Subject: [NEXTEL-1] Timmy On CNBC- "Kudlow & Cramer" 8:00PM - 9:00PM

From: Marcel <[email-masked]>
Date: Thu, 24 Oct 2002 20:36:39 -0400

http://www.kudlow.com/calendar/eventdetails.asp?Date=10/24/2002

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October 24, 2002

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8:00PM
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CNBC

"Kudlow & Cramer"

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From: Marcel <[email-masked]>
Date: Thu, 24 Oct 2002 21:31:08 -0400

Timmy Said:

" First of all you're right. The government sector is the fastest growing in terms of
business. As it relates to september 11th and whether it would have worked better than
what they had. I'm not sure I know the answer especially given the circumstances but
public safety today needs interoperatability and they need redundancy and you they don't
have it in the systems today. Nextel is this a position today to offer that. Especially
the radio and it's looking at us because we have the product to offer. Other carries --
carriers don't have the product and we continue to sophisticate the product to meet the
needs of public safety."

======================================================================================
Kudlow and Cramer  - Thu Oct 24 20:41:54 2002

>> Jim: Tonight's bright spot shines on a phone company posting record earnings today.
Nextel communications, the 5th largest U.S. Wireless telephone company posted a profit for
the second quarter in a row with record financial results. They closed at 10.06. Up
approximately, get this, 400 percent since the low point back in july of 2002. And bought
it earlier in the year and it's been a great hit for me. Let's meet the man responsible
for this bright spot on the economic horizon who has served as president and ceo of nextel
communications since august of 1999. He joins us now from washington D.C. Welcome sir and
I will tell you, look, I want to know, what are you doing right that everyone else is
doing wrong? Just give us your 3 things you're just tearing the turf up for and the other
guys leaving them in the dust.

>> Hi, jim. First of all, thanks for having me. I guess I would start by saying we take a
lot of pride in a very differentiated product that we have that no one else has and we
have what we call direct connect which is a 2 way radio/walkie-talkie built into our hand
sets. In addition to that we're running and have been running for years at 2 and a half
network and with good momentum and traction on the data side of the business and that's
point number 1. Point number 2, as we look at this market, we look at what we call smart
growth which is balancing the top line growth with very cost efficient management in terms
of the functional areas and you're driving a lot of profit and the margin is at 41 percent
and it's one of the highs if not the highest in the industry and it's the whole issue of
making sure you bring on the right kind of customer. We cater to business customers. Our
proof is 71 bucks and the average is 50. Our churn is 2 percent and the average is 2.7 to
3 percent and people like the product and can't get it anywhere else and we're doing a
hell of a job of servicing the customer so we feel real good about our progress with a lot
to come.

>> Jim: On the call today I heard it was a great call and just landing in the boston
police department. And would your nextel have done better than what the fire fighters had
and the reason you're picking up police law enforcement is because it works better in high
rises than the current system and is this why you hired rudy giuliani's firm as part of
the process?

>> First of all you're righT. The government sector is the fastest growing in terms of
business. As it relates to september 11th and whether it would have worked better than
what they had. I'm not sure I know the answer especially given the circumstances but
public safety today needs inner operatability and they need redundance and you they don't
have it in the systems today. Nextel is this a position today to offer that. Especially
the radio and it's looking at us because we have the product to offer. Other carries --
carriers don't have the product and we continue to sophisticate the product to meet the
needs of public safety. Now as it relates to the mayor, when you talk about rudy giulianI
you also have to take a look, jim, at the other people working with him in giuliani and
partners. You have tom van essen as an example, former fire chief. You have richie share
in charge of emergency services in new york. These guys understand public safety and they
understand what needs to be done. They are helping us and tutoring us on what they believe
the systems the public safety has to have and as a result they're going around the country
and talking to public safety officials and finally, and most importantly, they understand
like we do that public safety needs more spectrum and we're trying to get them more
spectrum.

>> I want to go to topline revenues. You have fabulous 26 percent rise reported but stay
on the public safety issue for a moment, mr. Donna hew. Are the private sector securities
taking their cue and are they a big growing customer base for you?

>> Yes, larry. We see a lot of business in that sector and it's growing for us. Most
especially in the enterprise area and the large -- and with the security area and now that
we have the robust product and we can put the custom network solution on the enterprise
campuses which means we put in antennas throughout the campus and they have bullet proof
coverage and bullet proof quality and that's another area of significant work for us.

>> Larry: It's a walkie-talkie and 2-way but functions as a cell phone, does it not?

>> In our device or in our phone what we have are really 3 or 4 different functionS. The
first is inner connection which you know as cellular. The second is direct connect with
the walkie-talkie feature. The 3rd is messaging capability and the 4th of course is packet
dat which we've been running now for almost 4 years.

>> Larry: You reported 26 percent rise and it's for the tech sector scratching hard just
to get back to zero. How do you do it and what are your estimates going forward?

>> Well, look, we still feel very good about the future and we said today on the call that
the 4th quarter looks to be at a minimum of 450,000 subscribers and you're right. Many of
the carries are going backwards and one of the problems is the churn is too high and
they're turning off customers and try to replace those customers month in and month out
when you have the large customer basises so I would say to you first we do a great job of
retaining the customers at 2 percent churn. We're going after a high value customer and we
have very stringent credit policies. We don't just let anybody on and as a result we get
the best customers in the industry.

>> Larry: How about cost cutting? Is that a factor in this or just pure growth play?

>> Big time cost cutting. If you look at what we did especially with outsourcing and the
teletech deal where we outsourced the customer care and look at eds deal where we
outsourced our data centers and help desks. We continue to ratchet down the costs quarter
over quarter and that's what's driving the margin.

>> Jim: In 15 seconds or less, bears say you still have way too much debt. How do you
answer?

>> We took 2.6 billion dollars off since the beginning of the year. 1.5 billion in this
quarter alone. We were very opportunistic when it came to raising debt and we're
opportunistic as a company when it comes to delivering and remember we're in a great cash
position and continue to grow. Our cash flows and the liquidity has never been better.

>> Larry: You just tell them tim, growth, growth solves debt. Flip of the bird. Liberals
don't understand it. And I love your story. Yeah, flip all the skeptics the bird. It's a
good storY. Thanks for coming on the show.

>> Thank you guys. Hope to see you again.

>> Larry: The market, the economy, politics. We'll be back to talk it all over in just a
minute. We have so much to ingest. We won't flip you the bird. Please stay with uS.

---

From: "ptt4all" <[email-masked]>
Date: Fri, 25 Oct 2002 02:08:21 -0000

What a bunch of BS....
Nextel will NEVER have a REAL radio much less one capable of working 
and surviving in a Public Safety environment, no matter WHAT Timmy 
might think or want people to believe.

JW

> carriers don't have the product and we continue to sophisticate the 
product to meet the
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