NEXTEL COMMUNICATIONS INC.

1. NEXTEL COMMUNICATIONS INC. Louise Philbrick David Guerra Keith Grant

2. Overview • Current Condition Possible Strategies • Vision and Mission Recommendations • External Factors Evaluation • CPM • EFE • Internal Factors • IFE • Analysis • Key Ratios • SWOT Matrix • Space Matrix • BCG • IE Matrix • GSM • QSPM

3. Nextel Overview Nextel Communications Inc. is a provider of communications services with three operating segments: • Digital Cellular • Customers receive crystal clear calls and guaranteed message delivery in a secure environment, within the Nextel National Network. • Walkie-Talkie Services • Direct Connect®, Nationwide Direct Connect™, and International Direct Connect™ services allow communication without having to dial a number.

4. Nextel OverviewContinued • Wireless Data Services • Customers can access the wireless web, e-mail, instant messages, text messages, and multimedia messages. They can also customize their phones with Java™ applications, wallpapers, ring tones, and alerts with sports, news, and weather information.

5. Nextel History • Founded as Fleet Call in April of 1987 • Fleet Call was founded as a two-way radio service. • Fleet Call issued their IPO in 1992 • Nextel first recorded profit in 2002

6. Stock Price Performance Graphic source: cbs.marketwatch.com

7. Nextel Today • 8.2% Market share • 14.1% of new wireless subscribers • Nextel Direct Connect® • Nextel trades on the NASDAQ National Market under the symbol NXTL

8. Key Facts • 95 % of Fortune 500 companies are Nextel customers • Currently in 297of the top 300 US markets • Nextel is tied with Verizon for the lowest customer churn rate. • 36% sales growth over the past 5 years • In 2003 Nextel won the naming rights to NASCAR racing series

9. Goals and Objectives • Provide individualized packages of wireless services • combine multiple wireless communication options in single wireless telephones • Target Business Customers • focus on business customers will emanate a higher monthly average revenue per unit and lower average monthly service cancellations or terminations

10. Goals and Objectives Concluded • Rapid deployment of robust networks • create vigorous wireless systems that cover all key areas of a given market before introduction of network in that market. • Operate in Mid-sized and smaller markets • this strategy would allow Nextel to impulsively increase penetration within our targeted segment

11. Vision Statement Enhancing the diversity of Nextel’s workforce and promoting an inclusive work environment to better serve our diverse employees, customers, suppliers, and business partners. Graphic obtained from: Nextel.com Source: Nextel. COM

12. Nextel Mission statement • We will achieve our vision statement by incorporating inclusion into all that we do. • Recruiting and retaining a talented, diverse employee base • Recognizing and appreciating all employee’s perspective and talents • Fostering an environment that enables all employees to reach their highest potential • Building diversity awareness throughout the organization • Promoting supplier diversity Source: Nextel. COM

13. Nationwide Direct Connect® Coverage Graphic obtained from: Nextel.com

14. External Audit

15. EFE Matrix

16. Competitive Profile Matrix

17. Internal Audit

18. IFE Matrix

19. Key Ratios

25. Space Matrix Y axis: Financial Strength +3.2 +1 worst to +6 best Y axis: 1.2 Environmental Stability -2 -1 best to -6 worst X axis: 2 X axis: Industry Strength -2 +1 worst to +6 best Competitive Advantage +4 -1 best to -6 worst

26. BCG High Medium Low 1.0 0.5 0.0 High +20 Medium 0 Low -20

27. IE Matrix

28. Grand Strategy Matrix • Market Development • Market Penetration • Product Development • Forward Integration • Backward Integration • Horizontal Integration • Concentric Diversification

29. QSPM

30. QSPM

31. Possible Strategies • Expand coverage in underdeveloped rural areas • Expand and strengthen international markets i.e. Latin America • Penetrate the foreign market • Use advertising leverage with NASCAR to diversify markets • Focus on retaining current customers while attracting new customers

32. Decisions • Primary • Concentrate on gaining more market share in the U.S. by achieving a merger with another wireless provider such as Sprint. • Possibilities • Progress into Foreign Market • Expand Target Market

33. Implementation • Aims • Increase income by 55% within the next 3 years • Increase revenue by 25% within the next 3 years • Decrease long-term debt by 30% within the next 3 years • Match industry averages within the next 3 years • Increase research and development in order to maintain competitive advantage

34. 2004 Financial Statistics • Operating Revenues $3,000.0 million • Net Income $3,000.0 million • EPS $2.62 • Capital Expenditures $(2513.0) million • Total Debt $13,336.0 million • Cash Flow from Operating Activities $4,288.0 million • Weighted Average Shares Outstanding $1,124.0 million

35. Press Releases • November 12, 2004 • Nextel Gets Perfect Score • November 29, 2004 • Nextel Awarded With The Best Sports Business Integration • December 7, 2004 • Boost Mobile Passes One Million Customer Mark • December 15, 2004 • Sprint and Nextel to Combine in Merger of Equals