Wireless: Nextel to Be Freed to Utilize 900 MHz Spectrum to Expand iDEN Network - Nextel Communications settles with US Department of Justice - Company Business and Marketing

Cambridge Telcom Report, June 21, 1999

Nextel Communications, Inc. a leading provider of fully integrated mobile wireless communication services, Monday announced that it has reached agreement with the United States Department of Justice for an out of court settlement, regarding Nextel's legal challenge to the continuing validity of the 1995 Consent Decree.

According to the terms of the 1995 Consent Decree, Nextel was constrained from owning or managing more than a limited amount of 900 MHz frequencies in 13 of the largest markets in the United States. Under the agreed terms of the settlement, which is subject to court approval, Nextel will be permitted to acquire ownership of or rights to use more than half (108 of the available 200) of the 900 MHz channels allocated for specialized mobile radio and other uses in the Consent Decree markets. The entire Consent Decree, and any associated restrictions on Nextel's utilization of additional 900 MHz channels in these markets, will terminate on October 30, 2000. The Consent Decree imposed no restrictions on Nextel's ability to acquire 900 MHz spectrum in any other United States markets.

"This brings clarity to Nextel's business strategy and development," said Dan Akerson, chairman and chief executive officer, Nextel Communications. "This settlement affords us a two-fold benefit. First, there is certainty as to when the Consent Decree will end; and second, we will be free to acquire more than two and a half MHz in each of the larger consent markets, more than tripling our 900 MHz position in each of those markets. This will allow Nextel to assemble a critical mass of 900 MHz channels that will facilitate expansion and capital efficiency in the deployment of our iDEN network."

Nextel expects that it will use these additional 900 MHz channels to expand the capacity of its iDEN network in deploying an expanded-band 800/900 MHz iDEN technology being developed by Motorola.

Nextel Communications Inc., headquartered in Reston, VA, is the leading provider of fully integrated wireless communications and has built the largest guaranteed all-digital wireless network in the United States that covers thousands of communities across the United States. Nextel and Nextel Partners, Inc. currently serve 92 of the top 100 U.S. markets. The Nextel National Network offers a fully integrated wireless communications tool with digital cellular, text/numeric paging and Nextel Direct Connect -- a digital two- way radio feature. In addition, through Nextel International, Inc., Nextel has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and Shanghai, China. FMI: http://www.nextel.com.