to employees and allocate 5% of net profits to the legal
 reserve until 20% of the stated capital is set aside. Under
Mexican corporate law, approval of a majority of stockholders of
a corporation is required to pay dividends. Dividends paid by
Nextel Mexico to any U.S. stockholder are subject to a 5%
withholding tax. Interest payments to U.S. residents are subject
to a 15% withholding tax, interest payments to a U.S. financial
institution registered with the Mexican tax authorities are
subject to a 5% withholding tax, and interest payments to a U.S.
fixed asset or machinery supplier registered with the Mexican tax
 authorities are subject to a 10% withholding tax.
Argentina
Operating Company Overview.
Nextel Argentina provides
digital SMR service in four major cities, Buenos Aires, Rosario,
Mar del Plata and La Plata, and along major highways, as well as
analog SMR service in Córdoba and Mendoza.
Nextel Argentina converted from analog SMR to digital ESMR
service in Buenos Aires and Rosario in the second half of 1998.
Nextel Argentina has licenses in markets covering about
23 million people. As of June 30, 2000, Nextel
Argentina provided service to about 90,100 digital subscriber
units.
Nextel Argentina is headquartered in Buenos Aires and has
regional offices in Mar del Plata, Rosario, Mendoza and Cordoba,
and three branches in Buenos Aires. As of June 30, 2000,
Nextel Argentina had about 550 employees.
Marketing.
Nextel Argentina's digital ESMR service
offerings include telephone interconnect, dispatch radio and
paging in Buenos Aires, La Plata, Mar del Plata and Rosario, as
well as on the connecting highways. Nextel Argentina currently
offers analog SMR dispatch in its other markets.
Nextel Argentina markets its services under the tradename
"Nextel" through a direct sales force and employs
independent dealers. Nextel Argentina provides extensive training
 to each of its distribution channels to ensure a high level of
customer satisfaction.
Competition.
Nextel Argentina's major competitors
among the other SMR/ ESMR providers, as measured by the number of
 subscribers, are Movicom/ Movilink, which is owned by CRM S.A.,
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a joint venture that includes BellSouth Corporation and Motorola,
 and Unifon, which is owned by Telefonica de Argentina S.A.
Movicom/ Movilink holds SMR channels in Buenos Aires and in each
of Argentina's three other major cities. In addition to
operating various analog SMR networks, Movicom/ Movilink also
operates an iDEN based digital ESMR system in Buenos Aires and
Rosario. Unifon operates analog SMR networks in Buenos Aires and
other major cities.
There are four cellular PCS service license holders in Argentina
with which Nextel Argentina also competes: Movicom, Unifon,
Compañia de Teléfonos del Interior S.A., which is owned
 by Verizon Communications and is referred to as CTI, and Telecom
 Personal, which is owned by Telecom Argentina STET-France
Telecom S.A.
The PCS licenses in aggregate provide for national coverage; each
 of the four license holders has the right to provide PCS
services in specified regions of the country in which it is
licensed to operate. Of these license holders, all are currently
operating in the city of Buenos Aires and in the surrounding
area.
The auction of PCS licenses, which took place during 1999, did
not result in the entry of new competitors to the market because
the licenses were awarded only to the existing providers of
cellular telephone services. The licenses and associated
frequencies provide existing cellular companies with increased
spectrum capabilities and the ability to launch a new range of
wireless products.
The four holders of PCS cellular licenses also hold landline
local and long distance telephone licenses. Licenses for landline
 local and long distance telephony services are also being
awarded to unrelated companies, which do not become effective
until November 2000.
Regulatory and Legal Overview.
The Comision Nacional de
Comunicaciones, referred to as the Argentina CNC, and the
Secretary of Communications of Argentina are the Argentine
telecommunications authorities responsible for administration and
 regulation of the SMR and ESMR industry.
SMR and ESMR licenses have an indefinite term but are subject to
revocation for violation of applicable regulatory rules.
Depending on the type of network configuration, SMR and ESMR
service must commence within six months to one year after receipt
 of channel assignment. Failure to meet service or loading
requirements can result in revocation of the channel
authorizations. The Argentina CNC will revoke the licensee's
 SMR license upon the finding of a third breach by the licensee
of service requirements. SMR licenses and channel authorizations
also may be revoked for violation of other regulatory authority
rules and regulations. All SMR and ESMR channel holders that
received their channel authorizations in the November 1995
SMR and ESMR auction, including Nextel Argentina, were granted an
 extension to December 1997 from the original
December 1996 deadline to meet initial loading requirements.
 Nextel Argentina has met its loading requirements in all of its
markets except Cordoba and Mendoza. However, when these two
markets are interconnected with its other Argentine markets,
Nextel Argentina believes it will have satisfied all of its
loading requirements, and will retain its rights to substantially
 all of its SMR licenses in these markets. Argentina imposes no
limitation on foreign ownership of SMR and ESMR licenses.
SMR and ESMR providers are assured interconnection with the PSTN
pursuant to the terms of the tender rules under which the SMR
channels were awarded, as well as under other applicable laws.
Furthermore, interconnection with the PSTN must be on a
nondiscriminatory basis. Nextel Argentina provides interconnect
services to its subscribers under interconnection agreements with
 Telefónica de Argentina S.A. and Telecom Argentina
STET-France Telecom S.A. In May 1999, the Argentina CNC
authorized Nextel Argentina to implement a calling party pays
program with the fixed line carriers with whom it interconnects.
On June 9, 2000, a Presidential Instruction was issued,
under which the telecommunications regulations in Argentina are
expected to be changed. The purpose of the instruction is to
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guarantee the complete deregulation and free competition of
telecommunications services in Argentina beginning
November 9, 2000. It is contemplated that the rules to be
enacted will cover the following:
•
licenses of telecommunications services;
•
national interconnection;
•
universal service; and
•
administration of the spectrum.
Foreign Currency Controls and Dividends.
Under current
law, Argentine currency is convertible into U.S. dollars without
restrictions. Argentina has a free exchange market for all
foreign currency transactions.
Under applicable Argentine corporate law, a company may pay
dividends only from liquid and realized profits as shown on the
company's financial statements prepared in accordance with
Argentine generally accepted accounting principles. Of those
profits, 5% must be set aside until a reserve equal to 20% of the
 company's capital stock has been established. Subject to
these requirements, the balance of profits may be declared as
dividends and paid in cash upon a majority vote of the
stockholders. Under current law, dividend payments are not
subject to withholding tax, except when the dividend payments are
 the result of profits paid out in excess of the profits computed
 for income tax purposes. In this latter case only, a 35%
withholding tax applies on the amount of the surplus. Interest
payments are subject to withholding taxes ranging from 15% to
35%.
Peru
Operating Company Overview.
Nextel Peru provides digital
ESMR services in the Department of Lima and Province of Callao
area under the tradename "Nextel." Nextel Peru has
licenses in markets covering about 7 million people. Nextel
Peru launched digital ESMR service in the greater Lima area in
June 1999. As of June 30, 2000, Nextel Peru provided
service to about 41,900 digital subscriber units.
Nextel Peru operated parallel digital ESMR and analog SMR
networks while migrating its analog SMR customers to the digital
ESMR network. Nextel Peru ceased offering analog SMR services by
the end of the second quarter of 1999.
Nextel Peru is headquartered in Lima. As of June 30, 2000,
Nextel Peru had about 250 employees.
Marketing.
Nextel Peru's digital ESMR service
offerings include interconnect services, dispatch radio and short
 messaging services on its digital ESMR network. Nextel Peru
currently targets the mobile work force, which it believes will
be the most likely users of its digital ESMR network's
integrated service offerings. To establish brand identity for its
 digital ESMR services, Nextel Peru has undertaken a promotional
advertising campaign that targets the business segment of the
market. In addition to advertising, Nextel Peru relies heavily on
 its direct sales force to educate potential customers on the
benefits of using its digital ESMR services and continues to
build an indirect sales channel to increase presence and sales.
Competition.
Nextel Peru's largest SMR competitor is
Radio Trunking del Peru S.A. Bell South Peru S.A. (formerly
Tele2000), a Bell South subsidiary, and Telefónica Servicios
 Móviles S.A.C., a subsidiary of Telefónica del Peru
S.A.A., are Peru's two cellular operators. Telefónica
Servicios Móviles provides nationwide coverage and operates
under the brand name "Moviline." Bell South Peru offers
 cellular service in the greater Lima area and 11 other cities
and has nationwide roaming agreements with Telefónica del
Peru.
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Regulatory and Legal Overview.
The Organismo Supervisor de
 Inversión Privada en Telecomunicaciones of Peru, referred
to as OSIPTEL, and the Ministry of Transportation,
Communications, Housing and Construction of Peru, referred to as
the Peruvian Ministry of Communications, regulate the
telecommunications industry in Peru. OSIPTEL oversees private
investments and competition in the telecommunications industry.
The Peruvian Ministry of Communications grants telecommunications
 licenses and issues regulations governing the telecommunications
 industry. In 1991, the Peruvian government began to deregulate
the telecommunications industry to promote free and open
competition for the provision of telecommunications services. The
 Telecommunications Law of Peru, the general regulations under
that law, referred to as the Peruvian General Regulations, and
the specific regulations governing trunking services govern the
operation of SMR services in Peru.
In Peru, SMR/ ESMR and paging service providers are granted
20-year licenses, which may be extended for an additional 20-year
 term, subject to compliance with the terms of the license.
Licenses may be revoked prior to expiration for violations of
applicable regulatory rules as discussed below. Licensees must
comply with a five-year minimum expansion plan that sets forth
the minimum loading requirements for the licensees. Nextel Peru
has met the requirements imposed by the regulator.
Under the Peruvian General Regulations, all wireless
telecommunications licensees have the right to interconnect to
the PSTN. Furthermore, interconnection with the PSTN must be on
an equal and nondiscriminatory basis, and the terms and
conditions of interconnection agreements must be negotiated in
good faith between the parties in accordance with the
interconnect regulations and procedures issued by OSIPTEL. In
February 1999, Nextel Peru executed an interconnection
agreement with Telefónica del Peru S.A., which was approved
by OSIPTEL, and became effective in June 1999. In August,
1999 Nextel Peru executed a similar interconnection agreement
with Bell South Peru, which was approved by OSIPTEL, and became
effective in September 1999. Beginning in April 2000,
the interconnection agreement between Telefónica del
Perú and Nextel Peru was amended to offer a calling party
pays program to fixed line users of Telefónica del
Perú. Peru imposes no limitation on foreign ownership of
SMR, ESMR or paging licenses or licensees.
Foreign Currency Controls and Dividends.
Under current
law, Peruvian currency is convertible into U.S. dollars without
restrictions. Peru has a free exchange market for all foreign
currency transactions. On October 1, 1998, Nextel Peru
executed a legal stability agreement with the Peruvian
government, which, among other things, guarantees free conversion
 of foreign currency for Nextel Peru and its stockholders for a
term of 10 years.
The payment and amount of dividends on Nextel Peru's common
stock is subject to the approval of a majority of the
stockholders at a mandatory meeting of the stockholders of the
company, as well as the availability of earnings, determined in
accordance with Peruvian generally accepted accounting
principles. According to Peruvian corporate law, the stockholders
 may decide on the distribution of interim dividends or,
alternatively, delegate the decision to the board of directors.
Available earnings are subject to the following priorities:
(1) mandatory employee profit sharing of 10% of pre-tax
profits and (2) 10% of the net profits must be allocated to
a legal reserve, which is not further available for use except to
 cover losses in the profit and loss statement. The latter
obligation remains until the legal reserve constitutes 20% of the
 capital stock. After the legal reserve has been allocated, the
stockholders at a stockholders' meeting can then allocate
any portion of the net profits to any special reserve. The
remaining amount of the net profits is available for
distribution.
Dividends paid by Nextel Peru to its U.S. stockholders are not
subject to withholding tax, and interest paid by Nextel Peru to
U.S. residents is subject to a 30% withholding tax, unless they
qualify for a reduced rate.
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Other Nextel Peru Stockholders.
As a result of our
purchase of a minority owner's 6% equity interest and
Motorola International's 31% equity interest in Nextel Peru
in May 2000, we own 100% of Nextel Peru.
Chile
Operating Companies Overview.
We recently acquired all of
the equity interests in three SMR companies in Chile from
Motorola. However, we have entered into an agreement with
Motorola under which Motorola has agreed to manage the operations
 of these companies during a transition period. We currently
provide analog SMR services in Chile through three different
companies named Comunicaciones Multikom Limitada, Comunicaciones
Multitrunking Limitada and Distribuidora Multitek Limitada. These
 companies have channels in the three largest cities in Chile,
Santiago, Valparaiso and Concepción, representing about half
 of the Chilean population. These companies also hold several
other SMR channels throughout Chile.
As of June 30, 2000, these companies in Chile provided
analog SMR services to about 2,000 subscriber units.
These companies are headquartered in Santiago de Chile and have
regional offices in Valparaiso and Concepción. As of
June 30, 2000, these companies had about 30 employees.
We are currently negotiating to acquire additional spectrum
channels in Chile.
Marketing.
These companies currently offer exclusively
analog SMR dispatch radio services, focusing on small and medium
size companies. We intend to deploy an EMSR network assuming we
obtain the necessary regulatory approvals.
Competition.
Presently, there are no providers of digital
ESMR services in Chile. Competitors in the analog SMR business in
 Chile are Gallyas S.A., Telefónica Móvil S.A., known
as Startel, Centennial Chile and Sharfstein.
There are also five mobile telephone service providers authorized
 to operate throughout Chile, three of which are in the PCS 1,900
 MHz band and two of which are in the 800 MHz cellular band.
These mobile telephone service providers are Entel PCS
Telecomunicaciones S.A., a PCS concessionaire controlled by Entel
 Chile, a Chilean corporation controlled in turn by Chilean
nationals and Stet-Telecom Italia, and Motorola; Entel Telefonia
Móvil S.A., a PCS concessionaire also controlled by Entel
Chile and Motorola, Inc.; Smartcom PCS, a PCS concessionaire
controlled by Endesa España; Startel, which, in addition to
its SMR concessions, is the holder of a cellular concession; and
Bell South Comunicaciones S.A., a cellular concessionaire
controlled by Bell South Corporation.
Regulatory and Legal Overview.
The main regulatory
agencies of the Chilean telecommunication sector are the Ministry
 of Transportation and Telecommunication, referred to as MTT, and
 the undersecretary of Telecommunications, referred to as Subtel.
 The application, control and interpretation of the provisions of
 the General Telecommunications Law, referred to as GTL, and/or
other regulations on telecommunications is the responsibility of
the MTT which, for these purposes, acts through Subtel.
Telecommunications concessions, including SMR concessions, may be
 granted only to private and/or public legal entities duly
incorporated and domiciled in Chile. However, there is no
restriction or limitation for the participation or ownership of
foreign investors in Chilean telecommunications concessionaires.
As a general rule, telecommunications concessions are granted in
Chile without any initial payment of fees. However,
telecommunication concessionaires that use the radioelectric
spectrum for the operation of their respective concessions, such
as SMR concessionaires, are subject to an annual fee, the amount
of which is based on the size of the applicable system, the
portion of the spectrum utilized and the service area that has
been authorized.
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Telecommunications concessions are not limited as to their
number, type of service or geographical area. Therefore, it is
possible to grant two or more concessions for the provision of
the same service on the same location, except where technical
limitations exist, as in the case of SMR and public telephone
service concessions. Concessions for the provision of public
telecommunication services are granted for a thirty-year period,
renewable for identical periods if requested by the
concessionaire. In order for us to provide ESMR services in
Chile, there are a number of regulatory issues that need to be
resolved, including issues relating to interconnection, number
and routing plans and access charges.
In Chile, concessionaires of public telecommunication services
and concessionaires of intermediate services of telecommunication
 that render long distance telephonic services have the
obligation to establish and accept interconnections to permit
subscribers and users of public telecommunication services of the
 same type to be interconnected with each other inside or outside
 Chile. Telecommunication services of the same type are those
which are technically compatible with each other. Subtel
determines which telecommunication services are technically
compatible. These interconnections must be performed according to
 the technical rules, procedures and terms established by Subtel.
 However, because Subtel has not issued any regulation expressly
related to the interconnection of the SMR service with the other
public and intermediate telecommunication providers,
interconnection between the SMR concessionaires and the other
public and intermediate services providers, including the PSTN,
is not mandatory. Currently, there are no SMR concessionaires in
Chile effectively interconnected to the PSTN or to other public
telecommunication services established by Subtel.
Additionally, there is no numbering plan in Chile allowing the
SMR concessionaires to request specific numbering blocks for
their subscribers nor any plan regulating the routing procedures
of the communications between SMR concessionaires and the PSTN.
We believe that the MTT is in the process of issuing new
numbering and routing plans, but we cannot assure you as to when
they will be issued, if at all, and if issued, as to the terms
and conditions.
SMR concessionaires may freely determine the tariffs or fees
charged to their subscribers. However, the fees and tariffs
charged by a telecommunication concessionaire to another
telecommunication concessionaire for the services rendered
through interconnection, specifically the access charges, must be
 fixed by the authorities in accordance to a tariff setting
procedure based upon, among other things, the cost structure of
the respective concessionaire, as set forth in the GTL. This
procedure is necessary for the mandatory application of the
calling party pays system among the telecommunication
concessionaires. To date, this procedure has never been applied
to any SMR concessionaire due to the lack of interconnection
regulations applicable to them.
Finally, in order to provide ESMR services in Chile and
incorporate digital technology to the Chilean Operating
Companies' networks, the SMR concessions of the Chilean
Operating Companies must be amended according to the procedures
established in the GTL. Such procedures grant to third parties
the right to file oppositions against the corresponding
concession's amendment applications.
Foreign Currency Controls and Dividends.
The purchase and
sale of foreign currency in Chile is subject to governmental
control. There are two foreign exchange markets in Chile that are
 subject to regulations of the Chilean Central Bank. The first is
 the Formal Exchange Market, which consists of banks and other
entities authorized to participate therein by the Central Bank.
This market is reserved generally for trade-related transactions,
 such as import and export transactions, registered foreign
currency investments and specified other transactions, including
remittances abroad. Other purchases and sales of foreign exchange
 may be effected outside the Formal Exchange Market in the
Informal Exchange Market by entities not expressly authorized to
operate in the Formal Exchange Market, such as foreign exchange
houses, travel agencies and others. Both markets operate at
floating rates freely negotiated between the participants. There
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are no limits imposed on the extent to which the Informal
Exchange Rate can fluctuate above or below the Formal Exchange
Rate or the Observed Exchange Rate, which is the official
exchange rate determined each day based on the average exchange
rates observed in the Formal Exchange Market.
Foreign investments in Chile are subject to exchange controls.
Appropriate registration of a foreign investment in Chile, among
other things, grants investors access to the Formal Exchange
Market and provides specified guaranties with respect to the
ability to repatriate funds and the stability of the applicable
tax regime. Foreign investments can be registered with the
Chilean Foreign Investment Committee under Decree Law
No. 600 of 1974 or with the Central Bank of Chile under the
Compendium of Foreign Exchange Regulations issued by the Central
Bank of Chile pursuant to the Central Bank Act.
The Foreign Investment regulations permit the foreign investor to
 access the Formal Exchange Market to repatriate their
investments and profits, but do not necessarily guarantee that
foreign currency will be available in the market.
The distribution of profits by limited liability companies is not
 legally regulated in Chile. Therefore, these distributions must
be made pursuant to the regulations stated in the bylaws of the
respective limited liability company or, in the absence of the
same, as agreed by the partners. Instead, according to the
Chilean Corporations Law, corporations may distribute dividends
among their stockholders exclusively from the net profits of the
respective fiscal year or, otherwise, from retained profits
recognized by balance sheets approved by the stockholders
meeting. However, in the event of accumulated losses, profits of
the respective corporation must first be allocated to cover the
losses. Losses in a specific fiscal year must be offset with
retained profits, if any.
Unless otherwise agreed in the relevant stockholders meeting by
the unanimous vote of all issued shares, open stock corporations
must annually distribute, as a cash dividend to their stockholder
 in proportion to their respective shares or as otherwise stated
in the respective bylaws, at least 30% of the net profits of each
 fiscal year. In this regard, closed stock corporations must
follow the provisions of their bylaws; if the bylaws do not
contain these provisions, the rules described above for the
distribution of profits by open stock corporations apply.
In any event, the board of directors may distribute provisional
dividends if the corporation has no accumulated losses, subject
to the personal responsibility of the directors approving the
distributions.
Philippines
Operating Company Overview.
Nextel Philippines owns
nationwide licenses to provide SMR, ESMR and paging services.
Nextel Philippines launched commercial digital ESMR service under
 the tradename "Nextel" in Manila during the third
quarter of 1998. As of June 30, 2000, Nextel Philippines
provided service to about 36,800 digital subscriber units.
Nextel Philippines is headquartered in the Ortigas business
district of metropolitan Manila. As of June 30, 2000, Nextel
 Philippines had about 700 employees, of which about 400 were
operators serving its paging customers.
Marketing.
Nextel Philippines markets its SMR, ESMR and
paging services primarily to business customers. Nextel
Philippines sells its digital subscriber units in 15 business
centers and sales outlets that exclusively carry Nextel
Philippines' products. To target business customers, Nextel
Philippines employs a direct sales force as well as independent
dealers and agents.
Competition.
We are one of two SMR license holders in the
Philippines. The other SMR license holder has not yet commenced
operations. There are also currently five cellular telephone
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providers with nationwide licenses in the Philippines. SMART
Communications, Inc. is the largest cellular telephone provider.
Other competitors include Globe Telecom, Inc., referred to as
Globe; Pilipino Telecom Corporation, known as Piltel; Isla
Communications Co., Inc., referred to as ISLAcom; and Express
Telecommunications Philippines, Inc., referred to as Extelcom.
Regulatory and Legal Overview.
The Philippines
telecommunications industry is principally governed by Republic
Act No. 7925, referred to as the Philippines Telecoms Act,
enacted on March 1, 1995. Under the Philippines Telecoms
Act, the National Telecommunications Commission, referred to as
the Philippines NTC, an agency under the Department of
Transportation and Communications, regulates the
telecommunications industry.
Engaging in telecommunications operations requires a
Congressional franchise. After securing a Congressional
franchise, a franchise holder must apply to the Philippines NTC
for an operating license called a Certificate of Public
Convenience and Necessity, or CPCN, following public notice and a
 hearing. After receipt of an application for a CPCN for a
particular telecommunications service, and after the applicant
presents its evidence of legal, technical and financial
capability to operate the services at a public hearing, the
Philippines NTC initially issues a provisional authority, or PA,
which serves as a temporary operating permit and allows the
applicant to commence construction and commercial operations.
Nextel Philippines' PA authorizes it to operate a nationwide
 digital trunked radio dispatch communications system. Nextel
Philippines' PA is subject to revocation for failure to
(1) operate continuously for two years or (2) commence
operations within two years of the issuance of the PA or the
expiration date of any extensions to the PA. Nextel
Philippines' PA is scheduled to expire on January 21, 2001.
Nextel Philippines has met the conditions required to avoid
revocation of its PA and has applied for a CPCN.
The Philippines Telecoms Act provides that a telecommunications
entity with regulated types of services must make a public
offering of at least 30% of its aggregate common stock within a
period of five years from the effective date of the Telecoms Act
or the telecommunications entity's commencement of
commercial operations, whichever occurs later. Since Nextel
Philippines commenced commercial operations in February 1995
 and the Philippines Telecoms Act became effective on
March 22, 1995, the relevant five-year period within which
Nextel Philippines must undertake a public offering, as provided
in the Philippines Telecoms Act, expired on March 22, 2000.
As a result, on March 20, 2000, Nextel Philippines submitted
 to the Philippines Securities and Exchange Commission its
application for registration of its public offering. We have been
 advised by Philippines counsel that the registration process
typically exceeds one year.
On advice of legal counsel in reliance on relevant provisions of
the Philippines Telecoms Act mandating the equality of treatment
among all telecommunications companies, Nextel Philippines
believes that it is entitled by operation of law to an extension
of the deadline by which it must undertake a public offering
until February 2005. A number of telecommunications
companies in the Philippines have been granted a period of ten
years from the start of commercial operations within which to
undertake an initial public offering. On April 3, 2000, the
Office of the President issued an opinion stating that we should
be subject to the ten-year period by virtue of the fact that
other franchises have been allowed ten years from the start of
commercial operations.
Under Philippine law, direct ownership of a telecommunications
company by a foreign entity is limited to 40% of the
company's capital stock, referred to as the 40% Rule.
Philippine law also limits the participation of foreign investors
 in the governing body of any telecommunications enterprise to
their proportionate share in its capital. Therefore, a foreign
investor's participation in the management of a
telecommunications company is limited solely to membership on its
 board of directors and committees of the board of directors,
including but not limited to the executive committee. Further,
all the executive and managing officers, including the president,
 chief executive officer and treasurer, are required to be
citizens of the Philippines.
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Presidential Executive Order No. 59 (1993) prescribes,
as a matter of national policy, the compulsory and
nondiscriminatory interconnection of authorized public
telecommunications carriers. Interconnection allows the
subscribers of one telecommunications company to place and
receive calls from the subscribers of another telecommunications
company. Interconnection is negotiated and effected through
bilateral agreements between the parties involved subject to
specified technical/operational and traffic settlement rules of
the Philippines NTC. Nextel Philippines has entered into an
interconnection agreement with Philippines Long Distance
Telephone Company and is interconnected through that agreement
with most of the public telecommunications carriers in the
Philippines, except SMART and Extelcom. In May 1999 Nextel
Philippines commenced proceedings at the Philippines NTC to
compel SMART to directly interconnect with Nextel Philippines. In
 January 2000, the Philippines NTC issued an order requiring
 the interconnection. SMART filed a motion for reconsideration of
 the order, but Nextel Philippines, based on advice of
Philippines legal counsel, believes that the motion will be
denied. Nextel Philippines is, however, still barred from
interconnection with SMART'S network, although Nextel
Philippines permits calls from the SMART network to its network.
As part of its effort to improve teledensity, the Philippine
government requires cellular telephone providers to meet
specified landline buildout requirements, including installation
of 400,000 telephone lines by each cellular telephone operator.
The installation represents a significant investment for each of
these providers. The Philippines NTC has determined that this
requirement is not applicable to trunked radio networks like
Nextel Philippines.
Foreign Currency Control and Dividends.
Under current
regulations of the Central Bank of the Philippines, referred to
as the Philippines Central Bank, foreign exchange may be freely
sold and purchased outside the Philippine banking system.
Restrictions exist on the sale and purchase of foreign exchange
in the banking system. The Philippine Central Bank, with the
approval of the President of the Philippines, has the statutory
authority, during a foreign exchange crisis or in times of
national emergency, to temporarily suspend or restrict sales of
foreign exchange, require licensing of foreign exchange
transactions or require delivery of foreign exchange to the
Philippines Central Bank or its designee.
Foreign investments do not need to be registered with the
Philippines Central Bank. The registration of a foreign
investment with the Philippines Central Bank is only required if
the foreign exchange needed to service the repatriation and the
remittance of capital and dividends are to be sourced from the
Philippine banking system. Nevertheless, even without Philippines
 Central Bank registration, foreign exchange needed for capital
repatriation and remittance of dividends of unregistered
investments can be sourced lawfully outside of the Philippine
banking system. Under current law, there is a 20% withholding tax
 on dividends and a 15% withholding tax on interest payments.
Nextel Philippines Stockholders.
Our current aggregate
equity interest in Nextel Philippines, which includes our direct
and indirect holdings, is about 51%. We directly hold, through
two wholly owned subsidiaries, an aggregate of about 40% and
indirectly hold about 11% of the outstanding shares of capital
stock of Nextel Philippines. The other stockholders in Nextel
Philippines currently include:
•
Gamboa Holdings, which holds about 20% of the outstanding shares
	of Nextel Philippines and which is 60% owned by ACCRA Investments
	 Corporation, a Philippine holding company with investments in a
	number of Philippine companies and referred to as ACCRAIN, and
	which is 40% owned by one of our indirect subsidiaries;
•
Emerald Investments, which holds about 8% of the outstanding
	shares of Nextel Philippines and is 60% owned by ACCRAIN Holdings
	 Corporation and 40% owned by one of our indirect wholly-owned
	subsidiaries; and
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•
a Philippine corporation which holds about 31% of the remaining
	outstanding shares of Nextel Philippines.
We have the right to designate four of the 11 members of the
board of directors of Nextel Philippines and two of the five
members of the executive committee of that board. In our capacity
 as a stockholder in Nextel Philippines, we hold veto rights on
decisions involving the following significant corporate actions
to protect our investment in Nextel Philippines, referred to
collectively as the Company Veto Rights:
•
the acquisition of any entity;
•
the merger, consolidation or sale of the company or any
	subsidiary or any disposition of a material amount of assets;
•
the amendment of the articles of incorporation or by-laws;
•
any amendment affecting the preemptive rights of stockholders;
•
appointment and removal of the president and secretary;
•
approval of or amendment to the annual business plan;
•
entering other lines of business;
•
issuances of stock;
•
the approval of annual operating and capital budgets;
•
any borrowings in excess of $200,000;
•
any transactions with affiliates in excess of $200,000;
•
any dispositions of assets or making loans other than in the
	ordinary course of business;
•
appointment and removal of the chief executive officer and chief
	financial officer of Nextel Philippines;
•
election of members of the executive committee;
•
filling of vacancies of the board of directors for causes other
	than removal or expiration of term; and
•
decisions of the executive committee of the board.
The presence of the member nominated by us is required to satisfy
 the quorum requirement for meetings of the executive committee.
Our ability to impose and use the Company Veto Rights is being
contested by other stockholders of Nextel Philippines. See
"— Legal Proceedings — Nextel
Philippines SEC Proceedings."
Japan
Operating Company Overview.
Our affiliate, NEXNET,
launched commercial digital ESMR service in the Kanto region of
Japan, which includes Tokyo, in the third quarter of 1998. NEXNET
 provides digital ESMR services to its subscribers under a
sub-entrustment agreement with Motorola Japan Ltd., a subsidiary
of Motorola referred to as Motorola Japan. NEXNET's digital
ESMR network operates on the 1.5 GHz frequency rather than the
800 MHz frequency used by our other Operating Companies. As of
June 30, 2000, NEXNET provided service to about 47,500
digital subscriber units. NEXNET is headquartered in Tokyo. As of
 June 30, 2000, NEXNET had about 120 employees.
Marketing.
NEXNET's current sales and marketing
efforts focus primarily on providing cost-effective, local
digital ESMR services to its target customers, which are
primarily businesses in various industries, particularly
transportation. NEXNET believes that businesses with mobile
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workforces are the most likely users of its integrated digital
ESMR service offerings. In addition to advertising, NEXNET relies
 on its network of independent dealers, many of which are
affiliated with Motorola, to sell NEXNET's services to
potential subscribers.
Competition.
The Japan Ministry of Posts and
Telecommunications, referred to as the Japan MPT, has promulgated
 regulations that provide that SMR licenses may only be granted
to nonprofit organizations. Under the Japan Radio Wave Law,
referred to as the Japan RWL, the Japan MPT has granted licenses
to two nonprofit SMR providers: National Mobile Radio Centers
Council, referred to as MRC, and Japan Mobile Telecommunications
Association, referred to as JAMTA. MRC, which began offering
commercial analog SMR service in 1982, is an association of eight
 mobile radio centers that are regionally organized and supported
 financially by the Japanese government and several other
companies. JAMTA was founded in 1993 and began offering
commercial analog SMR service the same year. MRC and JAMTA are
licensed to offer both analog and digital SMR services. These
non-profit organizations may, however, entrust the operation of
the network under a license to a commercial entity or entities.
Under an entrustment agreement, Motorola Japan is authorized to
operate JAMTA's analog SMR and digital ESMR businesses.
Motorola Japan has subentrusted the operation of JAMTA's
digital ESMR business on the 1.5 GHz frequency to NEXNET under a
sub-entrustment agreement. Motorola Japan continues to operate
JAMTA's analog SMR business, which mainly uses the 800 MHz
frequency.
Japan is divided into ten cellular licensing regions including
Kanto shin-etsu, which includes the Tokyo metropolitan area,
Tokai, Kansai, Hokuriku, Chugoku, Shikoku, Kyushu, Hokkaido,
Tohoku and Okinawa. For the most populous and economically active
 regions, Kanto, Tokai and Kansai, the Japan MPT licensed four
operators in each region. With the exception of Okinawa, three
service providers have been licensed to operate in each of the
remaining six regions. The first commercial PCS network was
launched in Japan in July 1995. The Japan MPT divided the country
 into ten personal handheld service, or PHS, licensing regions,
allowing up to three operators in each region.
The largest cellular operator is Nippon Telegraph and Telephone
DoCoMo, referred to as DoCoMo, followed by DDI, Digital Phone
Group, Nippon Idou Tsushin Corp., TU-KA Group and Digital TU-KA
Group, respectively. DDI Pocket Telephone is the largest PHS
operator, followed by Nippon Telegraph and Telephone Personal and
 Astel.
Regulatory and Legal Overview.
The Japan MPT regulates the
 telecommunications industry in Japan. The Japan RWL governs all
users of radio spectrum. Additionally, the Japan
Telecommunications Business Law, referred to as the Japan TBL,
governs the operations of telecommunications providers. The Japan
 MPT classifies telecommunications service providers as either
"Type One" or "Type Two." Type One operators
own and operate the telecommunications infrastructure. All other
operators are Type Two operators. Both Type One and Type Two
operators are governed by the Japan RWL and the Japan TBL.
However, JAMTA's analog SMR and digital ESMR businesses are
only governed by the Japan RWL and JAMTA's digital ESMR
business is subentrusted to NEXNET. In order for NEXNET to
operate the subentrusted business, no license is required under
the Japan RWL.
The Japan MPT regulates the radio frequencies assigned for SMR
services by granting licenses for radio equipment to be installed
 on the SMR network. Each license is granted on a nationwide
basis for a term of up to five years, renewable for additional
five-year terms. There are no loading requirements with respect
to these licenses.
Wireless telecommunications services operators, whether they are
Type One or Type Two, have the right to interconnect to the PSTN
subject to approval by the Japan MPT of the interconnection
agreement between the wireless telecommunications services
operator and the PSTN. The Japan MPT has approved NEXNET's
interconnection agreement with Nippon Telegraph and Telephone
Corporation, referred to as NTT.
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There are no foreign-ownership restrictions for Japanese
telecommunications companies other than for ownership of NTT and
Kokusai Denshin Denwa.
Foreign Currency Controls and Dividends.
Under current
law, the Japanese yen is convertible into U.S. dollars without
restrictions. Japan has a free exchange market for all foreign
currency transactions. Dividends and interest paid by NEXNET to
its U.S. stockholders are subject to a 10% withholding tax under
the tax treaty between the U.S. and Japan.
NEXNET Stockholders.
We directly hold about a 32% equity
interest in NEXNET. The other stockholders in NEXNET are DJSMR
Business Partnership, a Japanese partnership in which Motorola
Japan is the majority partner, which holds about a 51% equity
interest; Nichimen Trading Company, which holds about a 12%
equity interest; and ORIX Leasing Corporation, which holds about
a 5% equity interest. We also have an option, exercisable at any
time prior to March 31, 2001, to purchase any or all of the
NEXNET shares owned by Nichimen.
In March 2000, as a consequence of capital contributions
made to NEXNET by some of its stockholders to supply funds that
Nichimen Corporation was required but declined to contribute,
Nichimen transferred a portion of its shares of NEXNET stock to
the contributing stockholders, including us. Additionally, on
March 30, 2000, we executed a stock purchase and option
agreement with Nichimen, whereby we purchased additional shares
of stock in NEXNET, for a purchase price of about
$0.4 million. We were also granted an option, exercisable at
 any time prior to March 31, 2001, to purchase any or all of
 the remaining NEXNET shares of stock owned by Nichimen. The
exercise price of this option will be determined based on the per
 share paid-in capital valuation at the time of the purchase. As
a result of the additional shares we acquired, our equity
ownership interest in NEXNET has increased from about 21% to
about 32%. If we exercise the option to purchase all of
Nichimen's remaining shares, our equity ownership interest
would increase to about 44%.
Under the NEXNET stockholders agreement, seven of the eight
members of NEXNET's board of directors are designated by the
 stockholders based on their respective ownership interest. Based
 on our ownership interest, we have the right to designate two of
 NEXNET's seven directors. The eighth director is elected by
 a majority vote of all of the stockholders. The vote of six of
the seven designated directors is required regarding the overall
basic business policy, capital calls and other decisions outside
of the ordinary course of business. Any transfer of shares of
stock of NEXNET is subject to approval of the board of directors.
 In addition, each stockholder has a right of first refusal with
respect to any shares proposed to be transferred to a
nonaffiliate in accordance with a bona fide offer. The exercise
price of the option is the offer price. If the selling
stockholder has not received a bona fide offer from a
nonaffiliate, the exercise price is the proposed sale price or,
if the interested stockholders so elect, an appraisal price
determined by a qualified appraiser. In addition, each other
stockholder, instead of exercising its option to buy the selling
stockholder's shares, may elect to sell a pro rata portion
of its shares in the proposed sale. We will be required to sell
our shares if DJSMR decides to sell its shares to an unaffiliated
 third party in connection with a bona fide offer to purchase all
 of the outstanding shares of NEXNET unless, upon receipt of
notice of this offer, the other stockholders elect to purchase
all of DJSMR's shares of NEXNET upon the same terms and
conditions. A change of control of a stockholder constitutes a
default under the stockholders agreement and the other
stockholders have a call option on all, but not less than all, of
 the defaulting stockholder's shares. The exercise price of
the option is the appraisal price described above.
Canada
Clearnet is a publicly traded company whose shares are listed on
the Toronto Stock Exchange and on the Nasdaq National Market. We
currently own 583,104 class A common shares and 7,790,741 class D
 common shares, or about 14% of the outstanding equity in
Clearnet. Each class D common share is convertible at the option
of the holder into one class A
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common share. Under specified circumstances, in order to comply
with Canadian foreign investment regulatory requirements, we may,
 pursuant to contractual obligations, also be required by
Clearnet to convert class D common shares into class A common
shares. Clearnet is the largest SMR operator in Canada as
measured by the number of current subscribers, the number of 800
MHz channels and the population of its service territory.
Clearnet reported that as of June 30, 2000, it provided
digital services to about 672,500 subscriber units, including
274,200 digital ESMR subscriber units, and that its digital ESMR
service covered a population of about 20.8 million.
