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&lt;div style="font-family: 'Times New Roman',Times,serif;"&gt;

&lt;div style="margin-top: 12pt; font-size: 10pt;" align="left"&gt;&lt;b&gt;Note 4. Commitments and Contingencies&lt;/b&gt; &lt;/div&gt;

&lt;div style="margin-top: 6pt; font-size: 10pt;" align="left"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;b&gt;&lt;i&gt;Brazilian Contingencies.&lt;/i&gt;&lt;/b&gt; &lt;/div&gt;

&lt;div style="margin-top: 6pt; font-size: 10pt;" align="left"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Nextel Brazil has received various assessment notices from state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes, excise taxes on imported equipment and other non-income based taxes. Nextel Brazil has filed various administrative and legal petitions disputing these assessments. In some cases, Nextel Brazil has received favorable decisions, which are currently being appealed by the respective governmental authority. In other cases, Nextel Brazil's petitions have been denied, and Nextel Brazil is currently appealing those decisions. Nextel Brazil is also disputing various other claims. Nextel Brazil did not reverse any material accrued liabilities related to contingencies during the first quarter of 2011. &lt;/div&gt;

&lt;div style="margin-top: 6pt; font-size: 10pt;" align="left"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;As of March&amp;nbsp;31, 2011 and December&amp;nbsp;31, 2010, Nextel Brazil had accrued liabilities of $&lt;font class="_mt"&gt;58.9&lt;/font&gt; million and $&lt;font class="_mt"&gt;56.8&lt;/font&gt;&amp;nbsp;million, respectively, related to contingencies, all of which were classified in accrued contingencies reported as a component of other long-term liabilities and none of which related to unasserted claims. We currently estimate the range of reasonably possible losses related to matters for which Nextel Brazil has not accrued liabilities, as they are not deemed probable, to be between $&lt;font class="_mt"&gt;204.4&lt;/font&gt;&amp;nbsp;million and $&lt;font class="_mt"&gt;208.4&lt;/font&gt;&amp;nbsp;million as of March&amp;nbsp;31, 2011. We are continuing to evaluate the likelihood of probable and reasonably possible losses, if any, related to all known contingencies. As a result, future increases or decreases to our accrued liabilities may be necessary and will be recorded in the period when such amounts are determined to be probable and reasonably estimable. &lt;/div&gt;

&lt;div style="margin-top: 6pt; font-size: 10pt;" align="left"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;b&gt;&lt;i&gt;Legal Proceedings.&lt;/i&gt;&lt;/b&gt; &lt;/div&gt;

&lt;div style="margin-top: 6pt; font-size: 10pt;" align="left"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;We are subject to claims and legal actions that may arise in the ordinary course of business. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows. &lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt; &lt;/div&gt;</NonNumbericText><NonNumericTextHeader>Note 4. Commitments and Contingencies

&amp;nbsp;&amp;nbsp;&amp;nbsp; Brazilian Contingencies.

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