Subject: [NEXTEL-1] Alltel Hints At Push-To-Talk Agenda

From: Marcel <[email-masked]>
Date: Sat, 09 Nov 2002 04:19:28 -0500

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Alltel Hints At Push-To-Talk Agenda

By Sue Marek
November 4, 2002

Wireless Week
© 2002, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.

During its fourth-quarter earnings call late last month, regional CDMA carrier Alltel hinted to investors that it was planning to test a push-to-talk-like technology sometime in early 2003, making it the first regional player to reveal its push-to-talk aspirations.

Analysts have long speculated that many carriers are considering different technologies that would allow them to mimic Nextel Communications' Direct Connect walkie-talkie service. "Alltel isn't the only CDMA carrier looking at push-to-talk technology," says Ken Hyers, an analyst with In-Stat/MDR, a sister company to Wireless Week. "Essentially all major CDMA carriers in the U.S. are exploring plans to roll out push to talk in 2003."

Last spring, Sprint PCS became the first carrier to go public with its plans. Then-Sprint PCS President Chuck Levine told reporters at the CTIA Wireless 2002 conference that once the company's 1XRTT network was up and running the company would focus on boosting its services with enhancements such as push-to-talk capability.

Nevertheless, Alltel's announcement does fuel push-to-talk fever. According to Michael Doherty, senior consultant with Ovum, Alltel's revelation likely indicates that Verizon Wireless, a key roaming partner for Alltel, also is planning to test push-to-talk technology in the near future. "Generally Alltel doesn't make a strategic move unless Verizon is also doing it," Doherty says. "I would be surprised if Alltel is doing it on its own."

In addition, Doherty says this may signal that Alltel is going to make a greater attempt to target the enterprise customer. If so, that may mean more competition for Southern LINC, a regional iDEN operator with a coverage area that spans 127,000 square miles in Alabama, Georgia, southeastern Mississippi and the Florida panhandle. According to Gretchen Crawford, spokeswoman for Southern LINC, the company has heard rumors about wireless operators testing these look-alike technologies and is following it closely. "We're keeping an eye on it, but it's not keeping us awake at night."

The fact that all these carriers are considering implementing a push-to-talk look-alike service may lead to more competition for Nextel and Southern LINC, but Doherty believes it also endorses the technology. "This validates that push-to-talk is a worthy product that has taken hold in the enterprise customer base."

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