Additionally, Clearnet holds one of the two national 30 MHz
licenses to provide PCS in Canada. Clearnet launched PCS services
 in some of Canada's major metropolitan areas in
October 1997 and reported that as of June 30, 2000, it had
about 398,300 PCS subscribers. We are contractually entitled to
one representative on Clearnet's board of directors.
Clearnet files periodic and other reports with the Securities and
 Exchange Commission pursuant to the requirements of the
Securities Exchange Act of 1934. More detailed and specific
information concerning Clearnet and information regarding our
rights to representation on the Clearnet board of directors is
contained in Clearnet's reports filed under the Securities
Exchange Act.
Shanghai, People's Republic of China
The Shanghai GSM System was a cooperative project established by
Unicom and Shanghai Science Technology Investment Corp. Ltd.,
referred to as SSTIC, to construct and operate a GSM cellular
network in Shanghai. The Shanghai GSM System commenced commercial
 operations in July 1995.
In August 1995, we formed a joint venture with SSTIC under
which we provided financial support for construction of the
initial phases of the Shanghai GSM System in exchange for a
contractual right to share profits from the system with SSTIC. We
 also provided advice and direction to the Shanghai GSM System in
 the key areas of engineering, customer care, billing practices,
quality assurance and system performance.
In December 1997, CCT Technology Services Limited, referred
to as CCT, acquired a 51% ownership interest in the joint venture
 with SSTIC in exchange for about $46.0 million of
investments in the forms of equity, stockholder loans,
stockholder guarantees and fees. Upon receipt of government
approvals for CCT's investment, the joint venture changed
its name to Shanghai CCT-McCaw Telecommunications System Co.,
Ltd., referred to as Shanghai CCT McCaw. As of December 31,
1999, our ownership interest in Shanghai CCT McCaw was 30%. Based
 on that ownership interest, we had a contractual right to
receive 12% of the profits of the Shanghai GSM System.
In September 1999, Unicom advised Shanghai CCT McCaw and all
 similarly situated investors in Unicom, that under a new policy
of the Chinese government, all existing arrangements between
Unicom and joint ventures in which foreign companies had invested
 needed to be terminated.
Following several months of discussions with Unicom, and based on
 advice of legal and financial advisers, on March 17, 2000,
Shanghai CCT McCaw signed an agreement with Unicom terminating
our cooperation agreement. On April 1, 2000, in connection
with the termination, Shanghai CCT McCaw received about
$61.3 million based on the exchange rate in effect on
April 1, 2000, and we received warrants to purchase shares
of Unicom common stock. The warrants are exercisable for about
8.2 million shares during the period commencing in
December 2000 and ending in June 2001 at the initial
public offering price of HK$15.58 or US$2.00 per share. The
carrying value of our minority interest in Shanghai CCT McCaw was
 about $15.0 million as of March 31, 2000, which we
expect to fully recover through a cash distribution from Shanghai
 CCT McCaw based on the terms of the agreement. On May 24,
2000, we received a reimbursement of $7.5 million for
advances made to Shanghai CCT McCaw. We are currently working
with the other stockholders of the joint venture to arrange
reimbursement
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of expenses incurred by the stockholders related to their
investments in Shanghai CCT McCaw and final liquidation of the
joint venture. Any funds remaining after payment of existing
obligations will be distributed among the stockholders of
Shanghai CCT McCaw. We would be entitled to receive 30% of the
total amount so distributed based on our ownership interest.
Employees
As of June 30, 2000, we had about 70 employees at the
corporate level, and our consolidated subsidiaries had about
2,500 employees. Neither we nor any Operating Company that we
control is a party to any collective bargaining agreement, and we
 believe the relationship between us and our employees, and
between each of the Operating Companies that we control and its
employees, is good.
Properties
In June 1999, we moved our principal executive and
administrative offices to the same location in Reston, Virginia
as Nextel Communications' new principal executive and
administrative offices. We since have moved our principal
executive and administrative offices to a nearby location, also
in Reston, Virginia where we lease about 16,900 square feet of
office space under a lease expiring in December 2003. Prior
to our relocation to Reston, Virginia, our principal executive
and administrative offices were located in Seattle, Washington
where we continue to lease about 6,600 square feet of office
space. We intend to retain our former office space in Seattle
until the expiration of our lease in December 2000 for use
as our Asia/ Pacific regional office and to house other
administrative services. In addition, our Operating Companies
lease office space and cell sites in each of the countries where
they conduct business.
Each Operating Company leases cell sites for the transmission of
radio service under various individual site leases. Most of these
 leases are for terms of five years or less, with options to
renew. As of June 30, 2000, our consolidated subsidiaries
had constructed sites at leased locations for their ESMR
business, as shown below:
Operating
Company
Number
Nextel Brazil
475
Nextel Mexico
210
Nextel Argentina
200
Nextel Peru
65
Total
950
Legal Proceedings
Nextel Philippines SEC Proceedings
Immediately prior to the Nextel Philippines annual stockholders
meeting on July 13, 1998, the Philippines Securities and
Exchange Commission issued a temporary restraining order in favor
 of several Nextel Philippines stockholders. These stockholders
requested nullification of previously adopted amendments of the
bylaws of Nextel Philippines contemplated by the corporate
governance provisions of agreements entered into with local
stockholders of Nextel Philippines, referred to as the
Philippines Partner Agreements. The temporary restraining order
enjoined Nextel Philippines from implementing those bylaw
amendments for a 72-hour period. The stockholders further
requested that a preliminary injunction be issued with the same
effect pending a trial on the merits on the validity of the bylaw
 amendments. On July 15, 1998, pursuant to the agreement of
Nextel Philippines and the stockholders, which agreement was
confirmed by the Philippines Securities and Exchange Commission,
the temporary restraining order was permitted to expire and,
pending a trial on the merits as to the validity of the bylaw
amendments,
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(1) the petitioners agreed to withdraw their petition for a
preliminary injunction and (2) Nextel Philippines agreed
that the provisions of the bylaw amendments granting Nextel
International certain veto rights in corporate governance matters
 would not be implemented. Although we cannot predict the outcome
 of this proceeding, we believe that the stockholders'
claims are without merit, and Nextel Philippines intends to
vigorously defend against those claims.
Nextel Philippines Arbitration
On October 30, 1998, under the dispute resolution provisions
 of the Philippines Partner Agreements, we commenced arbitration
proceedings in Hong Kong against the petitioners, two of the
local stockholders of Nextel Philippines, in which we asserted
that the two stockholders had failed to perform their respective
contribution obligations under the Philippines Partner
Agreements. We seek equitable and legal relief, including, but
not limited to, compensatory damages and injunctive relief.
Telcom Ventures
In January 1997, we purchased 81% of the capital stock of
McCaw Brazil, which entitled us to 90% of the voting rights. The
Founders Group, represented by Telcom Ventures, owned 19% of the
capital stock at that time, which entitled it to 10% of the
voting rights. Pursuant to a stockholders agreement, the Founders
 Group had the right so long as it maintained at least a 10%
ownership interest in McCaw Brazil to designate candidates
representing at least 10% of the directors of McCaw Brazil. The
Founders Group also was entitled to veto rights with respect to
certain significant corporate actions such as mergers or sales of
 substantially all of the assets.
Under the stockholders agreement, the Founders Group had the
right to defer making its pro rata share of any capital calls
that may have arisen until April 29, 1999 without suffering
any dilution of its right to receive dividends and other cash or
noncash distributions. The Founders Group ultimately did not make
 these capital contributions by April 29, 1999 in accordance
 with the relevant terms of the stockholders agreement, which
resulted in the proportionate dilution of its equity interest in
McCaw Brazil. Since the Founders Group's share of McCaw
Brazil's capital stock dropped below 10%, it was no longer
entitled to designate a member of the McCaw Brazil board of
directors. We called upon the Founders Group's designated
director to resign, but he refused. On August 16, 1999, we
and McCaw Brazil filed a motion for judgment against Telcom
Ventures in the Circuit Court for the City of Alexandria,
Virginia, seeking a declaration:
(i)  that the Founders Group's option, pursuant to a
	stockholders' agreement, to pay its share of capital
	contributions during an agreed upon grace period was not properly
	 exercised;
(ii)  that the Founders Group's ownership interest in
	McCaw Brazil had fallen below 10%;
(iii)  that, because the Founders Group's ownership
	interest in McCaw Brazil had fallen below 10%, the Founders Group
	 was no longer entitled to designate a director to serve on the
	McCaw Brazil board of directors; and
(iv)  that the director previously designated by the
	Founders Group must resign from the McCaw Brazil board of
	directors.
On September 15, 1999, Telcom Ventures filed its answer
denying the material allegations made in the motion for judgment,
 and asserted a counterclaim alleging that we breached a
fiduciary duty to Telcom Ventures and that McCaw Brazil breached
a contract with Telcom Ventures by allegedly issuing shares for
less than fair market value without the informed consent of the
director designated by the Founders Group. The counterclaims were
 twice amended to assert claims of constructive fraud and actual
fraud against both McCaw Brazil and us. According to their
pleadings, Telcom Ventures intended to seek compensatory damages
of
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$100 million plus punitive damages. We and McCaw Brazil
timely filed a denial of the material allegations in the
counterclaim.
On April 26, 2000, Telcom Ventures filed a second complaint
in Chancery in the Circuit Court of the City of Alexandria,
Virginia, against McCaw Brazil and Nextel International, seeking:
 (i) dissolution of McCaw Brazil because of alleged
"oppression" of the minority stockholders by Nextel
International; (ii) rescission of the issuance to Nextel
International of shares of McCaw Brazil's stock;
(iii) an injunction preventing action by McCaw Brazil's
 board of directors without the participation of a director
appointed by the Founders Group; (iv) declaration of a
constructive trust; (v) an accounting; and (vi) other
declaratory and injunctive relief. McCaw Brazil and Nextel
International timely filed a denial of the material allegations
in that complaint.
On July 7, 2000, the court denied McCaw Brazil's and
Nextel International's motion for partial summary judgment
on the August 16, 1999 complaint. On July 10, 2000,
Telcom Ventures filed a motion for partial summary judgment on
its claims of breach of fiduciary duty and constructive fraud,
and for summary judgment on McCaw Brazil's and Nextel
International's August 16, 1999 motion for judgment.
On July 21, 2000, we entered into a purchase, release and
settlement agreement with the Founders Group. Under that
agreement, on August 4, 2000, we made a cash payment to
members of the Founders Group totaling $146.0 million, received
all of the equity interests held by the Founders Group in McCaw
Brazil, and exchanged mutual releases with all of the members of
the Founders Group. In addition, all pending court disputes
between us and Telcom Ventures, a member of the Founders Group,
were permanently dismissed. As a result, we now own 100% of McCaw
 Brazil, and all the rights of the Founders Group as minority
stockholders in McCaw Brazil, including their rights to put their
 equity interests to us, beginning in October 2001, were
terminated.
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INDUSTRY OVERVIEW
The global telecommunications industry is undergoing rapid
change, fueled by:
•
privatization;
•
increased competition;
•
expansion of wireless services;
•
growth of the Internet;
•
increased use of data-intensive applications; and
•
deployment of higher-capacity digital networks.
Historically, wireline penetration rates in emerging markets of
Latin America, the Middle East and Asia have been significantly
below those of most industrialized countries due to the lack of
investment in telecommunications infrastructure. We believe that
the rapid growth of wireless communications services in emerging
markets is expected to outpace that of the global wireless
communications industry due to the low wireline penetration and
significant demand for telecommunications services in these
markets.
Global Telecommunications Growth Trends
Growth in the telecommunications industry in these markets, and
particularly wireless communications, has been driven by a number
 of trends that are expected to cause this growth to continue.
•
Privatization Leads to Increases in Penetration.
The
	opening of telecommunications markets to new entrants has
	resulted in increased competition in the sector overall.
•
Increased Competition Broadens the Size of the Addressable
	Market.
With the introduction of new entrants, the price of
	wireless communication services to the consumer declines, in
	effect, expanding the size of the addressable market. In
	addition, many wireless operators have launched lower-priced
	prepaid plans to target large segments of the population with
	lower incomes and limited credit.
•
Expanding Penetration Lowers Per Subscriber Costs.
This
	increased subscriber base allows wireless operators to distribute
	 the fixed costs of wireless networks over a greater number of
	users, thereby reducing the per subscriber cost of providing
	these services. In addition, wireless operators are increasingly
	employing digital technology on their networks, which allows for
	the more efficient use of spectrum.
•
Offering Calling Party Pays Billing Increases Wireless Service
	 Usage.
Regulators in many markets are increasingly allowing
	calling party pays, or CPP, billing systems, under which wireless
	 service charges associated with a call are billed to the person
	who initiates the call. CPP increases wireless usage, reduces the
	 overall cost of mobile ownership to the subscriber and
	encourages mobile subscribers to accept more incoming calls.
•
Developing Data Applications Further Expands Wireless Service
	Utility and Functionality.
The covergence of personal
	computing, the Internet and wireless communications is expanding
	the utility and functionality of wireless services. The
	introduction of wireless portals and web services to facilitate
	access to Internet applications through mobile phones is in its
	early stages.
Latin American Telecommunications Opportunity
With a population of 469 million and a combined gross
domestic product, or GDP, of approximately $1.7 trillion in
1999, Latin America is a large and attractive telecommunications
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market. The following table shows, for core countries in which we
 operate or are licensed to operate, population, wireline and
wireless penetration, and the wireless growth rate as of
December 31, 1999 as compared to the United States and
Western Europe.
Population
Wireline
Wireless
Wireless Growth
Country
(in millions)
Penetration(%)
Penetration %
Rate (98-99)%
United States
276.2
66.1
31.2
24.3
Western Europe
386.4
54.2
39.4
62.4
Brazil
168.0
14.9
9.0
93.7
Mexico
97.4
11.2
7.8
127.5
Argentina
36.6
20.1
12.1
75.3
Peru
25.2
6.7
3.9
33.2
Chile
15.0
20.7
15.1
134.5
Canada
30.5
63.5
23.0
31.6
Japan
126.5
49.4
44.9
20.2
Philippines
74.5
3.4
2.4
*
*  Not available
Penetration rates above and elsewhere in this
section represent the number of subscribers in any given
territory expressed as a percentage of the total population in
that territory.
Source: International Telecommunications Union.
We have focused our efforts in Latin America because of its
attractive growth prospects for our digital integrated wireless
communications service offerings. Low levels of wireline
penetration have presented an opportunity for wireless services
operators to satisfy the significant demand for
telecommunications services in many parts of Latin America,
contributing to rapid initial growth. Wireline networks require
the construction of extensive infrastructure in the form of
buried or overhead cable networks, while wireless communications
systems generally require less extensive construction. For
developing countries, wireless communications systems can
represent a more cost-effective and faster method of expanding
telecommunications infrastructure than traditional wireline
networks.
Historically, Latin America has experienced significant growth in
 wireless services, as reflected in a compounded annual growth
rate of 82% in subscribers from 1996 through 1999. According to
Pyramid Research, wireless subscribers in Latin America are
estimated to grow at a compounded annual growth rate of 22% for
the period 1999 to 2004. Wireless service revenues in the region
accounted for about $14.1 billion in 1999 with a compounded
annual growth rate estimated at about 19% for the period 1999 to
2004.
Latin American Wireless Market Growth Projections
Growth
1999
2000E
2001E
2002E
2003E
2004E
Rate
End-of-period penetration
8.2
%
11.3
%
14.2
%
16.5
%
18.6
%
20.5
%
20.2
%
Total service revenues (in billions)
$
14.1
$
20.7
$
24.8
$
28.4
$
31.3
$
33.6
18.9
%
Average subscribers (in millions)
38.2
53.7
68.8
81.3
92.9
103.6
22.1
%
Source: Pyramid Research.
Continued growth of wireless services is expected to result from
increased penetration and usage as: service costs decline;
wireless network coverage and capacity expands; and service
functionality increases. As wireless providers acquire customers
and build high-capacity networks, they are positioned to provide
a broader array of wireless services, such as Internet access,
e-mail and other data applications like short messaging services.
 As capacity expands and service functionality improves, we
believe high-end residential and business customers will
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be more likely to discriminate in favor of a more robust wireless
 product and service offering, including value-added and data
applications.
Nextel Communications
Our parent, Nextel Communications, is a digital wireless provider
 with nationwide coverage in the United States. Beginning in the
third quarter of 1996, Nextel Communications deployed
Motorola's second generation iDEN technology. Since that
time, Nextel Communications has grown digital subscriber units in
 service at a compounded annual growth rate of 138%. For the
second quarter 2000, Nextel Communications reported
5.6 million digital subscriber units in service.
Nextel Communications' performance during this period is
attributable to several factors including: the improved
performance in Motorola's second generation iDEN technology;
 its expanded footprint to provide nationwide coverage; and
innovative marketing programs to support its differentiated
services. Specifically, iDEN technology's unique
differentiation from other digital standards is its dispatch
service, which is marketed by Nextel Communications and by us as
Nextel Direct Connect. Moreover, iDEN technology offers the same
wireless features as digital cellular and PCS service, including
call forwarding, call waiting and greater call privacy. In the
United States, Nextel Communications has successfully targeted
the mobile workforce and is increasingly moving upmarket to white
 collar professionals.
Our business strategy is to enter selected international markets
targeting mobile business users. Based on the experience of
Nextel Communications in the United States, we believe business
customers are more likely to recognize the advantages and value
of our integrated wireless service offerings. In contrast to
Nextel Communications, however, we focus on offering our services
 in major business centers and related transportation corridors.
We believe that this strategy offers us the opportunity to
allocate our capital more efficiently, by deploying our digital
ESMR networks in areas where we believe there are high
concentrations of the market's business users, economic
activity and, in Latin America, wealth as measured by GDP. In
addition, our focus on emerging markets positions us to exploit
the significant growth opportunities presented by the relatively
low wireline and wireless penetration rates in those markets.
Accordingly, our performance may not be similar to that of Nextel
 Communications.
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MANAGEMENT
Executive Officers and Directors
We have set forth below information on our executive officers and
 directors as of August 15, 2000:
Name
Age
Positions
Timothy M. Donahue
51
Chairman of the Board of Directors
Keith D. Grinstein
40
Vice Chairman of the Board of Directors
Steven M. Shindler
37
Chief Executive Officer and Director
Lo van Gemert
45
President and Chief Operating Officer
Byron R. Siliezar
44
Vice President and Chief Financial Officer
Jose Felipe
50
Vice President
Daniel F. Akerson
51
Director
Steven P. Dussek
44
Director
C. James Judson
55
Director
Dennis M. Weibling
49
Director
Timothy M. Donahue
has been Chairman of our board since
July 1999 and a director since August 1997.
Mr. Donahue has served as President and Chief Executive
Officer of Nextel Communications since July 1999 and as a
director of Nextel Communications since June 1996. From
February 1996 until July 1999, Mr. Donahue was
President and Chief Operating Officer of Nextel Communications.
From 1986 to January 1996, Mr. Donahue held various
senior management positions with AT&T Wireless Services,
formerly McCaw Cellular Communications, including, most recently,
 Regional President for the Northeast. Mr. Donahue is a
director of Nextel Partners, Inc. and SpectraSite Holdings, Inc.
Keith D. Grinstein
has been Vice Chairman of our board
since August 1999 and a director since January 1996.
Mr. Grinstein was our President from January 1996 until
March 1999 and our Chief Executive Officer from
January 1996 until August 1999. From January 1991
to December 1995, Mr. Grinstein was President and Chief
 Executive Officer of the aviation communications division of
AT&T Wireless Services. Mr. Grinstein also held a number
 of positions at McCaw Cellular Communications and its
subsidiaries, including Vice President and Assistant General
Counsel of McCaw Cellular Communications and Vice President,
General Counsel and Secretary of LIN Broadcasting Company.
Mr. Grinstein currently is a director of The Ackerley Group
Inc., F5 Networks Inc. and Nextera Enterprises Inc. and a partner
 of Second Avenue Partners.
Steven M. Shindler
has been a director on our board since
May 1997 and has been our Chief Executive Officer since
March 24, 2000. Mr. Shindler is also Executive Vice
President and Chief Financial Officer of Nextel Communications, a
 position he has held since May 1996. From 1987 to
May 1996, Mr. Shindler was an officer with Toronto
Dominion Bank, where, most recently, he was a Managing Director
in its communications finance group. Mr. Shindler also
serves as a director of SpectraSite Holdings.
Lo van Gemert
has been our President and Chief Operating
Officer since September 1999. Mr. van Gemert served as
Senior Vice President of Nextel Communications from
July 1999 until August 2000 and as Nextel
Communications' President of the North Region from
October 1996 until August 1999. Before joining Nextel
Communications in 1996, Mr. van Gemert served as Executive Vice
President at Rogers Cantel in Canada, where he was responsible
for PCS, paging, data and air-to-ground services. From 1980 to
1994, Mr. van Gemert held various senior management positions,
domestically and abroad, at Sony Corporation and BellSouth
Corporation.
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Byron R. Siliezar
has been our Vice President and Chief
Financial Officer since January 1999. From July 1998 to
 January 1999, Mr. Siliezar was our Vice President and
Controller. Mr. Siliezar served as Vice President of Finance
 at Neodata Corporation, a subsidiary of EDS Corporation, from
1997 until joining us, as International Controller of Pagenet,
Inc. from 1996 until 1997 and in various executive and management
 positions at GTE Corporation from 1982 to 1996, most recently as
 Director — Mergers & Acquisitions for GTE
Telephone Operations from 1995 to 1996.
Jose Felipe
has served as our Vice President since January
 1999. From July 1998 to January 1999, Mr. Felipe was our
Vice President — Latin America. From 1991 to 1998,
Mr. Felipe held various senior management positions with
AT&T Corp., most recently President and Chief Executive
Officer of the Puerto Rico and Virgin Islands region and Vice
President of Emerging Markets of the Latin American Region.
Daniel F. Akerson
has been a director on our board since
March 1996. Mr. Akerson served as Chairman of our board
 from March 1996 until July 1999. Mr. Akerson is
also currently Chairman of the board of directors of Nextel
Communications, a position he has held since March 1996 and
serves as a member of the operations committee of that board of
directors. From March 1996 until July 1999,
Mr. Akerson was Chief Executive Officer of Nextel
Communications. Since September 1999, Mr. Akerson has
served as Chairman and Chief Executive Officer of NEXTLINK
Communications, Inc., a publicly held competitive local exchange
carrier controlled by Craig O. McCaw. From June 1993 to
 March 1996, Mr. Akerson served as a general partner of
 Forstmann Little & Co., a private investment firm, and also
held the positions of Chairman of the board and Chief Executive
Officer of General Instrument Corporation, a technology company
acquired by Forstmann Little. From 1983 to 1993, Mr. Akerson
 held various senior management positions with MCI Communications
 Corporation, including President and Chief Operating Officer.
Mr. Akerson serves as a director of American Express Company
 and America Online, Inc.
Steven P. Dussek
has served as a director on our board
since March 1999. From September 1999 until
March 2000, Mr. Dussek was our Chief Executive Officer.
 Mr. Dussek was our President and Chief Operating Officer
from March 1999 until September 1999. Since May 1996,
Mr. Dussek has served in various senior management positions
 with Nextel Communications, most recently as Executive Vice
President and Chief Operating Officer. From May 1995 to May
1996, Mr. Dussek served as Vice President and General
Manager of the Northeast Region for the PCS division of AT&T
Wireless Services. From 1993 to March 1995, Mr. Dussek
served as Senior Vice President and Chief Operating Officer of
Paging Networks, Inc. Mr. Dussek is currently a director of
Clearnet.
C.  James Judson
has been a director on our board
since February 1995. Mr. Judson is also Vice President,
Secretary and General Counsel of Eagle River, Inc., a company
formed to make strategic investments in telecommunications
ventures. He has held those positions since January 1995.
From 1969 to January 1995, Mr. Judson was a partner in the
Davis Wright Tremaine law firm.
Dennis M. Weibling
has been a director on our board since
February 1995. From October 1995 to March 1996,
Mr. Weibling served as Nextel Communications' acting
Chief Executive Officer. Mr. Weibling is currently President
 of Eagle River, a position he has held since 1993.
Mr. Weibling is a director of Nextel Communications and is a
 member of the operations committee, audit committee and
compensation committee of the Nextel Communications board of
directors. He is also a director of NEXTLINK Communications and
Nextel Partners.
Other Key Senior Management
Peter A. Foyo
has served as President of Nextel
Mexico since August 1998. From 1988 to 1998, Mr. Foyo held
various senior management positions with AT&T Corp., most
recently as Corporate Strategy Director of Alestra S.A. de C.V.,
a joint venture between AT&T and a local
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Mexican partner. In that position, Mr. Foyo was responsible
for developing a pan regional network plan for Latin America
including fixed, wireless and network services on Alestra's
behalf.
Alexis Mozarovski
has served as President of Nextel Brazil
 since June 1999. From 1980 to 1999, Mr. Mozarovski held
various positions with Aydin Corp., most recently as Vice
President for Latin American Operations and President of Aydin
S.A. where he was responsible for implementing communication
systems for government agencies and cellular companies throughout
 Latin America.
Miguel A. Rivera
has served as President of Nextel
Peru since January 2000. Previously, Mr. Rivera was the
General Manager of the Lima Stock Exchange from 1999 to 2000.
From 1986 to 1998, Mr. Rivera held various executive
positions with IBM in Latin America, most recently as General
Manager — Manufacturing Industry, Latin America, where
he was responsible for implementing the IBM manufacturing
industry strategy throughout the region.
Antonio M. Urera
has served as President and Chief
Operating Officer of Nextel Philippines since June 1998. From
March 1997 to May 1998, Mr. Urera held various senior
management positions at Bayentel Telecommunications, Inc., most
recently as Executive Vice President — Network Group
from September 1997 to May 1998. From January 1989 to March 1997,
 Mr. Urera held a number of positions at Eastern
Telecommunications Philippines, Inc., including Senior Vice
President for Operations, with responsibility for sales,
marketing and technical operations as well as General Manager and
 Chief Operating Officer.
Committees of the Board of Directors
We have established three committees: an audit committee, a plan
administration committee and an executive committee.
Audit Committee.
We established an audit committee in
November 1997. Messrs. Weibling (Chairman) and Shindler
 serve as members of the audit committee. The audit committee
reviews with our management, the internal auditors and the
independent auditors, our policies and procedures with respect to
 internal control; reviews significant accounting matters;
approves the audited financial statements before public
distribution; approves any significant changes in our accounting
principles or financial reporting practices; reviews independent
auditor services; and recommends to our board of directors the
firm of independent auditors to audit our consolidated financial
statements.
Plan Administration Committee.
We established a plan
administration committee in June 1998. Messrs. Weibling
 (Chairman) and Judson serve as members of the plan
administration committee. The plan administration committee
administers, and makes all ongoing determinations concerning
matters relevant, to our equity incentive plans.
Executive Committee.
We established an executive committee
 in March 1999. Messrs. Donahue (Chairman), Weibling
and Shindler serve as members of the executive committee. The
executive committee exercises the authority of our board of
directors with respect to the management of our company, subject
to limitations imposed by applicable law and our board of
directors.
Compensation of Executive Officers
In the table and discussion below, we summarize the compensation
earned during the last three fiscal years by: (1) each
individual who served as our Chief Executive Officer during 1999;
 (2) each of our three other most highly compensated
executive officers who earned more than $100,000 in salary and
bonuses for services rendered in all capacities during 1999; and
(3) one other individual who would have been among the
individuals in clause (2) above but for the fact that he was
 not serving as an executive officer at December 31, 1999.
We refer to these individuals collectively as the Named Executive
 Officers. Information throughout this prospectus
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Table of Contents
related to the Nextel Communications' incentive equity plan
reflects its 2-for-1 common stock split effective in June 2000.
Annual
Compensation
Long-Term Compensation Awards
Other
Annual
Securities
Compen-
Restricted
Underlying
Name and Principal Position
Year
Salary($)
Bonus($)
sation($)
Stock Awards($)
Options(#)(1)
Steven P. Dussek(3)
1999
150,618
—
—
458,400
(4)
1,420,000
Former Chief Executive
1998
—
—
—
—
Officer
1997
—
—
—
—
Keith D. Grinstein(6)
1999
207,518
113,400
—
—
100,000
Vice Chairman and former
1998
195,054
73,426
—
—
120,000
President and Chief
1997
180,000
79,200
—
—
2,080,000
Executive Officer
Lo van Gemert(7)
1999
98,928
79,270
—
1,438,200
(8)
250,000
President and Chief
1998
—
—
—
—
Operating Officer
1997
—
—
—
—
Byron R. Siliezar
1999
197,708
100,620
—
—
260,000
Vice President and Chief
1998
56,250
(9)
23,494
—
—
86,000
Financial Officer
1997
—
—
—
—
Jose Felipe
1999
236,688
149,900
188,454
(11)
—
380,000
Vice President
1998
116,795
75,000
—
—
360,000
1997
—
—
—
—
Heng-Pin Kiang(12)
1999
128,323
—
—
—
30,000
Former Senior Vice
1998
165,769
50,000
—
—
28,000
President, General Counsel and Secretary
1997
160,940
60,000
—
1,130,000
5,572
[Additional columns below]
[Continued from above table, first column(s) repeated]
All Other
Name and Principal Position
Compensation($)(2)
Steven P. Dussek(3)
72,511
(5)
Former Chief Executive
—
Officer
—
Keith D. Grinstein(6)
3,800
Vice Chairman and former
3,900
President and Chief
3,200
Executive Officer
Lo van Gemert(7)
2,672
President and Chief
—
Operating Officer
—
Byron R. Siliezar
34,544
(10)
Vice President and Chief
76,854
(10)
Financial Officer
—
Jose Felipe
36,805
(11)
Vice President
37,000
(11)
—
Heng-Pin Kiang(12)
62,614
(12)
Former Senior Vice
7,600
President, General Counsel and Secretary
(1)
We granted options under the Nextel International 1997 stock
	option plan. Additionally, all of the Named Executive Officers
	also have received equity awards pursuant to the Nextel
	Communications incentive equity plan. Options generally vest over
	 a four-year period and become exercisable, subject to the
	provisions of each plan, for shares of our common stock and
	Nextel Communications class A common stock, respectively. Stock
	appreciation rights were granted under our stock appreciation
	rights plan. As of December 31, 1999, all but one holder of
	stock appreciation rights granted under our stock appreciation
	rights plan, including all of the members of senior management,
	had agreed to exchange their stock appreciation rights for
	options granted under the Nextel International 1997 stock option
	plan.
(2)
This is comprised of our contributions to the Nextel
	Communications Section  401(k) Plan and the value received
	from purchases under the Nextel Communications stock purchase
	plan, which reflects the difference between the purchase price,
	which is the lower of 85% of market value at the beginning or the
	 end of each quarter, and the market value.
(3)
Mr. Dussek is currently a director and from
	September 1999 until March 2000 was our Chief Executive
	Officer. He was our President and Chief Operating Officer from
	March  1999 until September 1999. As Mr. Dussek is
	 also the Executive Vice President and Chief Operating Officer of
	 Nextel Communications, Nextel Communications has paid
	Mr. Dussek's salary and bonus since
	September 1999. The salary and bonus shown represents only
	the salary and bonus paid with respect to 1999 by us.
(4)
Mr. Dussek's deferred stock award granted in 1999 is
	based on 30,000 shares times $15.28 per share, which was the
	 closing price of Nextel Communications' class A common
	stock on February 18, 1999, the date of award.
	Mr. Dussek's deferred stock award vests ratably on each
	 of the first three anniversary dates of the grant date. The
	value of the shares covered by Mr. Dussek's deferred
	stock award as of December 31, 1999 was $1,546,875 (30,000
	shares times $51.5625, the closing price of Nextel
	Communications' class A common stock on that date).
(5)
The $72,511 represents Mr. Dussek's allowance for
	relocation expenses.
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(6)
Mr. Grinstein is currently Vice Chairman of our board of
	directors. He was our President until March 1999 and our
	Chief Executive Officer until August 1999.
(7)
Mr. van Gemert became our President and Chief Operating Officer
	in September  1999.
(8)
Mr. van Gemert was granted two deferred stock awards during 1999.
	 On February  18, 1999, Mr. van Gemert received 20,000
	shares which vest ratably on each of the first three anniversary
	dates of the grant date. On September 1, 1999, Mr. van
	Gemert received 40,000 shares which vest 100% on the fourth
	anniversary of the grant date. The closing price of a share of
	Nextel Communications' class A common stock on the
	award dates was $15.280 on February 18, 1999 and $28.313 on
	September 1, 1999. The value of the shares covered by
	Mr. van Gemert's deferred stock award as of
	December 31, 1999 was $3,093,750 (60,000 shares times
	$51.5625, the closing price of Nextel Communications' class
	A common stock on that date).
(9)
The $56,250 reflects Mr. Siliezar's salary paid from
	July 20, 1998 to December 31, 1998.
(10)
The $76,854 represents Mr. Siliezar's signing bonus of
	$30,000 and allowance for relocation expenses of $46,852 in 1998.
	 The $34,544 represents Mr. Siliezar's allowance for
	relocation expenses in 1999.
(11)
"Other Annual Compensation" for Mr. Felipe
	includes a $90,000 foreign services differential, an $86,874
	housing allowance and $11,580 representing the aggregate personal
	 travel costs of Mr. Felipe paid by Nextel Argentina, for the
	period from April 1, 1999, the effective date of our letter
	agreement with Mr. Felipe, to December 31, 1999.
	"All Other Compensation" for Mr. Felipe includes a
	 $35,000 signing bonus in 1998 and a $35,436 allowance for
	relocation expenses in 1999.
(12)
Mr. Kiang resigned as Senior Vice President and General
	Counsel effective September 1999 and resigned as Secretary
	of our board effective November 1999. His termination agreement
	provided for a cash payment of $60,000, which is included in
	"All Other Compensation," and a consulting relationship
	 for the period September 15, 1999 to November 15, 2000
	 at a rate of $14,506 per month.
Option Grants in Fiscal Year 1999
In the table below, we set forth selected information on options
exercisable for shares of our common stock, referred to as NII
Options, and Nextel Communications' class A common stock,
referred to as NCI Options, that were granted to the Named
Executive Officers during fiscal year 1999.
Number of
Percent of
Securities
Total Options
Underlying
Granted to
Exercise or
Grant Date
Options
Employees in
Base Price
Expiration
Present
Granted(#)
Fiscal Year(%)
($/Shares)
Date
Value($)(1)
Steven P. Dussek
NII Options
1,200,000(2)
38.29
6.008
05/13/2009
3,674,843
NCI Options
170,000(3)
.93
15.280
02/18/2009
1,305,331
NCI Options
50,000(4)
.27
28.315
09/01/2009
740,302
Keith D. Grinstein
NII Options
—
—
—
—
—
NCI Options
100,000(3)
0.55
15.280
02/18/2009
767,842
Lo van Gemert
NII Options
—
—
—
—
—
NCI Options
150,000(3)
.82
15.280
02/18/2009
1,151,763
NCI Options
100,000(4)
.55
28.315
09/01/2009
1,462,607
Byron R. Siliezar
NII Options
200,000(2)
6.38
6.008
05/13/2009
612,474
NCI Options
60,000(3)
0.33
15.280
02/18/2009
461,084
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Number of
Percent of
Securities
Total Options
Underlying
Granted to
Exercise or
Grant Date
Options
Employees in
Base Price
Expiration
Present
Granted(#)
Fiscal Year(%)
($/Shares)
Date
Value($)(1)
Jose Felipe
NII Options
300,000(5)
9.57
6.008
05/13/2009
918,711
NCI Options
80,000(3)
0.44
15.280
02/18/2009
614,274
Heng-Pin Kiang
NII Options
—
—
—
—
—
NCI Options
30,000(3)
0.16
15.280
02/18/2009
230,353
(1)
We used the Black-Scholes pricing model to estimate the present
	value of options at the date of grant, using the following
	assumptions to derive valuations for the NII Options and the NCI
	Options:
•
an expected stock price volatility of 51%;
•
a risk free interest rate of 5.06 — 6.09%;
•
an expected life of 5 years; and
•
an expected dividend yield of 0%.
(2)
These NII Options were granted on May 13, 1999 and vest over
	 a four-year period on a monthly basis from the date of grant.
(3)
These NCI Options were granted on February 18, 1999 and vest
	 over a four-year period at a rate of 25% per year from the date
	of grant.
(4)
These NCI Options were granted on September 1, 1999 and vest
	 over a four-year period at a rate of 25% per year from the date
	of grant.
(5)
These NII Options were granted on May 13, 1999; 25% of the
	options vested immediately and 75% of the options vest over a
	four-year period on a monthly basis from the date of grant.
Option Exercises in Fiscal Year 1999 and Year-End Option
Values
In the following table, we set forth information on the exercise
of options during the year ended December 31, 1999 and
unexercised option values as of December 31, 1999 for each
of the Named Executive Officers:
Number of Securities
Underlying Unexercised
Options at Fiscal
Shares
Year-End(#)
Acquired on
Value
Name
Exercise(#)
Realized($)
Exercisable
Unexercisable
Steven P. Dussek
NII Options
—
—
175,000
1,025,000
NCI Options
242,500
7,937,735
—
587,500
Keith D. Grinstein
NII Options
120,000
553,800
1,780,000
100,000
NCI Options
115,000
2,626,093
55,000
230,000
Lo van Gemert
NII Options
—
—
—
—
NCI Options
102,500
1,792,109
—
392,500
Byron R. Siliezar
NII Options
—
—
57,496
222,504
NCI Options
—
—
1,500
64,500
Jose Felipe
NII Options
—
—
214,060
385,940
NCI Options
15,000
318,557
—
125,000
[Additional columns below]
[Continued from above table, first column(s) repeated]
Value of Unexercised In-
the-Money Options at Fiscal
Year-End($)(1)(2)
Name
Exercisable
Unexercisable
Steven P. Dussek
NII Options
193,813
1,135,188
NCI Options
—
22,513,895
Keith D. Grinstein
NII Options
8,214,700
461,500
NCI Options
2,245,938
8,833,438
Lo van Gemert
NII Options
—
—
NCI Options
—
13,385,078
Byron R. Siliezar
NII Options
32,299
189,201
NCI Options
54,094
2,339,156
Jose Felipe
NII Options
119,402
212,848
NCI Options
—
4,525,313
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Number of Securities
Underlying Unexercised
Options at Fiscal
Shares
Year-End(#)
Acquired on
Value
Name
Exercise(#)
Realized($)
Exercisable
Unexercisable
Heng-Pin Kiang
NII Options
120,000
553,800
952,916
27,084
NCI Options
59,500
840,903
12,500
66,000
[Additional columns below]
[Continued from above table, first column(s) repeated]
Value of Unexercised In-
the-Money Options at Fiscal
Year-End($)(1)(2)
Name
Exercisable
Unexercisable
Heng-Pin Kiang
NII Options
4,397,707
124,993
NCI Options
546,875
2,552,344
(1)
The value of the in-the-money NCI Options is based on the closing
	 price of the Nextel Communications class A common stock as
	reported by the Nasdaq Stock Market on December 31, 1999,
	which was $51.563 per share, less the aggregate exercise price,
	times the aggregate number of shares issuable upon exercise of
	those options.
