Business Services Industry
Nextel Partners Bolsters Plans for Company-Owned Stores in 2005
Business Wire, Nov 7, 2005
KIRKLAND, Wash. -- Nextel Partners, Inc. (NASDAQ:NXTP) today announced it is expanding its highly successful low-cost distribution channels by opening at least 21 more company-owned retail stores in 2005, for a total of 60 for the year. Low-cost distribution channels, including company-owned stores, web sales and telesales, accounted for 27 percent of gross adds in the third quarter of this year and have been a source of significant growth for the company.
The company opened 19 stores in third quarter alone; bringing its total of new stores opened this year to 39 as of September 30, 2005. It expects to open at least 60 in total during 2005, significantly higher than its original goal of 40 new stores for the year. As a result, it expects to operate more than 130 locations by the end of the year.
"Our network of company-owned stores are a great way for our customers to access our services and 'test drive' our newest handsets and data applications," said Jim Ryder, Nextel Partners' COO and vice president. "As a result, our stores have proven to be a terrific outlet for driving the growth of our high value customers, as well as providing localized customer service."
Nextel Partners' company-owned stores delivered higher results in average revenue per subscriber unit (ARPU) and significantly lower cost per gross add (CPGA), compared to the company average during the third quarter. The company continues to have one of the best customer retention rates in the industry and ended the third quarter with more than 1.9 million customers.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including without limitation, matters related to Nextel Partners' growth opportunities, expansion plans and future financial and operating results. The words "believe," "expect," "intend," "estimate," "assume" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from Nextel Partners' actual future experience involving any one or more of such matters and subject areas. Nextel Partners has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experience and results to differ from Nextel Partners' current expectations regarding the relevant matter or subject area. Such risks and uncertainties include the economic conditions in our targeted markets, performance of our technologies, competitive conditions, customer acceptance of our services, access to sufficient capital to meet operating and financing needs and those additional factors that are described from time to time in Nextel Partners' reports filed with the SEC, including Nextel Partners' annual report on Form 10-K for the year ended December 31, 2003 and its quarterly filings on Form 10-Q. This press release speaks only as of its date, and Nextel Partners disclaims any duty to update the information herein.
About Nextel Partners
Nextel Partners, Inc. (NASDAQ:NXTP), a FORTUNE 1000 company based in Kirkland, Wash., has exclusive rights to offer the same fully integrated, digital wireless communications services offered by Nextel Communications in mid-sized and rural markets in 31 states where approximately 54 million people reside. Nextel Partners and Nextel Communications together offer the largest guaranteed all-digital wireless network in the country serving 297 of the top 300 U.S. markets. To learn more about Nextel Partners, visit www.nextelpartners.com.
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