What exactly is Nextel Communications Inc.?
The simple definition of an enhanced specialized
mobile radio operator using integrated Dispatch Enhanced Network technology catering to business users who need
private-dispatch functions as well as cellular-like service no longer tells the entire story.
As this column goes to
press, U.S. District Judge Thomas F. Hogan is expected to rule to go forward with a full hearing on Nextel’s request to
vacate a 1995 consent decree that prohibits Nextel and Motorola Inc. from holding 900 MHz SMR licenses in 14 U.S.
markets. Nextel wants the decree relaxed so it can keep most of the 191 licenses purchased from bankrupt 900 MHz
operator Geotek Communications Inc.
Nextel doesn’t fit into any nice, neat categories. Cellular and PCS carriers
that have lost big accounts to Nextel certainly feel they compete with the dispatch operator. In that sense, Nextel’s
argument that circumstances have changed is valid. In a nationwide marketplace expected to only support five mega-
carriers, should Nextel be restricted in ways cellular carriers are not? In this sense, is the marketplace simply
wireless?
Smaller SMRs actually have gained analog customers that Nextel gave up in order to cater to digital
customers. That seems more cooperative than competitive, although many smaller carriers do not hide their hate for
Nextel. Normally, one reserves that much venom for the competition.
There are clues that Nextel is an SMR. It
decided to stay in SMR trade association AMTA, but won’t comment on the issue. In an e-mail between Nextel
executives, it is pretty apparent the company wants to dominate at SMR channels.
Will this issue become even more
important if Nextel is ever acquired?
Nextel argues the wireless world has changed since it agreed to abide by the
consent decree in 1995. It has. Carriers are consolidating weekly. I would argue, however, Nextel is part of the reason
for that change.
