Exhibit 12.1
NII HOLDINGS, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(dollars in thousands)
| Ten Months Ended | Two Months Ended | Year Ended | ||||||||||||||||||||||
| Year Ended December 31, | October 31, | December 31, | December 31, | |||||||||||||||||||||
| 1999 | 2000 | 2001 | 2002 | 2002 | 2003 | |||||||||||||||||||
| (Loss) income from continuing operations before income tax | $ | (497,964 | ) | $ | (290,122 | ) | $ | (2,378,590 | ) | $ | 1,983,505 | $ | 27,350 | $ | 123,631 | |||||||||
| Add: | ||||||||||||||||||||||||
| Fixed charges | 193,904 | 333,031 | 352,216 | 170,435 | 13,302 | 85,897 | ||||||||||||||||||
| Amortization of capitalized interest | 4,471 | 7,313 | 12,654 | 3,716 | 743 | 6,779 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Interest capitalized | 10,400 | 26,513 | 42,927 | 8,239 | 971 | 6,825 | ||||||||||||||||||
| Equity in (losses) gains of unconsolidated affiliates | (9,270 | ) | (33,328 | ) | 9,640 | — | — | — | ||||||||||||||||
| Losses attributable to minority interests | 19,314 | 6,504 | — | — | — | — | ||||||||||||||||||
| Earnings as adjusted | $ | (320,033 | ) | $ | 50,533 | $ | (2,066,287 | ) | $ | 2,149,417 | $ | 40,424 | $ | 209,482 | ||||||||||
| Preferred stock dividends: | — | 61,334 | — | — | — | — | ||||||||||||||||||
| Effective income tax (benefit) provision rate | — | 100 | % | — | — | — | — | |||||||||||||||||
| Preferred stock dividends on pretax basis | — | 61,334 | — | — | — | — | ||||||||||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Interest expense on indebtedness (including amortization of debt expense and discount) | $ | 179,604 | $ | 237,743 | $ | 297,228 | $ | 151,579 | $ | 10,469 | $ | 64,623 | ||||||||||||
| Interest capitalized | 10,400 | 26,513 | 42,927 | 8,239 | 971 | 6,825 | ||||||||||||||||||
| Portion of rent expense representative of interest (30%) | 3,900 | 7,441 | 12,061 | 10,617 | 1,862 | 14,449 | ||||||||||||||||||
| Fixed charges | $ | 193,904 | $ | 333,031 | $ | 352,216 | $ | 170,435 | $ | 13,302 | $ | 85,897 | ||||||||||||
| Ratio of earnings to fixed charges | — | 0.15x | — | 12.61x | 3.04x | 2.44x | ||||||||||||||||||
| Deficiency of earnings to cover fixed charges | $ | 513,937 | $ | — | $ | 2,418,503 | $ | — | $ | — | $ | — | ||||||||||||