MAXED-OUT NETWORK? Nextel's success story has a flip side, however: It remains at least a year from profitability. In the fourth quarter, the average analyst estimate calls for a loss of 44 cents a share, or more than $400 million, compared to a loss of $359 million in the third quarter, or 46 cents a share. Total revenues should climb slightly, to $2 billion in the fourth quarter, up from $1.9 billion in the third quarter.
In addition to questions about profitability, critics suggest that Nextel's network capacity could be maxed out in a few years if customers start demanding the higher-bandwidth entertainment features soon to be offered by other carriers. Instead of undertaking an expensive network upgrade, Nextel has chosen a series of enhancements layered over its existing system.
This may help. Who are Nextel's customers (Their Target Market)? Business users like plumbers, carpenters, electritions, etc. Do you really think Nextel's bread and butter customers will want to be surfing the web while their trying to get their jobs done. To Nextel's customers, higher bandwith to get internet service won't matter unless it is offered by other servicers who can provide it along with what Nextel does, direct connect etc. for the same cost. I think Nextel's best asset is its customers, they are who make them a valuble takeover candidate. Over and Out. --Edlaff
I agree with what you say - my point about DoCoMo is that they are a very advanced company. I really think some comany, foreign or domestic, will want Nextel next year, mainly because of their strong business customer market. Now that the cap on spectrum is to be lifted in about one year (January of 2003) I think there will be a little more consolidation.