Subject: [NEXTEL-1] Nextel & Moto WiDEN Ties

From: [email-masked]
Date: Wed, 26 May 2004 17:51:27 -0400

Nextel & Moto WiDEN Ties

05.25.04

Motorola Inc. appears to have secured its position as Nextel
Communications Inc.’s favored equipment supplier for future nationwide
network rollout, despite reports of a previous “frosty” relationship
between the two companies.
The U.S. vendor is the sole equipment supplier for Nextel’s commercial
iDEN service, with the network generating approximately 20 percent of
Motorola’s total infrastructure revenue.

Speaking at a Lehman Brothers conference this week, Nextel’s CEO Tim
Donahue confirmed plans for the rollout of Motorola’s WiDEN technology,
a software upgrade to the iDEN network that is touted to increase data
rates “between 60 to 80 kbit/s.”

“We are going to roll out WiDEN by year end, and Motorola is delivering
the software to us now,” he commented. “I look forward to working with
Motorola to get even more capital efficiencies going forward. I want to
expand our coverage… We are going to put up 2,200 new coverage sites in
2004.”

Donahue singled out Motorola’s new CEO, Ed Zander, as the man
responsible for improving relations between the two companies “He
understands that Nextel is his largest customer… Early on he has made a
number of changes in terms of who manages the Nextel account, and it has
been very positive on both sides.”

According to a Lehman Brothers research note, the partnership “had been
frosty at times in recent years.”
Motorola itself is eager to scotch any speculation that it could lose
Nextel’s business, especially in light of the carrier’s commercial trial
of Flash-OFDM technology from startup Flarion Technologies (See
http://www.flarion.com/).

“We enjoy a really positive relationship with Nextel,” comments Jerry
Wilson, senior director, industry research and analysis, global
marketing, for the vendor’s Global Telecom Solutions sector.

“We are confident that we are going to continue working with them
closely going forward. They are looking at a number of different things,
and we look at those things with them. Whatever Nextel does, we are
going to be involved intimately with them.”

— Justin Springham, Senior Editor, Europe, Unstrung

 http://www.unstrung.com/document.asp?doc_id=53392

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