Subject: [NEXTEL-1] Verizon Pushes-to-Talk, Finally

From: [email-masked]
Date: Thu, 14 Aug 2003 00:10:47 -0400

Verizon Pushes-to-Talk, Finally
08.13.03

Verizon Wireless will launch its long-awaited push-to-talk (PTT) service tomorrow,
Boardwatch (Unstrung's sister site for the telecom services industry) has
confirmed, almost ten years after Nextel Communications Inc. (Nasdaq: NXTL -
message board) established the market.

PTT services, which allow regular cell phones to work like walkie-talkies, are
used by the services industry and are common among plumbers, builders, and courier
companies.

”I always say that Nextel built my house,” says Iain Gillott, wireless analyst and
founder of iGillott Research Inc. “The handyman couldn’t pick up a brick without
talking to his boss on the Nextel.”

The carrier claims more than 150 million Direct Connect PTT calls are made daily
on its networks. Nearly 50 billion such calls were made in 2001. It has 12 million
subscribers with an average revenue per subscriber of $70, or roughly $10 more per
subscriber than Verizon Communications Inc. (NYSE: VZ - message board) or Sprint
Corp. (NYSE: FON - message board) pulls in, analysts say.Needless to say, Verizon,
Sprint PCS (NYSE: PCS - message board), AT&T Wireless Services Inc. (NYSE: AWE -
message board), and others are eager to cash in on the extra revenue (see Walking,
Not Running, to PTT).

”In a nutshell, Verizon’s service means serious competition for Nextel,” Gillot
says.  He points out that the picture only gets worse for Nextel as more carriers
encroach on its market and the Federal Communications Commission (FCC) mandates
wireless number portability. “Number portability presents a big problem for
Nextel, as customers will be able to carry their Nextel number over to Verizon if
they want." (See In-Stat: WLNP May Boost Churn.)

Right now, Verizon will launch the service on Motorola Inc. (NYSE: MOT - message
board) handsets, as does Nextel, but has plans to make it available across other
handsets in time. “Nextel users have been very limited in their choice of handset
options, which Verizon will change,” says another wireless analyst, who requested
anonymity.

Verizon is expected to use Motorola’s softswitch technology, which the equipment
vendor picked up via its acquisition of Winphoria, to set up and tear down calls
on the new PTT network (see Motorola Eats Winphoria).

In order to make a PTT call, the user selects a name and pushes a button on his or
her handset. Voice is packetized in the handset and routed via base stations and
the operator's IP backbone to the recipient, using the Winphoria switch to set up
the VOIP connection, handle billing, and so on.

The fact that Verizon is charging ahead and launching its PTT service implies that
it's satisfied that past concerns over VOIP solutions -- namely, long call-setup
times and excessive network delays -- have been dealt with satisfactorily.
Nextel's PTT service isn't VOIP based.

Verizon itself declines to comment on these issues until the official launch.
— Jo Maitland, Senior Editor, Boardwatch

http://www.unstrung.com/document.asp?doc_id=38669

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From: Evan Platt <[email-masked]>
Date: Thu, 14 Aug 2003 08:52:25 -0700

<http://news.verizonwireless.com/news/2003/08/pr2003-08-14.html>:

"BEDMINSTER, NJ  ? Verizon Wireless, the nation’s largest wireless service
provider, today announced the nationwide availability of Verizon Wireless
Push to Talk service on Monday, August 18, 2003...."

Evan