News: Nextel orders iDEN technology
Nextel Communications, McLean, VA, is placing an order worth slightly more than $100 million for an improved version of Motorola’s integrated dispatch enhanced network (iDEN). Along with infrastructure equipment, Nextel has ordered 100,000 compact handsets, which Motorola calls the i360 and which Nextel will market as the PowerFone.
Pilot pricing for the smaller, digital unit is about $400, which does not include various trade-in allowances and further cost-reduction opportunities. Pricing in Nextel’s initial Chicago pilot program is competitive with cellular pricing, but the new service has the additional features of instant conferencing, text messaging and voice mail.
In a memorandum of understanding, Motorola has agreed to give Nextel flexible terms for the existing equipment and infrastructure and credit totaling $685 million available for purchases Nextel intends to make on a nationwide basis.
