April 26, 2005

PTT's hidden value: A catalyst for advanced voice services

Author: Craig Farrill

Push-to-talk (PTT) services have consistently provided value for subscribers, offering more communications choice by integrating "walkie-talkie" and cellular functions into a single handset. Nextel Communications' network and handsets were purpose-built for PTT, enabling the carrier to develop and maintain a competitive advantage in the marketplace.

That advantage has translated into impressive financial results. Among the six major U.S. wireless carriers, Nextel has consistently reported the highest ARPU (2004 EOY -- $69), lifetime value of a customer (2004 EOY -- $4,312) and compound annual growth rate of (1997 to 2004 -- 42 percent). In addition, PTT is a "sticky" offering. Customers like the speed and convenience of instant PTT communications, so Nextel's churn is the lowest in the country.

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