(2)
The value of the in-the-money NII Options is derived from an
	independent valuation of NII's common stock performed by a
	public accounting firm, made in conformance with the Uniform
	Standards of Professional Appraisal Practice of The Appraisal
	Foundation, which was $7.115 per share, less the aggregate
	exercise price, times the aggregate number of shares issuable
	upon exercise of those options.
Employment Agreements
Nextel Communications executed on our behalf a letter agreement
with Mr. Felipe in May 1999 providing for his
employment effective April 1, 1999. The letter provides for
base compensation of $250,000 per year, as well as eligibility
for bonuses of $150,000 based on the achievement of specified
performance objectives. Further, Mr. Felipe is paid a
foreign services differential of $120,000 per year to
compensate him for the higher cost of living in Argentina as
compared to the United States, and a housing allowance of up to
$10,000 per month.
Compensation Committee Interlocks and Insider Participation
Our board of directors does not currently have a compensation
committee. Our full board of directors is responsible for
executive compensation matters. Mr. Shindler serves on our
board of directors and also serves as our Chief Executive
Officer. In addition, Mr. Grinstein serves on our board of
directors and was our Chief Executive Officer from
January 1996 until August 1999, and Mr. Dussek
serves on our board of directors and was our Chief Executive
Officer from September 1999 until March 2000 and our
Chief Operating Officer from March 1999 until
September 1999.
Compensation of Directors
Currently, our directors do not receive any compensation.
Equity Incentive Plans
We currently have two equity incentive plans in effect. Awards
under the plans that are currently outstanding or are made before
 the closing of the offerings will be made in respect of the
class B common stock and awards granted after the closing of the
offerings will be made in respect of the class A common stock. In
 this section, all references to common stock refer to the class
A and class B common stock issuable under the respective award.
1997 Stock Option Plan.
Our 1997 stock option plan was
adopted by the board of directors in June 1997 and amended in
July 1998 and May 1999. It provides for issuance of a
maximum of 10,900,000 shares of common stock.
The plan provides for the grant of incentive stock options
intended to qualify under Section 422 of the Internal
Revenue Code of 1986, as amended, and nonqualified stock options
to our employees, directors, officers, consultants, agents,
advisors, and independent contractors
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or those of our subsidiaries. The plan provides that it will be
administered by the board of directors or a committee consisting
of at least two members of the board. Presently, the entire board
 of directors serves as the plan administrator.
The term of the stock options granted under the plan is ten years
 from the date of grant, subject to adjustment by the plan
administrator, which may extend the period of an option. The
exercise price of the options granted under the plan is
determined by the plan administrator. The exercise price of
options as incentive stock options granted under the plan may not
 be less than 100% of the fair market value on the date the
option is granted. In accordance with the terms and requirements
of the plan, Arthur Andersen LLP has conducted independent
appraisals of the market value of our common stock from October
1998 through May 2000. The options vest on a monthly basis over a
 four-year period, unless provided otherwise in the option
agreement evidencing the award. No option may be transferred by
the optionee other than by will or the laws of descent and
distribution, subject to exceptions with the permission of the
plan administrator to the extent permitted by the Internal
Revenue Code.
An optionee whose relationship with us ceases for any reason
other than termination for cause, as defined in the plan, may
exercise the vested portion of options. Vested, nonforfeitable
options of an optionee, other than an optionee whose relationship
 with us terminates because of total disability or death, may be
immediately exercised for a period of 90 days following the
termination of the relationship. For an optionee whose
relationship with us terminates because of total disability or
death, the right to exercise vested, nonforfeitable options
extends to one year from the date of an optionee's
termination as a result of disability or death, and, if due to
the death of the optionee, the right to exercise passes to the
optionee's estate. All unvested options, all options of an
optionee terminated for cause, and all options not exercised
within the required period are forfeited upon these events.
To the extent required for incentive stock option status under
Section 422 of the Internal Revenue Code and to the extent
the aggregate fair market value of the common stock with respect
to which incentive stock options are granted under the plan and
options granted under any other stock option plan in the year
first exercisable during any calendar year exceeds $100,000, the
excess over $100,000 will be treated as a nonqualified stock
option. No incentive stock option may be granted under this plan
or any other stock option plan to any person possessing more than
 10% of the total combined voting power of all classes of our
stock, unless the exercise price of that option is at least 110%
of the fair market value of the stock subject to the option, and
the option term does not exceed five years. The term of incentive
 stock options may not exceed ten years.
Any shares of common stock that have been subject to an option
and cease to be subject to the option, other than by reason of
exercise, will be available for future awards under the plan.
The plan provides that any shares of common stock issued under an
 option granted under the plan may not be sold or otherwise
disposed of or transferred for value during a period of up to 180
 days following the initial underwritten public offering of our
equity securities, including the offerings, without our prior
written consent or that of the underwriters.
As of June 30, 2000, options to purchase an aggregate of
8,571,452 shares of common stock were granted under the plan, and
 an aggregate 2,328,543 of shares of common stock remained
available for grant, although we do not intend to make further
awards under the plan. Of the options granted, options to
purchase 7,002,084 shares of common stock were outstanding, and
options to purchase 1,569,368 shares of common stock had been
exercised.
Incentive Equity Plan.
Our incentive equity plan was
approved by our plan administration committee in May 2000
and ratified by our board of directors in June 2000. It provides
for awards of option rights, appreciation rights, restricted
shares, deferred shares and performance shares to our
nonaffiliate directors, officers, including officers who are
members of our board of
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directors, and other key employees, consultants, and advisors or
those of our subsidiaries with respect to 20,000,000 shares of
common stock, except replacement option rights, which may not in
the aggregate exceed five percent of the shares of common stock
outstanding on January 1 of that year. The number of shares of
common stock that may be issued or transferred as restricted
shares under the plan may not in the aggregate exceed 800,000
shares. The number of performance units granted under the plan
may not in the aggregate exceed 2,000,000. Notwithstanding
anything to the contrary and subject to adjustments as provided
in the plan, the aggregate number of shares of common stock
actually issued or transferred upon the exercise of options
intended to qualify as incentive stock options under
Section 422 of the Internal Revenue Code may not exceed
20,000,000 shares. The plan is administered by the plan
administration committee of our board of directors.
Option Rights.
The plan administrator may grant option
rights that entitle the optionee to purchase shares of common
stock at a price equal to or greater than market value on the
date of grant, except that the option price of a replacement
option right may be less than the market value on the date of
grant. Replacement option rights are otherwise subject to the
same terms, conditions, and discretion as other option rights
under the plan. A replacement option right is an option right
that is granted in exchange for the surrender and cancellation of
 an option to purchase shares of another corporation that has
been acquired by us or one of our subsidiaries.
Option rights granted under the plan may be option rights that
are intended to qualify as "incentive stock options"
within the meaning of Section 422 of the Internal Revenue Code or
 nonqualified stock option rights.
Each grant, unless otherwise determined by the plan
administrator, becomes exercisable with respect to 50% of the
shares of common stock covered by the grant on the second
anniversary of the date of grant and with respect to 25% of the
shares of common stock covered by the grant on each of the third
and fourth anniversaries of the date of grant for so long as the
optionee remains in our continuous employ. However, in the event
of an initial public offering or change of control, as defined in
 the plan, prior to the first anniversary of the date of grant,
25% of the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of common stock
covered by the grant become exercisable on each of the second,
third, and fourth anniversaries of the date of grant for so long
as the optionee remains in our continuous employ.
Each grant also provides, unless otherwise expressly determined
in a resolution duly adopted by the board of directors, that the
option right will:
•
if the optionee is a nonaffiliate director, immediately become
	fully exercisable upon the occurrence of a defined change of
	control;
•
if the optionee is an employee, immediately become fully
	exercisable upon the termination of the optionee's
	employment without cause, as defined under the plan, within one
	year of a defined change of control; and
•
if the optionee is an executive, as defined under the plan,
	immediately become fully exercisable upon the termination of the
	optionee's employment by us without cause, as defined under
	the plan, or by the executive for good reason, as defined under
	the plan, in each case, within one year of a defined change of
	control;
These change of control terms are deemed void if it should be
determined that any of these terms would prevent a proposed
merger or other business combination that is intended by the
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parties to be accounted for as a pooling of interests from
qualifying for this intended accounting treatment. For purposes
of the plan, a change of control generally includes, in respect
of both us and Nextel Communications while Nextel Communications
holds a majority of our combined voting power of outstanding
securities, specified mergers, consolidations, reorganizations,
the sale of substantially all of the assets or acquisitions of
50% or more of the voting securities.
Appreciation Rights.
Appreciation rights granted under the
 plan may be either free-standing appreciation rights or
appreciation rights that are granted in tandem with option
rights. An appreciation right represents the right to receive
from us the difference, or spread, or a percentage of the spread,
 not in excess of 100 percent, between the base price per
share of common stock in the case of a free-standing appreciation
 right, or the option price of the related option right in the
case of a tandem appreciation right, and the market value of the
common stock on the date of exercise of the appreciation right.
Tandem appreciation rights may only be exercised at a time when
the related option right is exercisable and the spread is
positive, and the exercise of a tandem appreciation right
requires the surrender of the related option right for
cancellation. A free-standing appreciation right must have a base
 price that is at least equal to the fair market value of a share
 of common stock on the date of grant, must specify the period of
 continuous service as a director, continuous employment, or
continuous engagement of consulting services, that is necessary
before the appreciation right becomes exercisable, except that it
 may provide for its earlier exercise in the event of a defined
change in control, and may not be exercised more than
10 years from the date of grant. Any grant of appreciation
rights may specify that the amount payable by us upon exercise
may be paid in cash, shares of common stock, or a combination of
cash and stock, as determined by the recipient or the plan
administrator, which may provide for the payment of dividend
equivalents on the award in cash or common stock.
Restricted Shares.
A grant of restricted shares involves
the immediate transfer to the recipient of ownership of a
specific number of shares of common stock in consideration of the
 performance of services. The recipient is entitled immediately
to voting, dividend, and other ownership rights in the shares.
The transfer may be made without additional consideration or for
consideration in an amount that is less than the market value of
the shares on the date of grant, as the plan administrator may
determine. The plan administrator may condition a grant of
restricted shares on the achievement of specified performance
objectives.
Restricted shares must be subject to a "substantial risk of
forfeiture" within the meaning of Section 83 of the
Internal Revenue Code for a period to be determined by the plan
administrator. The plan administrator may provide for a shorter
period during which the forfeiture provisions are to apply in the
 event of a change in control or other similar transaction or
event.
Deferred Shares.
A grant of deferred shares constitutes
our agreement to deliver shares of common stock to the recipient
in the future in consideration of the performance of services,
subject to the fulfillment of those conditions during a period of
 time specified by the plan administrator. During this deferral
period, the recipient has no right to vote the shares of common
stock covered by his or her grant of deferred shares and, except
in the limited circumstances described below, has no right to
transfer any of his or her rights in the shares. The plan
administrator may authorize the payment of dividend equivalents
on a current, deferred, or contingent basis in either cash or
additional shares of common stock. Grants of deferred shares may
be made without additional consideration or for consideration in
an amount that is less than the market value of the shares on the
 date of grant. The deferral period is subject to acceleration in
 the event of a defined change in control in the same manner and
upon the terms as those set forth above regarding option rights.
Performance Shares and Performance Units.
A performance
share is the equivalent of one share of common stock, and a
performance unit is the equivalent of $1.00. A recipient of a
grant of performance shares or performance units may be granted
any number of performance shares
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or performance units. The recipient must be given one or more
objectives to meet within a specified period. This period may be
subject to earlier termination in the event of a defined change
in control in the same manner and upon the terms as those set
forth above regarding option rights. A minimum level of
acceptable achievement will also be established by the plan
administrator. If by the end of the performance period the
recipient has achieved the specified objectives, he or she will
be deemed to have fully earned the performance shares or
performance units. If the recipient has not achieved the
objectives but has attained or exceeded the predetermined minimum
 level of acceptable achievement, he or she will be deemed to
have partly earned the performance shares or performance units in
 accordance with a predetermined formula. To the extent earned,
the performance shares or performance units will be paid to the
recipient in cash, shares of common stock, or any combination of
cash and stock. The plan administrator may authorize the payment
of dividend equivalents on a current, deferred, or contingent
basis in either cash or additional shares of common stock.
Transferability.
Except as otherwise determined by the
plan administrator, no option right, appreciation right, or other
 derivative security granted under the plan may be transferred by
 a participant other than by will or the laws of descent and
distribution, and, except as otherwise determined by the plan
administrator, option rights and appreciation rights may be
exercised during a participant's lifetime only by the
participant or his or her guardian or legal representative.
Option rights other than incentive stock options, appreciation
rights, restricted shares, deferred shares, performance shares,
and performance units may be transferred by a participant,
however, without payment of consideration by the transferee, to
any one or more members of the participant's immediate
family or to related trusts, provided that the participant
delivers to us reasonable prior notice of any that transfer and
complies with any terms and conditions that we may impose on any
transfer.
As of June 30, 2000, options to purchase an aggregate of
6,968,500 shares of common stock were granted under the plan,
none of which are currently exercisable, and an aggregate of
13,031,500 shares of common stock remained available for grant.
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PRINCIPAL STOCKHOLDERS
There are currently no shares of our class A common stock
outstanding. Immediately following the offerings, Nextel
Communications will continue to control us and will beneficially
own      % of the outstanding
class B common stock, which will represent about
     % of the combined voting power of
all of our outstanding common stock.
In the table below, we set forth, as of June 30, 2000, the
amount and percentage of shares of our voting common stock that
are deemed under the rules of the Securities and Exchange
Commission to be "beneficially owned" by:
•
each of our directors;
•
each of the Named Executive Officers who continued to serve as an
	 executive officer as of that date;
•
all of our directors and officers as a group; and
•
each person or "group," as that term is used in
	Section 13(d)(3) of the Securities Exchange Act of 1934,
	known by us to be the beneficial owner of more than 5% of our
	outstanding voting common stock.
The table below gives effect to the reclassification of our
existing shares of common stock into shares of our class B
common stock and the exchange by Nextel Communications of its
2,150 shares of our series A exchangeable redeemable
preferred stock into
                     shares
 of our class B common stock, assuming the exchange occurred
 on June 30, 2000 and based on the accreted value of the
series A preferred stock at that date of about $215.1 million and
 an assumed initial public offering price for the class A
common stock of $     per share, the
midpoint of the range set forth on the cover.
The address of each named person or group is 10700 Parkridge
Boulevard, Suite 600, Reston, Virginia 20191, unless
otherwise specified.
Amount and
Approximate
Nature of
Equity and Voting
Approximate
Beneficial
% Before the
% After the
Name of Beneficial Owner
Ownership
Offerings(1)
Offerings(2)
Equity
Voting
Daniel F. Akerson
179,166(3
)
*
Keith D. Grinstein
1,958,331(3
)
%
Timothy M. Donahue
87,500(3
)
*
C. James Judson
—
—
Steven M. Shindler
89,583(3
)
*
Dennis M. Weibling
—
—
Steven P. Dussek
375,000(3
)
*
Lo van Gemert
—
—
Jose Felipe
301,559(3
)
*
Byron R. Siliezar
104,165(3
)
*
All directors and executive officers as a group (10 
	persons)
3,095,304(3
)
%
Nextel Communications, Inc.
%
2001 Edmund Halley Drive
Reston, Virginia 20191
*
Less than one percent (1%).
(1)
Represents the voting power of the number of
	shares of class B common stock beneficially owned by each
	named person or group as of June 30, 2000, expressed as a
	percentage of (a) all shares of our class B common
	stock actually outstanding as of that date, plus (b) all
	other shares of our class  B common stock deemed outstanding
	 as of that date under Rule 13d-3(d)(1) under the Securities
	 Exchange Act.
(2)
Gives effect to the sale of
	          shares
	 of our class A common stock in the offerings.
(3)
Comprised entirely of shares of our class B
	common stock obtainable as of June 30, 2000 or within
	60 days of that date by the named person or group upon the
	exercise of options.
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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Tax Sharing Agreement
We entered into a tax sharing agreement with Nextel
Communications dated as of January 1, 1997. Under that
agreement, we must pay Nextel Communications an amount equal to
what our federal income tax liability would have been had we
filed a separate federal income tax return. The computation of
our liability takes into account any carryovers and carrybacks of
 losses and credits that would be allowed if we had filed a
separate federal income tax return, except that, in making the
computation for any taxable year, the liability will be
determined at the highest corporate tax rate and without an
exemption for purposes of calculating the alternative minimum tax
 and the environmental tax. The agreement further provides that
we may be included in any consolidated, combined or unitary state
 or local income or franchise tax return or report, and our
liability for these taxes will be computed in a manner consistent
 with the calculation of our federal income tax liability.
In addition, the tax sharing agreement provides that Nextel
Communications is entitled to utilize on behalf of the
consolidated group of which we are a member all of our tax
attributes, including items of income, gain, loss, deduction,
expense, credit and similar treatments, which arise in the
current taxable year or another taxable year or years and which
properly may be carried back or carried forward to that taxable
year. We are not entitled to receive any compensation utilization
 of these attributes or items by the Nextel Communications
consolidated group in determining for any taxable year or years
the consolidated taxable income and consolidated tax liability
for that taxable year or years.
Nextel Communications is not required to compensate us for the
benefit of a loss or credit carryback from our separate filing to
 the consolidated group should we leave the Nextel Communications
 consolidated group. Further, under certain circumstances we are
required to compensate Nextel Communications for adjustments of
tax attributes after we leave the group.
Under the U.S. consolidated income tax rules, we and each other
member of the Nextel Communications consolidated group of which
we are a member will be jointly and severally liable for the U.S.
 tax liabilities of each other member of that group for each year
 we file a consolidated tax return with that group. This
liability continues for these years even if we should leave the
Nextel Communications consolidated group.
We are not required to make any payments to Nextel Communications
 under the tax sharing agreement with respect to 1999 tax
liabilities.
Overhead Services Agreement
Under an overhead services agreement between us and Nextel
Communications, Nextel Communications has agreed to provide
services to us, including those relating to accounts payable,
cash management, payroll, human resources, financial reporting
and audit and legal, engineering and technical and marketing and
sales assistance. The fee for services provided under the
overhead services agreement is the actual cost incurred by Nextel
 Communications, which is billed monthly and payable in
45 days. Under the overhead services agreement, Nextel
Communications has agreed to apportion the aggregate cost
incurred by it to provide the services to us and its other
subsidiaries on a basis that Nextel Communications determines in
good faith, from time to time, represents the relative portion of
 the services provided by Nextel Communications and used by each
subsidiary, including us, for the relevant period. We have the
right to review Nextel Communications' determination and to
discuss with Nextel Communications adjustments that we consider
appropriate in light of the services provided to us. Nextel
Communications' good faith determination after that
consultation is final and binding. The overhead services
agreement has a ten-year term, which commenced on March 3,
1997, and, with the consent of Nextel Communications, we may
elect to discontinue a particular service or
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services provided by Nextel Communications and/or obtain any
service from an independent third party. We incurred costs under
the overhead services agreement of $1.2 million during 1999.
Under the overhead services agreement, we have agreed that the
legal counsel employed by Nextel Communications as part-time or
full-time employees will provide legal services to us as well as
to other subsidiaries of Nextel Communications and potentially to
 other entities in which Nextel Communications holds an ownership
 interest. We have agreed that the legal counsel may represent us
 as well as Nextel Communications or any of its other
subsidiaries.
Right of First Opportunity Agreement
We entered into a right of first opportunity agreement with
Nextel Communications dated as of March 6, 1997, as amended,
 under which Nextel Communications has agreed that neither Nextel
 Communications nor any affiliate, as defined in the agreement,
controlled by Nextel Communications (other than our group of
affiliates, as defined in the agreement) will in the future
participate in the ownership or management of two-way
terrestrial-based mobile wireless communications systems,
referred to as wireless entities, anywhere other than in the
United States unless the future wireless opportunities have first
 been presented to us. This restriction does not apply to, among
other things, any commercial relationship with any wireless
entity, including channel or frequency sharing, roaming, purchase
 or sale of goods or services, licensing of intellectual property
 or other intangible rights or similar business related
arrangement, that does not involve the directing or participating
 in the management of that wireless entity. We have agreed that,
without the consent of Nextel Communications, we, our restricted
affiliates and our unrestricted affiliates each as defined in the
 indentures governing our outstanding notes will not participate
in the ownership or management of any wireless communications
service business in the United States. These restrictions
terminate upon the earliest to occur of (1) April 15,
2007 and (2) a change of control, as defined in the
indentures governing our outstanding notes.
If Nextel Communications gives us notice of a future wireless
opportunity, we will have 60 days to notify Nextel
Communications that we intend to pursue the opportunity and how
we intend to finance our participation. We must have secured a
financing commitment within 90 days of the date of the
notice and we must consummate the future wireless opportunity
within nine months of the date of the notice. If we fail to
respond to Nextel Communications within the 60 and 90 day
time frames or fail to consummate the transaction within the
nine-month period, Nextel Communications may pursue freely the
future wireless opportunity.
We have agreed with Nextel Communications not to make any
amendment to the right of first opportunity agreement that is
materially adverse to the holders of the March 1997 Notes
and March 1998 Notes and to provide those holders with
written notice 30 days prior to any amendment. We and Nextel
 Communications have entered into a further amendment to the
right of first opportunity agreement to extend its benefits to
the holders of our August 2000 Notes, which will become effective
 August 31, 2000.
Transactions with Parent
On April 4, 2000, we received an advance of
$77.7 million from a wholly owned subsidiary of Nextel
Communications in connection with the anticipated purchase of
Motorola International's common equity in companies in
Nextel Brazil, Nextel Peru and three SMR Chilean companies. On
June 2, 2000, we issued 777 shares of our series A
exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications as repayment of this
intercompany advance. Additionally, on April 7, 2000, we
issued 1,500 shares of our series A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications in exchange for cash proceeds of
$150.0 million. On June 12, 2000, all of the then
outstanding shares of our series A exchangeable redeemable
preferred stock were exchanged for shares of our common
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stock. On June 29, 2000, we issued 2,150 shares of our
series A exchangeable redeemable preferred stock to a wholly
owned subsidiary of Nextel Communications in exchange for cash
proceeds of $215.0 million. In connection with the
offerings, these 2,150 shares of our series A exchangeable
redeemable preferred stock, including accrued dividends, will be
exchanged for        shares of
 our class B common stock, assuming the exchange occurred on
 June 30, 2000 and based on the accreted value of the
series A preferred stock at that date of $215.1 million
 and an assumed initial public offering price for the
class A common stock of $     per
share, the midpoint of the range set forth on the cover.
Motorola Relationships
Motorola, a significant stockholder of Nextel Communications,
provides equipment and vendor financing to the Operating
Companies. For a description of the Motorola financing
facilities, see "Description of Our Indebtedness."
During 1999, we purchased about $155.4 million in digital
infrastructure equipment, subscriber units and related services
from Motorola and have continued these purchases in 2000. At
December 31, 1999, we had accounts payable to Motorola of
$15.8 million and had guaranteed additional amounts outstanding
of Nextel Philippines of $6.2 million.
In May 2000, we purchased all of the equity interests of
Motorola International in Nextel Peru and Nextel S.A., the parent
 company of Nextel Brazil. We also purchased all of Motorola
International's equity interests in three Chilean analog SMR
 companies, which were wholly owned by Motorola International.
The aggregate purchase price for these acquisitions was about
$77.7 million in cash. In connection with our purchase of
the three Chilean analog SMR companies, we entered into an
agreement with Motorola International to manage these companies
for a fee of $1,000 per business day during a transition period,
the initial term of which expires on October 31, 2000,
unless terminated earlier by us. We have the right to extend the
term of this agreement for one additional term of six months upon
 at least 60 days' notice prior to the end of the
initial term. We can terminate the agreement at any time upon
45 days' prior written notice to Motorola.
On August 14, 2000, we and some of our Operating Companies
entered into equipment purchase agreements with Motorola under
which Motorola will provide us with infrastructure equipment and
services. We and Motorola have also agreed to warranty and
maintenance programs and specified indemnity arrangements. In
addition, under some circumstances, we have agreed to purchase at
 least 50% of our infrastructure equipment from Motorola. These
agreements also contain other minimum purchase commitments that
if not met subject us to penalties based on a percentage of the
commitment shortfall.
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DESCRIPTION OF OUR INDEBTEDNESS
12.75% Senior Serial Notes
In August 2000, we completed the sale of $650.0 million
 aggregate principal amount of our August 2000 Notes, generating
about $623.8 million in net cash proceeds. Cash interest
will be payable semiannually beginning February 1, 2001 at a
 rate of 12.75% per year. The August 2000 Notes are redeemable in
 whole or in part, at our option, at any time on or after
August 1, 2005. Up to 35% of the aggregate accreted value of
 these outstanding senior notes may be redeemed using the
proceeds of one or more sales of qualified equity securities
prior to August 1, 2003, at our option, at 112.750% of their
 principal amount, plus accrued interest. Upon a change of
control, as defined in the indenture governing the August 2000
Notes, we must make an offer to repurchase all the outstanding
August 2000 Notes at 101% of their principal amount, plus accrued
 and unpaid interest to the date of repurchase. The notes are
senior unsecured indebtedness and rank equal in right of payment
with all our other unsubordinated, unsecured indebtedness.
The indenture pursuant to which the August 2000 Notes were issued
 contains various restrictive covenants applicable to us and to
our restricted group members. For this purpose, all of our
subsidiaries in which we own a greater than 50% interest, other
than those subsidiaries we have designated as unrestricted, and
those of our affiliates in which we own a 50% or less interest
that we have designated as restricted, are restricted group
members. These restrictions, among other things, limit our and
the restricted group members' ability to do any of the
following, subject to specified exceptions:
•
incur additional debt and issue redeemable preferred stock;
•
pay dividends or make other distributions in respect of capital
	stock;
•
purchase, redeem or retire our capital stock or the capital stock
	 of any of our unrestricted subsidiaries;
•
voluntarily prepay, redeem or retire for value any our
	indebtedness that is subordinate to the August 2000 Notes;
•
make investments, other than in our restricted subsidiaries;
•
create or permit restrictions on the ability of any restricted
	group member to:
•
pay dividends to us or to any restricted group member;
•
pay indebtedness owed to us or to any restricted group member;
•
make loans or advances to us or to any restricted group member;
•
transfer any of its property or assets to us or to any restricted
	 group member;
•
sell the capital stock of any of restricted group member;
•
guaranty any indebtedness;
•
enter into transactions with any of our affiliates;
•
incur any liens on our assets or the assets of the restricted
	group members;
•
sell our assets or the assets of the restricted group members;
	and
•
merge or consolidate with or transfer all or substantially all of
	 our assets to another person.
We cannot assure you that these restrictions will not limit our
ability to conduct or expand our business or to take advantage of
 business opportunities or transactions that we otherwise
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could if these restrictions did not exist. However, all of these
restrictions are subject to a number of important qualifications.
Events of default under the indenture relating to the August 2000
 Notes, which are also subject to a number of important
qualifications, include the following:
•
a default in the payment of principal or premium, if any, when
	due;
•
a default continuing for 30 days in the payment of interest
	when due;
•
the failure to comply with the limitations on our and the
	restricted group members' ability to engage in a merger,
	consolidation or sale of substantially all assets, other asset
	sales, or undergo a change of control;
•
the failure to comply for 60 days after receiving notice
	with the other covenants;
•
specified events of default under other indebtedness of us or any
	 significant restricted group member;
•
failure to pay within 30 days specified judgements or orders
	 against us or any significant restricted group member; and
•
specified events of bankruptcy, insolvency or reorganization of
	us or our significant restricted group members.
12.125% Senior Discount Notes
In March 1998, we completed the sale of $730.0 million
in principal amount at maturity of our March 1998 Notes,
generating about $387.0 million in net cash proceeds. Cash
interest will not accrue prior to April 15, 2003, and will
be payable semiannually beginning October 15, 2003 at a rate
 of 12.125% per year. The March 1998 Notes are redeemable in
whole or in part, at our option, at any time on or after April
15, 2003 at specified redemption prices, plus accrued and unpaid
interest. Up to 35% of the aggregate accreted value of these
outstanding senior notes may be redeemed using the proceeds of
one or more sales of qualified equity securities prior to
April 15, 2001, at our option under specified circumstances,
 at 112.125% of their accreted value on the date of redemption,
plus accrued interest. Upon a change of control, as defined in
the indenture governing the March 1998 Notes, and subject to
specified conditions, we must make an offer to repurchase all the
 outstanding March 1998 Notes at 101% of their accreted value,
plus accrued and unpaid interest, if any, to the date of
redemption. The notes are senior unsecured indebtedness and rank
equal in right of payment with all our other unsubordinated,
unsecured indebtedness.
The indenture pursuant to which the March 1998 Notes were issued
contains restrictive covenants and events of default similar to
those contained in the indenture governing the August 2000 Notes.
13.0% Senior Discount Notes
In March 1997, we completed the sale of 951,463 units,
generating $482.0 million in net proceeds. Each unit was
comprised of a 10-year senior discount note with a principal
amount due at maturity of $1,000 and one warrant to purchase
1.5499 shares of our common stock at an exercise price of $2.50
per share at any time after March 6, 1998 and prior to
March 6, 2007. Cash interest on the March 1997 Notes does
not accrue until April 15, 2002, and then is payable
semiannually beginning October 15, 2002 at a rate of 13.0%
per year. These notes are redeemable in whole or in part, at our
option, at any time on or after April 15, 2002 at specified
redemption prices plus accrued and unpaid interest. Upon a change
 of control, as defined in the indenture governing the March 1997
 Notes, and subject to specified conditions, we must make an
offer to repurchase all the outstanding March 1997 Notes of
their accreted value, plus accrued
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and unpaid interest, if any, to the date of redemption The notes
are senior unsecured indebtedness and rank equal in right of
payment with all our other unsubordinated, unsecured
indebtedness.
The indenture pursuant to which the March 1997 Notes were issued
contains restrictive covenants and events of default similar to
those contained in the indenture covering the August 2000 Notes.
International Motorola Financing Facility
On February 4, 1999, we entered into the International
Motorola Financing Facility providing for $225.0 million of
secured term loan financing consisting of (i) up to
$100.0 million in loans to reimburse us for payments we made
 to Motorola Credit after January 1, 1997 for the purchase
of network equipment and related services, including ancillary
products and services, by or for the benefit of our Operating
Companies, referred to as Reimbursement Loans, and (ii) up
to $225.0 million in loans, less the amount of Reimbursement
 Loans advanced to (a) finance the cost of qualifying future
 purchases of network equipment and related services and
(b) provide funds to: (1) repay the principal amounts
outstanding under the existing financing facility between
Motorola Credit and Nextel Philippines and (2) reimburse us
for repaying the principal amounts outstanding under a bridge
financing facility between us and Motorola Credit for the benefit
 of Nextel Philippines that was terminated in February 1999.
 Our Operating Companies that are entitled to access amounts
available under the International Motorola Financing Facility are
 Nextel Mexico, Nextel Peru, Nextel Philippines, NEXNET and other
 entities, if any, in which we hold an equity interest and that
may be so designated by agreement between us and Motorola Credit.
 These companies are referred to as eligible borrowers. Advances
are available under this facility until December 31, 2000.
Amounts borrowed under this facility are payable in eight equal
semiannual installments beginning June 30, 2001, mature
December 31, 2004, and bear interest at variable rates based
 upon either the U.S. prime rate or LIBOR. This facility is
secured by, among other things, a pledge of our equity interests
in the eligible borrowers and the related holding companies, as
well as a pledge by some of the minority stockholders of their
equity interests in Nextel Philippines and NEXNET.
As of June 30, 2000, approximately $172.6 million had
been borrowed under this facility, including the entire
$100.0 million of Reimbursement Loans relating to the
purchase of equipment and related services by or for the benefit
of certain Operating Companies, with $52.4 million remaining
 available for borrowing. The availability of borrowings under
this facility is subject to the satisfaction or waiver of
applicable borrowing conditions.
On December 22, 1999, we notified Motorola Credit of our
anticipated noncompliance with financial covenants applicable to
the fourth quarter of 1999. On December 27, 1999, Motorola
Credit agreed to waive compliance with the financial covenants on
 the condition that the parties enter into an amendment to the
International Motorola Financing Facility during the first
quarter of 2000. On March 22, 2000, we and Motorola Credit
entered into the contemplated amendment to the International
Motorola Financing Facility, which, among other things,
eliminates the 1999 issues related to financial covenant
compliance and addresses cure mechanisms for any future financial
 covenant compliance issues. This facility was also amended in
July 2000 to permit the issuance of our August 2000 Notes.
The International Motorola Financing Facility contains
restrictive covenants which impose restrictions on our ability
and the ability of our Operating Companies or eligible borrowers
to (i) create or incur indebtedness subject to certain
exceptions, (ii) assume or otherwise guarantee the
indebtedness of others, (iii) dispose of any material part
of our or their assets, (iv) create liens or other
encumbrances on our or their assets or properties,
(v) engage in merger or acquisition transactions, create
subsidiaries or amend or modify in a material way our or their
organizational documents, (vi) declare or pay dividends or
redeem stock, (vii) make
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investments or loans, (viii) enter into transactions with
affiliates other than on terms at least as favorable to us or our
 Operating Companies except as we or they could obtain on an
arm's length basis, or (ix) change the nature of our or
 their business. In addition to the foregoing, the International
Motorola Financing Facility requires us to maintain, on a
consolidated basis with our Operating Companies, specified
financial ratios and meet certain tests, including a minimum
fixed charge coverage ratio, a maximum leverage ratio, minimum
adjusted recurring revenues, minimum EBITDA, and minimum
additional paid-in capital. We have the ability to adjust the
EBITDA used to measure our compliance with certain of the
financial ratios with a portion of the difference between the
minimum required additional paid in capital and the actual
paid-in capital to the extent such adjustment would enable us to
remain in compliance with the financial covenants contained in
the agreement.
Events of default under the International Motorola Financing
Facility include: (i) a default by us in the payment when
due of any principal of any loan under the International Motorola
 Financing Facility, (ii) a default by us in the payments when
due of any interest or other amounts payable under the
International Motorola Financing Facility for five days after the
 due date thereof, (iii) our failure, or the failure of our
Operating Companies, to comply with certain negative and
affirmative covenants contained in the International Motorola
Financing Facility, subject in certain instances to grace
periods, (iv) our failure, or the failure of our Operating
Companies, to pay at maturity or upon acceleration any
indebtedness in excess of $5,000,000, or the existence of any
event which would permit the holders of any such indebtedness to
accelerate the maturity thereof, (v) an admission by us or any of
 our operating subsidiaries of an inability to pay its debts as
such debts become due, (vi) certain events of bankruptcy,
insolvency, reorganization, dissolution or winding up with
respect to us or our Operating Companies, (vii) certain events
with respect to multi-employer plans pursuant to which we or our
Operating Companies incur a liability to such plans which would
have a material liability on us, (viii) a change of control, (ix)
 the occurrence of a condemnation or similar appropriation action
 by any governmental authority with respect to our assets or the
assets of our Operating Companies, (x) our failure, or the
failure of our Operating Companies to continue to operate our
systems or exercise actual day to day control over the operations
 of our Operating Companies.
Brazil Motorola Financing
In October 1997, McCaw Brazil and Motorola Credit
Corporation entered into an equipment financing agreement
pursuant to which Motorola Credit agreed to provide up to
$125.0 million in multi-draw term loans to McCaw Brazil to
be used to acquire infrastructure equipment and related services
from Motorola. The financing advanced under this agreement is
repayable in U.S. dollars in semiannual installments over
42 months beginning June 30, 2000 and bears interest at
 an adjustable rate equal to either the prime rate plus 2.5% or
LIBOR plus 4.625%. The loans made under this agreement are
secured by a first priority lien on substantially all of McCaw
Brazil's assets, a pledge of all of the stock of McCaw
Brazil and its subsidiaries and our guarantee of the obligations.
 The financing contains specified financial and operating
covenants. In the event of noncompliance with certain financial
covenants, McCaw Brazil may cure any such noncompliance by
receiving additional equity contributions. As of June 30,
2000, $112.5 million was outstanding under this facility.
Further advances are no longer available under this facility.
In 1999, McCaw Brazil notified Motorola Credit of its
noncompliance with some of the financial covenants under the
Brazil Motorola Financing. Motorola Credit agreed to waive
compliance with those financial covenants on the condition that
we agree to committed capital contributions and the parties enter
 into an amendment to this agreement during the first quarter of
2000. On March 24, 2000, McCaw Brazil and Motorola Credit
entered into this amendment, which, among other things,
eliminates the 1999 issues with respect to financial covenant
compliance and addresses cure mechanisms for any future financial
 covenant compliance issues.
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On April 28, 2000, the Brazil Motorola Financing was amended
 and restated to, among other things, permit McCaw Brazil to make
 a final advance under this facility and apply these proceeds to
finance the purchase by McCaw Brazil of iDEN equipment and
services in Brazil.
The Brazil Motorola Financing contains restrictive covenants
which impose restrictions on the ability of McCaw Brazil to
(i) create or incur indebtedness subject to certain
exceptions, (ii) assume or otherwise guarantee the
indebtedness of others, (iii) dispose of any material part
of its assets, (iv) create liens or other encumbrances on
its assets or properties, (v) engage in merger or
acquisition transactions, create subsidiaries or amend or modify
in a material way its organizational documents, (vi) declare
 or pay dividends or redeem stock, (vii) make investments or
 loans, (viii) enter into transactions with affiliates other
 than on terms at least as favorable to it except as we or they
could obtain on an arm's length basis, or (ix) change
the nature of its business. In addition to the foregoing, the
Brazil Motorola Financing requires McCaw Brazil to maintain
specified financial ratios and meet certain tests, including a
minimum fixed charge coverage ratio, a maximum leverage ratio,
minimum recurring revenues, minimum EBITDA, minimum subscribers
and minimum additional paid-in capital.
