Subject: [NEXTEL-1] Nextel Gets Its First PTT Competitor: Verizon Wireless

From: [email-masked]
Date: Thu, 14 Aug 2003 16:05:25 -0400

Nextel Gets Its First PTT Competitor: Verizon Wireless 

By Wireless Week Staff
August 14, 2003
news@2 direct

Move over Nextel, Verizon Wireless has officially entered the push-to-talk battle.
The carrier is challenging rival Nextel Communications Inc., which has been
offering the walkie-talking like service for a decade.

The push-to-talk service, which will run over Verizon's CDMA2000 1x packet
network, will offer subscribers the ability to manage contact lists on the
Internet and see whether people on their contact lists are available. Although
Verizon's existing customer base is largely made of up consumers, the carrier
plans to pursue the business sector with the new service. 

Although disappointing to some analysts, Verizon is initially rolling out the
service on only one handset, the Motorola V60p - although Verizon is expected to
expand its offering to a Samsung handset in the near future. The V60p has a
dedicated PTT button and speakerphone, as well as access to other Verizon
features, such as America's Choice nationwide calling, mobile Web and text
messaging. With a two-year contract, the phone retails for $149.99.

In response to the announcement, Nextel said it wasn't worried about the
competition -- the company has more than 11 million Direct Connect users. Many
analysts, however, disagree. 'Nextel says they are not worried about it, but they
must be in denial, because this is Nextel's worst nightmare,' said wireless
analyst Jeff Kagan. He expects Verizon to be a fierce competitor. 'Nextel's PTT is
good, very good. But Verizon is no slouch. I expect their offering to be just as
good,' he said.

Analyst Mark Lowenstein, managing director of Mobile Ecosystem, said Verizon has
the strength of its network going for it, and it will most likely try to
capitalize on Nextel's perceived weaker 'cellular' network. Verizon also will try
to boast user-friendly features. He believes the battle will be fought in the
white-collar enterprise market. 'Nextel will continue to hammer away at the
stronghold verticals and the government sector,' he said, while Verizon could have
major wins in the enterprise sector.

The PTT field is expected to get a little more crowded soon. 'I fully expect all
the majors to introduce PTT in the coming months, which turns the heat up on
Nextel,' Kagan said. Sprint PCS is one of the major players set to launch a
service of its own this year.

http://www.wirelessweek.com/index.asp?layout=document&doc_id=124623&verticalID=34&vertical=Business+and+Finance&industry=

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