Motorola Inc.’s relationship with Nextel Communications Inc. marches on in spite of the carrier’s anticipated merger with Sprint PCS.
The vendor announced it has signed a three-year agreement to extend its supply of iDEN infrastructure equipment to Nextel beginning Jan. 1. Both companies also agreed to implement an iDEN-based Internet Protocol-based Push-To-Talk call-processing engine known as Next Generation Dispatch.
Some industry watchers have expressed doubts over the future of iDEN technology in Nextel’s roadmap, but this deal shows that it will take a few more years before the carrier does away with the technology. In fact, both Sprint’s and Nextel’s networks are expected to interface painlessly, even when Nextel upgrades to iDEN’s next-generation protocol known as WiDEN.
Given Sprint’s CDMA commitments, Nextel’s post-merger iDEN roadmap will likely incorporate CDMA technology.
“It’s a win for CDMA,” remarked Andrew Seybold of the Andrew Seybold Group.
Motorola is also a CDMA player and would want to continue its relationship with the Nextel part of the combined networks. Now that the vendor has stepped up it core offerings, it is likely to be an important player in the new network, according to analysts.
“Extending our iDEN supply relationship with Nextel for another three years further solidifies Motorola’s relationship with Nextel as supplier of iDEN technology that has existed since the early 1990s,” said Adrian Nemcek, president of Motorola’s networks business.
Nemcek explained that his company expects the value of its shipments to Nextel during the next three years to compare with the levels of the past two years.
The company also said more new models of iDEN handsets will reach the market during the next 12 months, and some others will incorporate WiDEN data functionality, which increases data rates by up to four times compared with currently available iDEN handsets.
The company’s PTT announcement also underscores its efforts to put behind its past when it was viewed as a radio-only company, which crippled its capacity to garner some contracts. In the past quarter, it beat all other major vendors in terms of the percentage of overall wireless infrastructure contracts won.
