Subject: [NEXTEL-1] 'Direct Connect' feature. It reminds me of a cricket on steroids.

From: [email-masked]
Date: Sat, 09 Aug 2003 07:08:24 -0400

'Direct Connect' feature.  It reminds me of a cricket on steroids.
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

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