Subject: [NEXTEL-1] The Euronet - Nextel smears push-to-talk uprising

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Date: Sat, 07 Dec 2002 13:56:55 -0500

http://www.euronetmag.com/euronet/article/articleDetail.jsp?id=40319

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Nextel smears push-to-talk uprising

Stiff-arming strategy aims to protect Nextel's crown jewel - Direct Connect

December 6, 2002

By:
Kirk Laughlin

America's Network

Nextel's Donahue: Our push-to-talk can beat up your push-to-talk

The launch of wireless platforms that rival Nextel's popular Direct Connect feature may still be months away, but that hasn't stopped Nextel executives from concluding that the products will almost certainly be inferior when they hit the market.

Nextel is deliberately spreading doubt about the ability of competitors such as Sprint PCS and Verizon Wireless to offer a service equivalent to Direct Connect, which is used by more than 9 million Nextel subscribers and has emerged as killer differentiator for the enterprise-focused carrier.

"[Sprint PCS is] trying to spoof the customer into believing set-up time is equivalent," Nextel chief technology officer Barry West told a standing-room-only audience at the recent UBS Warburg Telecom conference in New York. West claims that call set-up time will run between five and 10 seconds on competitor networks, compared with sub-second performance on Nextel's iDEN network. He further criticized the alternative technology as featuring extended "hang time" following completion of a call, which could indicate inefficient use of network resources. "The net-net is that there are a lot more problems than call set-up," West said.

Standing apart

Nextel CEO Tim Donahue chimed in on the Direct Connect defense, suggesting that if the Sprint PCS feature is shown to be inferior in the marketplace, then Nextel is well-positioned to benefit.

Nextel's counteroffensive likely stems from recognition that push-to-talk is set to become much more prevalent in the US wireless industry as other carriers try to exploit the appeal of making walkie-talkie-like connections with pre-assigned individuals or groups.

Although Nextel has a stranglehold on the enterprise market, push-to-talk has not been aggressively pushed in the consumer marketplace.

"There are market opportunities that have not been fully explored, like using it for instant messaging," said Steve Kish, director of product management at Winphoria, one of a handful of US companies that has developed alternative two-way radio solutions.

Kish would not comment on the widely held belief that Winphoria is supplying Sprint PCS with its Global Instant Rendezvous (GIR) solution, which supports direct voice connections on handsets equipped with an appropriate client. Sprint PCS has said little about its plans.

"We have the technology for push-to-talk with our 3G network, but we have not announced plans to introduce it to the market," says Sprint PCS spokesperson Dan Wilinsky. When told about the critical comments made by Nextel executives about Sprint's intentions, Wilinsky said: "We have our own designs for that market and we will make announcements on our schedule, not theirs."

Pushing forward

Two other US wireless carriers using CDMA-1x, Verizon and Alltel, have also announced plans to launch a push-to-talk feature. Verizon may introduce the service by the end of the first quarter of next year, according to statements made recently by Verizon Wireless CEO Dennis Strigl.

Currently, Nextel customers can make push-to-talk connections within their home calling areas. That will change by the third quarter next year when the carrier expects completion of its National Direct Connect program.

Latency will hamper the initiatives of the new class of push-to-talk operators and result in "second rate feature capabilities," said Bill Densmore, an analyst with Fitch Rating service. "Competitors will have to emphasize coverage and price to compensate for technical shortfalls," he said.

About
the Author

Kirk Laughlin

Executive Editor (Business & Wireless), America's Network

About Kirk Laughlin

email: [email-masked]

See more articles by Kirk Laughlin

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