14:14 ET Nextel reiterates financial guidance
NEW YORK, June 8 (Reuters) - Wireless telephone company Nextel said
Tuesday it remains on track to reach $600 million in domestic cash flow in
1999 and expects its average revenues per subscriber (RPU) to match or
exceed first quarter levels. Nextel's first quarter average monthly revenues
were $71 per subscriber.
"Average revenues per unit have been rising over the past two years ... we
hope to continue that trend going forward. For the rest of the year, we
expect RPU to be at or above levels of Q1," Nextel's chief financial officer,
Steven Shindler, said at the PaineWebber Growth & Technology
Conference in New York.
Nextel said it expects its capital expenses per net subscriber addition to
be $1,100 or less this year.
Earlier in the day Nextel introduced a new phone that includes an Internet
World Wide Web browser and upgraded voice features. Nextel will begin
selling the phone ahead of launching online services later in the year.
The company will test the service in six markets this year and will roll out
the service nationally in 2000.
Nextel said it has not yet determined the pricing for the new data services,
but it may charge less for the services to encourage subscriber growth.
"We want to be able to offer something that is more robust -- at lower
prices -- than our competitors," Shindler said.
He said Nextel was very optimistic about the data services, which will
incrementally add to its average monthly subscriber revenues and help
distinguish it from its rivals.
"Data has the potential to be the great differentiator," he said.
Shares of Nextel were unchanged at $37 in afternoon trading on Nasdaq.
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