Subject: [NEXTEL-1] 80% Of Nextel Calls Are Blocked At NASCAR Race Tracks- Timmy "Can U Hear me Now?"

From: Marcelrf <[email-masked]>
Date: Tue, 24 Feb 2004 04:03:00 -0500

Posted on Sun, Feb. 15, 2004

Nextel easing into new role

   * 80% Of Nextel Calls Are Blocked At NASCAR Race Tracks- Timmy "Can U Hear Me Now?"

   * Only 5% Of NASCAR Fans are Nextel users.

   *  NASCOW On The Way - Cellular On Wheels

For the time being, communications giant plans to take a backseat in its approach

By RANDY COVITZ

The Kansas City Star

Don't expect too much too soon from Nextel.

While it would be a stretch to say Nextel
Communications, Inc. &mdash; the wireless company
that replaced Winston this year as title sponsor for
NASCAR's premier series &mdash; is just along for
the ride, the company will take a back seat when it
comes to on-track issues.

Nextel, in the first year of a 10-year, $750 million
sponsorship, is focusing its efforts primarily on
technology and marketing &mdash; at least for the
time being.

That differs from the philosophy of Winston's parent
company, R.J. Reynolds, which wielded its clout on a
variety of NASCAR decisions during its 33-year
sponsorship. RJR influenced the format for the annual
all-star race, formerly called The Winston, and funded
programs such as the Winston Cup Leader Bonus and
No Bull promotion.

But this year, NASCAR, with an eye toward making
the sport more appealing for its next television contract, created the season-ending 10-race Chase for the
Nextel Cup and tweaked its outdated points system. NASCAR will determine whether to move its all-star
race, now called the NASCAR Nextel All-Star Challenge, to tracks other than Lowe's Motor Speedway
outside Charlotte, N.C. And NASCAR will address safety and competitive issues without much input from its
new corporate sponsor.

That's just fine with Nextel.

&ldquo;They asked our input about the new points system, but we decided to leave that up to the NASCAR
folks,&rdquo; Nextel president and CEO Tim Donahue said. &ldquo;Our perspective is, over the last 30-plus
years, if you take a look at NASCAR and some of the decisions they've made in terms of enhancing the
sport, these guys know their business. At the end of the day, I'm going to leave the competition piece of
business to NASCAR.

&ldquo;We wouldn't want NASCAR trying to tell us how to run a wireless communications company, so we
won't try to tell them what to do when it comes to racing.&rdquo;

Unlike its predecessor, which faced restrictions on advertising because of tobacco legislation, Nextel is
embarking on an aggressive campaign to build awareness of its title sponsorship as well as market its
product.

Its first series of commercials, featuring Dale Earnhardt Jr. and Michael Waltrip, appeared during the NFL
playoffs and Super Bowl, and intensified during the week leading up to the Daytona 500.

Our approach is to start with the fans,& Nextel chief operating officer Tom Kelly said.
;If you can't win over the fan base, you're going to have a hard time.&rdquo;

Nextel, which in seven years has blossomed from a small-time player into an industry leader with $7.9
billion in revenues, sponsors the NFL, college basketball and the NHL, but this is, by far, its biggest
investment in sports. The company, based in Reston, Va., sees NASCAR as an untapped market because
NASCAR's 75 million fans are known for their brand loyalty, but just 5 percent of them are Nextel
customers.

So Nextel plans to market a line of NASCAR-themed phones on its most advanced model, the I-730. It will
come in the color schemes and numbers of 10 of the series' most popular drivers: Earnhardt Jr., Waltrip,
Rusty Wallace, Mark Martin, Tony Stewart, Jeff Gordon, Jimmie Johnson, Dale Jarrett, Kurt Busch and
defending champion Matt Kenseth.

The background on the phone's screen will depict the driver or car, and the ring tones can be
racing-themed, such as the vroom sound of an engine or the starter's call of &ldquo;Gentlemen, start your
engines.

If people are buying a mobile phone anyway, it's a way for them to extend their interest as a fan
onto their phone and partner with their favorite driver,&rdquo; said Michael Robichaud, director of sports
and event marketing for Nextel.

The driver phones and wireless solutions we're offering fans can access the nascar.com Web site,
get updates on their favorite driver, on events that are going on, see how people are running, their times,
and they can see post-qualification information.&rdquo;

Problem is, because of limited capacity, an estimated 80 percent of wireless calls made from NASCAR
tracks are blocked, said Kelly. So to ensure Nextel customers can take advantage of their phones, Nextel is
constructing a 53-foot tower on wheels, called a NASCOW &mdash; which stands for Cellular on Wheels
&mdash; at each track, as well as three 28-foot trailers that will provide mobile cellular coverage for fans
in
the grandstands, media center, garages and camping areas.

&ldquo;Our first step in winning over the fans is to make sure they can talk and be heard at the race
track,&rdquo; Kelly said. &ldquo;We're going to invest a lot in capacity and in coverage in trying to build
a
much better fan experience. This will provide fans a great experience in terms of their being able to use
the
phones, whether they are using them in voice or in data applications.&rdquo;

The centerpiece of Nextel's on-site presence will be a 6,400 square-foot interactive display outside each
track known as The Nextel Experience. Bridged by two 50-foot towers and a plate-glass exterior, the
exhibit, which has free admission, will include six racing simulators built to 80 percent scale of a Nextel
Cup
car, and a technology pit where former crew members will work on a replica car and explain its nuances to
fans.

At Daytona, half the body was cut from one of Kenseth's cars, and crew members can build and take apart
the car as fans watch.

&ldquo;Fans can come through and see and listen to the people who work on the car,&rdquo; Robichaud
said, &ldquo;so when someone hears about a restrictor plate, they can actually see it, see where it goes
and see the impact it has. They can see the different spoilers, they can see the differences between the
manufacturers, how they design things differently.

&ldquo;It's an educational opportunity for current fans who love the sport and maybe don't know as much
as they want, or new fans who want to get up to speed on this unbelievable technology.&rdquo;

Beyond technology and marketing, Nextel plans to work with NASCAR in other areas, including its Drive for
Diversity program, which will train minorities for careers in racing, and in charity work. Nextel will
provide
more than $1 million to Kyle Petty's Junction Gang, a program that enables disadvantaged children to attend
summer camps.

Nextel also will create an emergency response team that provides communications between fire and police
departments and state, local and municipal governments or agencies in the event of a catastrophic event at
a venue. The 2002 Winter Olympics in Salt Lake City took advantage of Nextel's emergency response
system to coordinate security and protect athletes and fans.

In addition, Nextel plans to work with NASCAR in educating people not to use cell phones while driving and
will use Nextel Cup drivers to make public-service announcements regarding that dangerous practice.

The drivers are slowly coming around in accepting Nextel as the new corporate sponsor.

&ldquo;There's a part in all of us that's going to miss Winston and didn't want to see them go,&rdquo; said
2002 points champion Tony Stewart, &ldquo;but at the same time, everybody is excited about what Nextel
can bring to our sport.

&ldquo;This sport is going to be around for a long time. Knowing that somebody like Nextel has the
confidence in our sport and in the economy to make a 10-year commitment shows the strength of
NASCAR.&rdquo;

http://www.kansascity.com/mld/kansascity/sports/motorsports/7934046.htm

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