Events of default under the Brazil Motorola Financing include:
(i) a default by McCaw Brazil in the payment when due of any
 principal of any loan under the Brazil Motorola Financing,
(ii) a default by McCaw Brazil in the payments when due of
any interest or other amounts payable under the Brazil Motorola
Financing for three days after the due date thereof,
(iii) the failure of McCaw Brazil or us to comply with
certain negative and affirmative covenants contained in the
Brazil Motorola Financing, subject in certain instances to grace
periods, (iv) the failure of McCaw Brazil to pay at maturity
 or upon acceleration any indebtedness in excess of $1,000,000,
or our failure to pay at maturity or upon acceleration any
indebtedness in excess of $10,000,000, or the existence of any
event which would permit the holders of any such indebtedness to
accelerate the maturity thereof, (v) an admission by us or
McCaw Brazil of an inability to pay its debts as such debts
become due, (vi) certain events of bankruptcy, insolvency,
reorganization, dissolution or winding up, (vii) certain
events with respect to multi-employer plans pursuant to which we
or our Operating Companies incur a liability to such plans which
would have a material liability on us, (viii) the occurrence
 of a condemnation or similar appropriation action by any
governmental authority with respect to the assets of McCaw
Brazil, (ix) the revocation, termination or other loss of
material licenses or concessions, (x) the occurrence of an
event which results in our owning less than 51% of McCaw Brazil
or our failing to exercise actual control of the operations of
McCaw Brazil.
Argentina Credit Facility
In February 1998, Nextel Argentina entered into the
Argentina Credit Facility which, as amended, provides up to
$100.0 million in term loans. Loans under this facility bear
 interest at a rate equal to, at our option, either (1) the
ABR plus 2.75%, where ABR is the highest of the U.S. prime rate,
the base CD rate plus 1.0% or the federal funds rate plus 0.5%,
or (2) the Eurodollar rate plus 3.75%, where the Eurodollar
rate is LIBOR multiplied by the statutory reserve rate. Loans
under this facility are repayable in quarterly installments
beginning September 30, 2000 through March 31, 2003. The
first nine installments will be equal to 1/18 of the
then-outstanding balance and the final installment will be in an
amount equal to the then-outstanding balance. Borrowings under
this facility are secured by a pledge of stock of, and a first
priority lien on the assets of, Nextel Argentina. The facility
also requires Nextel Argentina to meet financial and operating
ratios.
In March 1999, Nextel Argentina notified the administrative
agent of the Argentina Credit Facility of its anticipated
noncompliance with some of the financial covenants under the
facility. Nextel Argentina received a waiver from the lenders
with regard to those covenants for the first quarter of 1999.
Effective May 26, 1999, Nextel Argentina and the lenders
under the Argentina Credit Facility amended the facility to
modify several financial covenants.
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In November 1999, Nextel Argentina notified the
administrative agent of its anticipated noncompliance with some
of the financial covenants under the Argentina Credit Facility
applicable in the fourth quarter of 1999. Effective
December 8, 1999, Nextel Argentina and the lenders amended
the Argentina Credit Facility to modify several financial
covenants applicable to the fourth quarter of 1999 and the first
quarter of 2000.
As contemplated in December 1999, on June 20, 2000, in
conformity with our business plan, Nextel Argentina and the
lenders under the Argentina Credit Facility amended the facility
to modify several financial covenants. As a condition to the
effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of $84.1
 million to Nextel Argentina during 1999 and are now required to
contribute equity of $134.5 million during 2000, $110.0 million
during 2001 and $117.0 million during 2002, all subject to
adjustment in case of certain events.
As of June 30, 2000, Nextel Argentina had borrowed the full
$100.0 million available under the Argentina Credit
Facility. Nextel Argentina is in compliance with all financial
covenants contained in the facility, as amended.
The Argentina Credit Facility contains restrictive covenants
which impose restrictions on the ability of Nextel Argentina to
(i) create or incur indebtedness subject to certain
exceptions, (ii) assume or otherwise guarantee the
indebtedness of others, (iii) dispose of any material part
of its assets, (iv) create liens or other encumbrances on
its assets or properties, (v) engage in merger or
acquisition transactions, create subsidiaries or amend or modify
in a material way its organizational documents, (vi) declare
 or pay dividends or redeem stock, (vii) make investments or
 loans, (viii) enter into transactions with affiliates other
 than on terms at least as favorable to it except as it could
obtain on an arm's length basis, (ix) consent to any
modification to any of the agreements pursuant to which Nextel
Argentina has obtained licenses and concessions to operate, or
pursuant to which Nextel Argentina is developing the iDEN
infrastructure, or (x) change the nature of its business. In
 addition to the foregoing, the Argentina Credit Facility
requires Nextel Argentina to maintain specified financial ratios
and meet certain tests, including a minimum interest coverage
ratio, maximum capital expenditures, a maximum leverage ratio,
minimum revenues, minimum subscribers and minimum additional
equity contributions.
Events of default under the Argentina Credit Facility include:
(i) a default by Nextel Argentina in the payment when due of
 any principal of any loan under the Argentina Credit Facility,
(ii) a default by Nextel Argentina in the payments when due
of any interest or other amounts payable under the Argentina
Credit Facility for five days after the due date thereof,
(iii) the failure of Nextel Argentina or us to comply with
certain negative and affirmative covenants contained in the
Argentina Credit Facility, subject in certain instances to grace
periods, (iv) the failure of Nextel Argentina or us to pay
at maturity or upon acceleration any indebtedness in excess of
$3,000,000, or the existence of any event which would permit the
holders of any such indebtedness to accelerate the maturity
thereof, (v) an admission by us or Nextel Argentina of an
inability to pay its debt as such debts become due,
(vi) certain events of bankruptcy, insolvency,
reorganization, dissolution or winding up, (vii) certain
events with respect to multi-employer plans pursuant to which we
or our Operating Companies incur a liability to such plans which
would have a material liability on us, (viii) the occurrence
 of a condemnation or similar appropriation action by any
governmental authority with respect to the assets of Nextel
Argentina, (ix) the revocation, termination or other loss of
 material licences or concessions, (x) the failure of Nextel
 Argentina to provide certain interconnection services in
Argentina for a period of 45 days, or (xi) a default by
 us in the performance of our obligations under the capital
subscription agreements.
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Motorola Argentina Incremental Facility
Effective May 26, 1999, and concurrent with the then current
 modification of the Argentina Credit Facility, Motorola Credit
agreed to provide up to $50.0 million in loans to Nextel
Argentina as incremental term loans under the Argentina Credit
Facility for purchase from Motorola of qualifying network
equipment and related services. As of June 30, 2000,
$18.6 million had been borrowed under this incremental
facility.
International Motorola Incremental Facility
On December 16, 1999, we entered into an agreement with
Motorola Credit under which Motorola Credit committed to provide
up to $56.6 million in incremental term loans to us to
acquire infrastructure equipment and related services from
Motorola. Loans under this facility, referred to as the Motorola
International Incremental Facility, mature December 31, 2001
 and bear interest at variable rates based upon either the U.S.
prime rate or LIBOR. Loans under this facility are secured by a
pledge of all of our shares of stock of Clearnet. On
January 6, 2000, we borrowed the full $56.6 million
available under this facility. The Motorola International
Incremental Facility was amended in July 2000 to permit the
offering of our August 2000 Notes.
The Motorola International Incremental Facility contains
restrictive covenants similar to those contained in the Motorola
International Financing Facility. In addition, the Motorola
International Incremental Facility requires us to meet certain
financial tests and ratios, including a maximum leverage ratio
and minimum EBITDA. As in the Motorola International Financing
Facility, we have the ability to include in the EBITDA used to
measure our compliance with certain of the financial ratios a
portion of the difference between the minimum required additional
 paid-in-capital and the actual paid-in-capital to the extent
such adjustment would enable us to remain in compliance with the
financial covenants contained in the agreement.
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DESCRIPTION OF CAPITAL STOCK
The following description is only a summary of the material
provisions of our corporate charter and bylaws. We refer you to
the more detailed provisions of our corporate charter and bylaws,
 copies of which will be filed with the Securities and Exchange
Commission as exhibits to the registration statement of which
this prospectus is a part and applicable law.
General
Prior to completion of these offerings, we intend to:
•
exchange all 2,150 outstanding shares of series A
	exchangeable redeemable preferred stock for shares of
	class B common stock; and
•
amend our corporate charter and bylaws to reclassify our common
	stock into class A and class B common stock and to
	eliminate the authorized shares of series A and
	series B preferred stock and replace them with undesignated
	preferred stock.
All of our outstanding shares of common stock will be
reclassified into an equal number of shares of class B
common stock. Holders of class B common stock will have more
 voting power per share than holders of the class A common
stock, as described below, and the class B common stock
will, upon the events described below, convert to class A
common stock. In addition, prior to completion of the offerings,
we plan to reincorporate in Delaware. The following description
of our capital stock gives effect to the reclassification, the
exchange of the series A preferred stock, the
reincorporation and the reclassification of the shares of common
stock issuable upon exercise of our options and warrants into
shares of class B common stock.
Our authorized capital stock consists of 1,500,000,000 shares of
common stock, no par value, and
        shares of
preferred stock, par value $10.00 per share.
Common Stock
Of the 1,500,000,000 shares of authorized common stock,
1,000,000,000 are designated as class A common stock and
500,000,000 are designated as class B common stock. There
are 180,691,155 outstanding shares of class B common stock
held by about 20 persons and no outstanding shares of
class A common stock. Each of the class A common stock
and the class B common stock constitutes a series of common
stock under the General Corporation Law of the State of Delaware,
 or the DGCL.
Holders of class A common stock and holders of class B
common stock generally have identical rights, except with respect
 to voting and conversion as described below.
Holders of common stock have no preemptive rights to purchase
shares of our stock. All outstanding shares of common stock are,
and the shares of class A common stock to be sold in the
offerings upon receipt of payment will be, fully paid and
nonassessable.
Voting
The class A common stock and class B common stock vote
as a single class on all matters, except as otherwise required by
 law, with each share of class A common stock entitling its
holder to one vote and each share of class B common stock
entitling its holder to ten votes. In addition to voting together
 with holders of class A common stock on most matters,
holders of class B common stock will be entitled to vote as
a separate class on amendments to our certificate of
incorporation that would alter or adversely affect the powers,
preferences or special rights of the class B common stock
that would not also adversely affect the holders of class A
common stock. Holders of our common stock do not have the right
to cumulative voting in the election of directors.
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Dividends
Subject to the rights and preferences of any preferred stock then
 outstanding and after compliance with any provision for any
sinking or purchase fund or funds for any series of preferred
stock, the holders of common stock are entitled to receive
dividends as may be declared in the discretion of our board of
directors from time to time out of assets or funds legally
available for these payments. We have not paid any dividends on
our capital stock, and we do not plan to pay any dividends on
either class of our common stock for the foreseeable future. If
any cash dividends are paid, they will be paid ratably among all
holders of our common stock.
In the case of a dividend payable in kind, shares of class A
 common stock will be distributed with respect to shares of
class A common stock on which the dividend is declared, and
shares of class B common stock will be distributed with
respect to shares of class B common stock on which the
dividend is declared. The number of shares of each class of
common stock payable per share of each class of common stock will
 be equal.
Liquidation
In the event of a liquidation, dissolution or winding-up, the
holders of class A common stock and the holders of
class B common stock will be entitled to share ratably, as a
 single class, in all of our assets remaining after payment of
our liabilities and the liquidation preferences of any preferred
stock then outstanding. There are no redemption or sinking fund
provisions applicable to the common stock.
Conversion of
Class B Common Stock
Shares of class B common stock are convertible, on a
one-on-one basis, into an equal number of fully paid and
non-assessable shares of class A common stock, if:
•
a holder surrenders shares of class B common stock to us for
	 conversion into shares of class A common stock; or
•
a holder transfers shares of class B common stock, directly
	or indirectly, to anyone who is not a specified permitted
	transferee, which principally includes other holders of shares of
	 class B common stock and parties related to these holders.
In addition, if at any time the aggregate number of shares of
class B common stock owned by Nextel Communications, or its
successor, its subsidiaries and any person which acquires all or
substantially all of the assets of Nextel Communications,
constitutes in the aggregate, less than 30% of all of our issued
and outstanding shares of common stock for a period of greater
than 90 days, all outstanding shares of class B common stock
 automatically convert into shares of class A common stock.
Upon any reclassification or other similar transaction that
results in the shares of class A common stock being
converted into or exchanged for another security, holders of
class B common stock will be entitled to receive, upon
subsequent conversion or exchange of the class B common
stock, the amount of the other security that the holder would
have received if the conversion or exchange had occurred
immediately prior to the record date for the reclassification or
other similar transaction.
Preferred Stock
At the time of completion of the offerings, no shares of
preferred stock will be outstanding. Thereafter, our board of
directors will have the authority, without further action by our
stockholders, to issue shares of undesignated preferred stock
from time to time in one or more series and to fix the related
number of shares and the designations, voting powers,
preferences,
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optional and other special rights, and restrictions or
qualifications of that preferred stock. The rights, preferences,
privileges and restrictions or qualifications of different series
 of preferred stock may differ with respect to dividend rates,
amounts payable on liquidation, voting rights, conversion rights,
 redemption provisions, sinking fund provisions and other
matters. The issuance of preferred stock could:
•
decrease the amount of earnings and assets available for
	distribution to holders of common stock;
•
adversely affect the rights and powers, including voting rights,
	of holders of common stock; and
•
have the effect of delaying, deterring or preventing a change in
	control.
We have no present plans to issue any shares of undesignated
preferred stock.
Warrants
In March 1997, in connection with the issuance of our
March 1997 Notes, we issued 951,463 warrants. Each warrant
entitles the holder to purchase 1.5499 shares of our class B
 common stock at an exercise price of $2.50 per common share. The
 warrants expire on April 15, 2007 and may be exercised any
time after the effectiveness of a registration statement relating
 to the warrant shares or pursuant to an exemption from the
registration requirements of the Securities Act, if available. We
 are obligated under a registration rights agreement entered into
 with the warrant agent on behalf of the warrant holders to file
such a registration statement and have it declared effective
180 days after the closing of the offerings. Subject to
limited exceptions, the warrant holders also have a right to have
 the warrant shares included in some of our registered offerings.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is
               .
Relevant Provisions of Our Certificate of Incorporation,
Restated Bylaws and Delaware Law
Our certificate of incorporation and bylaws contain provisions
that could make more difficult an acquisition of us by means of a
 tender offer, a proxy contest or otherwise. These provisions are
 expected to discourage specific types of coercive takeover
practices and inadequate takeover bids and to encourage persons
seeking to acquire control to first negotiate with us. Although
these provisions may have the effect of delaying, deferring or
preventing a change in control, we believe that the benefits of
increased protection of our potential ability to negotiate with
the proponent of an unfriendly or unsolicited proposal to acquire
 or restructure our company outweigh the disadvantages of
discouraging these proposals because, among other things,
negotiation of such proposals could result in an improvement of
their terms. The description below is intended as a summary only
and is qualified in its entirety by reference to our certificate
of incorporation and bylaws.
Board of Directors
According to our bylaws, our board of directors must be composed
of not less than one nor more than ten directors. Our board
currently consists of seven directors. The number of directors
may be changed from time to time by amendment to our restated
bylaws, but no decrease in the number of directors may shorten
the term of any incumbent director. Unless a director dies,
resigns or is removed, his or her term of office will expire at
the next annual meeting of stockholders; provided, however, that
a director will continue to serve until his or her successor is
elected or until there is a decrease in the authorized number of
directors. Directors need not
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be stockholders of the corporation or residents of the State of
Delaware and need not meet any other qualifications.
Stockholder Actions and Special Meetings
In accordance with Delaware law, our certificate of incorporation
 provides that any action required or permitted to be taken at a
stockholders' meeting may be taken without a meeting or a
vote if the action is taken by a majority of the stockholders
entitled to vote on the action. Our bylaws provide that the
Chairman of the Board, our President or our board of directors
may call special meetings of the stockholders for any purpose.
Further, a special meeting of the stockholders must be held if
the holders of not less than 10% of all the votes entitled to be
cast on any issue proposed to be considered at that special
meeting have dated, signed and delivered to our Secretary one or
more written demands that describe the purpose or purposes for
which that special meeting is to be held.
Anti-Takeover Statute
Our company is a Delaware corporation and subject to
Section 203 of DGCL. Generally, Section 203 prohibits a
 publicly held Delaware company from engaging in a "business
 combination" with an "interested stockholder" for
 a period of three years after the time such stockholder
became an interested stockholder unless, as described below,
specified conditions are satisfied. Thus, it may make acquisition
 of control of our company more difficult. The prohibitions in
Section 203 of the DGCL do not apply if:
•
prior to the time the stockholder became an interested
	stockholder, the board of directors of the corporation approved
	either the business combination or the transaction which resulted
	 in the stockholder becoming an interested stockholder;
•
upon consummation of the transaction, which resulted in the
	stockholder becoming an interested stockholder, the interested
	stockholder owned at least 85% of the voting stock of the
	corporation outstanding at the time the transaction commenced; or
•
at or subsequent to the time the stockholder became an interested
	 stockholder, the business combination is approved by the board
	of directors and authorized by the affirmative vote of at least
	66  2/3% of the outstanding voting stock that is not owned
	by the interested stockholder.
Under Section 203 of Delaware corporate law, a
"business combination" includes:
•
any merger or consolidation of the corporation with the
	interested stockholder;
•
any sale, lease, exchange or other disposition, except
	proportionately as a stockholder of such corporation, to or with
	the interested stockholder of assets of the corporation having an
	 aggregate market value equal to 10% or more of either the
	aggregate market value of all the assets of the corporation or
	the aggregate market value of all the outstanding stock of the
	corporation;
•
transactions resulting in the issuance or transfer by the
	corporation of stock of the corporation to the interested
	stockholder;
•
transactions involving the corporation, which have the effect of
	increasing the proportionate share of the corporation's
	stock of any class or series that is owned by the interested
	stockholder; or
•
transactions in which the interested stockholder receives
	financial benefits provided by the corporation.
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Under Section 203 of Delaware corporate law, an
"interested stockholder" generally is
•
any person that owns 15% or more of the outstanding voting stock
	of the corporation;
•
any person that is an affiliate or associate of the corporation
	and was the owner of 15% or more of the outstanding voting stock
	of the corporation at any time within the three-year period
	immediately prior to the date on which it is sought to be
	determined whether or not such person is an interested
	stockholder; and
•
the affiliates or associates of either of the above categories of
	 persons.
Because Nextel Communications already owns more than 15% of our
voting stock, Section 203 of the DGCL will not apply to any
business combination with Nextel Communications even though
Nextel Communications owns 15% or more of our outstanding voting
stock. If any other person acquires 15% or more of our
outstanding voting stock, that person, however, will be subject
to the provisions of Section 203 of the DGCL.
Under some circumstances, Section 203 of the DGCL makes it
more difficult for an "interested stockholder" to
effect various business combinations with us for a three-year
period, although our stockholders may elect to exclude us from
the restrictions imposed thereunder. By virtue of its beneficial
ownership of our class B common stock, Nextel Communications
 is in a position to elect to exclude us from the restrictions
under Section 203.
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SHARES ELIGIBLE FOR FUTURE SALE
Before the offerings, there has been no market for our common
stock. Future sales of substantial amounts of common stock in the
 public market could adversely affect the prevailing market price
 of our common stock and impair our ability to raise equity
capital in the future.
Upon completion of the offerings, we will have
          outstanding
 shares of common stock giving effect to the exchange of our
series A exchangeable redeemable preferred stock for
       shares of our
class B common stock. Of these shares,
          shares
 of class A common stock sold in the offerings, plus any
shares issued upon exercise of the underwriters'
over-allotment options, will be freely tradable without
restriction under the Securities Act, unless purchased by our
affiliates. The term affiliates is defined in Rule 144 under
 the Securities Act. In general, affiliates include officers,
directors or 10% stockholders.
Of the remaining
          shares
 outstanding,
          shares
 will be freely tradeable and
          shares
 are restricted securities within the meaning of Rule 144.
Restricted securities may be sold in the public market only if
registered or if they qualify for an exemption from registration
under Rule 144 promulgated under the Securities Act, which
are summarized below. Sales of restricted securities in the
public market, or the availability of these shares for sale,
could adversely affect the market price of the common stock.
Nextel International and its officers, directors and specified
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of its
common stock or securities convertible into or exchangeable for
shares of common stock for 180 days after the date of this
prospectus. However, this agreement will be subject to a number
of exceptions and qualifications. In addition, Goldman, Sachs
& Co. may in its sole discretion release any or all of the
securities subject to these restrictions at any time without
notice. The representatives may, in their sole discretion,
release any or all of the securities subject to these
restrictions at any time without notice. Assuming the
representatives do not release any of the securities subject to
these agreements, the following restricted shares will be
eligible for sale in the public market at the following times:
•
beginning on the effective date of this prospectus, approximately

	              shares
	 will be immediately available for sale in the public market;
•
beginning 180 days after the effective date, approximately
	          shares
	 will be eligible for sale, approximately
	          of
	which will be subject to volume, manner of sale and other
	limitations under Rule 144; and
•
the remaining
	          shares
	 will become eligible for sale under Rule  144, subject to
	volume, manner of sale and other limitations under Rule 144,
	 upon the expiration of various one-year holding periods.
In general, under Rule 144 a person who has beneficially
owned restricted securities for at least one year would be
entitled to sell within any three-month period a number of shares
 that does not exceed the greater of:
•
1% of the number of shares of common stock then outstanding,
	which will equal approximately
	          shares
	 immediately after the offerings; or
•
the average weekly trading volume of the common stock during the
	four calendar weeks preceding the sale.
Sales under Rule 144 are also subject to requirements which
govern the manner of sale, notice and the availability of current
 public information about our company.
Under Rule 144(k), a person who is not considered to have
been our affiliate at any time during the three months preceding
a sale, and who has beneficially owned the shares proposed
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to be sold for at least two years, is entitled to sell his shares
 without complying with the manner of sale, public information,
volume limitation or notice provision of Rule 144.
In addition, we have filed a registration statement for our 1997
Stock Option Plan, and we intend to file a registration statement
 under the Securities Act as promptly as possible after the
effective date to register shares to be issued under our
incentive equity plans. As a result, any options or rights
exercised under any of our existing stock option plans or any
other benefit plan after the effectiveness of the registration
statements relating to those plans will also be freely tradable
in the public market. However, shares held by affiliates will
still be subject to the volume limitation, manner of sale, notice
 and public information requirements of Rule 144. As of
June 30, 2000 there were outstanding options for the
purchase of 7,002,084 shares of common stock, of which options to
 purchase 4,402,936 shares were exercisable.
Registration Rights
With the issuance of our warrants in conjunction with our
March 1997 Notes, we entered into an agreement with the
warrant agent on behalf of the holders of the warrants under
which we:
•
agreed to file and have declared effective a registration
	statement with respect to the warrant shares within 180 days
	 after completion of the offerings; and
•
granted the warrant holders the right, subject to some
	exceptions, in the event we propose to register any shares of our
	 common stock under the Securities Act, to include the warrant
	shares in the registration.
We are generally required to bear the expenses of all
registrations effected on behalf of the warrant holders, except
underwriting discounts and commissions in connection with an
underwritten offering in which warrant shares are included.
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PRINCIPAL UNITED STATES FEDERAL TAX CONSEQUENCES
TO NON-U.S. HOLDERS
General
The following is a general discussion of the principal United
States federal income and estate tax consequences of the
ownership and disposition of our common stock that may be
relevant to you if you are a non-U.S. holder. For purposes of
this summary, a non-U.S. holder is a beneficial owner of our
common stock that is not, for United States federal income tax
purposes:
•
a citizen or individual resident of the United States;
•
a corporation, or other entity treated as a corporation, created
	in or under the laws of the United States or of any state;
•
an estate, the income of which is subject to United States
	federal income taxation regardless of its source;
•
a trust if a court within the United States is able to exercise
	primary supervision over the administration of the trust and one
	or more United States persons have the authority to control all
	substantial decisions of the trust, or a trust in existence on
	August 20, 1996 and treated as a United States person before
	 this date that timely elected to continue to be treated as a
	United States person; or
•
a partnership that is created or organized in or under the laws
	of the United States or of any state, except as Treasury
	regulations may provide.
This discussion does not address all aspects of United States
federal income and estate taxation that may be relevant to
non-U.S. holders in light of their particular circumstances or to
 non-U.S. holders that may be subject to special treatment under
United States federal income or estate tax laws. In addition,
this discussion does not address any foreign, state or local tax
consequences. Furthermore, this discussion is based on provisions
 of the Internal Revenue Code, Treasury regulations and
administrative and judicial interpretations as of the date of
this prospectus. All of these are subject to change, possibly
with retroactive effect, or different interpretations. If you are
 considering buying our common stock you should consult your own
tax advisor about current and possible future tax consequences of
 holding and disposing of our common stock in your particular
situation.
Distribution
We have not paid any cash dividends on our outstanding capital
stock, and do not plan to pay any dividends on our common stock
for the foreseeable future. However, if we do pay dividends on
our common stock, those distributions generally will constitute
dividends for United States federal income tax purposes to the
extent paid from our current or accumulated earnings and profits,
 as determined under United States federal income tax principles.
 To the extent the distributions exceed those earnings and
profits, the distributions will constitute a return of capital
that will be applied against and will reduce your basis in our
common stock, and then will be treated as gain from the sale of
the stock to the extent the distributions exceed your basis.
Dividends paid to a non-U.S. holder that are not effectively
connected with a United States trade or business of the non-U.S.
holder will, to the extent paid out of earnings and profits, be
subject to United States withholding tax at a 30 percent rate or,
 if a tax treaty applies, a lower rate specified by the treaty.
To receive a reduced treaty rate, a non-U.S. holder must furnish
to us or our paying agent a duly completed Form W-8BEN, or
other appropriate documentation, certifying to its qualification
for the reduced rate.
Currently, withholding generally is imposed on the gross amount
of a distribution, regardless of whether we have sufficient
earnings and profits to cause the distribution to be a dividend
for
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United States federal income tax purposes. However, withholding
on distributions made after December 31, 2000 may be on less
 than the gross amount of the distribution if the distribution
exceeds a reasonable estimate made by us of our accumulated and
current earnings and profits.
Dividends that are effectively connected with the conduct of a
United States trade or business of a non-U.S. holder and, if a
tax treaty applies, are attributable to a United States permanent
 establishment of the non-U.S. holder, are exempt from United
States federal withholding tax, provided that the non-U.S. holder
 furnishes to us or our paying agent a duly completed Form
W-8ECI, or other appropriate documentation, certifying the
exemption. However, dividends exempt from United States
withholding because they are effectively connected or they are
attributable to a United States permanent establishment are
subject to United States federal income tax on a net income basis
 at the regular graduated United States federal income tax rates.
 Any such effectively connected dividends received by a foreign
corporation may, under specified circumstances, be subject to an
additional "branch profits tax" at a 30 percent
rate or a lower rate specified by an applicable income tax
treaty.
Under current United States Treasury regulations, dividends paid
before January 1, 2001 to an address outside the United
States are presumed to be paid to a resident of the country of
address for purposes of the withholding discussed above and for
purposes of determining the applicability of a tax treaty rate.
However, United States Treasury regulations applicable to
dividends paid after December 31, 2000 eliminate this
presumption, subject to transition rules.
For dividends paid after December 31, 2000, a non-U.S.
holder generally will be subject to United States backup
withholding tax at a 31 percent rate under the backup
withholding rules described below, rather than at a
30 percent rate or a reduced rate under an income tax
treaty, as described above, unless the non-U.S. holder complies
with Internal Revenue Service, or IRS, certification procedures
or, in the case of payments made outside the United States with
respect to an offshore account, specified IRS documentary
evidence procedures. Further, to claim the benefit of a reduced
rate of withholding under a tax treaty for dividends paid after
December 31, 2000, a non-U.S. holder must comply with
certain modified IRS certification requirements. Special rules
also apply to dividend payments made after December 31, 2000
 to foreign intermediaries, United States or foreign wholly owned
 entities that are disregarded for United States federal income
tax purposes and entities that are treated as fiscally
transparent in the United States, the applicable income tax
treaty jurisdiction, or both. You should consult your own tax
advisor concerning the effect, if any, of the rules affecting
post-December 31, 2000 dividends on your investment in our
common stock.
A non-U.S. holder may obtain a refund of any excess amount
withheld by filing an appropriate claim for refund along with the
 required information with the IRS.
Gain on Disposition of Common Stock
A non-U.S. holder generally will not be subject to United States
federal income tax with respect to gain recognized on a sale or
other disposition of our common stock unless one of the following
 applies:
•
the gain is effectively connected with a United States trade or
	business of the non-U.S. holder and, if a tax treaty applies, the
	 gain is attributable to a United States permanent establishment
	maintained by the non-U.S. holder. In this case, the non-U.S.
	holder will, unless an applicable treaty provides otherwise, be
	taxed on its net gain derived from the sale under regular
	graduated United States federal income tax rates. If the non-U.S.
	 holder is a foreign corporation, it may be subject to an
	additional branch profits tax equal to 30 percent of its
	effectively connected earnings and profits within the meaning of
	the Internal Revenue Code for the taxable year, as adjusted for
	specified items, unless it qualifies for a lower rate under an
	applicable income tax treaty and duly demonstrates the
	qualification;
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•
the non-U.S. holder is an individual, holds our common stock as a
	 capital asset, is present in the United States for 183 or more
	days in the taxable year of the disposition, and other conditions
	 are met. In this case, the non-United States holder will be
	subject to a flat 30 percent tax on the gain derived from the
	sale, which may be offset by specified United States capital
	losses; or
•
we are or have been a "United States real property holding
	corporation" for United States federal income tax purposes
	at any time during the shorter of the five-year period ending on
	the date of the disposition or the period during which the
	non-United States holder held our common stock. We believe that
	we will not constitute a United States real property holding
	corporation immediately after the offerings and we do not expect
	to become a United States real property holding corporation for
	the foreseeable future. Even if we are or were to become a United
	 State real property holding corporation, any gain recognized by
	a non-U.S. holder still would not be subject to United States
	federal income tax if our common stock is "regularly traded
	on an established securities market" and the non-U.S. holder
	 did not own, actually or constructively, at any time during the
	shorter of the periods described above, more than five percent of
	 this class of our common stock.
Federal Estate Tax
Common stock owned or treated as owned by an individual non-U.S.
holder at the time of death, or common stock as to which the
non-U.S. holder made specified lifetime transfers, will be
included in that holder's gross estate for United States
federal estate tax purposes, unless an applicable estate tax
treaty provides otherwise.
Information Reporting and Backup Withholding Tax
Under United States Treasury regulations, we must report annually
 to the IRS and to each non-U.S. holder the amount of dividends
paid to that holder and the tax withheld with respect to the
dividends. These information reporting requirements apply even if
 withholding was not required because the dividends were
effectively connected dividends or withholding was reduced by an
applicable income tax treaty. Pursuant to an applicable tax
treaty, information may also be made available to the tax
authorities in the country in which the non-United States holder
resides.
United States federal backup withholding generally is a
withholding tax imposed at the rate of 31 percent on
specified payments to persons that fail to furnish required
information. Backup withholding generally will not apply to
dividends paid before January 1, 2001 to non-United States
holders. See the discussion under "— Distribution"
 above for rules regarding reporting requirements to avoid backup
 withholding on dividends paid after December 31, 2000.
As a general matter, information reporting and backup withholding
 will not apply to a payment by or through a foreign office of a
foreign broker of the proceeds of a sale of our common stock
effected outside the United States. However, information
reporting requirements, but not backup withholding, will apply to
 a payment by or through a foreign office of a broker of the
proceeds of a sale of our common stock effected outside the
United States if that broker:
•
is a United States person for United States federal income tax
	purposes;
•
is a foreign person that derives 50 percent or more of its
	gross income for specified periods from the conduct of a trade or
	 business in the United States;
•
is a "controlled foreign corporation" as defined in the
	 Internal Revenue Code; or
•
is a foreign partnership with specified United States
	connections, for payments made after December 31, 2000.
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Information reporting requirements will not apply in the above
cases if the broker has documentary evidence in its records that
the holder is a non-U.S. holder and specified conditions are met
or the holder otherwise establishes an exemption.
Payment by or through a United States office of a broker of the
proceeds of a sale of our common stock is subject to both backup
withholding and information reporting unless the holder certifies
 to the payor in the manner required as to its status as a
non-U.S. holder under penalties of perjury or otherwise
establishes an exemption.
Amounts withheld under the backup withholding rules do not
constitute a separate United States federal income tax. Rather,
any amounts withheld under the backup withholding rules will be
refunded or allowed as a credit against the holder's United
States federal income tax liability, if any, provided the
required information or appropriate claim for refund is filed
with the IRS.
The above discussion is a summary of some principal United
States federal income and estate tax consequences of the
ownership, sale or other disposition of our common stock by
non-U.S. holders. You are urged to consult your own tax advisor
with respect to the particular tax consequences to you of
ownership and disposition of our common stock, including the
effect of any state, local, foreign or other tax laws.
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UNDERWRITING
Nextel International and the underwriters for the U.S. offering
named below, referred to as the U.S. underwriters, will enter
into an underwriting agreement with respect to the shares being
offered in the United States. Subject to certain conditions, each
 U.S. underwriter has severally agreed to purchase the number of
shares indicated in the following table. Goldman,
Sachs & Co., Morgan Stanley & Co. Incorporated,
 Credit Suisse First Boston Corporation, Deutsche Bank Securities
 Inc., Merrill Lynch, Pierce, Fenner & Smith
Incorporated and PaineWebber Incorporated are the representatives
 of the U.S. underwriters.
Underwriters
Number of Shares
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
PaineWebber Incorporated
Total
If the U.S. underwriters sell more shares than the total number
set forth in the table above, the U.S. underwriters have an
option to buy up to an additional
      shares from Nextel
International to cover such sales. They may exercise that option
for 30 days. If any shares are purchased pursuant to this
option, the U.S. underwriters will severally purchase shares in
the same proportion as set forth in the table above.
The following table shows the per share and total underwriting
discounts and commissions to be paid to the U.S. underwriters by
Nextel International. Such amounts are shown assuming both no
exercise and full exercise of the U.S. underwriters' options
 to purchase
          additional
 shares.
Paid by Nextel International
No Exercise
Full Exercise
Per Share
$
$
Total
$
$
Shares sold by the underwriters to the public will initially be
offered at the initial public offering price set forth on the
cover of this prospectus. Any shares sold by the underwriters to
securities dealers may be sold at a discount of up to
$      per share from the initial
public offering price. Any such securities dealers may resell any
 shares purchased from the underwriters to certain other brokers
or dealers at a discount of up to
$      per share from the initial
public offering price. If all the shares are not sold at the
initial public offering price, the representatives may change the
 offering price and the other selling terms.
Nextel International will enter into underwriting agreements with
 the underwriters for the sale of
           shares
 outside of the United States. The terms and conditions of both
offerings are the same and the sale of the shares in both
offerings are conditioned on each other. Goldman
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Sachs International, Morgan Stanley & Co. International
Limited, Credit Suisse First Boston (Europe) Limited, Deutsche
Bank AG London, Merrill Lynch International and PaineWebber
International (U.K.) Ltd. are representatives of the underwriters
 for the international offering outside the United States,
referred to as the international underwriters. Nextel
International has granted the international underwriters a
similar option to purchase up to an aggregate of an additional
        shares.
The underwriters for both of the offerings will enter into an
agreement in which they will agree to restrictions on where and
to whom they and any dealer purchasing from them may offer shares
 as a part of the distribution of the shares. The underwriters
will also agree that they may sell shares among each of the
underwriting groups.
Nextel International and its officers, directors and specified
other stockholders will agree with the underwriters not to offer,
 sell, transfer or otherwise dispose of or hedge any of their
common stock or securities convertible into or exchangeable for
shares of common stock during the period from the date of this
prospectus continuing through the date 180 days after the
date of this prospectus, except with the prior written consent of
 the representatives.
The restrictions described in the previous paragraph do not apply
 to:
•
the issuance by Nextel International of any shares of
	class A common stock offered in the offerings;
•
the issuance by Nextel International of shares of any class of
	common stock upon exercise of an option or a warrant or the
	conversion of a security outstanding on the date of this
	prospectus;
•
the granting by Nextel International of any options, deferred
	shares or other equity awards under the Nextel International
	equity incentive plans, so long as such options do not vest and
	become exercisable or such deferred shares or other awards do not
	 vest, in each case, in the absence of extraordinary events or
	occurrences beyond the control of the grantee or recipient, until
	 after the expiration of the 180 day period;
•
the issuance by Nextel International of shares of any class of
	common stock in connection with acquisitions of businesses or
	portions thereof, or in connection with any strategic investment
	in Nextel International by any third party on terms approved by
	Nextel International's board of directors provided the
	parties in any such acquisition or investment transaction agree
	to be bound by the foregoing restrictions or will not receive any
	 shares of common stock until after the expiration of such
	180 day period; and
•
transactions relating to shares of class A common stock or
	other securities acquired in open market transactions after the
	completion of the offerings by persons other than Nextel
	International and Nextel Communications.
Prior to the offerings, there has been no public market for any
of Nextel International's equity securities, including the
class A common stock. The initial public offering price will
 be negotiated among the representatives and Nextel
International. Among the factors to be considered in determining
the initial public offering price of the shares, in addition to
prevailing market conditions, will be Nextel International's
 historical performance, estimates of the business potential and
earnings prospects of Nextel International, an assessment of
Nextel International's management and the consideration of
the above factors in relation to market valuation of companies in
 related businesses.
Application has been made for quotation of the class A common
stock on the Nasdaq National Market under the symbol
"NXTI."
In connection with the offerings, the underwriters may purchase
and sell shares of class A common stock in the open market.
