Nextel lowers long distance rates - Jan. 7, 1999

Personal Finance

Nextel cuts long-distance rate

January 7, 1999: 1:05 p.m. ET

Reduction to nine cents a minute on landline calls effective immediately

NEW YORK (CNNfn) - Nextel Communications said Thursday it has cut phone rates for landline service on state-to-state calls by a penny to nine cents a minute.
     Nextel (NXTL), based in McLean, Va., said the change is effective immediately.
     The company provides both wireless and traditional, or "landline," services. Its main competitors are AirTouch (ATI), GTE (GTE) and AT&T (T). Motorola (MOT) owns about a 20 percent stake in Nextel.
     "The cut can't hurt, but it's marginal as far as its impact," said Fred Moran, a telecommunications analyst at ING Baring Furman Selz. Most customers already pay a flat monthly rate for the service, he said.
     Nextel's stock was up 1-1/4, or about 4 percent, to 29-5.8 in early trading Thursday.
     Moran thinks the interest in the stock Thursday results from the excitement generated by the growing list of suitors to purchase AirTouch. Analysts think that Nextel will be the next company up for purchase, Moran said.

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