Subject: [NEXTEL-1] Nextel Probe Focuses On Possible "Collusion"-

From: Marcelrf <[email-masked]>
Date: Thu, 26 Feb 2004 04:34:21 -0500

Nextel Probe  Focuses On Possible "Collusion"-
Justice Dept. Asks Rivals for Facts On 'Push-to-Talk'
Antitrust Investigation Focuses On Nextel, Motorola Roles

By Yuki Noguchi

Washington Post Staff Writer
Thursday, February 26, 2004; Page E01

The Justice Department is requesting
documents from Nextel Communications
Inc., Motorola Inc. and Verizon Wireless
Inc. as part of an antitrust investigation
related to Nextel's popular walkie-talkie
service, according to sources familiar with
the probe.

Nextel has received a request for
information and is cooperating with the
agency, said Audrey Schaefer, a
spokeswoman with the Reston-based
wireless phone carrier. She declined to
discuss details.

Until last year, Nextel was the only carrier
to offer a walkie-talkie option, a popular
and profitable service that more than 90
percent of its 12.9 million subscribers use.
In August, Verizon Wireless introduced
its own walkie-talkie feature -- which has
a several-second delay compared with
Nextel's -- and signed up 100,000 users
within two months. In November, Sprint
PCS launched a similar "push-to-talk"
service, but has declined to say how many
users it has.

The probe centers on whether Nextel and
Motorola colluded in preventing other
carriers from introducing comparable
push-to-talk services on their cell phones,
according to a company source familiar
with what Justice is seeking. Motorola is a

  1. supplier to all the companies. Winphoria
  2. Networks, which Motorola purchased last year, supplies network
     technology to Sprint and handsets and technology to Verizon
     Wireless. Nextel is Motorola's largest customer, and Motorola was a
     major early investor in the company, although its holdings have
     fallen to 4.5 percent of Nextel's shares, according to Bloomberg
     News.

Department of Justice spokeswoman Gina Talamona, Motorola spokesman Bill
Parke and Verizon Wireless spokesman James Gerace declined to comment
for the record on the investigation, which was reported by Bloomberg
yesterday. Sprint spokesman Dan Wilinsky also declined to comment on
whether it has been contacted for the investigation.
A source close to Verizon Wireless said the Justice Department requested
depositions and other documents related to lawsuits between Nextel and
Verizon.

The Justice Department took up the issue in part because of accusations
made in several lawsuits, according to the source close to Verizon,
although it is not clear what aspect of the cases the agency is
examining.

In June, Verizon Wireless accused Nextel of "corporate espionage,"
testing its unreleased models of push-to-talk phones without its
permission.

In that suit, Verizon said Nextel got hold of two phones and tested them
extensively, using Verizon's network. Those calls allowed Nextel to
penetrate Verizon's protected network computers and obtain "valuable,
confidential, and proprietary business information, including but not
limited to certain trade secrets," in violation of a Federal
Communications Commission law, the suit alleged. Nextel denied
wrongdoing. At the same time, it started touting its service as faster
than the competition's walkie-talkie service.

After that, Nextel filed countersuits, accusing Verizon Wireless of
improperly appropriating its phrase "push-to-talk" to describe its
product. It also accused the company of inaccuracy in its advertising.

The lawsuits concerning corporate espionage and the advertising
accusations were settled earlier this month, although the terms of the
settlement were not disclosed. Nextel's suit regarding its claim to the
term "push-to-talk" is pending.

http://www.washingtonpost.com/wp-dyn/articles/A6923-2004Feb25.html