These transactions may include short sales, stabilizing
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transactions and purchases to cover positions created by short
sales. Shorts sales involve the sale by the underwriters of a
greater number of shares than they are required to purchase in
the offerings. "Covered" short sales are sales made in
an amount not greater than the underwriters' option to
purchase additional shares from Nextel International in the
offerings. The underwriters may close out any covered short
position by either exercising their option to purchase additional
 shares or purchasing shares in the open market. In determining
the source of shares to close out the covered short position, the
 underwriters will consider, among other things, the price of
shares available for purchase in the open market as compared to
the price at which they may purchase shares through the
over-allotment options. "Naked" short sales are any
sales in excess of such option. The underwriters must close out
any naked short position by purchasing shares in the open market.
 A naked short position is more likely to be created if the
underwriters are concerned that there may be downward pressure on
 the price of the class A common stock in the open market
after pricing that could adversely affect investors who purchase
in the offerings. Stabilizing transactions consist of various
bids for or purchases of class A common stock made by the
underwriters in the open market prior to the completion of the
offerings.
The underwriters may also impose a penalty bid. This occurs when
a particular underwriter repays to the underwriters a portion of
the underwriting discount received by it because the
representatives have repurchased shares sold by or for the
account of such underwriter in stabilizing or short covering
transactions.
Purchases to cover a short position and stabilizing transactions
may have the effect of preventing or retarding a decline in the
market price of the class A common stock, and together with
the imposition of the penalty bid, may stabilize, maintain or
otherwise affect the market price of the class A common
stock. As a result, the price of the class A common stock,
including the shares of the class A common stock offered in
the offerings, may be higher than the price that otherwise might
exist in the open market. If these activities are commenced, they
 may be discontinued at any time. These transactions may be
effected on the NASDAQ National Market, in the over-the-counter
market or otherwise.
The underwriters do not expect sales to discretionary accounts to
 exceed five percent of the total number of shares offered.
Nextel International has agreed to indemnify the several
underwriters against certain liabilities, including liabilities
under the Securities Act of 1933.
VALIDITY OF COMMON STOCK
Jones, Day, Reavis & Pogue, Atlanta, Georgia will pass upon
the validity of the class A common stock offered by this
prospectus. Shearman & Sterling, New York, New York, will
pass upon specified legal matters for the underwriters.
EXPERTS
The financial statements as of December 31, 1999 and 1998,
and for each of the three years in the period ended
December 31, 1999 and related financial statement schedules,
 included in this prospectus, have been audited by
Deloitte & Touche LLP, independent auditors, as stated
in their report appearing herein and are included in reliance
upon the report of such firm given upon their authority as
experts in accounting and auditing.
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WHERE YOU CAN FIND MORE INFORMATION
We have filed with the Securities and Exchange Commission, 450
Fifth Street, N.W., Washington, D.C. 20549, a registration
statement on Form S-1 under the Securities Act of 1933 with
respect to the offerings. As permitted by the rules and
regulations of the Securities and Exchange Commission, this
prospectus does not contain all the information contained in the
Registration Statement. For further information about us and the
offerings, you can read the registration statement and the
exhibits and financial statement schedules filed with the
registration statement. The statements contained in this
prospectus about the contents of any contract or other document
are not necessarily complete. You can read a copy of each
contract or other document filed as an exhibit to the
registration statement.
We are currently subject to some of the informational reporting
requirements of the Securities Exchange Act of 1934 and we file
periodic reports and other information with the Securities and
Exchange Commission. After the offering we will also file proxy
statements with the Securities and Exchange Commission.
You can inspect the registration statement and the exhibits and
schedules to the registration statement, as well as the periodic
reports, proxy statements and other information we file with the
Securities and Exchange Commission, without charge, at the Public
 Reference Room of the Securities and Exchange Commission located
 at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, D.C. 20549. You can obtain copies of all or any
portion of these filings from the Public Reference Room of the
Securities and Exchange Commission upon payment of prescribed
fees. You may obtain information on the operation of the Public
Reference Room of the Securities and Exchange Commission by
calling the Securities and Exchange Commission at 1-800-SEC-0330.
 Electronic filings made through the Electronic Data Gathering,
Analysis, and Retrieval system are also publicly available
through the Securities and Exchange Commission's Web site
(http://www.sec.gov).
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NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES
INDEPENDENT AUDITORS' REPORT
F-2
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets —
As of December 31, 1999 and 1998
F-3
Consolidated Statements of Operations —
For the Years Ended December 31, 1999, 1998 and 1997
F-4
Consolidated Statements of Changes in Stockholders'
	(Deficit) Equity —
For the Years Ended December 31, 1999, 1998 and 1997
F-5
Consolidated Statements of Cash Flows —
For the Years Ended December 31, 1999, 1998 and 1997
F-6
Notes to Consolidated Financial Statements —
For the Years Ended December 31, 1999, 1998 and 1997
F-7
Condensed Consolidated Balance Sheets —
As of June 30, 2000 and December 31, 1999
F-36
Condensed Consolidated Statements of Operations and Comprehensive
	 Loss —
For the Six and Three Months Ended June 30, 2000 and 1999
F-37
Condensed Consolidated Statement of Changes in Stockholders'
	 Deficit —
For the Six Months Ended June 30, 2000
F-38
Condensed Consolidated Statements of Cash Flows —
For the Six Months Ended June 30, 2000 and 1999
F39
Notes to Condensed Consolidated Financial Statements —
For the Six and Three Months Ended June 30, 2000 and 1999
F-40
FINANCIAL STATEMENT SCHEDULES
Schedule I — Condensed Financial Information of
	Registrant
F-48
Schedule II — Valuation and Qualifying Accounts
F-52
F-1
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of
Nextel International, Inc.
We have audited the accompanying consolidated balance sheets of
Nextel International, Inc. and subsidiaries (Nextel
International), a substantially wholly owned subsidiary of Nextel
 Communications, Inc., as of December 31, 1999 and 1998, and
 the related consolidated statements of operations, changes in
stockholders' (deficit) equity and cash flows for each
of the three years in the period ended December 31, 1999.
Our audits also included the financial statement schedules listed
 on page F-1. These consolidated financial statements and
financial statement schedules are the responsibility of Nextel
International's management. Our responsibility is to express
 an opinion on these consolidated financial statements and
financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
 also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
 audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of
Nextel International, Inc. and subsidiaries at December 31,
1999 and 1998, and the results of their operations and their cash
 flows for each of the three years in the period ended
December 31, 1999 in conformity with generally accepted
accounting principles. Also, in our opinion, such financial
statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present
fairly in all material respects, the information set forth
therein.
DELOITTE & TOUCHE LLP
McLean, Virginia
February 22, 2000 (March 24, 2000 as to Note 7
and
 the last paragraph of Note 3,
June 29, 2000 as to the
first four paragraphs of Note 15 and
August 4, 2000 as
to the last six paragraphs of Note 15)
F-2
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONSOLIDATED BALANCE SHEETS
As of December 31, 1999 and 1998
(in thousands, except share amounts)
1999
1998
ASSETS
Current assets
Cash and cash equivalents (of which $16,223 and $8,961, is
	restricted)
$
100,028
$
121,116
Accounts receivable, less allowance for doubtful accounts of
	$8,815 and $6,391
23,041
35,247
Subscriber unit and accessory inventory
16,185
31,914
Prepaid expenses and other
21,868
23,902
Total current assets
161,122
212,179
Property, plant and equipment, net
539,455
530,571
Investments in unconsolidated affiliates,
less equity in
	net losses of $46,129 and $17,867
428,971
202,728
Intangible assets, net
454,657
552,419
Other assets
97,587
103,239
$
1,681,792
$
1,601,136
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities
Accounts payable
$
63,224
$
62,436
Accrued expenses and other
61,835
68,149
Accrued interest
11,800
—
Due to parent
8,847
—
Current portion of long-term debt
33,739
2,061
Total current liabilities
179,445
132,646
Long-term debt
1,514,757
1,254,882
Deferred income taxes
141,943
90,194
Total liabilities
1,836,145
1,477,722
Commitments and contingencies (Notes 2, 7, 9, 12 and 15)
Minority interest
25,237
27,516
Stockholders' (deficit) equity
Series A exchangeable redeemable preferred stock, accreted
	liquidation preference of $337,737 and $110,456 (12,500 shares
	authorized, $10.00 par value, 2,988.86 and 988.86 shares issued
	and outstanding)
298,886
98,886
Common stock (200,000,000 shares authorized, no par value,
	146,893,236 and 146,094,716 shares issued and outstanding)
399,401
396,574
Accumulated deficit
(859,970
)
(339,824
)
Accumulated other comprehensive loss
(17,907
)
(59,738
)
Total stockholders' (deficit) equity
(179,590
)
95,898
$
1,681,792
$
1,601,136
The accompanying notes are an integral part of these consolidated
 financial statements.
F-3
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999, 1998 and 1997
(in thousands, except share amounts)
1999
1998
1997
Operating revenues
$
104,528
$
42,488
$
13,015
Operating expenses
Cost of revenues
40,999
20,085
7,424
Selling, general and administrative
226,379
143,098
26,768
Depreciation and amortization
108,091
56,039
18,381
375,469
219,222
52,573
Operating loss
(270,941
)
(176,734
)
(39,558
)
Other income (expense)
Interest expense
(179,604
)
(106,824
)
(56,583
)
Interest income
8,442
16,655
19,666
Equity in losses of unconsolidated affiliates
(31,469
)
(12,193
)
(11,401
)
Foreign currency transaction (loss) gain and other, net
(65,905
)
2,472
5,561
Minority interest in losses of subsidiaries
19,314
17,131
2,085
(249,222
)
(82,759
)
(40,672
)
Loss before income tax benefit
(520,163
)
(259,493
)
(80,230
)
Income tax benefit
17
22,358
6,282
Net loss
$
(520,146
)
$
(237,135
)
$
(73,948
)
Net loss per common share, basic and diluted
$
(3.56
)
$
(1.62
)
$
(0.51
)
Weighted average number of common shares outstanding
146,239,544
146,013,684
146,000,000
The accompanying notes are an integral part of these consolidated
 financial statements.
F-4
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
(DEFICIT) EQUITY
For the Years Ended December 31, 1999, 1998 and 1997
(in thousands, except share amounts)
Series A
Preferred Stock
Common Stock
Accumulated
Shares
Amount
Shares
Amount
Deficit
Balance, January 1, 1997
—
$
—
146,000,000
$
65,043
$
(28,741
)
Net loss
—
—
—
—
(73,948
)
Unrealized gain on available for sale securities, net of
	income  taxes
—
—
—
—
—
Total comprehensive loss
Capital contributions from parent
—
—
—
315,585
—
Issuance of warrants in connection with private placement
—
—
—
14,800
—
Balance, December 31, 1997
—
—
146,000,000
395,428
(102,689
)
Net loss
—
—
—
—
(237,135
)
Unrealized loss on available for sale securities, net of income
	tax benefit
—
—
—
—
—
Foreign currency translation adjustment
—
—
—
—
—
Total comprehensive loss
Issuance of Series A preferred stock to parent
988.86
98,886
—
—
—
Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options
—
—
94,716
1,146
—
Balance, December 31, 1998
988.86
98,886
146,094,716
396,574
(339,824
)
Net loss
—
—
—
—
(520,146
)
Unrealized gain on available for sale securities, net of
	income  taxes
—
—
—
—
—
Foreign currency translation adjustment
—
—
—
—
—
Total comprehensive loss
Issuance of Series A preferred stock to parent
2,000.00
200,000
—
—
—
Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options
—
—
798,520
2,827
—
Balance, December 31, 1999
2,988.86
$
298,886
146,893,236
$
399,401
$
(859,970
)
[Additional columns below]
[Continued from above table, first column(s) repeated]
Accumulated Other
Comprehensive
Income (Loss)
Unrealized
Cumulative
Gain (Loss)
Translation
on Investments
Adjustment
Total
Balance, January 1, 1997
$
2,901
$
—
$
39,203
Net loss
—
—
(73,948
)
Unrealized gain on available for sale securities, net of
	income  taxes
389
—
389
Total comprehensive loss
(73,559
)
Capital contributions from parent
—
—
315,585
Issuance of warrants in connection with private placement
—
—
14,800
Balance, December 31, 1997
3,290
—
296,029
Net loss
(237,135
)
Unrealized loss on available for sale securities, net of income
	tax benefit
(38,978
)
—
(38,978
)
Foreign currency translation adjustment
—
(24,050
)
(24,050
)
Total comprehensive loss
(300,163
)
Issuance of Series A preferred stock to parent
—
—
98,886
Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options
—
—
1,146
Balance, December 31, 1998
(35,688
)
(24,050
)
95,898
Net loss
—
—
(520,146
)
Unrealized gain on available for sale securities, net of
	income  taxes
155,370
155,370
Foreign currency translation adjustment
—
(113,539
)
(113,539
)
Total comprehensive loss
(478,315
)
Issuance of Series A preferred stock to parent
—
—
200,000
Issuance of common stock upon exercise of stock options and
	accrued compensation for compensatory options
—
—
2,827
Balance, December 31, 1999
$
119,682
$
(137,589
)
$
(179,590
)
The accompanying notes are an integral part of these consolidated
 financial statements.
F-5
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 1999, 1998 and 1997
(in thousands)
1999
1998
1997
Cash flows from operating activities:
Net loss
$
(520,146
)
$
(237,135
)
$
(73,948
)
Adjustments to reconcile net loss to net cash used in operating
	activities:
Interest accretion on long-term debt, net of capitalization
129,377
100,069
53,681
Depreciation and amortization
108,091
56,039
18,381
Net foreign currency transaction loss (gain)
60,793
(9,506
)
(5,561
)
Provision for losses on accounts receivable
33,219
7,127
1,131
Equity in losses of unconsolidated affiliates
31,469
12,193
11,401
Minority interest in losses of subsidiaries
(19,314
)
(17,131
)
(2,085
)
Deferred income tax benefit
(25,185
)
(22,358
)
(14,292
)
Asset impairment charge
8,950
3,823
—
Change in assets and liabilities:
Accounts receivable
(21,013
)
(29,932
)
1,374
Subscriber unit and accessory inventory
31,507
(27,081
)
586
Prepaid expenses and other
2,034
(6,510
)
(13,167
)
Accounts payable, accrued expenses and other
39,001
54,571
8,052
Prepaid value-added taxes and other
11,857
(61,130
)
(2,017
)
Net cash used in operating activities
(129,360
)
(176,961
)
(16,464
)
Cash flows from investing activities:
Capital expenditures
(144,976
)
(371,223
)
(101,892
)
Investments in unconsolidated affiliates
(38,406
)
(97,632
)
(120,976
)
Purchase of marketable securities
—
(93,997
)
(227,957
)
Proceeds from sale of marketable securities
—
221,225
100,729
Acquisition of additional equity interests in consolidated
	subsidiaries
—
(67,251
)
(35,131
)
Proceeds from sale of equity interest in subsidiary
—
5,976
—
Other
(1,933
)
—
(3,926
)
Net cash used in investing activities
(185,315
)
(402,902
)
(389,153
)
Cash flows from financing activities:
Capital contributions from parent
200,000
—
6,366
Net proceeds from issuance of long-term debt and warrants
132,924
532,634
532,628
Repayment of long-term debt
(16,198
)
(3,047
)
(4,447
)
Capital contributions from minority stockholders
17,035
12,401
1,387
Repayments to parent
(25,624
)
—
(23,556
)
Proceeds from exercise of stock options
1,997
237
—
Net cash provided by financing activities
310,134
542,225
512,378
Effect of exchange rate changes on cash and cash equivalents
(16,547
)
(1,036
)
—
Net (decrease) increase in cash and cash equivalents
(21,088
)
(38,674
)
106,761
Cash and cash equivalents, beginning of year
121,116
159,790
53,029
Cash and cash equivalents, end of year
$
100,028
$
121,116
$
159,790
Supplemental disclosure of cash flow information:
Cash paid during the year for interest
$
19,510
$
11,247
$
1,993
Cash paid during the year for income taxes
$
4,805
$
1,773
$
—
The accompanying notes are an integral part of these consolidated
 financial statements.
F-6
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended December 31, 1999, 1998 and 1997
1.  Summary of Operations and Significant Accounting
 Policies
Operations.
As used in these consolidated financial
statements, references to "Nextel International,"
"we," "our" or "us" are intended to
 include Nextel International, Inc. and its consolidated
subsidiaries. Nextel International is an indirect, substantially
wholly owned subsidiary of Nextel Communications, Inc. Unless the
 context requires otherwise, references to Nextel Communications
refers to Nextel Communications, Inc. and its consolidated
subsidiaries.
We offer a differentiated, integrated package of analog and
digital wireless communications services under the
"Nextel™" brand name, primarily to customers in
five of the largest cities in Latin America and three of the
largest cities in Asia. Our digital mobile network uses iDEN, or
integrated Digital Enhanced Network technology, developed by
Motorola, Inc.
A customer using our digital mobile network is able to access:
•
digital mobile telephone service;
•
digital two-way radio dispatch service, which provides instant
	conferencing capabilities and is marketed as "Nextel Direct
	Connect" service;
•
paging; and
•
short-messaging service.
We refer to the handset device on which we deliver these services
 as a subscriber unit.
Our primary business strategy is to serve the mobile wireless
communications needs of business customers in various emerging
international markets, with a particular emphasis on Latin
America, where we currently own and operate mobile wireless
service providers in Mexico, Brazil, Argentina and Peru. We also
hold minority investor positions in wireless communications
companies in Canada, Japan, and the Philippines, and have
participated as a minority investor in a Chinese joint venture
formed to construct and operate a Global System for Mobile
Communications, referred to as GSM, cellular network in Shanghai,
 Peoples Republic of China, referred to as the Shanghai GSM
System.
To execute our strategy, we are using our strong specialized
mobile radio, referred to as SMR, channel positions in Latin
America as well as Nextel Communications' marketing
expertise, product development skills and purchasing power to
provide integrated digital wireless services to our growing
subscriber base of business customers and to expand our digital
mobile networks in our markets. Through our operating
subsidiaries and affiliates, we launched commercial digital
wireless services in São Paolo and Buenos Aires in the
second quarter of 1998; Rio de Janeiro, Manila and Mexico City in
 the third quarter of 1998; Rosario in the second half of 1998;
and Lima during the second quarter of 1999. Additionally, in the
second half of 1998, our Japanese affiliate, NEXNET Co., Ltd.,
formerly known as J-Com Co., Ltd., introduced commercial digital
services under the brand name "NEXNET™" in the
Kanto region of Japan, which includes Tokyo. We also provide
analog SMR communications services, principally in those markets
in Latin America where we have not yet deployed digital
technology.
Our 2000 business plan has been developed based on our strategy,
and we will require a significant amount of cash for expansion
and improvement of our digital mobile network coverage in our
existing or targeted future markets, acquisition of additional
spectrum, debt service obligations, and working capital
requirements associated with our expanding operations. Based on
our current estimate of our planned cash needs, we believe that
we will be able to fully fund operations through calendar year
2000. We expect that our cash needs will be met through
F-7
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
utilization of a variety of financing sources, including vendor
and bank financing, potential private and/or public issuance of
securities, and lastly, if required, potential issuance of
additional preferred stock to a wholly owned subsidiary of Nextel
 Communications. To the extent that we are unable, for any
reason, to utilize the financing sources described, we will
revise our business plan to accommodate such reduced funding.
Use of Estimates.
The preparation of financial statements
in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and disclosure of
 contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from
those estimates.
We are subject to the laws and regulations governing
telecommunication services in effect in each of the countries in
which we operate. These laws and regulations can have a
significant influence on our results of operations and are
subject to change by the responsible governmental agencies. The
financial statements as presented reflect certain assumptions
based on laws and regulations currently in effect in each of the
countries. We cannot predict what future laws and regulations
might be passed that could have a material effect on our results
of operations. We assess the impact of significant changes in
laws and regulations on a regular basis and update the
assumptions used to prepare our financial statements accordingly.
Principles of Consolidation.
The consolidated financial
statements include the accounts of Nextel International, Inc. and
 its majority owned subsidiaries. All significant intercompany
transactions and balances have been eliminated in consolidation.
Our majority owned subsidiaries consist of:
Effective Ownership
as of
December 31,
1999
1998
Comunicaciones Nextel de Mexico, S.A. de C.V.
100.0%
100.0%
Nextel Argentina S.R.L.
100.0%
100.0%
Nextel Telecomunicações Ltda. (Brazil)
87.7%
77.0%
Nextel del Peru, S.A.
63.5%
62.0%
We use the equity method to account for unconsolidated
investments in companies in which we exercise significant
influence over operating and financial policies but do not have a
 controlling interest.
The accounts of our consolidated foreign subsidiaries and foreign
 subsidiaries accounted for under the equity method are presented
 utilizing accounts as of a date one month earlier than the
accounts of our U.S. subsidiaries to ensure timely reporting of
consolidated results.
We acquired a controlling interest in Comunicaciones Nextel de
Mexico, S.A. de C.V., which we refer to as Nextel Mexico, on
September 1, 1997, prior to which time we accounted for our
investment under the equity method. We acquired a controlling
interest in Nextel Argentina S.R.L. on January 30, 1998,
prior to which time we accounted for our investment under the
equity method, except for the period from January 1, 1997
through May 5, 1997, during which time Nextel Argentina was
controlled by us and included in the consolidated financial
statements. We
F-8
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
acquired a controlling interest in Nextel del Peru, S.A., which
we refer to as Nextel Peru, on February 1, 1998.
Foreign Currency.
Results of operations for foreign
subsidiaries are translated from the designated functional
currency to the U.S. dollar using average exchange rates during
the period, while assets and liabilities are translated at the
exchange rate in effect at the reporting date. Resulting gains or
 losses from translating foreign currency financial statements
are included in accumulated other comprehensive loss in
stockholders' (deficit) equity. The financial statements of
the following foreign subsidiaries were prepared using the U.S.
dollar as the functional currency due to economic environments in
 which they operate: McCaw International (Brazil), Ltd., which we
 refer to as McCaw Brazil, during 1997, Nextel Mexico during 1997
 and 1998, and Nextel Peru during 1998 and 1999. As a result,
during the specified years, the transactions of these operations
that are denominated in the foreign currencies have been
remeasured in U.S. dollars, and any resulting gains or losses are
 recorded in foreign currency transaction (loss) gain and other,
net in the consolidated statements of operations.
During 1999, there was a devaluation and significant fluctuations
 in the value of the Brazilian currency, the real, relative to
the U.S. dollar. As a result of the devaluation, we recorded a
pre-tax charge of about $57.0 million in our consolidated
statement of operations for 1999, related to foreign currency
transaction losses associated with our Brazilian operations. In
addition, we recorded a negative translation adjustment as an
other comprehensive loss in stockholders'
(deficit) equity of about $126.5 million based on the
exchange rate as of the reporting period ending December 31,
 1999.
Cash and Cash Equivalents.
We consider all highly liquid
investments with an original maturity of three months or less at
the time of purchase to be cash equivalents. Our subsidiaries
held cash and cash equivalents of $16.2 million as of
December 31, 1999 and $9.0 million as of
December 31, 1998, which are not available to fund any of
the cash needs of any of our other subsidiaries.
Supplemental Cash Flow Information.
We incurred capital
expenditures of $173.4 million (including an increase of
$28.5 million in amounts that were accrued and unpaid or
financed) during 1999, $376.0 million (including an increase
 of $4.8 million in amounts that were accrued and unpaid or
financed) during 1998, and $101.9 million during 1997. There
 were no amounts that were accrued and unpaid or financed during
1997.
Total interest costs were $190.0 million during 1999 of
which $10.4 million was capitalized, $130.6 million
during 1998 of which $23.8 million was capitalized, and
$59.1 million during 1997 of which $2.5 million was
capitalized.
Subscriber Unit and Accessory Inventory.
Subscriber units
and related accessories are valued at the lower of cost or
market. Cost is determined using the first-in, first-out method.
Cost for the related accessories is determined by the weighted
average method.
Property, Plant and Equipment.
We record property, plant
and equipment, including improvements that extend useful lives,
at cost, while maintenance and repairs are charged to operations
as incurred. We calculate depreciation and amortization using the
 straight-line method based on estimated useful lives of 3 to
10 years for network equipment and 3 to 5 years for
office equipment, furniture and fixtures, and other. We amortize
leasehold improvements over the shorter of the respective lives
of the leases or the useful lives of the improvements.
F-9
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
Construction in progress includes labor, materials, transmission
and related equipment, engineering, site development, interest
and other costs relating to the construction and development of
the digital mobile network. Assets under construction are not
depreciated until placed into service. We capitalize interest
that is applicable to the construction of significant additions
to network equipment.
Intangible Assets.
Intangible assets consist of licenses,
goodwill and trademarks that are recorded at cost. In the
countries in which we operate, licenses are customarily issued
conditionally for specified periods of time. The licenses are
generally renewable providing the licensee has complied with
applicable rules and policies. In most instances, we believe we
have complied and intend to comply with these standards; however,
 in some cases, we currently are not in compliance with
applicable requirements and, where appropriate, we have filed
requests for waivers and/or extensions with the appropriate
government agency (See Note 9). We expect that such
extension requests will be granted and that the resolution of
this matter will not have a material adverse effect on our
financial condition, results of operations or cash flows.
We begin amortizing the cost of licenses upon commencement of
commercial operations in each market over their estimated useful
lives of 20 years. The excess of the purchase price paid
over the fair value of net assets acquired (goodwill) is
amortized using the straight-line method over an estimated useful
 life of 20 years. Trademarks are amortized over their
respective estimated useful lives, generally 10 years.
Investments.
We report realized gains or losses, as
determined on a specific identification basis, and declines in
value, if any, judged to be other than temporary on
available-for-sale securities in other income (expense). Because
they do not have readily determinable fair values, we record
investments in privately held companies at cost, adjusted for
other-than-temporary declines in value, if any.
Revenue Recognition.
We recognize revenue for airtime and
other services over the service period, net of credits and
adjustments. We establish an allowance for doubtful accounts
sufficient to cover probable losses.
Digital Subscriber Unit and Accessory Sales and Related Costs.
The loss generated from the sale of subscriber units used in
 the digital mobile network primarily results from our subsidy of
 digital subscriber units and accessories and represents
marketing costs. Consolidated digital subscriber unit and
accessory sales and the related cost of sales, which includes
current period order fulfillment and installation related
expenses and write downs of digital subscriber unit inventory and
 related accessories for shrinkage and obsolescence, are
classified within selling, general and administrative expenses as
 follows:
Year Ended December 31,
1999
1998
(in thousands)
Subscriber unit and accessory sales
$
19,836
$
25,415
Cost of subscriber unit and accessory sales
55,200
37,127
$
(35,364
)
$
(11,712
)
There were no sales of digital subscriber units for the year
ended December 31, 1997.
F-10
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
A portion of the digital subscriber units issued to customers are
 sold or leased with terms requiring up to 24 monthly
payments. We have recorded such transactions as equipment sales
at the time of delivery and recorded an allowance for estimated
sales returns. As of December 31, 1999, accounts receivable
includes $0.9 million and investments and other assets
includes $1.0 million related to such sales, which are
expected to be billed and collected over the next 24 months.
We recognize sales of subscriber units and accessories when the
subscriber units and accessories are delivered. Some of our
subscriber unit sales are made through independent distributors
under agreements allowing rights of return on merchandise unsold
by distributors, and as a result, sales are recorded when
distributors sell the merchandise.
Stock-based Compensation.
We account for stock-based
compensation for employees in accordance with Accounting
Principles Board Opinion No. 25, "Accounting for Stock
Issued to Employees," and comply with the disclosure
provisions of Statement of Financial Accounting Standards
No. 123, "Accounting for Stock-Based
Compensation." Under APB No. 25, compensation expense
is based on the difference, if any, on the measurement date,
between the fair value of the common stock and the exercise
price. We account for stock issued to non-employees in accordance
 with the provisions of SFAS No. 123 and other applicable
accounting principles. Stock-based compensation expense of $0.8
million during 1999 and $1.0 million during 1998 has been
charged to operations. There was no stock-based compensation
expense during 1997.
Advertising Costs.
Costs related to advertising and other
promotional expenditures are expensed as incurred. Advertising
costs totaled approximately $23.3 million during 1999 and
$20.5 million during 1998. No advertising costs were
incurred during 1997.
Income Taxes.
Deferred tax assets and liabilities are
determined based on the temporary difference between the
financial reporting and tax bases of assets and liabilities,
applying enacted statutory tax rates in effect for the year in
which the differences are expected to reverse. Future tax
benefits, such as net operating loss carryforwards, are
recognized to the extent that realization of such benefits is
considered to be more likely than not. Our financial results are
included in the consolidated tax return of Nextel Communications;
 however, our income tax accounts are stated as if we filed a
separate return, which is consistent with our tax sharing
agreement with Nextel Communications.
Loss per Share, Basic and Diluted.
Basic loss per share
includes no dilution and is computed by dividing net loss by the
weighted average number of common shares outstanding for the
period. Diluted loss per share reflects the potential dilution of
 securities that could share in the earnings of an entity. As
presented, our basic and diluted net loss per share attributable
to common stockholders is based on the weighted average number of
 common shares outstanding during the period and does not include
 other potential common shares (including shares issuable upon
exercise of options, warrants or conversion rights) since their
effect would be antidilutive.
Reclassifications.
Certain prior year amounts have been
reclassified to conform to the current year presentation.
Concentrations of Risk.
Substantially all of our revenues
are generated from our operations located in Brazil, Argentina,
Mexico and Peru. Regulatory entities in each country regulate the
 licensing, construction, acquisition, ownership and operation of
 our digital mobile networks
F-11
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
system, and certain other aspects of our business, including the
rates we charge our customers. Changes in the current
telecommunications statutes or regulations in any of these
countries could adversely affect our business. In addition, as of
 December 31, 1999, about $1,143.2 million of our
assets are located in Brazil, Argentina, Mexico and Peru (see
Note 13) and another $141.1 million relates to our
investments in unconsolidated subsidiaries located in Japan,
China and the Philippines (See Notes 3 and 4). Political and
 economic developments in any of these countries could impact the
 recoverability of our assets.
Motorola is currently our sole source for network and subscriber
unit equipment we use throughout our markets. We expect to rely
principally on Motorola for the manufacture of a substantial
portion of the equipment necessary to construct, enhance and
maintain our digital mobile network and subscriber unit equipment
 for the next several years. If Motorola does not provide the
necessary equipment to us, we may not be able to service our
existing customers or add new customers. We expect that for the
next few years, Motorola and competing manufacturers who are
licensed by Motorola will be the only manufacturers of subscriber
 unit equipment that is compatible with our digital mobile
network.
New Accounting Pronouncements.
In June 1998, the
Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for
 Derivative Instruments and Hedging Activities," which
establishes accounting and reporting standards for derivative
instruments (including some derivatives embedded in other
contracts) and for hedging activities by requiring that all
derivatives be recognized in the balance sheet and measured at
fair value. In June 1999, the FASB issued SFAS No. 137,
"Deferral of the Effective Date of FASB Statement
No. 133 — an Amendment of FASB Statement
No. 133," which deferred the effective date for us
until January 1, 2001. We are in the process of evaluating
the potential impact of this standard on our financial position
and results of operations.
In March 1998, the American Institute of Certified Public
Accountants issued Statement of Position 98-1, "Accounting
for the Costs of Computer Software Developed or Obtained for
Internal Use." This statement establishes accounting
standards for costs incurred in the acquisition or development
and implementation of computer software. These new standards
require the capitalization of software implementation costs
relating to software acquired or developed and implemented for
internal use. The adoption of this statement, effective
January 1, 1999, had no impact on our financial position or
results of operations.
In April 1998, the AICPA issued Statement of Position 98-5,
"Reporting on the Costs of Start-Up Activities." This
statement requires costs of start-up activities and organization
costs to be expensed as incurred. The adoption of this statement
did not impact our financial position or result of operations.
In December 1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements," which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No. 101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that SAB
No. 101 will have a material impact on our financial
position or results of operations.
In March 2000, the Financial Accounting Standards Board issued
Interpretation No. 44, "Accounting for Certain
Transactions involving Stock Compensation, an Interpretation of
APB Opinion No. 25," which clarifies the application of
 Opinion 25 for certain issues including: (1) the
F-12
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
1.  Summary of Operations and Significant Accounting
 Policies — (Continued)
definition of an employee for purposes of applying APB
Opinion 25, (2) the criteria for determining whether a
plan qualifies as a noncompensatory plan, (3) the accounting
 consequences of various modifications to the terms of a
previously fixed stock option or award and (4) the
accounting for an exchange of stock compensation awards in a
business combination. Interpretation No. 44 is effective
July 1, 2000, but certain conclusions cover specific events
that occur either after December 15, 1998 or
January 12, 2000. We do not expect that the adoption of this
 guidance on July 1, 2000 will have a material impact on our
 financial position or results of operations.
In May 2000, the Emerging Issues Task Force reached a
consensus on EITF Issue No. 00-14: "Accounting for
Certain Sales Incentives," which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No. 00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.
2.  Significant Business Combinations and
Investments
Nextel Brazil.
On January 30, 1997, we purchased
81.0% of the outstanding capital stock of McCaw Brazil from
Telcom Ventures, LLC and various affiliated and unaffiliated
investors which, collectively with Telcom Ventures, we refer to
as the Founders Group. McCaw Brazil owns, through Nextel S.A., a
95.0% ownership interest in Nextel Telecomunicações
Ltda., which we refer to as Nextel Brazil, our principal
operating company in Brazil. Under a shareholders agreement among
 the shareholders of McCaw Brazil dated January 29, 1997,
the Founders Group, acting through Telcom Ventures, had the right
 to defer until April 29, 1999 the contribution of its pro
rata share of any capital contributions that we made to McCaw
Brazil up to that date without suffering any dilution of the
Founders Group's ownership interest or right to receive
dividends and other cash or noncash distributions. The Founders
Group ultimately did not make these capital contributions by
April 29, 1999 in accordance with the relevant terms of this
 shareholders agreement, which has resulted in the proportionate
dilution of its equity interest in McCaw Brazil. Consequently,
our capital contributions to McCaw Brazil through April 29,
1999 have increased our ownership interest in McCaw Brazil to
about 92.0% of contributed capital and have diluted the ownership
 interest of the Founders Group in McCaw Brazil to about 8.0% of
contributed capital. The capital contributions, in turn, have
increased our ownership in Nextel Brazil, through Nextel S.A., to
 about 88.0%. Telcom Ventures, in its individual capacity as a
member of the Founders Group, is disputing the resulting
reduction in its ownership interest in McCaw Brazil. (See
Note 9 and Note 15.)
The Founders Group has the right at any time between
October 31, 2001 and November 1, 2003, or at any time
after a change of control of McCaw Brazil, to require McCaw
Brazil to redeem the Founders Group's entire interest at its
 appraised fair market value at the time of exercise, as defined
in the relevant documents. The redemption price is payable in
cash, or, at McCaw Brazil's election, publicly traded common
 stock of any entity owning 50.0% or more of McCaw Brazil or a
combination thereof.
Nextel Argentina.
On January 30, 1998, we acquired a
50.0% interest in Nextel Argentina from Wireless Ventures of
Argentina, L.L.C. for a purchase price of $46.0 million in
cash. As a result of the purchase, our effective ownership
interest in Nextel Argentina increased from 50.0% to 100.0%. We
began consolidating the accounts of Nextel Argentina on
February 1, 1998. From
F-13
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
2.  Significant Business Combinations and
Investments — (Continued)
May 6, 1997 through January 30, 1998, we accounted for
our 50.0% investment in Nextel Argentina under the equity method
of accounting.
Nextel Mexico.
During the year ended December 31,
1997, through a series of transactions, we increased our equity
interest in Nextel Mexico from 30.1% to 100.0% for consideration
of approximately $132.2 million. As a result of such
transactions, we began consolidating Nextel Mexico on
September 1, 1997.
Nextel Peru.
On January 29, 1998, we acquired a 70.1%
 interest in Nextel Peru for $27.9 million. Motorola
International Development Corporation, an indirect wholly owned
subsidiary of Motorola, referred to as Motorola International,
held a 19.9% interest in Nextel Peru.
On October 30, 1998, we exercised an option to sell
approximately 10.0% of our shares of Nextel Peru to Motorola
International for about $6.0 million. Additionally, as a
result of the decision of the other minority stockholder of
Nextel Peru not to contribute its pro rata share of capital
contributions to Nextel Peru during 1998 and 1999, such
stockholder's equity interest in Nextel Peru has been
diluted, and ours and Motorola International's equity
interests in Nextel Peru have increased. Immediately following
the closing of that transaction, and giving effect to the
dilution of the equity interest of the other minority stockholder
 during 1998, we held about 62.1% and Motorola International held
 about 30.9%. As of December 31, 1999, and giving effect to
the further dilution of the equity interest of the other minority
 shareholder during 1999, we and Motorola International held
about 63.5% and 30.6%, respectively, of the outstanding shares of
 Nextel Peru.
Motorola International has the right to cause Nextel Peru to
acquire all shares of Nextel Peru held by Motorola International
and its affiliates at the appraised fair market value if Nextel
Peru does not purchase network equipment from Motorola
International, provided that the network equipment is
technologically competitive and is offered to Nextel Peru on
competitive terms.
Pro forma Information.
The following summarized pro forma
(unaudited) information is for the year ended December 31,
1997 and assumes that the business combinations and transactions
associated with Nextel Argentina, Nextel Mexico and McCaw Brazil
had occurred on January 1, 1997, and reflects adjustments
for the recognition of the minority ownership interests and the
amortization of licenses and goodwill.
1997
(in thousands, except
per share amounts)
Revenues
$
26,312
Net loss
$
(89,717
)
Net loss per share, basic and diluted
$
(0.61
)
Weighted average shares outstanding
146,000,000
The pro forma information is not necessarily indicative of the
results that would actually have occurred had the transactions
been consummated on the date indicated, nor are they necessarily
indicative of our future operating results.
F-14
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
3.  Investments in Unconsolidated Affiliates
At December 31, 1999 and 1998, our investments in unconsolidated
affiliates consist of:
Effective
Ownership
December 31,
1999
1998
Equity Method Investments
Nextel Communications Philippines, Inc.
38.0%
38.0%
NEXNET Co., Ltd.
21.0%
21.0%
Marketable Equity Securities
Clearnet Communications, Inc.
14.5%
15.4%
Nonmarketable Equity Securities
Shanghai CCT McCaw Telecommunications Systems Co., 
	Ltd.
12.1%
12.1%
For equity method investments, the percentage ownership
represents the percentage of the investee's earnings or
losses recognized.
