Press Release

Printer Friendly Version View printer-friendly version
<< Back
U.S. Navy Awards Nextel Five-Year, $100 Million Wireless Service Agreement

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
Media Contacts:
Roni Singleton, 703-433-3109
Matt Sullivan, 925-279-2363
Nextel Investor Contact:
Paul Blalock, 703-433-4300

SOURCE: Nextel Communications Inc.