Subject: [NEXTEL-1] Nextel's Nationwide Direct Connect Feature for its future?

From: [email-masked]
Date: Sun, 20 Jul 2003 20:44:20 -0400

Nextel's Nationwide Direct Connect Feature for its future?
I.J. Hudson, Tech Reporter

"That 'beep beep' thing. Everybody can hear that." Cellphone user Mike Pocceschi is
talking about the sound Nextel phones make when using the 'Direct Connect' feature.
It reminds me of a cricket on steroids. The regional walkie talkie feature is now
available coast to coast. Click here and 2500 miles away, the phone on the other end
configures itself to receive the call. I tried out a pair of Nextel phones with the
help of Scott Budman of sister Station KNTV, in San Jose, California.

We had several direct connect conversations that were just like standing next to each
other. We also had a couple of calls when we each cut out or were garbled.  Those
happened mostly in front of NBC4. Our photographers and street reporters use Nextels
in the field, and our own front yard is one of the worst coverage areas, primarily
because of all of the signals emanating from a TV station's tower.

Consumers will be looking at network coverage and at direct connect when number
portability becomes a reality late this Fall when consumers can keep their cell number
if they change cellphone companies.

How will Nextel fare when consumers currently tied to a number can make changes, and
when 3 other wireless companies begin offering a push to talk feature similar to
direct connect?

Jane Zweig is CEO of the Shosteck Group, telecommunications consultants that
specialize in the wireless industry.
They have watched the cellphones mature from big heavy analog beasts with no features
and heavy batteries, to the designer "Swatch" phone, to the combo camera/pda/phones of
today.

Zweig says much of Nextel's customer base is made up of groups, which may be reluctant
to switch to a new carrier, a practice known as churning. "In many cases you're not
just churning an individual, you've got to churn a whole business group, so it will be
much more challenging. In some ways it's good for Nextel, because it will harder for
customers to make the decision to leave Nextel."

But it may be a different story for individuals, especially young people. Meredith
Amonson received a gift Nextel. Who does she talk to? "Just my boyfriend, on the
walkie talkie, because you have to have the same kind of phone."
Nextel uses only Motorola handsets. That limits choices that younger uses would like
to have. "Not that there's a problem with that manufacturer, or those phone or that
technology, but in terms of youth they are very picky, and they're not loyal to any
one handset manufacturer. So they want the glitz, the bells and whistles. They want
the new features," says Zweig.

Comment

Nextel may wind up being a "wild card" in the number portability sweepstakes. There
are people waiting to try the "direct connect" feature but are tethered to another
wireless carrier by a long time cell number that didn't want to lose. When November
24th rolls around, they may bolt to Nextel. Some could choose to wait until their
current service has a walkie-talkie feature, but it's unlikely those initial efforts
to duplicate "direct connect" will be as good. And then there are those who found
Nextel's coverage lacking for their personal needs. They may look toward networks that
let them make and complete a higher percentage of phone calls.

Don't get me wrong. Nextel's coverage has improved a lot in the last three years, but
IMHO, still lags behind some of the older carriers that concentrated on expanding
network capacity and coverage. Nextel is spending millions on new sites, but is still
playing catch up.

That's why this summer and early fall will be extremely interesting for the wireless
industry. An already highly competitive atmosphere will be supercharged with deals
galore, marketing strategies, and efforts to educate consumers about the opportunities
offered by number portability.

The only guarantee is that it will take a lot of study to figure out what is right for
you. And that can always be shaded by price which is more important to some people
than either features or coverage.

http://www.nbc4.com/technology/2345425/detail.html

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges & Refill Kits for Your Epson at Myinks.com
Free shipping on orders $50 or more to the US and Canada.
http://www.c1tracking.com/l.asp?cid=5705&lp=home/epson.asp
http://us.click.yahoo.com/brYXfA/_xWGAA/ySSFAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/