Summarized financial information for our investments in
unconsolidated affiliates accounted for using the equity method,
which include our investments in Nextel Philippines and NEXNET,
is as follows:
December 31,
1999
1998
(in thousands)
Assets
$
218,539
$
229,725
Liabilities
371,939
289,427
Operating loss
(52,502
)
(26,257
)
Net loss
(105,832
)
(66,008
)
The excess of the cost of our equity method investments over the
net assets acquired is being amortized over 20 years.
Amortization of this excess totaled $0.8 million during
1999, $1.2 million during 1998 and $3.1 million during
1997, and is reflected in the accompanying consolidated
statements of operations within equity in losses of
unconsolidated affiliates.
Nextel Philippines.
In 1996, we acquired a 30.0% interest
in Nextel Philippines, for $16.0 million. On August 21,
 1998, Gamboa Holdings, Inc., which is 60.0% owned by ACCRA
Investments Corporation, a corporation organized under the laws
of the Philippines and owned by Philippine nationals (referred to
 as ACCRAIN), and 40.0% owned by one of our indirect
subsidiaries, purchased 20.0% of Nextel Philippines for
$9.0 million.
Funds used by Gamboa Holdings to consummate the acquisition of
the 20.0% of Nextel Philippines were derived from equity
contributions by shareholders of Gamboa Holdings and proceeds of
loans made by a lending institution. These loans to Gamboa
Holdings and to ACCRAIN are secured by our cash collateral
deposits in the amount of the loans and a pledge of Gamboa
Holdings' shares of Nextel Philippines. As a result of
Gamboa Holdings's acquisition of 20.0% of Nextel
Philippines, our aggregate equity interest in Nextel Philippines,
 which includes our direct and indirect holdings, increased from
30.0% to 38.0%.
F-15
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
3.  Investments in Unconsolidated
Subsidiaries — (Continued)
ACCRAIN is a Philippine holding company with investments in a
number of Philippine companies. Pursuant to an agreement, dated
August 21, 1998 between our indirect wholly owned subsidiary
 and ACCRAIN, ACCRAIN granted us a call right on its shares in
Gamboa Holdings, exercisable at any time, provided that we are
the actual purchaser of the shares or a qualified purchaser in
accordance with applicable Philippine foreign corporate ownership
 rules. Upon expiration of the agreement, ACCRAIN may put to us,
or any of our qualified designees, its shares in Gamboa Holdings
for approximately $8.0 million. The ACCRAIN Agreement has
been extended until August 2000.
Japan.
In March 1998, we purchased a 21.0% equity
interest in NEXNET, a wireless communications services provider
in Japan, for a purchase price of $0.6 million. We also
loaned NEXNET $31.5 million. DJSMR Business Partnership, a
Japanese partnership in which an affiliate of Motorola is the
majority partner, holds a 49.0% equity interest in NEXNET.
Shanghai CCT McCaw.
As of December 31, 1999 and 1998,
 we own a 30.0% interest in Shanghai CCT McCaw Telecommunications
 Systems Co., Ltd., a joint venture that currently participates
in the Shanghai GSM System in Shanghai, China through a profit
sharing arrangement with China United Telecommunications
Corporation, referred to as Unicom, the owner of the Shanghai GSM
 System. Under the profit sharing agreement, Shanghai CCT McCaw
has the right to receive about 40.0% of the profits, as defined,
of the Shanghai GSM System. Through our interest in Shanghai CCT
McCaw, we have the right to receive about 12.1% of those profits.
 Foreign entities or individuals are not permitted to directly
own or operate telecommunications systems in China under current
law. As a result, we do not have the right to influence the
operations of the Shanghai GSM System and therefore, we account
for this investment using the cost method. Our carrying value in
our minority interest in Shanghai CCT McCaw is about
$15.0 million at December 31, 1999 and about
$15.7 million at December 31, 1998.
In September 1999, Unicom advised Shanghai CCT McCaw and all
 similarly situated investors in Unicom, that under a new policy
of the Chinese government, all existing arrangements between
Unicom and joint ventures in which foreign companies had invested
 needed to be terminated. On March 17, 2000, Shanghai CCT
McCaw and Unicom executed a termination agreement setting forth
the terms and conditions for the termination of the cooperation
agreement with Unicom.
4.  Fair Value of Financial Instruments
We have determined the estimated fair value amounts using
available market information and appropriate valuation
methodologies. However, considerable judgment is required in
interpreting market data to develop the estimates of fair value.
Accordingly, the estimates presented below are not necessarily
indicative of the amounts that we could realize in a current
market exchange.
F-16
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
4.  Fair Value of Financial
Instruments — (Continued)
The use of different market assumptions as well as estimation
methodologies may have a material effect on the estimated fair
value amounts.
December 31,
1999
1998
Carrying
Estimated
Carrying
Estimated
Amount
Fair Value
Amount
Fair Value
(in thousands)
Marketable equity securities included within Investments in
	unconsolidated affiliates
$
287,851
$
287,851
$
68,037
$
68,037
Long-term debt
1,548,496
1,428,790
1,256,943
1,087,943
Cash and Cash Equivalents, Accounts Receivable, Accounts
Payable and Accrued Expenses.
The carrying amounts of these
items are a reasonable estimate of their fair value.
Shanghai CCT McCaw.
It is impracticable to estimate the
fair value of our nonmarketable investment in Shanghai CCT McCaw,
 as there is no active market for this investment.
Marketable Equity Securities.
Included in investments in
unconsolidated affiliates is our investment in Clearnet
Communications, Inc., a wireless communications services provider
 in Canada, which is accounted for at fair value based on quoted
market prices. The market value of Clearnet common stock at
December 31, 1999 and 1998 was $34.375 and $8.125 per share,
 respectively. At December 31, 1999 and 1998, marketable
equity securities consist of the following:
Gross Unrealized
Cost
Fair Value
Gain (Loss)
(in thousands)
1999
Available-for-sale:
Equity securities, included within Investments in unconsolidated
	affiliates
$
103,725
$
287,851
$
184,126
1998
Available-for-sale:
Equity securities, included within Investments in unconsolidated
	affiliates
$
103,725
$
68,037
$
(35,688
)
Long-Term Debt.
The fair value of our long-term debt is
based on quoted market prices for the senior discount notes.
Carrying value approximates fair value for our bank and vendor
credit facilities, as interest rates are reset periodically. (See
 Note 7).
F-17
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
5.  Property, Plant and Equipment
December 31,
1999
1998
(in thousands)
Land
$
1,583
$
1,650
Leasehold improvements
14,483
13,599
Network equipment
442,013
243,519
Office equipment, furniture and fixtures, and other
92,003
27,921
Less accumulated depreciation and amortization
(95,449
)
(25,773
)
454,633
260,916
Construction in progress
84,822
269,655
$
539,455
$
530,571
6.  Intangible Assets
December 31,
1999
1998
(in thousands)
Licenses
$
415,050
$
479,727
Goodwill
99,083
113,546
Trademarks and other
1,629
1,629
515,762
594,902
Less accumulated amortization
(61,105
)
(42,483
)
$
454,657
$
552,419
F-18
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
7.  Long-term Debt
December 31,
1999
1998
(in thousands)
13.0% Senior Redeemable Discount Notes due 2007,
net of
	unamortized discount of $252,323 and $337,065
$
699,140
$
614,398
12.125% Senior Serial Redeemable Discount Notes due 2008,
net of unamortized discount of $234,280 and $289,349
495,720
440,651
International Motorola Financing Facility,
interest
	payable semiannually at 2.5% over on the U.S. prime rate or LIBOR
	 (10.5% to 11% — 1999)
139,146
—
Brazil Motorola Financing,
interest payable semiannually
	at 2.5% over on the U.S. prime rate or LIBOR
	(10.28% — 1999; 10.25% to
	11% — 1998)
103,757
102,196
Argentina Credit Facility,
interest payable quarterly at
	adjustable rates calculated either on the ABR or the Eurodollar
	rate (8.13% to 9.0% — 1999; 8.75% to
	9.50% — 1998)
100,000
83,500
Motorola Argentina Incremental Facility,
interest payable
	quarterly at adjusted rates calculated either on the ABR or the
	Eurodollar rate (10.5% to 12.25% — 1999)
8,330
—
Philippines Motorola Bridge Financing Agreement
(10.25% — 1998)
—
8,575
Nextel Mexico Equipment Financing
(10.4% to
	16.5% — 1998)
—
7,623
Other
2,403
—
1,548,496
1,256,943
Less current portion
(33,739
)
(2,061
)
$
1,514,757
$
1,254,882
13.0% Senior Redeemable Discount Notes.
In
March 1997, we completed the sale of 951,463 units,
generating $482.0 million in net proceeds. Each unit is
comprised of a 10-year senior discount note with a principal due
at maturity of $1,000 and one warrant to purchase 1.54992 shares
of our common stock at an exercise price of $2.50 per share at
any time after March 6, 1998 and prior to March 6,
2007. The warrants entitle the holders to purchase an aggregate
of about 1,474,700 shares of our common stock that approximates
less than 1% of our outstanding common stock on a diluted basis
and were valued at $14.8 million based on the difference
between the gross proceeds and the present value of the accreted
amount of the notes at time of first call including the call
premium. Cash interest will not accrue prior to April 15,
2002, and will be payable semiannually beginning October 15,
 2002 at a rate of 13.0% per year. These notes are redeemable in
whole or in part, at our option, at any time on or after
April 15, 2002 at specified redemption prices plus accrued
and unpaid interest. Up to 35.0% of the aggregate accreted value
of these outstanding senior notes may be redeemed (using the
proceeds of one of more sales of qualified equity securities)
prior to April 15, 2000, at our option under specified
circumstances, at 113.0% of their accreted value on the date of
redemption. The
F-19
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
7.  Long-term Debt — (Continued)
notes are senior unsecured indebtedness of ours and rank equal in
 right of payment with all our other unsubordinated, unsecured
indebtedness.
12.125% Senior Serial Redeemable Discount Notes.
In
March 1998, we completed the sale of $730.0 million in
principal amount at maturity of our 12.125% senior serial
redeemable discount notes due 2008, generating $387.0 million in
net cash proceeds. Cash interest will not accrue prior to
April 15, 2003, and will be payable semiannually beginning
October 15, 2003 at a rate of 12.125% per year. The 12.125%
senior notes are redeemable in whole or in part, at our option,
at any time on or after April 15, 2003 at specified
redemption prices, plus accrued and unpaid interest. Up to 35.0%
of the aggregate accreted value of these outstanding senior notes
 may be redeemed (using the proceeds of one or more sales of
qualified equity securities) prior to April 15, 2001, at our
 option under specified circumstances, at 112.125% of their
accreted value on the date of redemption. The notes are senior
unsecured indebtedness of ours and rank equal in right of payment
 with all our other unsubordinated, unsecured indebtedness.
International Motorola Financing Facility.
On
February 4, 1999, we entered into definitive agreements with
 Motorola Credit Corporation providing for $225.0 million of
 secured term loan financing consisting of (i) up to $100.0
million in loans to reimburse us for payments we made to Motorola
 Credit after January 1, 1997 for the purchase of network
equipment and related services, including ancillary products and
services, by or for the benefit of our operating subsidiaries,
referred to as Reimbursement Loans, and (ii) up to
$225.0 million in loans, less the amount of Reimbursement
Loans advanced to (a) finance the cost of qualifying future
purchases of network equipment and related services and
(b) provide funds to: (1) repay the principal amounts
outstanding under the existing financing facility between
Motorola Credit and Nextel Philippines and (2) reimburse us
for repaying the principal amounts outstanding under a bridge
financing facility between us and Motorola Credit for the benefit
 of Nextel Philippines that was terminated in February 1999. We
refer to this facility as the International Motorola Financing
Facility. Our designated operating companies that are entitled to
 access amounts available under the International Motorola
Financing Facility are Nextel Mexico, Nextel Peru, Nextel
Philippines, NEXNET and other entities, if any, in which we hold
an equity interest and that may be so designated by agreement
between us and Motorola Credit. The amount borrowed under this
facility is payable in eight equal semiannual installments
beginning June 30, 2001, will mature December 31, 2004,
 and bears interest at variable rates based upon either the U.S.
prime rate or the London Interbank Offered Rate, referred to as
LIBOR. This facility is secured by, among other things, a pledge
of the shares of stock of the designated operating companies held
 by specified third party shareholders.
As of December 31, 1999, approximately $139.1 million
had been borrowed under this facility, including the entire
$100.0 million of reimbursement loans relating to the
purchase of equipment and related services by or for the benefit
of certain operating subsidiaries, with $85.9 million
remaining available for borrowing. The availability of borrowings
 under this facility is subject to the satisfaction or waiver of
applicable borrowing conditions.
On December 22, 1999, we notified Motorola Credit of our
anticipated noncompliance with financial covenants applicable to
the fourth quarter of 1999. On December 27, 1999, Motorola
Credit agreed to waive compliance with the financial covenants on
 the condition that the parties enter into an amendment to the
International Motorola Financing Facility during the first
quarter of 2000. On March 22, 2000, we and Motorola Credit
entered into the contemplated amendment to the International
Motorola Financing Facility, which, among other things,
eliminates the 1999
F-20
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
7.  Long-term Debt — (Continued)
issues related to financial covenant compliance and addresses
cure mechanisms for any future financial covenant compliance
issues.
Brazil Motorola Financing.
In 1997, McCaw Brazil and
Motorola Credit Corporation entered into an equipment financing
agreement pursuant to which Motorola Credit agreed to provide up
to $125.0 million in multi-draw term loans to McCaw Brazil
to be used to acquire infrastructure equipment and related
services from Motorola. The financing advanced under this
agreement is repayable in U.S. dollars in semiannual installments
 over 42 months beginning June 30, 2000 and bears
interest at an adjustable rate equal to either the prime rate
plus 2.5% or LIBOR plus 4.625%. The loans made under this
agreement are secured by a first priority lien on substantially
all of McCaw Brazil's assets, a pledge of all of the stock
of McCaw Brazil and its subsidiaries, and guarantees by us of
94.0%, and by Motorola International Development Corporation of
6.0%, of McCaw Brazil's obligations under this financing.
The financing contains certain financial and operating covenants.
 In the event of noncompliance with certain financial covenants,
McCaw Brazil may cure any such noncompliance by receiving
additional equity contributions. The availability of borrowings
under this facility, referred to as the Brazil Motorola
Financing, is subject to the satisfaction or waiver of applicable
 borrowing conditions.
In 1999, McCaw Brazil notified Motorola Credit of its
noncompliance with some of the financial covenants under the
Brazil Motorola Financing. Motorola Credit agreed to waive
compliance with those financial covenants on the condition that
we agree to committed capital contributions and the parties enter
 into an amendment to this agreement during the first quarter of
2000. On March 24, 2000, McCaw Brazil and Motorola Credit
entered into this amendment to the Brazil Motorola Financing,
which, among other things, eliminates the 1999 issues with
respect to financial covenant compliance and addresses cure
mechanisms for any future financial covenant compliance issues.
Argentina Credit Facility.
In February 1998, Nextel
Argentina entered into a senior secured credit facility which, as
 amended, provides up to $100.0 million in term loans. Loans
under this facility, referred to as the Argentina Credit
Facility, bear interest at a rate equal to, at our option, either
 (1) the ABR plus 2.75% (ABR is the highest of the U.S.
prime rate, the base CD rate plus 1.0% or the federal funds rate
plus 0.5%) or (2) the Eurodollar rate plus 3.75% (the
Eurodollar rate is LIBOR multiplied by the statutory reserve
rate). Loans under this facility are repayable in quarterly
installments beginning September 30, 2000 through
March 31, 2003. The first nine installments will be equal to
 1/18 of the then-outstanding balance and the final installment
will be in an amount equal to the then-outstanding balance.
Borrowings under this facility are secured by a pledge of stock
of Nextel Argentina, has a first priority lien on the assets of
Nextel Argentina, and requires Nextel Argentina to meet financial
 and operating ratios.
In March 1999, Nextel Argentina notified the administrative
agent of the Argentina Credit Facility of its anticipated
noncompliance with some of the financial covenants under the
facility. Nextel Argentina received a waiver from the lenders
with regard to those covenants for the first quarter of 1999.
Effective May 26, 1999, Nextel Argentina and the lenders
under the Argentina Credit Facility amended the facility to
modify several financial covenants. As a condition to the
effectiveness of those amendments, we entered into capital
subscription agreements under which we contributed equity of
$84.1 million to Nextel Argentina during 1999 and are
required to contribute additional equity of $83.5 million
during 2000, $19.5 million during 2001 and
$49.5 million during the first nine months of 2002.
F-21
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
7.  Long-term Debt — (Continued)
In November 1999, Nextel Argentina notified the
administrative agent of its anticipated noncompliance with some
of the financial covenants under the Argentina Credit Facility
applicable in the fourth quarter of 1999. Effective
December 8, 1999, Nextel Argentina and the lenders amended
the Argentina Credit Facility to modify several financial
covenants applicable to the fourth quarter of 1999 and the first
quarter of 2000.
As of December 31, 1999, Nextel Argentina had borrowed
$100.0 million under the Argentina Credit Facility. Nextel
Argentina is in compliance with all financial covenants contained
 in the facility, as amended.
Motorola Argentina Incremental Facility.
Effective
May 26, 1999, and concurrent with the then current
modification of the Argentina Credit Facility, Motorola Credit
agreed to provide up to $50.0 million in loans to Nextel
Argentina as incremental term loans under the Argentina Credit
Facility for purchase from Motorola of qualifying network
equipment and related services. As of December 31, 1999,
$8.3 million had been borrowed under this incremental
facility.
Philippines Motorola Bridge Financing.
On August 27,
1998, Motorola Credit agreed to provide up to $12.0 million
in term loans to us to finance the cost of network equipment and
related services purchased from Motorola by Nextel Philippines
and to reimburse us for payments made by us to Motorola for the
purchase of network equipment and related services for the
benefit of Nextel Philippines. At December 31, 1998, the
outstanding balance on the financing agreement was
$8.6 million. During February 1999, the outstanding
balance was repaid with proceeds from the International Motorola
Financing Facility.
Nextel Mexico Equipment Financing.
At December 31,
1998, Nextel Mexico was a party to several secured financing
agreements, with various payment terms and maturities through
2007. The term loans were secured by a first priority lien on
substantially all of Nextel Mexico's assets and were payable
 in U.S. dollars. In February 1999, in conjunction with the
International Motorola Financing Facility, the principal and
unpaid interest under these financing agreements were paid in
full.
International Motorola Incremental Facility.
On
December 16, 1999, we entered into an agreement with
Motorola Credit under which Motorola Credit committed to provide
up to $56.6 million in incremental term loans to us to
acquire intrastructure equipment and related services from
Motorola. Loans under this facility mature December 31, 2001
 and bear interest at variable rates based upon either the U.S.
prime rate or LIBOR. Loans under this facility are secured by a
pledge of all of our shares of stock of Clearnet. On
January 6, 2000, we borrowed the full $56.6 million
available under this facility.
F-22
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
7.  Long-term Debt — (Continued)
For the years subsequent to December 31, 1999, annual
maturities of long-term obligations are as follows (in
thousands):
2000
$
33,739
2001
80,560
2002
90,487
2003
89,985
2004
58,865
Thereafter
1,681,463
2,035,099
Less unamortized discount
(486,603
)
$
1,548,496
8.  Income Taxes
The components of the income tax benefit were as follows:
Year ended December 31,
1999
1998
1997
(in thousands)
Current:
Foreign
$
(3,247
)
$
—
$
(1,745
)
Deferred:
Foreign
3,264
22,358
8,027
Income tax benefit
$
17
$
22,358
$
6,282
The reconciliation of taxes computed at the statutory rate to the
 income tax benefit is as follows:
Year ended December 31,
1999
1998
1997
(in thousands)
Income tax benefit at statutory rate
$
182,057
$
88,180
$
27,095
Nonconsolidated subsidiary adjustments
(11,014
)
(4,268
)
(2,559
)
High yield discount obligations
(3,486
)
(2,912
)
(1,621
)
Increase in valuation allowance
(150,470
)
(66,207
)
(16,784
)
Other
(17,070
)
7,565
151
$
17
$
22,358
$
6,282
F-23
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
8.  Income Taxes — (Continued)
Deferred tax assets and liabilities consist of the following:
December 31,
1999
1998
(in thousands)
Deferred tax assets:
Operating loss carryforwards
$
157,863
$
65,332
Deferred interest
82,533
54,104
Unrealized loss on investment
—
12,491
Other
18,969
11,220
259,365
143,147
Valuation allowance
(243,228
)
(119,352
)
16,137
23,795
Deferred tax liabilities:
Intangible assets
90,607
113,989
Unrealized gain on investment
64,444
—
Other
3,029
—
158,080
113,989
Net deferred tax liability
$
141,943
$
90,194
At December 31, 1999, we had about $52.8 million of net
 operating loss carryforwards for U.S. federal income tax
purposes that expire beginning in 2018.
At December 31, 1999, net operating loss carryforwards for
our foreign subsidiaries are about $91.1 million for Mexican
 income tax purposes, $120.3 million for Argentine income
tax purposes and $23.9 million for Peruvian income tax
purposes. These carryforwards expire in various amounts through
2009. Additionally, our foreign subsidiaries had about
$176.4 million of net operating loss carryforwards for
Brazilian income tax purposes that have no expiration date and
that can only be utilized up to the limit of 30% of taxable
income for the year. Our foreign subsidiaries may be limited in
their ability to use foreign tax net operating losses in any
single year depending on their ability to generate sufficient
taxable income.
9.  Commitments and Contingencies
Operating Lease Commitments.
We lease various cell sites
and office facilities under operating leases with terms of one to
 five years which, in the case of the cell sites, are generally
renewable, at our option, for additional terms. Total rent
expense under operating leases was $13.0 million during
1999, $11.8 million during 1998 and $3.3 million during
 1997.
F-24
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
9.  Commitments and
Contingencies — (Continued)
For years subsequent to December 31, 1999, future minimum
payments for all operating lease obligations that have initial
noncancelable lease terms exceeding one year, net of rental
income, are as follows (in thousands):
2000
$
11,720
2001
10,981
2002
9,192
2003
5,139
2004
1,338
Thereafter
1,534
$
39,904
Nextel Brazil licenses.
Nextel Brazil is required to meet
installation and minimum loading requirements related to its
analog channels. Failure to comply with such requirements may
subject the licenses relating to such channels to revocation by
the Brazil Ministry of Communications. At December 31, 1999,
 Nextel Brazil was not in compliance with applicable installation
 deadlines and minimum loading requirements with respect to
licenses covering 1,885 channels, all of which are outside of
São Paulo and Rio de Janiero. Nextel Brazil is currently
conducting analog system installation with regard to a
significant portion of such channels and has submitted an
installation and loading plan and requests for extensions of the
applicable deadlines (except for channels where the Brazilian
operating companies failed to comply with applicable installation
 requirements due to television frequency interference, for which
 extensions were granted automatically by statute) to the
Brazilian Ministry of Communications for its review. Nextel
Brazil does not believe that any potential actions on the part of
 Anatel will have a material adverse effect on our financial
condition, results of operations or cash flows.
On December 16, 1999, the Brazilian Ministry of
Communication's board of directors published a proposal for
a new regulation that would be applicable to our analog and
digital specialized mobile radio operations in Brazil. The new
regulation as proposed would eliminate most of the existing
restrictions that are applicable to our analog and digital
operations in Brazil, including among others, the limitations on
interconnect traffic and subscriber units with interconnect
numbers. It is generally expected that the proposed regulation
will be enacted substantially in the form published before the
end of 2000, although there may be strong opposition by current
cellular operators, and there can be no assurance that this new
regulation will indeed be approved.
Nextel Philippines SEC Proceedings.
Immediately prior to
the Nextel Philippines annual shareholders meeting in
July 1998, The Philippines Securities and Exchange
Commission issued a temporary restraining order in favor of
several Philippines shareholders. These shareholders requested
nullification of previously adopted amendments of the bylaws of
Nextel Philippines contemplated by the corporate governance
provisions of the Nextel Philippines' shareholders
agreements. The temporary restraining order enjoined Nextel
Philippines from implementing those bylaw amendments for a
72-hour period. The shareholders further requested that a
preliminary injunction be issued with the same effect pending a
trial on the merits with respect to the validity of those bylaw
amendments. On July 15, 1998, pursuant to the agreement of
Nextel Philippines and the shareholders, which agreement was
confirmed by the Philippines Securities and Exchange Commission,
the temporary restraining order was permitted to expire and,
pending
F-25
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
9.  Commitments and
Contingencies — (Continued)
a trial on the merits as to the validity of the bylaw amendments
(1) the petitioners agreed to withdraw their petition for a
preliminary injunction and (2) Nextel Philippines agreed
that the provisions of the bylaw amendments granting Nextel
International certain veto rights in corporate government matters
 would not be implemented. Although we cannot predict the outcome
 of this proceeding, we believe that the shareholders'
claims are without merit. Nextel Philippines intends to
vigorously defend against those claims.
Nextel Philippines Proceedings.
In mid 1998, a number of
the Philippine cellular mobile telephone companies filed
proceedings, which have since been consolidated into one
proceeding, with the Philippines National Telecommunications
Commission asserting that (1) the extension to
January 20, 1999 of Nextel Philippines' provisional
authority to operate its wireless communications network using
its licensed frequencies in the Philippines improperly expanded
Nextel Philippines' authority to provide cellular mobile
telephone services and (2) if Nextel Philippines was indeed
authorized to operate cellular mobile telephone services, then
Nextel Philippines should be required to meet the other
obligations applicable to cellular mobile telephone services
operators, including specified obligations to build out local
exchange lines. Although we cannot predict the outcome of this
proceeding, we believe that the claims against Nextel Philippines
 are without merit. Nextel Philippines intends to vigorously
defend against them.
The Philippines National Telecommunications Commission issued an
order in February 1999 extending Nextel Philippines'
provisional authority to January 19, 2000. On
December 7, 1999, Nextel Philippines filed a motion to
further extend that provisional authority for one year. Based on
Nextel Philippines' past experience and the Philippines
National Telecommunications Commission's usual practice,
this motion is expected to be resolved ex-parte in Nextel
Philippines' favor. Based on Nextel Philippines'
experience with the practice of the Philippines National
Telecommunications Commission, Nextel Philippines believes that
the issuance of the extension after the provisional
authority's expiration will not adversely affect Nextel
Philippines' continued operations.
Nextel Philippines Arbitration.
On October 30, 1998,
under the dispute resolution provisions of the Philippines
shareholders agreements, we commenced arbitration proceedings in
Hong Kong against two of the local shareholders of Nextel
Philippines, in which we assert that the shareholders have failed
 to perform their respective obligations under the Nextel
Philippines agreements. We seek equitable and legal relief,
including, but not limited to, compensatory damages and
injunctive relief.
McCaw Brazil.
On August 16, 1999, we and McCaw Brazil
 filed a Motion for Judgment in the Circuit Court for the City of
 Alexandria, Virginia, against Telcom Ventures, seeking a
declaration from the court that the Founders Group's option
to make its pro rata share of capital contributions was not
properly exercised. As a result of having failed to make such
payment, the Founders Group's ownership interest in McCaw
Brazil has fallen below 10% and they are no longer entitled to
designate a director to serve on the McCaw Brazil board of
directors. On September 15, 1999, Telcom Ventures filed its
answer denying the material allegations made in the Motion for
Judgment, and asserted a counterclaim alleging that we breached a
 fiduciary duty to Telcom Ventures and that McCaw Brazil breached
 a contract with Telcom Ventures by allegedly issuing shares for
less than fair market value without the informed consent of the
director designated by the Founders Group. Telcom Ventures'
counterclaim seeks damages in the amount of $100 million,
plus punitive damages. We and McCaw Brazil have timely filed a
denial of the material allegations made in the counterclaim.
Although we cannot predict the
F-26
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
outcome of this proceeding, we believe the claims against us are
without merit. We intend to vigorously defend against these
claims. (See Note 15.)
10.  Issuance of Preferred Stock
During 1999, 2,000 shares of our series A exchangeable redeemable
 preferred stock were issued to a wholly owned subsidiary of
Nextel Communications in exchange for cash proceeds of
$200.0 million. During 1998, 988.86 shares were issued to
Nextel Communications in exchange for an investment in Clearnet
and other consideration of $8.3 million.
The series A exchangeable redeemable preferred stock was
issued at an original liquidation preference of $100,000 per
share and thereafter, the liquidation preference on the
series A preferred stock accretes at an annual rate equal to
 13.625%. At December 31, 1999, the accreted liquidation
preference on the series A preferred stock was about
$337.7 million. Except as required by law, the holders of
the series A preferred stock are not entitled to receive
dividends or other distributions. We have the right at any time
to redeem the series A preferred stock in full (or with the
consent of the holder of the affected shares of series A
preferred stock, in part) at a redemption price equal to 100% of
the accreted liquidation preference thereof on the redemption
date and, under certain circumstances, the holders of the
series A preferred stock have the right to exchange the
series A preferred stock for shares of our series B
redeemable preferred stock, par value $10.00 per share, having a
liquidation preference equal to the accreted liquidation
preference of the series A preferred stock so exchanged.
The series B preferred stock to be issued in exchange for shares
of series A preferred stock will have an initial annual dividend
rate equal to 13.625%, increasing to 18.0% on March 13,
2010. The series B preferred stock will have terms
substantially similar to those of the series A preferred
stock, except that the series B preferred stock has the
right to elect one director to the board of directors and to the
accrual of cumulative dividends payable quarterly in cash. In
addition, we may not issue shares of our series B preferred
stock, except in exchange for shares of our series A
preferred stock, without the consent of the holder of a majority
of the outstanding shares of our series A preferred stock
and our series B preferred stock, voting together as a
class.
11.  Employee Stock and Benefit Plans
Nextel Communications Employee Stock Option Plan.
Some of
our employees participate in the Nextel Communications, Inc.
Incentive Equity Plan. Generally, non qualified stock options
outstanding under this Plan:
•
are granted at prices equal to the market value of Nextel
	Communications' stock on the grant date;
•
vest ratably over either a four or a five year service period;
	and
•
expire ten years subsequent to the award date.
F-27
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
11.  Employee Stock and Benefit
Plans — (Continued)
A summary of the activity under the Nextel Communications, Inc.
Incentive Equity Plan related to our employees is as follows:
Option
Weighted Average
Shares
Price Range
Exercise Price
Outstanding, January 1, 1997
272,200
$
7.56
–
$
9.19
$
7.72
Granted
351,100
7.56
–
11.91
7.76
Outstanding, December 31, 1997
623,300
7.56
–
11.91
7.56
Granted
770,020
11.35
–
15.50
13.19
Transferred
(109,796
)
7.56
–
13.28
10.75
Exercised
(41,326
)
7.56
–
8.07
7.59
Canceled
(178,836
)
7.56
–
13.28
9.86
Outstanding, December 31, 1998
1,063,362
7.56
–
15.50
11.01
Granted
1,226,990
15.28
–
43.50
18.52
Transferred
1,082,474
6.75
–
15.28
10.31
Exercised
(762,668
)
6.75
–
15.50
9.15
Canceled
(413,416
)
7.57
–
15.50
12.87
Outstanding, December 31, 1999
2,196,742
$
6.75
–
$
43.50
$
15.04
Exercisable, December 31, 1999
139,040
$
6.75
–
$
15.50
$
10.41
Following is a summary of the status of employee stock options
outstanding at December 31, 1999:
Weighted Average
Outstanding
Outstanding
Outstanding
Exercisable
Exercise Price of
Exercise
Number of
Weighted Life
Average
Number of
Exercisable
Price Range
Shares
Remaining
Exercise Price
Shares
Shares
$
6.75 – $ 7.82
255,920
6.9 years
$
7.58
61,710
$
7.62
8.07 –  13.28
769,452
8.2 years
11.97
68,330
12.29
15.28 –  15.50
885,370
9.1 years
15.30
9,000
15.32
24.00 –  43.50
286,000
9.7 years
29.18
—
—
2,196,742
8.6 years
15.04
139,040
10.41
Nextel International Employee Stock Option Plan.
In
June 1997, our board of directors adopted the 1997 Nextel
International Employee Stock Option Plan, under which eligible
employees participate. Generally, options outstanding under this
plan:
•
are granted at fair value, based on periodic valuations of Nextel
	 International in accordance with the terms of the plan;
•
vest over a four year service period; and
•
expire ten years subsequent to the award date.
F-28
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
11.  Employee Stock and Benefit
Plans — (Continued)
A summary of Nextel International Stock Option Plan activity is
as follows:
Option
Weighted Average
Shares
Price Range
Exercise Price
Outstanding, January 1, 1997
—
$
—
–
$
—
$
—
Granted
6,484,000
2.50
–
2.50
2.50
Exercised
(120,000
)
2.50
–
2.50
2.50
Outstanding, December 31, 1997
6,364,000
2.50
–
2.50
2.50
Granted
1,450,000
2.50
–
16.44
15.71
Exercised
(94,716
)
2.50
–
2.50
2.50
Canceled
(713,716
)
2.50
–
16.44
5.10
Outstanding, December 31, 1998
7,005,568
2.50
–
16.44
4.97
Granted
3,134,000
2.50
–
6.01
5.99
Exercised
(798,520
)
2.50
–
2.50
2.50
Canceled
(1,414,372
)
2.50
–
16.44
7.89
Outstanding, December 31, 1999
7,926,676
$
2.50
–
$
16.44
$
5.09
Exercisable, December 31, 1999
4,654,176
$
2.50
–
$
16.44
$
3.77
Following is a summary of the status of employee stock options
outstanding at December 31, 1999:
Weighted Average
Outstanding
Outstanding
Outstanding
Exercisable
Exercise Price of
Exercise
Number of
Weighted Life
Average
Number of
Exercisable
Price
Shares
Remaining
Exercise Price
Shares
Shares
$
2.50
4,170,016
7.3 years
$
2.50
3,850,072
$
2.50
6.01
3,050,916
9.4 years
6.01
507,880
6.01
16.44
705,744
8.6 years
16.44
296,224
16.44
7,926,676
7.8 years
5.09
4,654,176
3.77
F-29
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
11.  Employee Stock and Benefit
Plans — (Continued)
Consistent with the provisions of SFAS No. 123, had
compensation costs been determined based on the fair value of the
 awards granted in 1999, 1998 and 1997, our loss and loss per
common share attributable to common stockholders would have been
as follows:
1999
1998
1997
(in thousands, except share amounts)
Net loss:
As reported
$
(520,146
)
$
(237,135
)
$
(73,948
)
Pro forma
$
(529,920
)
$
(243,376
)
$
(76,024
)
Loss per common share, basic and diluted:
As reported
$
(3.56
)
$
(1.62
)
$
(0.51
)
Pro forma
$
(3.62
)
$
(1.67
)
$
(0.52
)
Weighted average fair value of options granted
$
3.06
$
3.07
$
1.65
Weighted average remaining contractual life
8.2 years
7.6 years
8.2 years
The fair value of each Nextel International and Nextel
Communications, Inc. option grant is estimated on the date of
grant using the Black-Scholes option-pricing model as prescribed
by SFAS No. 123 using the following: assumptions:
1999
1998
1997
Expected stock price volatility
51%
51%
53%
Risk-free interest rate
5.67 – 5.93%
5.01 – 5.08%
6.6%
Expected life in years
5
8
8
Expected dividend yield
0.00%
0.00%
0.00%
Our stock options are non transferable (except to family members
or by will, as provided for in the Nextel International Employee
Stock Option Plan), and the actual value of the stock options
that an employee may realize, if any, will depend on the excess
of the market price on the date of exercise over the exercise
price. We have based our assumption for stock price volatility on
 the historical variance of weekly closing prices of Nextel
Communications' class A common stock.
Stock Appreciation Rights.
On November 1, 1996, we
adopted a Stock Appreciation Rights Plan, whereby some of our
employees and consultants of Nextel International were granted
rights to share in the future appreciation in the value of Nextel
 International. Such rights do not represent an equity interest
in Nextel International, only a right to compensation under the
terms of the plan.
In conjunction with adoption of the Nextel International Employee
 Stock Option Plan, our board of directors also approved a plan
to terminate the Stock Appreciation Rights Plan. Each holder of
previously granted stock appreciation rights was given the option
 to exchange their stock appreciation rights for stock options to
 be granted under the Nextel International Employee Stock Option
Plan. As of December 31, 1998, 20,000 stock appreciation
rights were outstanding. All outstanding stock appreciation
rights had been exchanged for Nextel International options during
 1999.
F-30
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
11.  Employee Stock and Benefit
Plans — (Continued)
Employee Benefit Plan.
Some of our officers and employees
are eligible to participate in Nextel Communications'
defined contribution plan established pursuant to
Section 401(k) of the Internal Revenue Code. We provide a
matching contribution of 50% of the first 4% of salary
contributed by the employee. Our contributions were about $49,000
 during 1999, $41,000 during 1998 and $29,000 during 1997.
12.  Related Party Transactions
Nextel Communications performs accounting, legal and other
services for us under a service agreement. We reimburse Nextel
Communications for costs incurred, which totaled
$1.2 million during 1999, $0.4 million during 1998 and
$0.3 million during 1997. We also reimburse Nextel
Communications for some vendor payments made on our behalf. At
December 31, 1999, amounts due to parent of
$8.8 million consist primarily of reimbursement due to
Nextel Communications for vendor payments made on our behalf
during the fourth quarter of 1999.
At December 31, 1999, Motorola beneficially owned
approximately 15.0% of Nextel Communications' outstanding
common stock. We maintain various business relationships with
Motorola, including purchases of infrastructure equipment and
subscriber units, equipment financing agreements, and shareholder
 relationships and agreements. (See Notes 2 and 7).
We purchased approximately $155.4 million during 1999 and
$162.6 million during 1998, in digital infrastructure
equipment, subscriber units and related services from Motorola.
As of December 31, 1999 and 1998, our consolidated balance
sheets include amounts payable to Motorola related to such
purchases of $15.8 million and $14.8 million,
respectively, in accounts payable and $242.9 million and
$102.2 million in long-term debt (see Note 7).
At various points during 1999, we entered into subscriber unit
purchase agreements with Motorola which established payment terms
 for purchases of subscriber units and related accessories by our
 consolidated subsidiaries. Amounts outstanding under these
subscriber unit purchase agreements total $15.8 million and
are included in accounts payable at December 31, 1999, as
noted above.
