Subject: [NEXTEL-1] Technology Business Research Ranks Nextel No. 1 in 3Q03

From: [email-masked]
Date: Fri, 05 Dec 2003 12:26:40 -0500

Technology Business Research Ranks Nextel No. 1 in 3Q03 Benchmark 
Results
12/5/03     

HAMPTON, NH, Dec. 05, 2003 (MARKET WIRE via COMTEX) -- 
Nextel Communications retained the No. 1 position in Technology 
Business Research's quarterly benchmark of U.S. mobile operators for 
the third consecutive quarter. TBR's benchmarking methodology places 
a premium on growth and profitability, the key drivers of a 
successful business model. Nextel is the industry leader, generating 
$71 in average revenue per user. Nextel continues to grow quarter 
after quarter due in large part to its industry-leading subscriber 
retention and Direct Connect walkie-talkie service for the business 
market segment. 

Nextel and Verizon Wireless are the two mobile operators that 
distinguish their operations from the pack. Verizon Wireless is near 
the top in the TBR mobile operator benchmark quarter after quarter 
due to its strong brand, market share leadership, profitability and 
continued growth. Verizon Wireless'success is attributed to its 
broad network coverage and network quality. 

TBR believes the clear winners in the new wireless local number 
portability environment will be Verizon Wireless and Nextel. AT&T 
Wireless and T-Mobile USA will remain in neutral positions while 
Sprint PCS and Cingular Wireless are likely losers. Number 
portability and shifting industry dynamics may drive Cingular and 
AT&T Wireless into a merger in 2004. Both Cingular and AT&T Wireless 
are losing market share to Verizon Wireless. 'It makes perfect sense 
from a technology and cost perspective for AT&T Wireless and 
Cingular to merge,'stated TBR analyst Chris Foster. 'The largest 
obstacle confronting Cingular acquiring AT&T Wireless is Cingular's 
owners, SBC and BellSouth, structuring a complicated ownership 
arrangement.' 

'Even before the dust settles on number portability in 2004, the 
telecom industry structure and competitive environment in the United 
States will be further redefined as operators seek to differentiate 
themselves on bundled fixed and mobile services,'according to Bill 
Lesieur, director of Network Business Quarterly (NBQ), TBR's telecom 
industry practice. 'In the consumer telecom market, the mobile phone 
and its visible menus of features and applications is a symbol of 
value that fixed line operators cannot do without in their value 
proposition.' 

NBQ U.S. Mobile Operators 3Q03 Benchmark and 
Metrics*                 Nextel      Verizon  Sprint  T-Mobile  
Cingular  AT&T             Communications  Wireless  PCS      
USA     Wireless WirelessNBQ Ranking          1          2       
3        4          5        6NBQ Score          6.55       5.68    
5.38     5.36       4.87     4.48Market DynamicsSubscriber Market 
Share       8.2%      23.9%   10.2%     8.0%      15.5%    14.5%Year-
to-year Subscriber Growth            22.1%      14.3%    6.6%    
36.1%       5.9%     8.4%ARPU                $71        $50     
$63      $54        $51      $61Business ModelYear-to-year Revenue 
Growth    26.7%      18.2%    5.8%    66.1%       4.6%     7.7%
Profitable          Yes       Yes       No      No         Yes      
YesCash Position      $3.5       **      $1.5     $195        
$1.3    $4.2                  billion            billion  
million     billion  billionLong-term Debt    $10.7       **      
$14.2    $7.6       $12.7    $10.6                  
billion            billion  billion     billion  billion2G 
Network         IDEN      CDMA     CDMA   GSM/GPRS    TDMA/GSM 
TDMA/GSM2.5/3G Migration Path   WiDEN    cdma2000 cdma2000 
EDGE/UMTS  EDGE/UMTS EDGE/UMTSInvestors        Motorola   Verizon  
Sprint   Deutsche   SBC Comm.   NTT                             
Comm.    FON     Telekom       and     
DoCoMo                              and                        
BellSouth                            Vodafone*  Metrics from NBQ 
benchmark methodology displayed in table above.** Not reported 
directly; Verizon Communications has $1.7 billion in cash   and 
equivalents and $38.9 billion in long-term debt.
ABOUT TBR 

Technology Business Research, Inc., headquartered in Hampton, N.H., 
is recognized as one of the leading high-tech market research and 
consulting firms specializing in the analyses of computer, software, 
networking equipment, wireless, professional services companies and 
customer satisfaction studies. Serving a domestic and international 
clientele of high-tech manufacturers, IT professionals, end users 
and financial executives, TBR has continually distinguished itself 
in the marketplace by providing timely, accurate, high-quality 
information, market research and business intelligence in a format 
that is uniquely responsive and tailored to clients'needs. TBR 
analysts are available to further address client-specific issues or 
information needs on an inquiry or proprietary consulting basis. 

Founded in 1996, Technology Business Research, Inc. covers the 
business and financial performance of more than 50 of the world's 
largest IT and telecom vendors and service providers, including 
Cisco, Dell, Hewlett-Packard, IBM, Lucent, Microsoft and Verizon 
Wireless. We publish approximately 424 strategic, company-centered 
reports annually. Our focus is on trends analysis, identifying 
vendor strengths and weaknesses, and highlighting opportunities and 
threats for individual companies going forward. 

TBR's Network Business Quarterly service provides coverage of the 
leaders in wireless network infrastructure, mobile phones, mobile 
operators and the mobile Internet. NBQ covers the six leading U.S. 
wireless carriers: AT&T Wireless, Cingular Wireless [BellSouth and 
SBC Communications joint venture], Nextel Communications, Sprint 
PCS, Verizon Wireless [Verizon Communications and Vodafone joint 
venture] and T-Mobile USA (Deutsche Telekom subsidiary). NBQ also 
includes coverage of Alcatel, Cisco, Ericsson, IBM, Lucent, 
Motorola, Nokia, Nortel, Samsung and Siemens. 

Complete reports are available to accredited journalists. For more 
information, please visit TBR's Web site at www.tbri.com. 

Bill Lesieur NBQ Director Technology Business Research, Inc. 603-929-
1166 [email-masked] Jon Lindy Vice President of Sales and 
Marketing Technology Business Research, Inc. 603-929-1166 
[email-masked] 

http://www.marketwire.com/mw/release_html_b1?release_id=60779

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