Nextel Communications Inc. announced that key investor Craig McCaw will lose the right to three board seats as his stake in the wireless operator dips below 5 percent.

Nextel officials said McCaw retains a little more than a 5 percent stake in the company, but officials expect that stake to shrink as other sales transactions take place.

A little more than a year ago, McCaw controlled roughly 8 percent of the company’s stock.

McCaw remained upbeat regarding the direction of the company, however.

“I strongly believe in Nextel's strategic vision, management's track record of execution, and the company's ability to deliver wireless products and services that no competitor can match,” McCaw insisted.