Nextel Philippines also entered into a subscriber unit purchase
agreement with terms substantially identical to those described
above. Amounts outstanding under this agreement total
$6.2 million at December 31, 1999, and are guaranteed
by us.
13.  Segment Information
For the years ended December 31, 1999 and December 31,
1998, we have four reportable operating segments: 1) Brazil,
 2) Argentina, 3) Mexico, and 4) Peru. The
operations of our corporate entities, which hold equity
investments in the Philippines and Japan, are included in the
Corporate and Other segment below. For the year ended
December 31, 1997, we have two reportable operating
segments: 1) Brazil, in which we obtained a controlling
interest as of January 1997 and 2) Mexico, in which we
obtained a controlling interest effective September 1997.
During 1997, Corporate and Other includes equity method
investments in Argentina and the Philippines.
Our segments reflect our geographic focus and are defined as
operating segments immediately subsequent to our obtaining a
controlling interest in the entity. We evaluate performance based
 on losses before interest, taxes, depreciation and amortization
and other
F-31
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
13.  Segment
Information — (Continued)
non-recurring charges, referred to as EBITDA. The accounting
policies of these segments are the same as those described in the
 summary of significant accounting policies. Intercompany
eliminations have been included in Corporate and Other.
Corporate
Brazil
Argentina
Mexico
Peru
and Other
Consolidated
(in thousands)
1999
Operating revenues
$
34,917
$
40,767
$
24,937
$
3,907
$
—
$
104,528
EBITDA
(68,554
)
(36,979
)
(28,813
)
(12,579
)
(15,925
)
(162,850
)
Depreciation and amortization
31,253
33,903
25,381
6,633
10,921
108,091
Interest expense
(14,150
)
(11,863
)
(431
)
(549
)
(152,611
)
(179,604
)
Interest income
3,409
172
215
167
4,479
8,442
Equity in losses of unconsolidated subsidiaries
—
—
—
—
(31,469
)
(31,469
)
Foreign currency transaction (loss) gain and other, net
(59,899
)
(1,194
)
(417
)
(866
)
(3,529
)
(65,905
)
Minority interest
13,712
—
—
5,602
—
19,314
Loss before income tax benefit
$
(156,735
)
$
(83,767
)
$
(54,827
)
$
(14,858
)
$
(209,976
)
$
(520,163
)
Property, plant and equipment, net
$
200,216
$
130,428
$
131,320
$
54,956
$
22,535
$
539,455
Identifiable assets
$
403,291
$
248,959
$
410,510
$
80,444
$
538,588
$
1,681,792
Capital expenditures
$
57,461
$
55,423
$
36,914
$
17,966
$
5,679
$
173,443
1998
Operating revenues
$
17,480
$
10,662
$
12,412
$
1,934
$
—
$
42,488
EBITDA
(60,945
)
(35,353
)
(10,253
)
(3,007
)
(11,137
)
(120,695
)
Depreciation and amortization
24,828
13,678
15,902
1,043
588
56,039
Interest expense
3,676
388
3,572
1,587
(116,047
)
(106,824
)
Interest income
2,210
165
440
164
13,676
16,655
Equity in losses of unconsolidated affiliates
—
—
—
—
(12,193
)
(12,193
)
Foreign currency transaction (loss) gain and other, net
(7,299
)
(4,138
)
10,760
(379
)
3,528
2,472
Minority interest
15,819
—
—
1,687
(375
)
17,131
Loss before income tax benefit
$
(71,367
)
$
(52,616
)
$
(11,383
)
$
(991
)
$
(123,136
)
$
(259,493
)
Property, plant and equipment, net
$
259,610
$
109,284
$
98,637
$
40,825
$
22,215
$
530,571
Identifiable assets
$
579,429
$
237,542
$
377,952
$
62,434
$
343,779
$
1,601,136
Capital expenditures
$
188,383
$
77,983
$
72,336
$
33,780
$
3,542
$
376,024
F-32
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
13.  Segment
Information — (Continued)
Corporate
Brazil
Mexico
and Other
Consolidated
(in thousands)
1997
Operating revenues
$
9,605
$
3,348
$
62
$
13,015
EBITDA
(12,145
)
35
(9,067
)
(21,177
)
Depreciation and amortization
9,403
3,499
5,479
18,381
Interest expense
1,577
(548
)
(57,612
)
(56,583
)
Interest income
363
128
19,175
19,666
Equity in losses of unconsolidated affiliates
—
—
(11,401
)
(11,401
)
Foreign currency transaction (loss) gain and other, net
(137
)
1,968
3,730
5,561
Minority interest
1,710
—
375
2,085
Loss before income tax benefit
$
(18,035
)
$
(1,916
)
$
(60,279
)
$
(80,230
)
Property, plant and equipment, net
$
113,769
$
21,040
$
1,401
$
136,210
Identifiable assets
$
420,242
$
288,695
$
414,101
$
1,123,038
Capital expenditures
$
87,370
$
13,938
$
584
$
101,892
14.  Quarterly Financial Data (Unaudited)
First
Second
Third
Fourth
(in thousands, except per share amounts)
1999
Operating revenues
$
19,861
$
21,899
$
27,345
$
35,423
Operating loss
(69,404
)
(75,012
)
(64,480
)
(62,045
)
Net loss
(165,282
)
(102,726
)
(129,719
)
(122,419
)
Net loss per common share, basic and diluted
(1.13
)
(0.70
)
(0.89
)
(0.84
)
1998
Operating revenues
$
8,558
$
9,189
$
8,850
$
15,891
Operating loss
(19,413
)
(29,730
)
(60,454
)
(67,137
)
Net loss
(28,569
)
(45,810
)
(69,864
)
(92,892
)
Net loss per common share, basic and diluted
(0.20
)
(0.32
)
(0.48
)
(0.64
)
The sum of the per share amounts do not equal the annual amounts
due to changes in the number of weighted average number of common
 shares outstanding during the year.
15.  Subsequent Events
Purchase of Minority Owner's Investment in Nextel
Peru.
In May 2000, we purchased another
shareholder's interest in Nextel Peru for about
$2.8 million in cash and increased our ownership from about
63% to about 69%.
Purchase of Motorola International's Common Equity
Shares in Companies in Brazil, Peru and Chile.
In
May 2000, we purchased all of the equity interests of
Motorola International in Nextel Peru, which increased our
ownership interest from about 69% to 100%. At the same time, we
purchased all of Motorola International's equity interests
in Nextel S.A., which increased our ownership of Nextel
Brazil from about 88% to about 92%. We also purchased all of
Motorola International's equity interests in three Chilean
analog SMR companies, which were wholly
F-33
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
15.  Subsequent Events — (Continued)
owned by Motorola International. We have entered into an
agreement with Motorola International to manage these three
companies during a transition period. The aggregate purchase
price for these acquisitions was about $77.7 million in
cash.
Capital Stock Issuances.
On April 4, 2000, we
received an advance of $77.7 million from a wholly owned
subsidiary of Nextel Communications in connection with the
anticipated purchase of Motorola International's common
equity shares in Nextel Brazil, Nextel Peru and three Chilean
companies as discussed above. On June 2, 2000, we issued
777 shares of our series A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications as repayment of this intercompany advance.
Additionally, on April 7, 2000, we issued 1,500 shares of
our series A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications in exchange for
cash proceeds of $150.0 million. On June 12, 2000, all
of our shares of series A exchangeable redeemable preferred
stock outstanding at that time were exchanged for shares of our
common stock. On June 29, 2000, we issued 2,150 shares of
our series A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications in exchange for
cash proceeds of $215.0 million.
Stock Options and Split.
On June 2, 2000, our
board of directors approved an increase in the number of
authorized shares of common stock from 73,000,000 to 200,000,000,
 enabling us to complete a 4-for-1 stock split effective
June 20, 2000. Information presented throughout these
financial statements and related notes has been adjusted to
reflect the 4-for-1 common stock split. At the same time, our
board of directors approved a new incentive equity plan that was
adopted by the plan administration committee on May 25,
2000. The plan provides for awards of option rights, appreciation
 rights, restricted shares, deferred shares and performance
shares to our nonaffiliate directors, officers, including
officers who are members of our board of directors, and other key
 employees, consultants and advisors with respect to
20,000,000 shares of common stock. Options to purchase
shares of common stock may be at prices equal to or greater than
market value on the date of grant. If an option holder's
employment is involuntarily terminated within one year after the
effective date of a change of control of Nextel International,
Inc., then that holder's unvested options and other equity
awards will immediately vest or otherwise become payable, subject
 to some limitations.
On May 25, 2000, we granted options to purchase
6,968,500 shares of common stock to employees and advisors
at an exercise price of $17.75 per common share. The options
granted expire ten years subsequent to award. Each grant becomes
exercisable with respect to 50% of the shares of common stock
covered by the grant on the second anniversary of the date of
grant and with respect to 25% of the shares of common stock
covered by the grant on each of the third and fourth
anniversaries of the date of grant for so long as the optionee
remains in our continuous employ. However, in the event of an
initial public offering or change of control, as defined in the
plan, prior to the first anniversary of the date of grant, 25% of
 the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of
F-34
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
15.  Subsequent Events — (Continued)
common stock covered by the grant become exercisable on each of
the second, third, and fourth anniversaries of the date of grant
for so long as the optionee remains in our continuous employ.
McCaw Brazil Ownership.
We entered into a purchase,
 release and settlement agreement dated as of July 21, 2000
with the Founders Group, who collectively were the minority
stockholders in McCaw Brazil, which indirectly owns 100% of
Nextel Brazil. Under that agreement, on August 4, 2000, we
(1) made a cash payment to members of the Founders Group
totaling $146.0 million, (2) received all of the equity
 interests held by the Founders Group in McCaw Brazil and
(3) exchanged mutual releases with all of the members of the
 Founders Group. In addition, all pending court disputes between
us and Telcom Ventures, a member of the Founders Group, have been
 permanently dismissed. For a description of these disputes, see
Notes 2 and 9. As a result, all rights of the Founders Group
 as minority stockholders in McCaw Brazil, including their rights
 to put their equity interests to us beginning in
October 2001, have terminated. We will account for this
additional investment in McCaw Brazil using the purchase method.
Credit Facility Amendments.
On June 20, 2000,
in conformity with our 2000 operating plan, Nextel Argentina and
the lenders under the Argentina Credit Facility amended the
facility to modify several financial covenants. As a condition to
 the effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of
$84.1 million to Nextel Argentina during 1999 and are now
required to contribute equity of $134.5 million during 2000,
 $110.0 million during 2001 and $117.0 million during
2002, all subject to adjustment in case of certain events.
Also in the second quarter of 2000, we amended and restated the
$125.0 million equipment financing agreement between McCaw
Brazil (International), Ltd., referred to as McCaw Brazil, and
Motorola Credit Corporation to effect certain administrative
changes.
Debt Issuance.
On August 1, 2000, we completed
 the issuance and sale in a private placement of an aggregate of
$650.0 million in principal amount of our 12.75% senior
serial notes due 2010, generating about $623.8 million in
net cash proceeds.
Nextel Philippines.
On July 28, 2000, we
increased our direct and indirect ownership interests in Nextel
Communications Philippines, Inc., referred to as Nextel
Philippines, from about 38% to about 51% through the purchase of
some of the minority owners' equity interests in Nextel
Philippines for about $9.8 million.
F-35
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2000 and December 31, 1999
(in thousands)
Unaudited
2000
1999
ASSETS
Current assets
Cash and cash equivalents, of which $10,487 and $6,179 is
	restricted
$
267,435
$
100,028
Short-term investments
29,949
—
Accounts receivable, less allowance for doubtful accounts of
	$14,143 and $8,815
36,127
23,041
Subscriber unit and accessory inventory
25,500
16,185
Prepaid expenses and other
41,808
21,868
Total current assets
400,819
161,122
Property, plant and equipment,
net of accumulated
	depreciation of $141,105 and $95,449
755,229
539,455
Investments in unconsolidated affiliates,
less equity in
	net losses of $63,413 and $46,129
350,084
428,971
Intangible assets,
net of accumulated amortization of
	$66,934 and $61,105
505,675
454,657
Other assets
112,203
97,587
$
2,124,010
$
1,681,792
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable
$
62,209
$
44,210
Accrued expenses and other
74,873
61,448
Accrued interest
4,476
15,423
Due to related party
119,060
15,778
Due to parent
7,261
8,847
Current portion of long-term debt
67,098
33,739
Total current liabilities
334,977
179,445
Long-term debt
1,666,634
1,514,757
Deferred income taxes
126,570
141,943
Total liabilities
2,128,181
1,836,145
Contingencies (Note 4)
Minority interest
—
25,237
Stockholders' deficit
Series A exchangeable redeemable preferred stock, 2 
	shares and 3 shares issued and outstanding, accreted
	liquidation preference of $215,081 and $337,737
215,000
298,886
Common stock, 180,691 and 146,893 shares issued and
	outstanding
927,693
399,401
Accumulated deficit
(1,100,900
)
(859,970
)
Accumulated other comprehensive loss
(45,964
)
(17,907
)
Total stockholders' deficit
(4,171
)
(179,590
)
$
2,124,010
$
1,681,792
The accompanying notes are an integral part of these condensed
consolidated financial statements.
F-36
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
For the Six and Three Months Ended June 30, 2000 and 1999
(in thousands, except per share amounts)
Unaudited
Six Months Ended
Three Months Ended
June 30,
June 30,
2000
1999
2000
1999
Operating revenues
$
110,800
$
41,760
$
63,625
$
21,899
Operating expenses
Cost of revenues
29,652
18,072
15,690
9,106
Selling, general and administrative
148,650
116,222
81,390
59,337
Depreciation and amortization
65,183
51,882
32,682
28,468
243,485
186,176
129,762
96,911
Operating loss
(132,685
)
(144,416
)
(66,137
)
(75,012
)
Other income (expense)
Interest expense
(106,660
)
(82,220
)
(53,945
)
(43,526
)
Interest income
5,547
2,827
5,199
1,289
Equity in losses of unconsolidated affiliates
(17,284
)
(11,520
)
(10,171
)
(6,869
)
Foreign currency transaction gains (losses), net
5,922
(45,864
)
(6,615
)
20,833
Minority interest in losses of subsidiaries
6,504
13,299
3,754
1,258
Other, net
(1,906
)
325
(1,542
)
(539
)
(107,877
)
(123,153
)
(63,320
)
(27,554
)
Loss before income tax provision
(240,562
)
(267,569
)
(129,457
)
(102,566
)
Income tax provision
(368
)
(439
)
(580
)
(160
)
Net loss
(240,930
)
(268,008
)
(130,037
)
(102,726
)
Accretion of series A redeemable preferred stock to value of
	liquidation preference (Note  2)
(61,334
)
—
(61,334
)
—
Loss attributable to common stockholders
$
(302,264
)
$
(268,008
)
$
(191,371
)
$
(102,726
)
Loss per share attributable to common stockholders, basic and
	diluted
$
(2.01
)
$
(1.83
)
$
(1.24
)
$
(0.70
)
Weighted average number of common shares outstanding
150,422
146,130
153,942
146,163
Comprehensive loss, net of income tax
Net loss
$
(240,930
)
$
(268,008
)
$
(130,037
)
$
(102,726
)
Unrealized (loss) gain on available-for-sale securities
(35,975
)
42,087
(73,055
)
1,956
Foreign currency translation adjustment
7,918
(110,079
)
(10,920
)
29,018
Comprehensive loss
$
(268,987
)
$
(336,000
)
$
(214,012
)
$
(71,752
)
The accompanying notes are an integral part of these condensed
consolidated financial statements.
F-37
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS' DEFICIT
For the Six Months Ended June 30, 2000
(in thousands)
Unaudited
Accumulated Other
Comprehensive
Income (Loss)
Series A
Preferred Stock
Common Stock
Unrealized
Cumulative
Accumulated
Gain (Loss) on
Translation
Shares
Amount
Shares
Amount
Deficit
Investments
Adjustment
Total
Balance, January  1, 2000
3
$
298,886
146,893
$
399,401
$
(859,970
)
$
119,682
$
(137,589
)
$
(179,590
)
Net loss
(240,930
)
(240,930
)
Unrealized loss on available-for-sale securities, net of income
	tax
(35,975
)
(35,975
)
Foreign currency translation adjustment
7,918
7,918
Issuance of series A redeemable preferred stock to parent
4
442,685
442,685
Issuance of common stock:
Conversion of series A redeemable preferred stock at accreted
	liquidation preference value
(5
)
(526,571
)
33,121
526,571
—
Exercise of stock options and warrants
677
1,721
1,721
Balance, June 30, 2000
2
$
215,000
180,691
$
927,693
$
(1,100,900
)
$
83,707
$
(129,671
)
$
(4,171
)
The accompanying notes are an integral part of these condensed
consolidated financial statements.
F-38
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2000 and 1999
(in thousands)
Unaudited
2000
1999
Cash flows from operating activities
Net loss
$
(240,930
)
$
(268,008
)
Adjustments to reconcile net loss to net cash used in operating
	activities:
Amortization of deferred financing costs and accretion of senior
	notes
71,645
65,588
Depreciation and amortization
65,183
51,882
Provision for losses on accounts receivable
8,690
22,377
Loss on write-off of assets
570
6,898
Deferred income tax provision
368
439
Equity in losses of unconsolidated affiliates
17,284
11,520
Net foreign currency transaction (gains) losses
(5,922
)
45,864
Minority interest in losses of subsidiaries
(6,504
)
(13,299
)
Other, net
(431
)
—
Change in assets and liabilities, net of effects from
	acquisitions:
Accounts receivable
(21,312
)
(11,432
)
Subscriber unit and accessory inventory
(9,310
)
17,772
Other assets
(29,399
)
(15,319
)
Accounts payable, accrued expenses and other
48,294
(14,387
)
Net cash used in operating activities
(101,774
)
(100,105
)
Cash flows from investing activities
Capital expenditures
(141,380
)
(86,906
)
Investments in consolidated subsidiaries, net of cash acquired
(80,466
)
—
Purchase of short-term investments
(29,518
)
—
Investments in unconsolidated affiliates and other, net
(3,619
)
(29,903
)
Net cash used in investing activities
(254,983
)
(116,809
)
Cash flows from financing activities
Proceeds from issuance of series A redeemable preferred stock to
	parent
442,685
100,000
Borrowings under long-term credit facilities
88,142
135,079
Repayments under long-term credit facilities
(13,240
)
(7,623
)
Capital contributions from minority stockholders
6,223
8,403
(Repayments to) borrowings from parent, net
(1,586
)
8,809
Deferred financing costs
—
(2,609
)
Exercise of stock options and warrants
1,721
110
Net cash provided by financing activities
523,945
242,169
Effect of exchange rate changes on cash and cash equivalents
219
(5,184
)
Net increase in cash and cash equivalents
167,407
20,071
Cash and cash equivalents, beginning of period
100,028
121,116
Cash and cash equivalents, end of period
$
267,435
$
141,187
Supplemental disclosure of cash flow information
Cash paid for interest
$
45,962
$
2,559
The accompanying notes are an integral part of these condensed
consolidated financial statements.
F-39
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
Note 1.  Basis of Presentation.
As used in these condensed consolidated financial statements, the
 terms "we," "us," "our" and
"Nextel International," refer to Nextel International,
Inc. and our consolidated subsidiaries. Nextel International is
an indirect, substantially wholly owned subsidiary of Nextel
Communications, Inc. Unless the context requires otherwise,
references to Nextel Communications refer to Nextel
Communications, Inc. and its consolidated subsidiaries.
Our unaudited condensed consolidated financial statements have
been prepared under the rules and regulations of the Securities
and Exchange Commission and reflect all adjustments that are
necessary for a fair presentation of the results for interim
periods. All adjustments made were normal recurring accruals.
You should read the condensed consolidated financial statements
in conjunction with the consolidated financial statements and
notes contained in our Annual Report on Form 10-K for the
year ended December 31, 1999. You should not expect results
of operations of interim periods to be an indication of the
results for a full year.
Restricted Cash and Cash Equivalents.
Some of our
subsidiaries held cash and cash equivalents of $10.5 million
 as of June 30, 2000 and $6.2 million as of
December 31, 1999, that were not available to fund any of
the cash needs of Nextel International, Inc. or any of our other
subsidiaries due to restrictions contained in some of our debt
agreements.
Short-Term Investments.
Short-term investments
consist of commercial paper with original maturities of greater
than three months and less than one year.
Supplemental Cash Flow Information.
Six Months
Ended
June 30,
2000
1999
(in thousands)
Capital expenditures
Cash paid for capital expenditures
$
141,380
$
86,906
Change in capital expenditures accrued and unpaid or financed
111,304
5,313
$
252,684
$
92,219
Interest costs
Interest expense
$
106,660
$
82,220
Interest capitalized
7,121
3,963
$
113,781
$
86,183
Digital Subscriber Unit and Accessory Sales and Related
Costs.
We deliver our wireless service through handset
devices, which we refer to as subscriber units. The loss
generated from the sale of subscriber units used in our digital
enhanced specialized mobile radio, referred to as ESMR, networks
primarily results from our subsidy of digital subscriber units
and accessories and represents marketing costs. Consolidated
digital subscriber unit and accessory sales and the related cost
of sales, including current period order fulfillment and
installation related expenses,
F-40
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
and write downs of digital subscriber unit inventory and related
accessories for shrinkage and obsolescence, are classified within
 selling, general and administrative expenses as follows:
Six Months Ended
Three Months Ended
June 30,
June 30,
2000
1999
2000
1999
(in thousands)
Subscriber unit and accessory sales
$
16,830
$
10,388
$
10,221
$
4,229
Cost of subscriber unit and accessory sales
45,476
23,854
26,174
11,546
$
(28,646
)
$
(13,466
)
$
(15,953
)
$
(7,317
)
New Accounting Pronouncements.
In June 1998,
the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for
 Derivative Instruments and Hedging Activities," which, as
amended by SFAS No. 138 in June 2000, establishes
accounting and reporting standards for derivative instruments,
including some derivatives embedded in other contracts, and for
hedging activities by requiring that all derivatives be
recognized on the balance sheet and measured at fair value. In
June 1999, the FASB issued SFAS No. 137, "Deferral
 of the Effective Date of FASB Statement No. 133 —
 an Amendment of FASB Statement No. 133," which
deferred the effective date for us until January 1, 2001. We
 are in the process of evaluating the potential impact of this
statement on our financial position and results of operations.
In December 1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements," which provides
guidance on the recognition, presentation and disclosure of
revenue in financial statements. The guidelines in SAB
No. 101 must be adopted by the fourth quarter of 2000. Based
 on our current assessment and guidance provided to date by the
Securities and Exchange Commission, we do not believe that SAB
No. 101 will have a material impact on our financial
position or results of operations.
In March 2000, the FASB issued Interpretation No. 44,
"Accounting for Certain Transactions involving Stock
Compensation, an Interpretation of APB Opinion No. 25,"
 which clarifies the application of APB Opinion No. 25 for
certain issues including: (1) the definition of an employee
for purposes of applying APB Opinion No. 25, (2) the
criteria for determining whether a plan qualifies as a
noncompensatory plan, (3) the accounting consequences of
various modifications to the terms of a previously fixed stock
option or award and (4) the accounting for an exchange of
stock compensation awards in a business combination.
Interpretation No. 44 is effective July 1, 2000, but
certain conclusions cover specific events that occur either after
 December 15, 1998 or January 12, 2000. We do not
expect the adoption of this guidance on July 1, 2000 will
have a material impact on our financial position or results of
operations.
In May 2000, the Emerging Issues Task Force reached a
consensus on Issue No. 00-14, "Accounting for Certain
Sales Incentives," which addresses the recognition,
measurement and income classification for sales incentives
offered voluntarily by vendors, without cost to consumers, as a
result of a single exchange transaction. We are required to and
will adopt EITF Issue No. 00-14 in the fourth quarter of
2000. We are in the process of evaluating the potential impact of
 this consensus on our financial position and results of
operations.
Reclassifications.
Certain prior period amounts
have been reclassified to conform to our current year
presentation.
F-41
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Note 2.  Significant Transactions and
Developments.
Increase in Ownership Interest in NEXNET.
In
March 2000, as a consequence of capital contributions made
to our Japanese affiliate, NEXNET Co., Ltd., by some of its
stockholders to supply funds that a stockholder was required but
declined to contribute, the stockholder transferred a portion of
its shares to the contributing stockholders, including us. On
March 30, 2000, we purchased additional shares for about
$0.4 million in cash and were granted an option, exercisable
 at any time prior to March 31, 2001, to purchase any or all
 of the remaining shares of NEXNET stock owned by the same
stockholder. As a result of these share acquisitions, our equity
ownership interest in NEXNET has increased from about 21% to
about 32%. If we exercise the option, our equity ownership
interest would increase to about 44%.
Purchase of Common Equity Shares in Companies in Brazil,
Peru and Chile.
In May 2000, we purchased another
stockholder's interest in Nextel del Peru, S.A., referred to
 as Nextel Peru, for about $2.8 million in cash and
increased our ownership from about 63% to about 69%.
Also in May 2000, we purchased all of the equity interests
of Motorola International Development Corporation, referred to as
 Motorola International, in Nextel Peru, which increased our
ownership from about 69% to 100%. At the same time, we purchased
all of Motorola International's equity interests in our
Brazilian operations, which increased our effective ownership in
our Brazilian operations from about 88% to about 92%. In
August 2000, we purchased the remaining 8% from the
remaining minority stockholders, as described in Note 4,
increasing our ownership interest in McCaw International
(Brazil), Ltd., referred to as McCaw Brazil, to 100%. In
May 2000, we also purchased all of Motorola
International's equity interests in three Chilean analog
specialized mobile radio, referred to as SMR, companies, which
were wholly owned by Motorola International. We have entered into
 an agreement with Motorola International to manage these three
Chilean SMR companies during a transition period. The aggregate
purchase price paid to Motorola International for these
acquisitions in Brazil, Peru and Chile was about
$77.7 million in cash.
Shanghai, People's Republic of China Negotiations.
As a result of recent changes to the regulatory environment
in China, Shanghai CCT-McCaw Telecommunications Systems Co.,
Ltd., a joint venture in which we own a 30% interest, referred to
 as Shanghai CCT McCaw, terminated an agreement with China United
 Telecommunications Corporation, referred to as Unicom, under
which we had the right to share in the profits of the cellular
network in Shanghai, referred to as the Shanghai GSM System. In
consideration for entering into this termination agreement,
Shanghai CCT McCaw received about $61.3 million in cash, and
 we received warrants to purchase shares of Unicom stock. The
warrants are exercisable for about 8.2 million shares during
 the period commencing in December 2000 and ending in
June 2001 at the initial public offering price of HK$15.58
or US$2.00 per share. In May 2000, we received a
reimbursement of $7.5 million for advances we previously
made to Shanghai CCT McCaw. We are currently working with the
other stockholders of the joint venture to arrange for the
reimbursement of expenses incurred by the stockholders related to
 their investment in Shanghai CCT McCaw and the sale of our
interests in the joint venture. Any funds remaining after payment
 of these expenses and satisfaction of other existing obligations
 will be distributed among the stockholders of Shanghai CCT
McCaw. We would be entitled to receive 30% of the total amount
distributed based on our ownership interest. The carrying value
of our investment in Shanghai CCT McCaw was about
$7.3 million as of June 30, 2000, which we expect to
fully recover based on the terms of the agreement. This
investment is included in the prepaid expenses and other caption
in the accompanying balance sheet as of June 30, 2000.
F-42
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Additional Capital.
On April 4, 2000, we
received an advance of $77.7 million from a wholly owned
subsidiary of Nextel Communications in connection with the
anticipated purchase of Motorola International's equity
interest in Nextel Telecomunições Ltda., referred to as
 Nextel Brazil, Nextel Peru and three Chilean companies as
discussed above. On June 2, 2000, we issued 777 shares
of our series A exchangeable redeemable preferred stock to a
wholly owned subsidiary of Nextel Communications as repayment of
this intercompany advance. Additionally, on April 7, 2000,
we issued 1,500 shares of our series A exchangeable
redeemable preferred stock to a wholly owned subsidiary of Nextel
 Communications in exchange for cash proceeds of
$150.0 million. On June 12, 2000, all of the shares of
series A exchangeable redeemable preferred stock outstanding at
that time, including the accretion to liquidation preference
value of $61.3 million, were exchanged for our common stock.
 On June 29, 2000, we issued 2,150 shares of our series
 A exchangeable redeemable preferred stock to a wholly owned
subsidiary of Nextel Communications in exchange for cash proceeds
 of $215.0 million.
Stock Options and Split.
On June 2, 2000, our
board of directors approved an increase in the number of
authorized shares of common stock from 73,000,000 to 200,000,000,
 enabling us to complete a 4-for-1 common stock split, which was
effective June 20, 2000. Information presented throughout
these financial statements and related notes has been adjusted to
 reflect this 4-for-1 common stock split. At the same time, our
board of directors approved a new incentive equity plan that was
adopted by the plan administration committee on May 25,
2000. The plan provides for awards of option rights, appreciation
 rights, restricted shares, deferred shares and performance
shares to our nonaffiliate directors, officers, including
officers who are members of our board of directors, and other key
 employees, consultants and advisors with respect to
20,000,000 shares of common stock. Options to purchase
shares of common stock may be at prices equal to or greater than
market value on the date of grant. If an option holder's
employment is involuntarily terminated within one year after the
effective date of a change of control of Nextel International,
Inc., then that holder's unvested options and other equity
awards will immediately vest or otherwise become payable, subject
 to some limitations.
On May 25, 2000, we granted options to purchase
6,968,500 shares of common stock to employees and advisors
at an exercise price of $17.75 per common share. The options
granted expire ten years subsequent to award. Each grant becomes
exercisable with respect to 50% of the shares of common stock
covered by the grant on the second anniversary of the date of
grant and with respect to 25% of the shares of common stock
covered by the grant on each of the third and fourth
anniversaries of the date of grant for so long as the optionee
remains in our continuous employ. However, in the event of an
initial public offering or change of control, as defined in the
plan, prior to the first anniversary of the date of grant, 25% of
 the shares of common stock covered by the grant become
exercisable on each of the first four anniversaries of the date
of grant for so long as the optionee remains in our continuous
employ. In the event of an initial public offering or change of
control, as defined in the plan, on or after the first
anniversary of the date of grant but prior to the second
anniversary of the date of grant, 25% of the shares of common
stock covered by the grant become exercisable on the first to
occur of the initial public offering or change of control, as
defined in the plan, and 25% of the shares of common stock
covered by the grant become exercisable on each of the second,
third, and fourth anniversaries of the date of grant for so long
as the optionee remains in our continuous employ.
F-43
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Note 3.  Long-Term Debt.
June 30,
December 31,
2000
1999
(in thousands)
13.0% Senior Redeemable Discount Notes due 2007
, net of
	unamortized discount of $205,593 and $252,323
$
745,870
$
699,140
12.125% Senior Serial Redeemable Discount Notes due 2008
,
	net of unamortized discount of $204,130 and $234,280
525,870
495,720
International Motorola Financing Facility
172,600
139,146
International Motorola Incremental Facility
56,650
—
Brazil Motorola Financing Facility
112,500
103,757
Argentina Credit Facility
100,000
100,000
Motorola Argentina Incremental Facility
18,580
8,330
Other
1,662
2,403
1,733,732
1,548,496
Less current portion
(67,098
)
(33,739
)
$
1,666,634
$
1,514,757
International Motorola Incremental Facility.
On
December 16, 1999, we entered into an agreement with
Motorola Credit Corporation under which Motorola Credit committed
 to provide up to $56.6 million in incremental term loans to
 us to acquire infrastructure equipment and related services from
 Motorola. Loans under this facility mature December 31,
2001 and bear interest payable semi annually at variable rates
based upon either the U.S. prime rate or the London
Interbank Offered Rate, referred to as LIBOR. Loans under this
facility are secured by a pledge of all of our shares of stock of
 Clearnet Communications, Inc, a publicly traded Canadian
wireless communications company. On January 6, 2000, we
borrowed the full $56.6 million available under this
facility.
Credit Facility Amendments.
In December 1999,
Nextel Argentina S.R.L., referred to as Nextel Argentina,
and the lenders under the $100.0 million secured credit
facility, referred to as the Argentina Credit Facility, amended
the facility to modify several financial covenants applicable to
the fourth quarter of 1999 and the first quarter of 2000. As
contemplated in December 1999, on June 20, 2000, in
conformity with our 2000 operating plan, Nextel Argentina and the
 lenders under the Argentina Credit Facility amended the facility
 to modify several financial covenants. As a condition to the
effectiveness of those amendments, we amended the capital
subscription agreement under which we contributed equity of
$84.1 million to Nextel Argentina during 1999 and are now
required to contribute equity of $134.5 million during 2000,
 $110.0 million during 2001 and $117.0 million during
2002, all subject to adjustment in case of certain events. As of
June 30, 2000, Nextel Argentina had borrowed the entire
$100.0 million available under the Argentina Credit
Facility. Nextel Argentina is in compliance with all financial
covenants contained in the facility, as amended.
Also in the second quarter of 2000, we amended and restated the
$125.0 million equipment financing agreement between McCaw
Brazil (International), Ltd., referred to as McCaw Brazil, and
Motorola Credit Corporation to effect certain administrative
changes.
Note 4.  Contingencies.
McCaw Brazil Ownership.
We entered into a purchase,
 release and settlement agreement dated as of July 21, 2000
with the Founders Group, who collectively were the minority
F-44
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
stockholders in McCaw Brazil, which indirectly owns 100% of
Nextel Brazil. Under that agreement, on August 4, 2000, we
(1) made a cash payment to members of the Founders Group
totaling $146.0 million, (2) received all of the equity
 interests held by the Founders Group in McCaw Brazil and
(3) exchanged mutual releases with all of the members of the
 Founders Group. In addition, all pending court disputes between
us and Telcom Ventures, a member of the Founders Group, have been
 permanently dismissed. For a description of these disputes, see
Notes 2 and 9 in our 1999 Annual Report on Form 10-K.
As a result, all rights of the Founders Group as minority
stockholders in McCaw Brazil, including their rights to put their
 equity interests to us beginning in October 2001, have
terminated. We will account for this additional investment in
McCaw Brazil using the purchase method.
See also Part II, Item 1. "Legal Proceedings"
 for discussion of other legal matters.
Note 5.  Segment Reporting.
We operate in four reportable segments 1) Brazil,
2) Mexico, 3) Argentina and 4) Peru. The
operations of all other businesses that fall below the reporting
thresholds are included in the "Corporate and Other"
segment below, which include the three Chilean analog SMR
companies purchased in May 2000 and corporate entities which
 hold equity investments in the Philippines and Japan.
Our segments reflect our geographic focus and are defined as
separately reportable operating segments immediately after we
obtain a controlling interest in the entity. We evaluate
performance of these segments and allocate resources to them
based on losses before interest, taxes, depreciation and
amortization and other non-recurring charges, referred to as
segment losses. Intercompany eliminations have been included in
Corporate and Other.
Corporate
Brazil
Mexico
Argentina
Peru
and Other
Consolidated
(in thousands)
For the Six Months Ended
June 30, 2000
Operating revenues
$
35,115
$
35,940
$
31,347
$
8,243
$
155
$
110,800
Segment losses
$
(21,087
)
$
(16,933
)
$
(7,608
)
$
(7,735
)
$
(14,139
)
$
(67,502
)
Depreciation and amortization
(20,990
)
(14,830
)
(21,687
)
(4,416
)
(3,260
)
(65,183
)
Interest expense
(11,563
)
—
(7,660
)
(951
)
(86,486
)
(106,660
)
Interest income
263
127
888
82
4,187
5,547
Equity in losses of unconsolidated affiliates
—
—
—
—
(17,284
)
(17,284
)
Foreign currency transaction gains (losses), net
5,986
65
—
(110
)
(19
)
5,922
Minority interest in losses of subsidiaries
3,721
—
—
2,783
—
6,504
Other, net
(684
)
(30
)
(637
)
197
(752
)
(1,906
)
Loss before income tax provision
$
(44,354
)
$
(31,601
)
$
(36,704
)
$
(10,150
)
$
(117,753
)
$
(240,562
)
Capital expenditures
$
114,048
$
76,295
$
38,293
$
23,121
$
927
$
252,684
F-45
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Corporate
Brazil
Mexico
Argentina
Peru
and Other
Consolidated
(in thousands)
For the Six Months Ended
June 30, 1999
Operating revenues
$
16,043
$
8,862
$
15,874
$
981
$
—
$
41,760
Segment losses
$
(39,439
)
$
(15,037
)
$
(23,792
)
$
(6,501
)
$
(7,765
)
$
(92,534
)
Depreciation and amortization
(19,699
)
(12,313
)
(13,383
)
(2,135
)
(4,352
)
(51,882
)
Interest expense
(3,732
)
(501
)
(5,068
)
(216
)
(72,703
)
(82,220
)
Interest income
1,057
120
70
106
1,474
2,827
Equity in losses of unconsolidated affiliates
—
—
—
—
(11,520
)
(11,520
)
Foreign currency transaction losses, net
(42,848
)
(269
)
(3
)
(415
)
(2,329
)
(45,864
)
Minority interest in losses of subsidiaries
10,888
—
—
2,411
—
13,299
Other, net
(166
)
795
120
70
(494
)
325
Loss before income tax provision
$
(93,939
)
$
(27,205
)
$
(42,056
)
$
(6,680
)
$
(97,689
)
$
(267,569
)
Capital expenditures
$
21,797
$
14,436
$
38,523
$
10,352
$
7,111
$
92,219
For the Three Months Ended
June 30, 2000
Operating revenues
$
20,278
$
20,759
$
17,111
$
5,322
$
155
$
63,625
Segment losses
$
(7,758
)
$
(9,416
)
$
(4,689
)
$
(3,888
)
$
(7,704
)
$
(33,455
)
Depreciation and amortization
(10,660
)
(7,589
)
(10,185
)
(2,427
)
(1,821
)
(32,682
)
Interest expense
(7,050
)
—
(3,900
)
(564
)
(42,431
)
(53,945
)
Interest income
222
61
860
32
4,024
5,199
Equity in losses of unconsolidated affiliates
—
—
—
—
(10,171
)
(10,171
)
Foreign currency transaction losses, net
(5,957
)
(438
)
—
(208
)
(12
)
(6,615
)
Minority interest in losses of subsidiaries
2,904
—
—
850
—
3,754
Other, net
(731
)
(91
)
(296
)
1
(425
)
(1,542
)
Loss before income tax provision
$
(29,030
)
$
(17,473
)
$
(18,210
)
$
(6,204
)
$
(58,540
)
$
(129,457
)
Capital expenditures
$
62,822
$
48,336
$
16,508
$
8,949
$
511
$
137,126
F-46
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications, Inc.)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Corporate
Brazil
Mexico
Argentina
Peru
and Other
Consolidated
(in thousands)
For the Three Months Ended
June 30, 1999
Operating revenues
$
7,491
$
5,021
$
8,864
$
523
$
—
$
21,899
Segment losses
$
(18,245
)
$
(6,599
)
$
(13,575
)
$
(3,367
)
$
(4,758
)
$
(46,544
)
Depreciation and amortization
(11,015
)
(6,366
)
(6,961
)
(1,538
)
(2,588
)
(28,468
)
Interest expense
(2,053
)
(182
)
(3,079
)
(216
)
(37,996
)
(43,526
)
Interest income
638
58
35
49
509
1,289
Equity in losses of unconsolidated affiliates
—
—
—
—
(6,869
)
(6,869
)
Foreign currency transaction gains (losses), net
20,767
572
(3
)
185
(688
)
20,833
Minority interest in losses of subsidiaries
—
—
—
1,258
—
1,258
Other, net
(176
)
122
(160
)
2
(327
)
(539
)
Loss before income tax provision
$
(10,084
)
$
(12,395
)
$
(23,743
)
$
(3,627
)
$
(52,717
)
$
(102,566
)
Capital expenditures
$
8,646
$
2,133
$
20,763
$
5,849
$
6,201
$
43,592
As of June 30, 2000
Property, plant and equipment, net
$
323,663
$
199,343
$
149,983
$
73,803
$
8,437
$
755,229
Identifiable assets
$
564,080
$
495,722
$
278,237
$
123,553
$
662,418
$
2,124,010
As of December 31, 1999
Property, plant and equipment, net
$
216,385
$
131,320
$
130,428
$
54,956
$
6,366
$
539,455
Identifiable assets
$
419,460
$
410,510
$
248,959
$
80,444
$
522,419
$
1,681,792
Note 6. Subsequent Events.
