Subject: [NEXTEL-1] Confused Anal-yst Alert- Alert- Alert-

From: Marcel <[email-masked]>
Date: Thu, 08 May 2003 20:15:47 -0400

Confused Anal-yst  *Alert- *Alert- *Alert- *Alert-* Alert

This Anal-yst clearly has no idea what is going on.
The Sad thing is Craig use to work at Nextel!

Example:

It concerns me that an "Anal-yst" does not even know who
wrote a report that they are speculating on.

<SNIP>

"Motorola's, CGIS or Government and Public safety division filed an
alternative proposal that would require fewer incumbents to relocate
from the 800 Mhz band utilizing an advanced filter technology to remove
interference."

 Who is Government and Public safety division? or CGIS???

What happened to "Commercial" & "Industrial"??

Oh that's right Nextel will be running them out of business at this rate.

What they meant was "Commercial, Government and Industrial Solutions Sector"
aka CGISS,,,,,,,Geeezeee

(Strike 1)

Example:

<SNIP>

"As a backdrop, Nextel has been utilizing filters in its handsets to
minimize interference for a number of years now. While the filter technology
improves interference, it doesn't completely eliminate it."

Filters in their HANDSETS?? Every cellphone / radio uses filters and Motorola
had not installed any specifically to reduce Public Safety Interference.

How would that stop the interference?

The Interference comes from the base station.

Nextel has been installing filters at the Base Station end.....Duh!

(Strike 2)

Example:

<SNIP>

 "Additionally, the Nextel proposal would allow the company to go
after CGIS customers that currently pay $1,500 for two-way private
radios with handsets that offer the same two-way functionality in
additionto other features, providing extra incentive for Motorola to
attack  Nextel's plan."

Same "two-way functionality "  Not Nextel phones! They are dead as
a brick without their infrastructure. CGISS  Radios can communicate
(Simplex) with or without their infrastructure.

Nextel's plan will pump millions into CGISS with replacement equipment
and just not handsets.

(Strike 3)- This research is so flawed it is not worth going on.

Now I see why they use the CYA- statement

"The information contained herein has been prepared from sources
believed reliable but is not guaranteed by us and is not a complete summary or
statement of all available data, nor is it considered an offer to
buy or sell any securities referred to herein. Opinions expressed are subject to
change without notice and do not take into account the particular investment
objectives, financial situation or needs of individual investors."

=============================================
FIRST CALL RESEARCH NETWORK

11:51am EST 08-May-03 Legg Mason (Mallitz, Craig) NXTL

NXTL: Core Thesis Intact; Risk on Spectrum Swap/ PTT Products
Overdone

Legg Mason Wood Walker, Inc.

Nextel Communications, Inc.

Company Note OTC:NXTL Craig Mallitz

May 8, 2003
RATING: B/3

Core Thesis Intact; Risk on Spectrum Swap/ PTT Products Overdone

_____________________________________________________________________

FUNDAMENTALS

Price (05/08/03) $12.93 | FY End Dec 2002 2003 2004

S&P 500 Index (05/08/03) 926 | Revenue(MM) $8,721.0 $9,957.0
$11,195.0

52-Week Range 16-2 |

Market Cap(MM) $14,213.9 |

Shares Out(MM) 963.0 |

Enterprise Value(MM) $27,589. | EPS

Avg Daily Vol(3mo) 22,128,22 | Q1 ($0.35)A $0.21A

Debt/Total Cap. 0.73% | Q2 ($0.05)A $0.28E

Net Cash/Share $3.60 | Q3 $0.14A $0.28E

Dividend $0.00 | Q4 $0.21A $0.19E

Yield 0.0% | Fiscal Year ($0.05)A $0.95E $1.33E

Book Value/Share $2.96 |

| EV/Revenue 3.2x 2.8x 2.5x

| P/E NM 13.6x 9.7x

Price is intraday 5/08/03

* Today, Nextel Communications was downgraded by a competitor to
Sell ononcerns over a new spectrum swap proposal issued by Motorola
coupled with the risk associated with competitive push-to-talk products (PTT) by
Sprint PCS and Verizon Wireless.

* First on the spectrum swap, The Office of Engineeering and
Technology (OET) at the FCC asked for final proposal comments regarding the
initiative to eliminate interference from the public safety operators.

* Motorola's, CGIS or Government and Public safety division filed an
alternative proposal that would require fewer incumbents to relocate
from the 800 Mhz band utilizing an advanced filter technology to remove
interference.

As a backdrop, Nextel has been utilizing filters in its handsets to
minimize interference for a number of years now. While the filter technology
improves interference, it doesn't completely eliminate it.

* Motorola's proposal is driven by its desire to protect its
lucrative government and private sector group which provides radios for public
safety use. The CGIS division is more profitable than its IDEN division,
which caters to Nextel, explaining Motorola's desire to go up against
Nextel spectrum swap proposal.

* Additionally, the Nextel proposal would allow the company to go
after CGIS customers that currently pay $1,500 for two-way private
radios with handsets that offer the same two-way functionality in addition to other
features, providing extra incentive for Motorola to attack Nextel's plan.

* The new filter doesn't address all of the problems associated with
public safety mandate by the FCC as it doesn't eliminate interference but
rather reduce it, there is no new spectrum allocated for public safety
operators, and it doesn't address the interoperability issues between
operators, i.e., police being able to communicate with firemen.

* While we believe that Motorola's proposal lacks the support or the
merits of the Nextel spectrum swap, it does layer on additional risk as the
FCC will test the viability of the solution and possibly push out the
resolution past our 3rd quarter estimate.

* On the PTT front, Verizon Wireless and Sprint PCS have been
talking about competitive PTT product for a number of years, but recently we have
heard that Verizon Wireless has triangulated around a summer launch. Our
core argument on PTT has been and remains that a latency of 4+ seconds is
unacceptable for NXTL's existing customer base, which, in our opinion,
implies a minimal impact on churn.

* Regarding future growth, we still believe that Nextel's target
segment of government and small business remains relatively underpenetrated and
that the lionshare of growth will come from that segment even withstanding
the 60% of net additions that came from high-value consumers this quarter, as
we believe that 70% of those customers are business customers who have their
bill sent to their home. Additionally, we believe that competitive products
will have an additional roadblock of interoperability as Nextel has a large
block of core users that new subscribers gleaned by other carriers will not
have access to.

* Accordingly, we are maintaining our Buy on the shares of Nextel,
as the headline risk of PTT coupled with a delay in the spectrum swap
resolution doesn't shift us from or core thesis on the Nextel story.

Additional Information Available Upon Request.

Investment Rating: B-Buy, H-Hold, S-Sell

Risk Rating: 1-Low, 2-Average, 3-High

http://legg.bluematrix.com/bluematrix/Disclosure?ticker=NXTL on the
world wide web. Additional information is available upon request.

The information contained herein has been prepared from sources
believed reliable but is not guaranteed by us and is not a complete summary or
statement of all available data, nor is it considered an offer to
buy or sell any securities referred to herein. Opinions expressed are subject to
change without notice and do not take into account the particular investment
objectives, financial situation or needs of individual investors.