Subject: [NEXTEL-1] Motorola's Plantation, Fla., Unit Introduces Its New Wireless Phones

From: [email-masked]
Date: Tue, 09 Sep 2003 02:12:31 -0400

September 08, 2003 20:07

Motorola's Plantation, Fla., Unit Introduces Its New Wireless Phones

By Patrick Danner, The Miami Herald 

Sep. 9--Competition and oversupply in the cellphone industry have 
taken their toll on Motorola's financial performance, but the same 
can't be said for the wireless phones made by its Plantation 
operation. 

Rey More, the new general manager of Motorola's Integrated Digital 
Enhanced Network Subscriber Group (iDEN), says the unit has more 
than withstood the industry difficulties. 

That's because Motorola's Plantation-based iDEN unit is the 
exclusive manufacturer of handsets for Nextel Communications' 
network. 

"A big factor behind iDEN having a better time is that Motorola is 
effectively a monopolist in that market," says Todd Koffman, an 
analyst at Raymond James & Associates in St. Petersburg. "As they 
sell those products to Nextel, they are not up against the stiff 
competition that they are up against in the traditional cellphone 
market." 

At the Palms Hotel in Miami Beach on Monday, iDEN introduced its 
latest line of wireless phones that will operate on the Nextel 
network. 

Historically, iDEN handsets with the long-distance walkie-talkie 
feature have been popular with businesses -- like construction and 
couriers -- that need direct communication with their workforces. 

But the latest line of iDEN phones have a stylish look meant to 
appeal to consumers. The phones feature a color display, software 
applications, disco lights call indicator, speaker phone, Internet 
browser, and downloadable ring tones and wallpapers, along with a 
nationwide walkie-talkie feature. 

"Now we're trying to take more into the personal lifestyle side," 
More says. 

"I would venture to guess it's something that most consumers would 
like to have," Koffman adds by phone. "I think it's a very smart 
move. I think the mass-market consumer is interested in push-to-
talk." 

Among the handsets to be rolled out over the next six months are 
sporty and rugged versions that sell for about $155, but lack the 
color display and Java applications. iDEN also is introducing 
handsets with all the bells and whistles that are priced from $500 
to $600. 

Motorola's personal communications segment, which includes iDEN, 
generated $2.3 billion in sales in the second quarter -- a drop of 
13 percent from the same period a year ago. It doesn't break out the 
performance of iDEN. 

More says Nextel's results are more indicative of iDEN's 
performance. Nextel posted $2.6 billion in revenue in the quarter 
ended June 30, up 19 percent from a year ago. 

Features like the long-distance walkie-talkie have allowed Nextel to 
commend "very high average revenue per user," More says. Nextel 
reported that its average monthly service per subscriber was $69 in 
the quarter, up from $67 in the first quarter. 

Motorola employs about 3,100 people in Broward County, the largest 
high-tech employer in the county. 

 http://www.herald.com

http://www.newsalert.com/bin/story?StoryId=Cp11qqaictuKTtu9ut1jptee&FQ=nextel&Nav=na-search-&StoryTitle=nextel

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