RESTON, Va.--(BUSINESS WIRE)--Nov. 22, 2004--
The U.S. Navy to Benefit from Instant Communication Using Nextel
Direct Connect(SM) and Host of Other Nextel Services
Nextel Communications Inc. (NASDAQ:NXTL) today announced that it
has been awarded a one-year base contract for $20 million per year to
provide nationwide cellular phone service to the U.S. Navy. The
contract contains options, which if exercised, will bring the total
cumulative estimated value of this contract to $100 million. The
contract provides nationwide commercial cellular phone and instant
digital walkie-talkie service for personnel at Navy installations
located throughout the United States.
The contract includes the use of Nextel's Java(TM)
technology-enabled mobile phones, Nextel's Nationwide Direct
Connect(SM) walkie-talkie service and e-mail and text messaging
services all available on Nextel's all-digital voice and packet data
network. In addition, Nextel will provide Navy sites with customized
network solutions tailored to the needs of each installation.
"The size and scope of this Navy contract is a major milestone for
Nextel and another in a series of powerful proof points demonstrating
the performance and value of Nextel's mobile technology," said Leon
Frazier, vice president for Nextel's public sector segment.
"Government organizations, such as the Navy, increasingly require
instant access to their workforce to boost productivity and increase
safety. This contract will enable Navy personnel in Virginia, for
example, to use Nextel's push-to-talk capabilities to communicate with
personnel in Hawaii, thus realizing the greatest value of Nextel's
leading edge technology."
Nextel has agreed to work with the Navy to consolidate existing
cellular plans. This contract will afford the Navy better cost control
by allowing minutes to "pool" over a larger user base. As part of the
contract Nextel will dedicate resources to improving existing coverage
on Navy bases and in Navy facilities.
The contract with the Navy is the latest in a series of
significant wins within Nextel's public sector segment that today
accounts for approximately 15 percent of Nextel's 14 million
customers. Organizations at the federal, state and local government
level are using Nextel solutions such as GroupConnect(SM)
walkie-talkie service and interoperability solutions to streamline
communications and support emergency preparedness and response.
About Nextel Communications
Nextel Communications, a FORTUNE 200 company based in Reston, Va.,
is a leading provider of fully integrated wireless communications
services and has built the largest guaranteed all-digital wireless
network in the country covering thousands of communities across the
United States. Today, 95 percent of FORTUNE 500(R) companies are
Nextel customers. Nextel and Nextel Partners, Inc. currently serve 297
of the top 300 U.S. markets where approximately 259 million people
live or work.
CONTACT: Nextel Communications Inc., Reston
Roni Singleton, 703-433-3109
Matt Sullivan, 925-279-2363
Nextel Investor Contact:
Paul Blalock, 703-433-4300
SOURCE: Nextel Communications Inc.