Technology Business Research Ranks Nextel No. 1 in 3Q03 Benchmark Results
by Anonymous

HAMPTON, N.H. December 5 2003--Nextel Communications retained the No. 1 position in Technology Business Research's quarterly benchmark of U.S. mobile operators for the third consecutive quarter. TBR's benchmarking methodology places a premium on growth and profitability, the key drivers of a successful business model. Nextel is the industry leader, generating $71 in average revenue per user. Nextel continues to grow quarter after quarter due in large part to its industry-leading subscriber retention and Direct Connect walkie-talkie service for the business market segment.
Nextel and Verizon Wireless are the two mobile operators that distinguish their operations from the pack. Verizon Wireless is near the top in the TBR mobile operator benchmark quarter after quarter due to its strong brand, market share leadership, profitability and continued growth. Verizon Wireless' success is attributed to its broad network coverage and network quality.
TBR believes the clear winners in the new wireless local number portability environment will be Verizon Wireless and Nextel. AT&T Wireless and T-Mobile USA will remain in neutral positions while Sprint PCS and Cingular Wireless are likely losers. Number portability and shifting industry dynamics may drive Cingular and AT&T Wireless into a merger in 2004. Both Cingular and AT&T Wireless are losing market share to Verizon Wireless. "It makes perfect sense from a technology and cost perspective for AT&T Wireless and Cingular to merge," stated TBR analyst Chris Foster. "The largest obstacle confronting Cingular acquiring AT&T Wireless is Cingular's owners, SBC and BellSouth, structuring a complicated ownership arrangement."
"Even before the dust settles on number portability in 2004, the telecom industry structure and competitive environment in the United States will be further redefined as operators seek to differentiate themselves on bundled fixed and mobile services," according to Bill Lesieur, director of Network Business Quarterly (NBQ), TBR's telecom industry practice. "In the consumer telecom market, the mobile phone and its visible menus of features and applications is a symbol of value that fixed line operators cannot do without in their value proposition."





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