Subject: [NEXTEL-1] Rivals to Reston, Va.-Based Nextel Plan Own Walkie-Talkie-Style Feature

From: Marcel <[email-masked]>
Date: Wed, 12 Mar 2003 09:07:06 -0500

Rivals to Reston, Va.-Based Nextel Plan Own Walkie-Talkie-Style Feature
March 11, 2003 11:47pm

Mar. 11--That little ringle-jingle made by Nextel phones' walkie-talkie feature has other
wireless carriers
hearing the sound of cash flowing into their coffers.

Reston, Va.-based Nextel made a name for itself with Direct Connect, a service that lets
customers
contact other Nextel users by pushing a button and then speaking one at a time, in the
same way a walkie-talkie works.
The feature is hugely popular among Nextel customers -- about 11 million use it -- and has
allowed the
company to attract a stable of revenue-producing business customers that are the envy of
the industry.
So it's not surprising that other big name wireless carriers are looking to copy.

"Verizon Wireless, Alltel, AT&T Wireless, T-Mobile, Sprint are all exploring this and most
have plans to
roll out later this year," said Ken Hyers, wireless analyst with the research firm
In-Stat/MDR.
Bedminster-based Verizon Wireless plans to introduce a so-called push-to-talk feature
before the end of
the year, according to a representative. But the company is mum about the details such as
when or where a product launch
might take place.

The same goes for Sprint PCS. "We do have plans to release a push-to-talk service and
product sometime this year," said Sprint PCS spokeswoman Kathleen Dunleavy. "But we
haven't released yet what kind of a product we'll have or a specific timeframe."

AT&T Wireless is looking at the technology and will conduct trials this year and possibly
roll out the
service in 2004, said company spokesman Ritch Blasi. Like other carriers, AT&T Wireless
has been looking at Nextel's ability to attract and keep business customers.

The push-to-talk technology would "open up sales opportunities" to provide service to
business
customers, said Blasi.

As the telecommunications slump continues, cellphone companies are desperate to find ways
to wring
more cash out of existing customers.

Because cellphones are in the hands of most Americans who want them, the mobile carriers
face an uphill
battle growing their customer base.

The companies also want ways to win customers, especially business customers, who spend a
lot and
generally pay their bills on time.

Upgrading their networks to handle data, adding services such as text messaging, and
introducing features
such as push-to-talk are all part of that effort.

Nextel, the nation's fifth-largest wireless carrier, says it welcomes the competition but,
not surprisingly,
expresses some doubt on competitors' ability to develop a push-to-talk service that works
as well as theirs.
Jerry Reynolds, Nextel's New York-area vice president, said Nextel has delivered
push-to-talk for more
than a decade, and calls made with the walkie-talkie feature go through instantly.

"Our customers have grown accustomed to that level of service," said Reynolds, adding that
the company
plans to roll out nationwide Direct Connect service by the third quarter.

Though the service is currently available nationwide, the calling areas in which it can be
used are
restricted. Some analysts have also said Nextel competitors may not be able to duplicate
the speed with which Nextel
customer can connect with each other.

Speakers may experience a delay of several seconds when they talk, said Hyers.
"While a consumer might be willing to put up with it, business customers won't," he said.
But companies looking closely at the technology say these concerns aren't warranted.

Verizon Wireless CEO Dennis Strigl has said those issues have been resolved and that users
will not experience delays.

One thing is certain: Cellphone users who subscribe to companies other than Nextel will
find their carriers
speaking up loud and clear when they begin to introduce their own version of the popular
walkie-talkie service.

http://hoovnews.hoovers.com/fp.asp?layout=printnews&doc_id=NR200303121180.3_06d600123651dfde

To see more of The Record, or to subscribe to the newspaper, go to
http://www.NorthJersey.com

--
    "NEXTEL-1 IT'S NOT JUST NEXTEL"
  Note The New address
Subscribe to Nextel-1: http://www.groups.yahoo.com/subscribe/NEXTEL-1

  "NEXTEL2 FOR iDEN SOFTWARE DEVELOPERS"
Subscribe to Nextel2: http://www.groups.yahoo.com/subscribe/NEXTEL2

  "WIRELESS FORUM HOMELAND SECURITY GROUP"
     The Complete Resource for Wireless Homeland Security.
Subscribe to WFHSG:  http://www.groups.yahoo.com/subscribe/WFHSG