Subject: [NEXTEL-1] FW: May 1, 2003 - Technology

From: "Rik Rasmussen" <[email-masked]>
Date: Thu, 1 May 2003 06:36:05 -0400

Industry Watch

              Your Source for Industry Information May 1, 2003

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            In this issue: Technology

                  Articles & Commentary
                  Industry Data
                  Analyst Research
                  Complimentary Research

            Long-term winners are starting to emerge in the telecom
industry, and in today's issue of Industry Watch we provide you with expert
insight into which companies are most likely to come out on top. When it
comes to Baby Bells, John Filar Atwood says Verizon Communications (VZ QUOTE
/ RESEARCH) is the one to own; when looking at wireless players, Dave
Sterman says the top names are Nextel Communications (NXTL QUOTE / RESEARCH)
and AT&T Wireless (AWE QUOTE / RESEARCH). To help you make even more
informed investment decisions, we're spotlighting research on Nextel and
Qualcomm (QCOM QUOTE / RESEARCH), as well as a look at Regional Bell
Operating Companies (RBOCs). As always, we're also offering you a taste of
the industry data available on our site.

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            Articles & Commentary

            Technology: Baby Bells bundle up to warm earnings
            Verizon leads in the use of bundled services to stave off fierce
competition
            By John Filar Atwood, equity research columnist

            Revenues and customer bases at all of the Regional Bell
Operating Companies (RBOCs) declined again in the most recent quarter, but
the group—which includes Verizon Communications (VZ), BellSouth (BLS), and
SBC Communications (SBC)—has begun to fight back with bundled service
packages. Of all the RBOCs, Verizon has had the most success with the
strategy, potentially making it the best long-term investment in the
struggling group. Click here to read more.

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            Technology: Separating the haves from the have-nots in wireless
            As the industry matures, Nextel Communications and AT&T Wireless
are emerging as industry winners
            By Dave Sterman, equity research columnist

            Two key developments have changed the nature of competition in
today's wireless industry. The first dates back to 2001 and 2002, when the
shutdown of financial markets forced companies to throttle back expansion
plans and make do with existing resources. The second is of more recent
vintage; it is the maturation of the industry, which has caused growth rates
to level off. In this slower-growth, capital-starved environment, Nextel
Communications (NXTL) and AT&T Wireless (AWE) are flourishing, while Sprint
PCS (PCS) and Cingular Wireless—a joint venture of SBC Communications (SBC)
and BellSouth (BLS)—are floundering. Click here to read more.

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            Industry Data
            Analysts seem to agree that consolidation is coming to the
telecom industry—it's just a question of how soon and which players. You can
start answering these questions for yourself by taking a look below at key
metrics on three of the companies discussed in today's articles. We're also
featuring high-quality research on Nextel Communications (NXTL), Qualcomm
(QCOM), and Regional Bell Operating Companies (RBOCs). To see AT&T Wireless'
growth rates or the current short interest for Sprint PCS, click the links
below.

            Financial snapshot of BellSouth
            AT&T Wireless' growth rates
            Short Interest for Sprint PCS

                         Companies mentioned in this issue:
                              a.. AT&T
                              a.. AT&T Wireless
                              a.. BellSouth
                              a.. Nextel Communications
                              a.. SBC Communications
                              a.. Sprint FON
                              a.. Sprint PCS
                              a.. Verizon Communications

                         Related reports:
                              a.. Nextel: Solid Quarter, Raising Estimates
                              a.. AT&T Wireless: Upping 2003 EBITDA to
Reflect Better First Quarter
                              a.. AT&T Wireless: First-Quarter
Results—Improving Profitability
                              a.. Verizon First-Quarter Results: Keeping
Afloat During the Storm
                              a.. Sprint PCS: Mixed First-Quarter Results;
Churn Better, ARPU Worse Than Expected
                              a.. BellSouth: Same Old Story—Competition
Affecting Results

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            Analyst Research
            Editor’s Pick
            Legg Mason examines a shift in RBOC valuations.

            The firm explains why it recently upgraded one of the Baby Bells
to Buy from Hold while maintaining its Hold on the rest. The report
summarizes the firm's current view on the group and discusses group
valuations, implied cash flows, fundamental problems facing the group,
negative line growth, and UNE and UNE-P lines. (24-page report for purchase)

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            What’s Hot?
            CIBC World Markets takes a look at CDMA demand slowdowns facing
Qualcomm.

            The firm cites a variety of factors that could lead to
sequential revenue declines through December. The report examines recent
top- and bottom-line performance, discusses excess inventory in the channel,
and the situations in South Korea, China, and India. CIBC also examines
QCOM's segment performance, including CDMA technology, licenses, and
strategic initiatives. 13 illustrative exhibits. (20-page report for
purchase)

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            Independent Review
            Morningstar discusses the "superb" March quarter from
wireless-services provider Nextel Communications.

            The firm examines March sales, churn, and its concern about
average revenue per user (ARPU). The report touches on Nextel's Direct
Connect service and why the company's competitive advantage is sustainable.
It also takes a look at the stock's valuation, lists both bullish and
bearish investment arguments, and provides other fundamental insights.
(4-page report for purchase)

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            Complimentary Research

            Circuit breaker?
            U.S. Bancorp Piper Jaffray examines results and prospects for
Integrated Circuit Systems.

            While seeing recent momentum for ICST, USPJ says why it is
tempering its outlook on the company. It looks at the near-term outlook,
bookings, the stock's valuation, and more. Multex Investor members who
register for U.S. Bancorp Piper Jaffray's free research trial can download
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            Screening The Market

            Learn how to find, analyze, buy, and sell stocks from the "must
own" source: Screening The Market, by Multex Investor director of investment
research Marc Gerstein.

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