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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Arnie Doolittle who wrote (3316)	11/21/1997 11:01:00 AM
From: Bubba	Read Replies (2) \| Respond to of 10227

Here's the WSJ article --------------------------------------------------------------------- The Wall Street Journal Interactive Edition -- November 21, 1997 Wireless Providers Have Slashed Rates Up to 33% Dow Jones Newswires Turf battles among cellular, personal-communications services and enhanced specialized mobile-radio operators have driven per-minute usage charges down by more than a third in some areas of the country, according to Paul Kagan Associates Inc., a Carmel, Calif.-based market-research firm. Many wireless carriers in metropolitan areas where multiple cellular and PCS carriers faced off for at least nine months drastically cut rates, Kagan said Thursday. The study looked at the 100 largest U.S. cities. In 29 competitive PCS-cellular markets surveyed in December 1996 and again in September 1997, the average cost-per-minute for low-, moderate- and heavy-usage mobile wireless service fell 6%, according to Kagan. In the most competitive markets, some wireless players launched aggressive first strikes in potential price wars. One Milwaukee operator sliced per-minute charges by 43%. In New York, another cropped rates by 33% and in Jacksonville, Fla., two rivals cut their low-usage plans by 28% and 35%, respectively, Kagan said. With cellular, digital PCS and ESMR providers all vying for an estimated 14 million new customers in 1997, PCS operators are quickly moving into new metropolitan areas, offering attractive rates and significant long-term promotions to try to capture enough market share to turn a profit. In response, many cellular carriers are loading more minutes into their rate plans, slashing roaming rates and accelerating digital offerings. "PCS operators, as well as Nextel with its ESMR service, are pushing the edge of the envelope, and cellular carriers must counter PCS moves or risk unacceptably high churn," said Sharon Armbrust, an analyst at Kagan. "The good news is aggressive ad campaigns and heated price competition are growing the pie for all," she said. Nextel Communications Inc. is among a group of firms backed by cellular-industry pioneer Craig McCaw. The company's wireless-phone system uses the SMR radio band traditionally used by taxi dispatchers and truckers, and its phones contain a built-in walkie-talkie that allows work groups to communicate at cheap rates, and which makes Nextel unique in a sea of me-too cell-phone players. The top 100 metropolitan statistical areas, or MSAs, are home to 162 million people, or 60% of the U.S. population, and represent the most competitive wireless battlefields, the firm said. "Collectively, the host of new competitive initiatives in these markets should serve as a strong indicator of future industry trends for much of the country," Ms. Armbrust said. ------------------------------------------------------------------------ Return to top of page Copyright c 1997 Dow Jones & Company, Inc. All Rights Reserved.