Six months after Mexico’s Grupo Televisa announced plans to invest US$1.4 billion for a 30% stake in Nextel Mexico (NM), the two partners confirmed their decision this week mutually to terminate that agreement. Little detail was offered on the companies’ decision, which has been described by observers as amicable, although some sources indicate that the partners had disagreed on regulations and risks related to Televisa’s investment. Together, Televisa—the largest broadcaster in Mexico—and NM, a unit of Reston, Virginiabased NII Holdings, had intended to deploy a third-generation (3G) nationwide wireless network that would compete against Mexican market leader America Movil and against the Mexican wireless operations of Telefonica and Iusacell. Although NM won wireless spectrum at auction last July that would support that plan, NM’s concession has been the subject of a lawsuit by Iusacell, which is challenging spectrum caps and related government regulations that have prevented certain operators from bidding on the 30 MHz nationwide block. A representative of NM, which had planned to use proceeds from the Televisa investment to build its network, emphasized that his company would move forward, asserting: “we are in a strong financial position with the funding necessary to carry out our deployment plans.” Televisa, which had hoped to add NM’s wireless capabilities to a service bundle that would also encompass the broadcaster’s cable, broadband and fixed line voice offerings, confirmed that the companies remain in discussions toward a joint marketing arrangement.