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9

Nextel Communications

The maverick wireless carrier has stayed out of vicious price-cutting wars by focusing on well-heeled business customers in love with its unique, walkie talkie-like service. As growth in that niche tapers, Nextel is latching onto no. 3 long-distance carrier Sprint in a pending $35 billion merger that will broaden offerings to business and consumer users.

Together, Nextel Sprint will be better able to fend off giant rivals, including Verizon and SBC, offering corporations one-stop shopping for wireless, basic phone service, and data communications. Meanwhile, Nextel has opened an unlikely new source of growth over the last year: young consumers with its hip Boost Mobile prepaid service.

Company Info

STOCK INFO NXTL
Revenues* $13.9 BILLION
Revenue Growth 20.1%
Return on Equity 29.4%
Total Return30.4%
Profits* $3 BILLION
Industry TELECOM SERVICES
CORPORATE WEB SITE
All figures are for the most recent available 12 months.

* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.


Data provided by Standard & Poor's Compustat, BusinessWeek

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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


Data provided by Capital IQ
Timothy M. Donahue

Timothy M. Donahue

AGE: 56

Titles

Chief Executive Officer, President, Director and Member of Finance Committee

CEO Bio >

Total Compensation*

$26.3 MILLION

Total Value of Options**

$78.1 MILLION

Degrees Held

John Carroll University (BA)

* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year

Key Executives

Timothy M. Donahue, Paul N. Saleh, Thomas N. Kelly Jr., Barry J. West, Leonard J. Kennedy, William G. Arendt, Richard S. Lindahl

Board Members

Morgan E. O'Brien, Timothy Donahue, Keith J. Bane, William E. Conway, Frank M. Drendel, William E. Kennard, Stephanie M. Shern, V. Janet Hill


Data provided by Capital IQ
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