NEW COMPETITION FOR NEXTEL.During the most recent six months, Bell Atlantic Corp., Vodafone AirTouch PLC, SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, BellSouth Corp., and Voice-Stream Wireless Corp. have entered the growing U.S. market for nationwide wireless services which will allow customers to travel throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. without paying roaming fees. Nextel has dominated this market in recent years but will be compelled to acquire expensive new spectrum in order to be able to compete with the new entrants into the field, as well as its competitors Sprint, AT&T, and Sprint's new parent MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. WorldCom. Wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. carriers need licenses from the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. in order to operate in the radio spectrum, and its major competitors have twice as much spectrum. Spectrum is awarded by the FCC through a competitive auction process which will represent an additional hurdle for Nextel because of the deep pockets of its principle competitors. However, Nextel still remains an aggressive competitor that believes that its survival and success will be accomplished through a new service that will allow customers to use one phone in most parts of the world, innovate Web applications, and a new generation of smaller cellular phones. |
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