Nextel Posts Profit on Strong Demand
Nextel posted a profit of $383 million for Q3, their second profitable quarter in a row. This is particularly impressive given the slowing economy and super competitive US wireless market. They continue to win new customers with their unique voice feature DirectConnect. There are high hopes for data throughout the industry, but everyone agrees that voice is still the killer app. So it makes sense that Nextel is growing based on a unique voice feature. This doesn’t mean that everyone should offer a DirectConnect like feature, but they should look hard at how to add value to voice services. We still have a way to go with mass data adoption driving revenues.