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Tower Sector Vibrant In Lat Am

|Includes:AMT, GOOG, NII Holdings, Inc. (NIHD), OIBR, SBAC

Last week, SBA Communications (NASDAQ:SBAC) announced a deal to license the exclusive use of 2113 towers in Brazil from Oi SA (NYSE:OIBR), one of Brazil's largest telecommunications service providers, for $306 million. This happened in spite of the negative coverage by Muddy Waters on American Tower (NYSE:AMT) and their Brazilian tower transactions.

We believe that the tower deal that NII Holdings (NASDAQ:NIHD) has been negotiating will also be completed, although it may be delayed until later this year. The Mexico constitutional amendment for competition in telecom will also play a major role in a growth strategy for Nextel Mexico.

"Mexican legislation aimed at boosting competition in the telecommunications industry, by allowing foreigners to hold majority stakes in local units, is "a good trend," Shindler said. NII, which has 4 million customers in Mexico, will double its target market to 50 million with the introduction of smart phones, he said."

Bloomberg did an interview on the impacts of the amendment which we recommend watching. Additionally in Mexico, NIHD announced its Android push to talk app PRIP together with Google's (NASDAQ:GOOG) Motorola. The Android app store has given the app positive reviews. This could develop into a nice revenue stream for NIHD.

Disclosure: I am long NIHD.