The BusinessWeek 50 Ranking
9
Nextel Communications
By sticking to its quirky niche, Nextel Communications Inc. rose above the cutthroat pricing that plagued other wireless calling outfits. The Reston (Va.) company serves less price-sensitive business customers with a unique walkie-talkie-like service called Direct Connect. With this loyal and lucrative customer base, Nextel boasts the highest revenue per subscriber in the industry Profile: $68 a month Profile: and one of the lowest churn rates Profile: 1.5%. Profits almost doubled last year. Nextel's pending merger with Sprint Corp. (FON) promises to give customers an even broader suite of services.
Company Info
| 2004 Rank | 86 |
| STOCK INFO | NXTL |
| Market Value | $32.7 BILLION |
| Total Return | (1-yr.) 11.1%
(3-yr.) 489.8% |
| 2004 sales | $13.4 BILLION |
| Sales Growth | (1-yr.) 24%
(3-yr.) 20.6% |
| Net income | $3 BILLION |
| Net Income Growth | (1-yr.) 98%
(3-yr.) 47.2% |
| Net Margin* | 22.5% |
| Return on Equity* | 31.5% |
| Industry | TELECOM SERVICES |
| CORPORATE WEB SITE | |
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*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
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Company Snapshot
Nextel Communications, Inc. provides wireless communications services in the United States. The company provides a suite of advanced wireless services that include digital wireless mobile telephone service; walkie-talkie features, including its Nextel Direct Connect, Nextel Nationwide Direct Connect, and Nextel International Direct Connect walkie-talkie features; and wireless data transmission services. The mobile telephone services consist of advanced digital features, such as speakerphones, additional line service, conference calling, voice-activated dialing for hands-free operation, a voice recorder for calls and memos, advanced phonebook, and date book tools. Its data services include email, mobile messaging, location-based, Nextel Online, and Multimedia Messaging services that enable its subscribers to exchange images and audio memos. Nextel Communications also offers handsets designed for local, state, and federal public safety and law enforcement agencies and organizations. As of December 31, 2004, the company provided service to approximately 16.2 million subscribers. It offers its services primarily to small, medium, and large businesses; government workers; and individuals through its sales force and indirect sales agents, which consist of local and national nonaffiliated dealers. The company was founded in 1987 under the name Fleet Call, Inc. and changed its name to Nextel Communications, Inc. in 1993. Nextel Communications is based in Reston, Virginia.
No. of Employees
NA
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