Subject: [NEXTEL-1] Nextel: walkie-talkies make a comeback

From: Marcel <[email-masked]>
Date: Sat, 22 Feb 2003 23:02:04 -0500

Nextel: walkie-talkies make a comeback

Nextel has reported a 24% increase in revenues.

February 21, 2003 5:25 PM GMT (Datamonitor) - US wireless operator Nextel Communications,
best
known for the walkie-talkie feature on its mobile handsets, has posted a healthy set of
year-end
results. As Nextel rolls out its services throughout the US, the company will be in an
increasingly
good position to capture more of the competitive wireless market.

Nextel has reported a fourth quarter net profit of $1.46 billion, compared to a net loss
of $1.79 billion
last year. Its revenues were up from $1.88 billion to $2.33 billion.

For the year to December 31, it reported a net profit of $1.66 billion, compared with a
net loss of
$2.85 billion, on revenues of $8.72 billion. The fourth quarter figures were lifted by a
pre-tax gain of
$1.22 billion from the deconsolidation of Nextel's 36% stake in NII Holdings.

Looking forward, Nextel forecast free cash flow of $500 million, and EBITDA of $3.8
billion or more. It
also expects to add another 1.7 million subscribers.

The Reston, Virginia-based mobile operator is the fifth largest mobile phone carrier in
the United
States, and has managed to add 503,000 customers during the quarter, bringing its total
subscriber
case to 10.6 million. It has the US industry's highest average revenue per subscriber,
reporting $69
per month in the fourth quarter, although this was down from $71 in the previous period.

Nextel phones offer a walkie-talkie service called Direct Connect, which allows users to
push a single
button and connect with another Nextel user. This service is typically free as long as the
other user is
in the local coverage area. Users can even specify a group of Nextel users (up to 100)
that they can
connect to all at once, similar to a dispatcher's radio as used by police or taxi
companies.

Once this system is fully rolled out in the US, a caller on the East Coast will be able to
use the
phone as a walkie-talkie and talk to another caller in California, for a fraction of the
cost of a normal
cellular call. This unique service is already proving to be an attractive option and there
is little doubt
that Nextel is capturing an increasing market share in the competitive US wireless
marketplace.
http://www.commentwire.com/commwire_story.asp?commentwire_ID=4060

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