Nextel & the Wireless Telecommunications Industry
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Since the American government forced the divestiture of American Telephone and Telegraph (AT&T) in the early 1980s and brought about the deregulation of the industry as a whole, the market has undergone significant change. Some components of AT&T now operate as regional holding companies (RHCs) and are expanding to include both local and long distance service. The 1990s saw a significant level of merger and acquisition activity in the industry, with companies such as MCI (which brought the original antitrust suit against AT&T) joining forces with WorldCom and British Telecom becoming a factor in the American telephony market. At the same time, consumers and businesses developed a reliance on mobile telephones (actually radios) resulting in explosive growth in this segment of the market, and the original lines of local and long distance, wired and wireless, have been blurred. This research examines Nextel, a company which only came into existence in 1987, but which has grown through strategic acquisitions and shrewd planning to be a leader in the wireless segment of the telecommunications industry. Cellular phones initially gained popularity as car phones during the 1980s, and many consumers did not realize (and still do not) that cellular phones are not truly telephones at all, but rather are radios. Instead of using traditional telephone technology, wireless phones broadcast conversations across radio frequencies which can just as easily be used
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factor for any organization. If the senior staff can develop a mission and vision which can be effectively communicated to the rest of the organization, and which provides the appropriate strategy for the organization, the company can thrive in the most challenging of environments. From its earliest days, Nextel's managers have taken an aggressive approach with regard to the industry and its competitors, and the company has been successful because of this approach. By reviewing the backgrounds of its senior staff, it is possible to understand both the reasons for the company's current success as well as the likelihood that the company will be able to maintain that success in the near future.
Two key managers at Nextel have backgrounds from MCI Communications. The chairman of the board, Daniel Akerson, came to Nextel in 1996 as the company's chief executive and board chairman; he also serves on the boards of American Express and America OnLine. His background is concentrated in high technology companies, with a particular emphasis in the telecommunications industry: among other management positions within MCI, Akerson was president and chief operating officer at MCI Communications during the 1983 to 1993 period. MCI also p
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Approximate Word count = 2074
Approximate Pages = 8 (250 words per page)
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