Debt Issuance.
On August 1, 2000, we completed
 the issuance and sale in a private placement of an aggregate of
$650.0 million in principal amount of our 12.75% senior
serial notes due 2010, generating about $623.8 million in
net cash proceeds.
Nextel Philippines.
On July 28, 2000, we
increased our direct and indirect ownership interests in Nextel
Communications Philippines, Inc., referred to as Nextel
Philippines, from about 38% to about 51% through the purchase of
some of the minority owners' equity interests in Nextel
Philippines for about $9.8 million.
Purchase Commitment.
On August 14, 2000, we and
some of our Operating Companies entered into equipment purchase
agreements with Motorola, Inc. under which Motorola will provide
us with infrastructure equipment and services. We and Motorola
have also agreed to warranty and maintenance programs and
specified indemnity arrangements. In addition, under some
circumstances, we have agreed to purchase at least 50% of our
infrastructure equipment from Motorola. These agreements also
contain minimum purchase commitments that if not met subject us
to penalties based on a percentage of the commitment shortfall.
F-47
Table of Contents
NEXTEL INTERNATIONAL, INC.
(Parent Only)
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF
REGISTRANT
CONDENSED BALANCE SHEETS
As of December 31, 1999 and 1998
(in thousands, except per share amounts)
1999
1998
ASSETS
Current assets
Cash and cash equivalents
$
21,952
$
52,698
Accounts receivable, net
15
56
Prepaid expenses and other
352
13
Total current assets
22,319
52,767
Property, plant, and equipment, net
3,782
161
Investments in and advances to subsidiaries
884,582
1,011,148
Intangible assets
1,306
1,469
Investment and other assets
317,932
96,900
$
1,229,921
$
1,162,445
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities
Accounts payable
$
1,625
$
2,042
Accrued expenses and other
590
882
Due to parent
8,847
—
Total current liabilities
11,062
2,924
Deferred income taxes
64,444
—
Long-term debt
1,334,005
1,063,623
Stockholders' (deficit) equity
Series A exchangeable redeemable preferred stock, accreted
	liquidation preference of $337,737 and $110,456 (12,500 shares
	authorized, $10.00 par value, 2,988.86 and 988.86 shares issued
	and outstanding)
298,886
98,886
Common stock (200,000,000 shares authorized, no par 146,893,236
	and 146,094,716 shares issued and outstanding)
399,401
396,574
Accumulated deficit
(859,970
)
(339,824
)
Accumulated other comprehensive loss:
Unrealized gain (loss) on investment, net of tax
119,682
(35,688
)
Cumulative translation adjustment
(137,589
)
(24,050
)
Accumulated other comprehensive loss
(17,907
)
(59,738
)
Total stockholders' (deficit)equity
(179,590
)
95,898
$
1,229,921
$
1,162,445
The accompanying notes are an integral part of these financial
statements.
F-48
Table of Contents
NEXTEL INTERNATIONAL, INC.
(Parent Only)
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF
REGISTRANT — (Continued)
CONDENSED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999, 1998 and 1997
(dollars in thousands)
1999
1998
1997
Operating revenues
$
—
$
—
$
3
Operating expenses
Selling, general and administrative
14,377
7,029
5,175
Depreciation and amortization
6,173
555
172
20,550
7,584
5,347
Operating loss
(20,550
)
(7,584
)
(5,344
)
Other income (expense):
Interest expense
(153,595
)
(117,291
)
(56,241
)
Interest income
3,408
12,065
17,303
Equity in net losses of unconsolidated affiliates
(346,368
)
(129,627
)
(27,720
)
Other, net
(3,034
)
5,302
(15
)
(499,589
)
(229,551
)
(66,673
)
Loss before income tax provision
(520,139
)
(237,135
)
(72,017
)
Income tax provision
(7
)
—
(1,931
)
Net loss
$
(520,146
)
$
(237,135
)
$
(73,948
)
The accompanying notes are an integral part of these financial
statements.
F-49
Table of Contents
NEXTEL INTERNATIONAL, INC.
(Parent Only)
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF
REGISTRANT — (Continued)
CONDENSED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 1999, 1998 and 1997
(in thousands)
1999
1998
1997
Cash flows from operating activities:
Net loss
$
(520,146
)
$
(237,135
)
$
(73,948
)
Adjustments to reconcile net loss to net cash provided by
	(used in) operating activities:
Depreciation and amortization
6,173
555
172
Interest accretion on long-term debt, net of capitalization
139,811
100,069
56,241
Equity in net losses of unconsolidated affiliates
346,368
131,111
27,720
Change in current assets and liabilities:
Accounts receivable
41
(12
)
339
Prepaid expenses and other
(50
)
(3
)
38
Investment and other assets
(6,618
)
(9,004
)
(2,221
)
Accounts payable
34,592
(235
)
1,477
Other
2,048
(2,983
)
200
Net cash provided by (used in) operating activities
2,219
(17,637
)
10,018
Cash flows from investing activities:
Capital expenditures
(4,231
)
(78
)
(152
)
Purchase of marketable securities
—
(93,997
)
(227,957
)
Proceeds from sale of marketable securities
—
221,225
100,729
Investments in and advances to subsidiaries
(321,053
)
(567,482
)
(246,230
)
Other
—
—
(624
)
Net cash used in investing activities
(325,284
)
(440,332
)
(374,234
)
Cash flows from financing activities:
Repayments to parent
(25,624
)
—
(23,556
)
Capital contributions from parent
6,366
Proceeds from the issuance of preferred stock and warrants
200,000
—
14,800
Proceeds from the issuance of long-term debt
124,521
409,455
467,578
Repayment of long-term debt
(8,575
)
—
Proceeds from exercise of stock options
1,997
237
—
Net cash provided by financing activities
292,319
409,692
465,188
(Decrease) Increase in cash and cash equivalents
(30,746
)
(48,277
)
100,972
Cash and cash equivalents, beginning of year
52,698
100,975
3
Cash and cash equivalents, end of year
$
21,952
$
52,698
$
100,975
The accompanying notes are an integral part of these financial
statements.
F-50
Table of Contents
NEXTEL INTERNATIONAL, INC.
(Parent Only)
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF
REGISTRANT — (Continued)
NOTES TO CONDENSED FINANCIAL STATEMENTS
1.
For accounting policies and other information, see the Notes to
	the Consolidated Financial Statements of Nextel International,
	Inc. and Subsidiaries included elsewhere herein.
2.
The parent company accounts for its investments in subsidiaries
	by the equity method of accounting.
F-51
Table of Contents
NEXTEL INTERNATIONAL, INC. AND SUBSIDIARIES
(A Substantially Wholly Owned Subsidiary of Nextel
Communications Inc.)
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
(in thousands)
Balance,
Allowance of
Charged to
Balance at
beginning of
acquired
costs and
End
period
companies(1)
expenses
Deductions
of Period
Year Ended December 31, 1999
Allowance for Doubtful Accounts
$
6,391
$
—
$
33,219
$
(30,795
)
$
8,815
Reserve for inventory obsolescence
$
2,593
$
—
$
3,732
$
(1,957
)
$
4,368
Year Ended December 31, 1998
Allowance for Doubtful Accounts
$
1,003
$
604
$
7,127
$
(2,343
)
$
6,391
Reserve for inventory obsolescence
$
1,334
$
16
$
3,475
$
(2,232
)
$
2,593
Year Ended December 31, 1997
Allowance for Doubtful Accounts
$
—
$
3,241
$
1,131
$
(3,369
)
$
1,003
Reserve for inventory obsolescence
$
—
$
449
$
885
$
—
$
1,334
(1)
Represents allowance of majority-owned subsidiaries acquired
	during the years ended December 31, 1998 and 1997.
F-52
Table of Contents
Art Work
[People talking on subscriber units]
TABLE OF CONTENTS
SUMMARY
RISK FACTORS
USE OF PROCEEDS
DIVIDEND POLICY
CAPITALIZATION
DILUTION
SELECTED CONSOLIDATED HISTORICAL FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BUSINESS
INDUSTRY OVERVIEW
MANAGEMENT
PRINCIPAL STOCKHOLDERS
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
DESCRIPTION OF OUR INDEBTEDNESS
DESCRIPTION OF CAPITAL STOCK
SHARES ELIGIBLE FOR FUTURE SALE
PRINCIPAL UNITED STATES FEDERAL TAX CONSEQUENCES TO NON-U.S. HOLDERS
UNDERWRITING
VALIDITY OF COMMON STOCK
EXPERTS
WHERE YOU CAN FIND MORE INFORMATION
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
EX-4.3 REGISTRATION RIGHTS AGREEMENT
EX-10.26 EMPLOYMENT AGREEMENT - JOSE FELIPE
EX-21.1 SUBSIDIARIES OF NEXTEL INTERNATIONAL, INC.
EX-23.2 CONSENT OF DELOITTE & TOUCHE LLP
EX-24.1 POWER OF ATTORNEY
No dealer, salesperson or other person is authorized to give any
information or to represent anything not contained in this
prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the
shares offered hereby, but only under circumstances and in
jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date.
TABLE OF CONTENTS
Page
Summary
1
Risk Factors
10
Use of Proceeds
27
Dividend Policy
27
Capitalization
28
Dilution
30
Selected Consolidated Historical Financial Data
31
Management's Discussion and Analysis of Financial Condition
	and Results of Operations
33
Business
49
Industry Overview
80
Management
83
Principal Stockholders
94
Certain Relationships and Related Transactions
95
Description of Our Indebtedness
98
Description of Capital Stock
105
Shares Eligible for Future Sale
110
Principal United States Federal Tax Consequences to Non-U.S.
	Holders
112
Underwriting
116
Validity of Common Stock
118
Experts
118
Where You Can Find More Information
119
Index to Consolidated Financial Statements
F-1
Through and including
               ,
 2000 (the 25th day after the date of this prospectus), all
dealers effecting transactions in these securities in the United
States, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to a
dealer's obligation to deliver a prospectus when acting as
an underwriter and with respect to an unsold allotment or
subscription.
Shares
Nextel International, Inc.
Class A Common Stock
[LOGO]
Goldman, Sachs & Co.
Morgan Stanley Dean Witter
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
PaineWebber Incorporated
Representatives of the Underwriters
Table of Contents
PART II
Information Not Required In Prospectus
Item 13.
Other Expenses of Issuance and Distribution
The fees and expenses in connection with the issuance and
distribution of the class A common stock to be registered are as
follows:
Item
Amount
Securities and Exchange Commission registration fee
$
242,880
NASD fee
$
30,500
Blue sky fees and expenses
$
*
Printing expenses
$
*
Legal fees and expenses
$
*
Accounting fees and expenses
$
*
Transfer agent fees
$
*
Miscellaneous
$
*
*
To be supplied by amendment.
The foregoing items, except the Securities and Exchange
Commission registration fee and NASD fee, are estimated. These
fees will be paid by the registrant.
Item 14.
Indemnification of Directors and Officers
Article TENTH of the registrant's Restated Articles of
Incorporation, as amended (the "Articles of
Incorporation"), provides that no director of the registrant
 will have liability to the registrant or its shareholders for
monetary damages for conduct as a director, except for acts or
omissions that involve intentional misconduct or for conduct
violating Revised Code of Washington 23B.08.310 or for any
transaction from which the director will personally receive a
benefit in money, property, or services to which the director is
not legally entitled. If the Washington Business Corporation Act
is hereinafter amended to authorize corporate action further
eliminating or limiting the personal liability of directors, then
 the liability of a director will be eliminated or limited to the
 full extent permitted by the Washington Business Corporation
Act, as so amended.
Section Eight of the registrant's Bylaws (the
"Bylaws") provides that a director or officer of the
registrant shall be indemnified by the registrant against all
expense, liability and loss (including attorney's fees,
judgments, fines, ERISA excise taxes or penalties and amounts to
be paid in settlement) actually and reasonably incurred in
connection with any threatened, pending or completed action, suit
 or proceeding, whether civil, criminal, administrative or
investigative and whether formal or informal, brought against him
 or her or otherwise involving him or her (including as a
witness) by virtue of his or her position as a director or
officer of the registrant. Notwithstanding the foregoing, the
registrant shall indemnify an officer or director in connection
with a proceeding initiated by such director or officer only if
such proceeding was authorized or ratified by the board of
directors of the registrant. The right to indemnification
includes the right to be paid expenses incurred in defending any
proceeding in advance of its final disposition, provided that
such director or officer undertakes to repay all amounts advanced
 if it is ultimately determined by final judicial decision that
he or she is not entitled to indemnification under
Section Eight of the Bylaws.
If the registrant fails to make an indemnification payment within
 60 days (20 days in the case of a claim for expenses
incurred in defending any proceeding in advance of its final
disposition) after receipt of a written claim for such payment,
the director or officer may bring suit against the
II-1
Table of Contents
registrant to recover the unpaid amount of the claim, and to the
extent successful, may also recover the expense of prosecuting
such claim. A director or officer will be presumed to be entitled
 to indemnification upon submission of a written claim, and the
registrant will have the burden of proof to overcome such
presumption.
Section Eight of the Bylaws further provides that the
indemnification therein is not exclusive of any other right such
officer or director may have or thereafter acquire under any
statute, provision in the Articles of Incorporation of the
registrant or the registrant's parent or the Bylaws of the
registrant or the registrant's parent.
Chapter 23B.08.510 of the Washington Business Corporation
Act provides that a corporation has the power to indemnify a
director of the corporation against reasonable expenses incurred
in connection with a proceeding to which he or she is made a
party by reason of such position, if such person shall have acted
 in good faith and reasonably believed, in the case of conduct in
 the director's official capacity, that such conduct was in
the best interests of the corporation, and in all other cases,
that such person's conduct was at least not opposed to the
best interests of the corporation, and, in any criminal
proceeding, that such person had no reasonable cause to believe
his conduct was unlawful; provided that, in the case of actions
brought by or in the right of the corporation, no indemnification
 shall be made with respect to any matter as to which such person
 shall have been adjudged to be liable to the corporation or in
connection with any proceeding charging improper personal benefit
 to the director, whether or not involving action in the
director's official capacity, in which the director was
adjudged liable on the basis of an improper personal benefit.
Chapter 23B.08.570 of the Washington Business Corporation
Act provides that the corporation may indemnify an officer,
employee or agent of the corporation for expenses to the same
extent as a director.
As discussed in the prospectus included in this registration, we
intend to reincorporate in the State of Delaware prior to the
completion of the offerings.
Section 102 of the Delaware General Corporation Law,
referred to as the DGCL, allows a corporation to eliminate the
personal liability of directors of a corporation to the
corporation or its stockholders for monetary damages for a breach
 of fiduciary duty as a director, except where the director
breached his duty of loyalty, failed to act in good faith,
engaged in intentional misconduct or knowingly violated a law,
authorized the payment of a dividend or approved a stock
repurchase in violation of the DGCL or obtained an improper
personal benefit.
Section 145 of the DGCL provides, among other things, that a
 company may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or
completed action, suit or proceeding (other than an action by or
in the right of the company) by reason of the fact that the
person is or was a director, officer, agent or employee of the
company or is or was serving at the company's request as a
director, officer, agent, or employee of another corporation,
partnership, joint venture, trust or other enterprise, against
expenses, including attorneys' fees, judgments, fines and
amounts paid in settlement actually and reasonably incurred by
the person in connection with such action, suit or proceeding.
The power to indemnify applies (a) if such person is
successful on the merits or otherwise in defense of any action,
suit or proceeding, or (b) if such person acted in good
faith and in a manner he or she reasonably believed to be in the
best interest, or not opposed to the best interest, of the
company, and with respect to any criminal action or proceeding,
had no reasonable cause to believe his or her conduct was
unlawful. The power to indemnify applies to actions brought by or
 in the right of the company as well, but only to the extent of
defense expenses (including attorneys' fees but excluding
amounts paid in settlement) actually and reasonably incurred and
not to any satisfaction of judgment or settlement of the claim
itself, and with the further limitation that in such actions no
indemnification shall be made in the event of any adjudication of
II-2
Table of Contents
negligence or misconduct in the performance of his or her duties
to the company, unless the court believes that in the light of
all the circumstances indemnification should apply.
Section 174 of the DGCL provides, among other things, that a
 director, who willfully or negligently approves of an unlawful
payment of dividends or an unlawful stock purchase or redemption,
 may be held liable for such actions. A director who was either
absent when the unlawful actions were approved or dissented at
the time may avoid liability by causing his or her dissent to
such actions to be entered in the books containing the minutes of
 the meetings of the board of directors at the time such action
occurred or immediately after such absent director receives
notice of the unlawful acts.
Item 15.
Recent Sales of Unregistered Securities
We sold securities that were not registered under the Securities
Act of 1933 in the following transactions since August 1,
1997:
On March 12, 1998, we completed the issuance and sale in a
private placement of $730 million in principal amount of our
12.125% senior discount notes due 2008 for net cash proceeds of
about $387 million. Morgan Stanley Dean Witter, Chase Securities
Inc. and Goldman, Sachs & Co. acted as principal placement
agents and received about $23 million in fees in connection
with the sale of these notes. On August 1, 2000, we
completed the issuance and sale in a private placement of $650
million in principal amount of our 12.75% senior serial notes due
 2010. Morgan Stanley Dean Witter, Banc of America Securities
LLC, Barclays Capital, Chase Securities Inc., Credit Suisse First
 Boston, Deutsche Banc Alex. Brown and Goldman, Sachs & Co.
acted as principal placement agents and received about
$16 million in fees in connection with the sale of these
notes. These transactions were effected pursuant to the exemption
 of Section 4(2) of the Securities Act and Rule 144A and
Regulation S under that act, in reliance upon the representations
 of the placement agents in each of the offerings described
above.
Between March 12, 1998 and June 2, 2000, we issued
5,265.71 shares of our series A exchangeable redeemable
preferred stock to a wholly owned subsidiary of Nextel
Communications for aggregate cash proceeds of $427,685,000,
6,777,778 shares of class D stock of Clearnet and
reimbursement of $8,254,000 of costs incurred by Nextel
Communications under our overhead services agreement. On
June 12, 2000, this subsidiary exchanged all of these shares
 of series A exchangeable redeemable preferred stock for
shares of our common stock. On June 29, 2000, we issued
2,150 additional shares of our series A exchangeable
redeemable preferred stock to this subsidiary for aggregate cash
proceeds of $215,000,000.
On June 13, 2000, we issued 12 shares of our common
stock to PNC Bank and 384 shares of our common stock to
Silkcap & Co. pursuant to their respective exercises of
warrants issued in connection with the issuance of the March 1997
 Notes for aggregate proceeds of $2,598.
All of these issuances of our series A exchangeable
redeemable preferred stock and our common stock were made in
transactions not involving a public offering pursuant to the
exemption offered by Section 4(2) of the Securities Act.
Item 16.
Exhibits and Financial Statement Schedules
(a)  Exhibits
Exhibit
Number
Description of Exhibits
**1.1
Form of Underwriting Agreement.
3.1
Restated Certificate of Incorporation of Nextel International,
	Inc. (filed as Exhibit 3.2 to the Quarterly Report on
	Form 10-Q filed on August 14, 2000 for the quarter
	ended June 30, 2000 and incorporated herein by reference).
II-3
Table of Contents
Exhibit
Number
Description of Exhibits
3.2
Restated By-laws of Nextel International, Inc. (filed as
	Exhibit 3.2 to Nextel International's Annual Report on
	Form 10-K filed on March 31, 1999 for the fiscal year
	ended December 31, 1998 and incorporated herein by
	reference).
4.1
Indenture, dated as of March 3, 1997, by and between McCaw
	International, Ltd. and The Bank of New York (including form of
	note) (filed as Exhibit 4.1 to the Registration Statement on
	 Form S-4 (file no. 333-26649), as amended, filed on
	May 7, 1997 and incorporated herein by reference).
4.2
Warrant Agreement, dated as of March 6, 1997, by and between
	 Nextel International, Inc., and The Bank of New York (filed on
	July 18, 1997 as Exhibit 4.4 to the Registration
	Statement on Form S-4 (file no. 333-26649), as amended,
	originally filed on May 7, 1997 and incorporated herein by
	reference).
*4.3
Warrant Registration Rights Agreement, dated as of March 3,
	1997, by and between Nextel International, Inc. and The Bank of
	New York.
4.4
Indenture, dated as of March 12, 1998, by and between Nextel
	 International, Inc. and The Bank of New York (including form of
	note) (filed as Exhibit 4.1 to the Quarterly Report on
	Form 10-Q filed on May 14, 1998 for the quarter ended
	March 31, 1998 and incorporated herein by reference).
4.5
Indenture, dated as of August 1, 2000, by and between Nextel
	 International, Inc. and The Bank of New York (including form of
	note) (filed as Exhibit 4.1 to the Current Report on
	Form 8-K filed on August 2, 2000 and incorporated
	herein by reference).
4.6
Registration Rights Agreement, dated as of August 1, 2000,
	by and among Nextel International Inc. and the Placement Agents
	named therein (filed as Exhibit 4.2 to the Current Report on
	 Form 8-K filed on August 2, 2000 and incorporated
	herein by reference).
**5.1
Form of Jones, Day, Reavis & Pogue opinion regarding
	validity.
**8.1
Form of Jones, Day, Reavis & Pogue opinion regarding certain
	tax matters.
10.1
Tax Sharing Agreement, dated January 1, 1997, by and between
	 Nextel Communications, Inc. and its subsidiaries named therein
	(filed on July 18, 1997 as Exhibit 10.18 to the Registration
	 Statement on Form S-4 (file no.  333-26649), as
	amended, originally filed on May 7, 1997 and incorporated
	herein by reference).
10.2
Overhead Services Agreement, dated March 3, 1997, by and
	between Nextel Communications, Inc. and Nextel International,
	Inc. (filed on July 18, 1997 as Exhibit 10.19 to the
	Registration Statement on Form S-4 (file no. 333-26649), as
	amended, originally filed on May 7, 1997 and incorporated
	herein by reference).
10.3
Indemnification Agreement, dated March 6, 1997, by and
	between Nextel Communications, Inc. and Nextel International,
	Inc. (filed on July 18, 1997 as Exhibit 10.21 to the
	Registration Statement on Form S-4 (file no. 333-26649), as
	amended, originally filed on May 7, 1997 and incorporated
	herein by reference).
10.4
Second Amended and Restated Right of First Opportunity Agreement,
	 dated August 1, 2000, by and between Nextel Communications,
	 Inc. and Nextel International, Inc. (filed as Exhibit 10.4 to
	the Quarterly Report on Form 10-Q filed on August 14, 2000
	for the quarter ended June 30, 2000 and incorporated herein
	by reference).
10.5
Master Equipment Financing Agreement, dated as of February 
	4, 1999, by and among Nextel International, Inc., the Lenders
	named therein and Motorola Credit Corporation, as Administrative
	Agent and Collateral Agent (filed as Exhibit  99.1 to the
	Current Report on Form 8-K filed on February  19, 1999
	and incorporated herein by reference).
10.6
Second Amendment to Master Equipment Financing Agreement, dated
	as of March 22, 2000, by and between Nextel International,
	Inc., the Lenders named therein and Motorola Credit Corporation,
	as Administrative Agent and Collateral Agent (filed as
	Exhibit 10.46 to the Annual Report on Form 10-K filed on
	March 30, 2000 for the year ended December  31, 1999
	and incorporated herein by reference).
II-4
Table of Contents
Exhibit
Number
Description of Exhibits
10.7
Third Amendment to Master Equipment Financing Agreement, dated as
	 of July 26, 2000, by and between Nextel International, Inc. and
	Motorola Credit Corporation, as Administrative Agent and
	Collateral Agent (filed as Exhibit 10.1 to the Quarterly Report
	on Form 10-Q filed on August  14, 2000 for the quarter
	ended June 30, 2000 and incorporated herein by reference).
10.8
Guaranty, effective as of July 23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit 10.38 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
10.9
Guaranty, effective as of July 23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit 10.41 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
10.10
Guaranty, effective as of July 23, 1999, by Nextel
	International, Inc. in favor of Motorola, Inc. (filed as
	Exhibit 10.42 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
10.11
Secured Loan Agreement, dated December 16, 1999, by and
	between Nextel International, Inc., the Lenders named therein and
	 Motorola Credit Corporation, as Collateral Agent (filed as
	Exhibit 10.2 to the Quarterly Report on Form 10-Q filed on
	August 14, 2000 for the quarter ended June 30, 2000 and
	incorporated herein by reference).
10.12
Amendment No. 1 to Secured Loan Agreement, dated
	July 26, 2000, by and between Nextel International, Inc. the
	 Lenders named therein and Motorola Credit Corporation, as
	Collateral Agent (filed as Exhibit 10.3 to the Quarterly Report
	on Form 10-Q filed on August 14, 2000 for the quarter
	ended June 30, 2000 and incorporated herein by reference).
10.13
Amended and Restated Equipment Financing Agreement, dated as of
	April 28, 2000, by and between McCaw International (Brazil),
	 Ltd. and Motorola Credit Corporation (filed as Exhibit 10.6 to
	the Quarterly Report in Form 10-Q filed on August 14, 2000
	for the quarter ended June 30, 2000 and incorporated herein
	by reference).
10.14
Credit Agreement, dated as of February 27, 1998, by and
	among Nextel Argentina S.R.L., the Lenders named therein and The
	Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit 10.1 to the Quarterly Report on Form 10-Q filed
	 on May 14, 1998 for the quarter ended March 31, 1998
	and incorporated herein by reference).
10.15
Amendment No. 1 and Waiver, dated May 8, 1998, by and
	among Nextel Argentina S.R.L., the Lenders named therein and The
	Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit 10.19 to the Registration Statement on Form S-4
	 (file no. 333-55877), as amended, originally filed on June 
	 3, 1998 and incorporated herein by reference).
10.16
Amendment No. 2, dated September 30, 1998, by and among
	 Nextel Argentina S.R.L., the Lenders named therein and The Chase
	 Manhattan Bank as Administrative Agent (filed as
	Exhibit 10.1 to the Quarterly Report on Form 10-Q filed
	 on November 16, 1998 for the quarter ended
	September 30, 1998 and incorporated herein by reference).
10.17
Amendment No. 3, dated May 12, 1999, by and among
	Nextel Argentina S.R.L., the Lenders named therein and The Chase
	Manhattan Bank as Administrative Agent (filed as Exhibit 
	99.1 to the Current Report on Form 8-K filed on
	June 11, 1999 and incorporated herein by reference).
10.18
Amendment No. 4, dated as of December 8, 1999, by and
	among Nextel Argentina S.R.L., and the Lenders named therein and
	The Chase Manhattan Bank as Administrative Agent (filed as
	Exhibit 10.36 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
II-5
Table of Contents
Exhibit
Number
Description of Exhibits
10.19
Amendment No. 5, dated June 20, 2000, by and among
	Nextel Argentina S.R.L., the Lenders named therein and The Chase
	Manhattan Bank as Administrative Agent (filed as Exhibit 
	10.7 to the Quarterly Report on Form 10-Q filed on
	August  14, 2000 for the quarter ended June 30, 2000
	and incorporated herein by reference).
10.20
Stockholders Agreement, dated June 21, 1996, between Infocom
	 Communications Network, Inc and the stockholders of Infocom
	Communications Network, Inc. (filed on July 18, 1997 as
	Exhibit 10.11 to the Registration Statement on Form S-4
	 (file no. 333-26649), as amended, originally filed on
	May 7, 1997 and incorporated herein by reference).
10.21
Restructuring Agreement, dated as of April 2, 1998, by and
	among Foodcamp Industries and Marketing, Inc., Chan Chon Siong,
	Nextel International, Inc., Top Mega Enterprises Ltd. and Infocom
	 Communications Network, Inc. (filed as Exhibit  10.26 to
	the Registration Statement on Form S-4 (file no. 333-55877),
	 as amended, originally filed on June 3, 1998 and
	incorporated herein by reference).
10.22
Restructuring Agreement, dated as of April 2, 1998, by and
	among Jetcom Inc., Nextel International, Inc., Top Mega
	Enterprises, Ltd. and Infocom Communications Network, Inc. (filed
	 as Exhibit 10.28 to the Registration Statement on
	Form S-4 (file no. 333-55877), as amended, originally filed
	on June 3, 1998 and incorporated herein by reference).
10.23
Pledge Agreement, dated as of April 2, 1998, by and among
	Infocom Communications Network, Inc., Nextel International, Inc.
	and Jetcom, Inc. (filed as Exhibit 10.29 to the Registration
	 Statement on Form S-4 (file no. 333-55877), as amended,
	originally filed on June 3, 1998 and incorporated herein by
	reference).
10.24
Agreement, dated as of August 21, 1998, by and between ACCRA
	 Investments Corporation and Top Mega Enterprises Ltd. (filed as
	Exhibit 10.2 to the Quarterly Report on Form  10-Q
	filed on November 16, 1998 for the quarter ended
	September 30, 1998 and incorporated herein by reference).
10.25
Borrowing Affiliate Note, dated June 18, 1999, by and
	between Infocom Communications Network, Inc., as Borrowing
	Affiliate, and Nextel International, Inc., as Lender (filed as
	Exhibit 10.35 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
*10.26
Employment Agreement, dated May 7, 1999, by and between
	Nextel International, Inc. and Jose Felipe.
10.27
Nextel International 1997 Stock Option Plan (filed as
	Exhibit 10.9 to the Annual Report on Form 10-K filed on
	 March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
10.28
Nextel International, Inc. Incentive Equity Plan, dated as of
	May 25, 2000 (filed as Exhibit 10.5 to the Quarterly
	Report on Form 10-Q filed on August 14, 2000 for the quarter
	 ended June 30, 2000 and incorporated herein by reference).
†10.29
Subscriber Unit Purchase Agreement, dated as of July 23,
	1999, by and between Motorola, Inc. and Comunicaciones Nextel de
	Mexico S.A. de C.V. (filed as Exhibit 10.37 to the Annual
	Report on Form 10-K filed on March 30, 2000 for the
	year ended December 31, 1999 and incorporated herein by
	reference).
†10.30
Subscriber Unit Purchase Agreement, dated July 23, 1999, by
	and between Motorola, Inc. and Nextel del Peru, S.A. (filed as
	Exhibit 10.44 to the Annual Report on Form 10-K filed
	on March 30, 2000 for the year ended December 31, 1999
	and incorporated herein by reference).
†10.31
Subscriber Unit Purchase Agreement, dated as of August 4,
	1999, by and between Motorola, Inc. and Infocom Communications
	Network, Inc. (filed as Exhibit 10.43 to the Annual Report on
	Form 10-K filed on March 30, 2000 for the year ended
	December 31, 1999 and incorporated herein by reference).
†10.32
Subscriber Unit Purchase Agreement, dated as of September 
	7, 1999, by and between Motorola Industrial LTDA and Nextel
	International, Inc. (filed as Exhibit 10.39 to the Annual Report
	on Form 10-K for the year ended December 31, 1999 and
	incorporated herein by reference).
II-6
Table of Contents
Exhibit
Number
Description of Exhibits
†10.33
Subscriber Unit Purchase Agreement, dated as of September 
	7, 1999, by and between Motorola, Inc. and Nextel International,
	Inc. (filed as Exhibit 10.40 to the Annual Report on
	Form 10-K filed on March 30, 2000 for the year ended
	December 31, 1999 and incorporated herein by reference).
10.34
Amended and Restated Capital Subscription Agreement, dated as of
	May 12, 1999, by and among Nextel Argentina S.R.L., Nextel
	International (Argentina), Ltd. and Nextel International, Inc.
	(filed as Exhibit 10.34 to the Annual Report on
	Form 10-K filed on March 30, 2000 for the year ended
	December 31, 1999 and incorporated herein by reference).
10.35
Amendment No. 1 to the Amended and Restated Capital
	Subscription Agreement, dated as of June 20, 2000, by and
	among Nextel Argentina S.R.L., Nextel International (Argentina),
	Ltd. and Nextel International, Inc. (filed as Exhibit 10.8
	to the Quarterly Report on Form 10-Q filed on
	August 14, 2000 for the quarter ended June 30, 2000 and
	 incorporated herein by reference).
†10.36
Form of iDEN Infrastructure Equipment Supply Agreement dated
	August 14, 2000 by and between Nextel International, Inc.,
	Motorola, Inc. and each of Nextel Telecommunicacoes Ltda., Nextel
	 Argentina S.R.L., Nextel de Mexico, S.A. de C.V., Nextel del
	Peru, S.A. and Nextel Communications Philippines, Inc. (filed as
	Exhibit 10.2 to the Current Report on Form  8-K filed on
	August 17, 2000 and incorporated herein by reference).
†10.37
Form of iDEN Installation Services Agreement, dated August 
	14, 2000 by and between Nextel International, Inc., Motorola,
	Inc. and each of Nextel, Telecomunicações Ltda., Nextel
	 Argentina S.R.L., Nextel de Mexico, S.A. de C.V., Nextel del
	Peru, S.A. and Nextel Communications Philippines, Inc. (filed as
	Exhibit 10.1 to the Current Report on Form  8-K filed on
	August 17, 2000 and incorporated herein by reference).
*21.1
Subsidiaries of Nextel International, Inc.
**23.1
Consent of Jones, Day, Reavis & Pogue (included in
	Exhibits  5.1 and 8.1).
*23.2
Consent of Deloitte & Touche LLP.
*24.1
Powers of Attorney.
*
Filed herewith.
**  To be filed by amendment.
†
Portions of this exhibit have been omitted and filed separately
	with the Securities and Exchange Commission pursuant to a request
	 for confidential treatment.
(b)  Financial
Statement Schedules
A Schedule of Condensed Financial Information of the Registrant
and a schedule of Valuation and Qualifying Accounts have been
included in the prospectus beginning on page F-48.
Item 17.
Undertakings
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or
 paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
II-7
Table of Contents
The undersigned registrant hereby undertakes that:
(1)  For purposes of determining any liability under the
	Securities Act of 1933, the information omitted from the form of
	prospectus filed as part of this registration statement in
	reliance upon Rule 430A and contained in a form of
	prospectus filed by the registrant pursuant to
	Rule 424(b)(1) or (4) or 497(h) under the Securities
	Act shall be deemed to be part of this registration statement as
	of the time it was declared effective.
(2)  For the purposes of determining any liabilities under
	the Securities Act of 1933, each post-effective amendment that
	contains a form of prospectus shall be deemed to be a new
	registration statement relating to the securities offered
	therein, and the offering of such securities at that time shall
	be deemed to be the initial bona fide offering thereof.
II-8
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Reston, State of Virginia, on
August 17, 2000.
NEXTEL INTERNATIONAL, INC.
By:
/s/ BYRON R. SILIEZAR
Byron R. Siliezar
Chief Financial Officer
Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed by the following
persons in the capacities indicated on August 17, 2000.
Name
Title
*
Timothy M. Donahue
Chairman of the Board and Director
*
Steven M. Shindler
Interim Chief Executive Officer and Director (Principal Executive
	 Officer)
*
Lo van Gemert
President and Chief Operating Officer (Principal Executive
	Officer)
*
Byron R. Siliezar
Vice President and Chief Financial Officer (Principal Financial
	and Accounting Officer)
*
Keith D. Grinstein
Vice Chairman of the Board and Director
*
Daniel F. Akerson
Director
*
Steven P. Dussek
Director
*
C. James Judson
Director
*
Dennis M. Weibling
Director
*By:
/s/ BYRON R. SILIEZAR
Byron R. Siliezar
Attorney-in-fact
II-9
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Description of Exhibits
**1.1
Form of Underwriting Agreement.
*4.3
Warrant Registration Rights Agreement, dated as of March 3,
	1997, by and between Nextel International, Inc. and The Bank of
	New York.
**5.1
Form of Jones, Day, Reavis & Pogue opinion regarding
	validity.
**8.1
Form of Jones, Day, Reavis & Pogue opinion regarding certain
	tax matters.
*10.26
Employment Agreement, dated May 7, 1999, by and between
	Nextel International, Inc. and Jose Felipe.
*21.1
Subsidiaries of Nextel International, Inc.
**23.1
Consent of Jones, Day, Reavis & Pogue (included in
	Exhibits  5.1 and 8.1).
*23.2
Consent of Deloitte & Touche LLP.
*24.1
Powers of Attorney.
*
Filed herewith.
**  To be filed by amendment.
II-10