DoJ probing PTT industry on antitrust issue
Feb. 26, 2004 1:41 PM EST
WASHINGTON-Nextel Communications Inc. and Verizon Wireless confirmed being
contacted by the Justice Department in what could be the early stages of an
antitrust probe of the push-to-talk wireless market.
"Nextel has received a request for information from the staff of the United
States Department of Justice, and we are responding to their request," said
Audrey Schaefer, a Nextel spokeswoman.
The Justice Department's investigation comes less than two weeks after
Nextel and Verizon Wireless agreed to drop lawsuits against each other
involving allegations of corporate espionage and false advertising about PTT
service.
"We did receive a request from DoJ pertaining to the Nextel investigation,"
said Jeffrey Nelson, a Verizon Wireless spokesman.
Nextel dominates the PTT business, while Verizon Wireless and Sprint PCS are
relative newcomers to the niche market. Sprint PCS declined to comment on
the matter.
Motorola Inc., the nation's top wireless manufacturer, is the dominant
supplier to Nextel.
"We don't comment on specific investigations, but we cooperate with proper
requests for information from government authorities," said William Parke, a
Motorola spokesman.
Gina Talamona, a DoJ spokesperson, said she could not comment on the
department's correspondence with Nextel or any other wireless firm.
Nextel is no stranger to the Justice Department. In the mid-1990s, the
wireless carrier was party to a court-approved antitrust settlement prompted
by its quest to purchase a bankrupt PTT wireless company. In December 1999,
U.S. District Judge Thomas Hogan modified a 1995 consent decree in a way
that allowed Nextel to acquire more frequencies for PTT wireless service.
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