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To: Al Gutkin who wrote (7749)	9/24/1998 8:29:00 AM
From: Anthony Wong	Read Replies (1) \| Respond to of 10227

Ericsson to Offer Wireless Group-Dispatch Calling (Update3) Bloomberg News September 23, 1998, 8:32 p.m. ET Ericsson to Offer Wireless Group-Dispatch Calling (Update3) (Adds AT&T's comments in 9th and 10th paragraphs.) Orlando, Florida, Sept. 23 (Bloomberg) -- Ericsson Inc., aiming to compete better against Nextel Communications Inc. and Motorola Inc., later this year will offer wireless equipment that enables one phone call to reach several parties simultaneously. The equipment, which also will include walkie-talkie features, is expected to be adopted by some of the largest U.S. wireless providers, such as AT&T Corp., SBC Communications Inc. and BellSouth Corp., one analyst said. That will put more pressure on Nextel, which also provides radio-dispatch services, and Motorola, which supplies equipment to Nextel. Nextel has been successful largely because of its walkie- talkie-type service that allows groups of people, such as construction workers and sales teams, to communicate while at different locations. AT&T wants to offer similar services and could announce a test of Ericsson's equipment as early as tomorrow, analysts said. ''Nextel has demonstrated there's an interested segment of the wireless market that wants dispatch capabilities,'' said Kevin Roe, an analyst at ABN Amro. ''It's not just construction crews.'' Nextel added 400,600 subscribers in the second quarter, more than any other U.S. wireless company. The company now has about 2.04 million customers. Motorola last quarter reported an 18 percent rise, to $1.37 billion, in sales of equipment for its ''iDEN'' dispatch equipment. It was the only unit at the telephone-equipment maker that reported an increase in revenue. Nextel is Motorola's biggest iDEN customer. ''Because of resources and money associated with AT&T, SBC and BellSouth, it's clearly an attack on Nextel,'' said Bob Egan, research director for networking at Gartner Group. ''It's also an attack on Motorola, which has enjoyed a monopoly'' for radio- dispatch equipment. Nextel said it doesn't expect the new Ericsson equipment to offer as wide a range of services for groups as its own system. AT&T declined to say whether it is testing Ericsson's new equipment. The company said it welcomes equipment that allows it to provide new services to customers. ''Manufacturers are doing a marvelous job developing products to help differentiate wireless'' services, said Kenneth Woo, an AT&T spokesman. ''Our hats are off to Ericsson for doing that.'' SBC and BellSouth officials weren't available to comment. 'Anyone's Switch' Callers using Stockholm-based Ericsson's new equipment will dial a code to activate the service, which calls multiple people at different locations. The hardware will be sold to phone companies and located within switches that direct traffic on phone networks. ''You could use this on anyone's switch,'' said Keith Shank, director of strategic marketing and business development at Ericsson, one of the largest makers of wireless phones. The equipment is for wireless networks that use time- division multiple access, or TDMA, digital technology. TDMA is one of the world's three leading digital standards. Wireless phones that include walkie-talkie features will be available next year, during the second phase of the equipment's introduction. Shank said Ericsson will offer the equipment to its ''biggest customers.'' He declined to be more specific. Not all analysts and investors see Ericsson's equipment as a threat to Nextel and Motorola. Even if the equipment were available tomorrow, it would take a while to get it into the wireless networks. ''It's something that can't be introduced overnight,'' said Albert Lin, an investment analyst at Abernathy Group. ''Nextel has a pretty commanding lead for the next two to three years.'' Ericsson's American depositary receipts rose 1 1/2 to 20 9/16. Nextel shares rose 5/8 to 20 5/8, while Motorola's rose 9/16 to 48 1/8. --Colleen McElroy in Orlando, Florida and Andrew Brooks through