'New' Nextel cuts wireless roaming rate
Article Abstract:
Nextel Communications Inc is scheduled to initiate a new pricing strategy for 300,000 of its one million customers on Feb 1, 1997. Nextel's plan involves decreased 'home' rates that will be advertised in a nationwide campaign targeted at business customers beginning Mar 1, 1997. Nextel is also improving the voice quality of its wireless products due to a $2 billion increase in financing as well as the addition of more experienced managers guided by Craig O. McCaw, Nextel's controlling shareholder. McCaw and his family have invested $365 million in Nextel to date. Nextel is concentrating on setting itself apart from conventional cellular phone companies with improved and unique offerings such as its walkie-talkie-type service for employees within a single company. Nextel plans to add $2 billion in nationwide advertising expenditures to the $1.85 billion it has already spent to build its digital network.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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FCC expected to deeply cut wireless fees
Article Abstract:
The FCC is planning a reduction in the termination charges wireless telephone companies pay to local telephone companies when wireless calls are completed on wired local networks. The fees are currently three cents per minute. The reduction could amount to an $800 million annual savings, although it may take a year before wireless phone users see the benefits. The proposed 80 percent reduction in fees would reduce average connection costs by around $5.77 per month, an 11 percent reduction of the average users' monthly bill. The fee reduction is part of the FCC's plan to increase competition in the local telephone market. The plan would affect the revenues of local telephone companies, including the regional Bell operating companies (RBOC). The RBOCs are lobbying against the plan, which is expected to be finalized on Aug 1, 1996.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Comment about this article or add new information about this topic:
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