Wednesday, December 15, 2004

Motorola Announces Three-Year Extension of iDEN Contracts with Nextel

Motorola reached an agreement with Nextel Communications to extend its iDEN infrastructure and iDEN subscriber supply agreements for a period of three years from January 1, 2005 through December 31, 2007. The contract covers base station equipment, core network equipment, plus software and hardware maintenance and support services necessary to expand, upgrade and support Nextel's nationwide iDEN based network. The extension of the iDEN subscriber supply agreement includes pricing and other terms relating to current and proposed new handset models for Nextel, including handset models to be marketed under Nextel's youth- lifestyle brand, Boost Mobile.



Motorola said it expects the value of its infrastructure and subscriber shipments to Nextel to be comparable to the average levels seen over the past two years.



Motorola noted that more new models of iDEN handsets are expected to be introduced in the next 12 months, including new models that incorporate the new WiDEN data functionality that increases data rates up to four times faster than customary iDEN data rates. http://www.motorola.com

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