U.S. Navy Awards Nextel Five-Year $100 Million Wireless Serv

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Nextel Communications Inc. announced that it has been awarded a one-year base contract for $20 million per year to provide nationwide cellular phone service to the U.S. Navy. The contract contains options, which if exercised, will bring the total cumulative estimated value of this contract to $100 million. The contract provides nationwide commercial cellular phone and instant digital walkie-talkie service for personnel at Navy installations located throughout the United States.

The contract includes the use of Nextel's Java technology-enabled mobile phones, Nextel's Nationwide Direct Connect walkie-talkie service and e-mail and text messaging services all available on Nextel's all-digital voice and packet data network. In addition, Nextel will provide Navy sites with customized network solutions tailored to the needs of each installation.

Nextel has agreed to work with the Navy to consolidate existing cellular plans. This contract will afford the Navy better cost control by allowing minutes to "pool" over a larger user base. As part of the contract Nextel will dedicate resources to improving existing coverage on Navy bases and in Navy facilities.
The contract with the Navy is the latest in a series of significant wins within Nextel's public sector segment that today accounts for approximately 15 percent of Nextel's 14 million customers. Organizations at the federal, state and local government level are using Nextel solutions such as GroupConnect(SM) walkie-talkie service and interoperability solutions to streamline communications and support emergency preparedness and response.

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