No. of Copies Rec·D. O ~ ( Usta Be 0 E Building the Wireless Future

EX PARTE OR LATE FILED DOCKET FILE COpy ORIGINAL -I Building The WIreless Future", .d'pril 6, 1995 ':-;;''If CTIA Mr. WilliamF. Caton Ii'~C~711 cellular Acting Secretary c;;-~ v'~ Telecommunications ~& Industry Association Federal Communications Commission C;;-O 1250 Connecticut 1919 M Street, N.W. - Room 222 , ~I( 6 _ Avenue, NW. ~~!llIIo.... Sutte 200 Washington, D.C. 20554 Washington, D.C. 20036 202-785-0081 Telephone RE: Ex Parte Contact - PR Docket No. 94-~~--.. 202-785-0721 Fax through PR Docket No. 94-110 - :<1 Preemption ofState Regulation ofCMRS q~,./l0 \ Dear Mr. Caton:

On Thursday, April 6, 1995, Mr. Robert F. Roche, Director For Research, the Cellular Telecommunications Industry Association (CTIA), sent the accompanying letters and the referenced attachments to the following Commission personnel:

Chainnan Reed E. Hundt Commissioner James H. Quello Commissioner Andrew C. Barrett Commissioner Susan Ness Ms. Regina Keeney Mr. Laurence Atlas Mr. Rudy Baca Mr. Donald Gips Mr. Blair Levin Mr. Michael Katz Ms. Lisa Smith Mr. William Kennard Ms. Ruth Milkman Dr. Robert Pepper Mr. Michael Wack Mr. David Siddall Mr. John Cimko Mr. Daniel Pythyon Mr. Stanley Wiggins Mr. Keith Townsend Mr. Christopher Wright

Pursuant to Section 1.1206 ofthe Commission's Rules, an original and one copy of this letter and the attachments are being filed with your office.

Ifthere are any questions in this regard, please contact the undersigned.

Sincerely, ~/'~ Robert F. Roche

Attachments No. of Copies rec·d._O_~_(_ UstA Be 0 E Building The Wireless Future,.

CTIA Cellular April 6, 1995 Telecommunications Industry Association 1250 Connecticut Chainnan Reed E. Hundt Avenue, NW. Federal Communications Commission Suite 200 1919 M Street, N.W. Washington, D.C, 20036 202-785-0081 Telephone Washington, D.C. 20554 202-785-0721 Fax

RE: PR Docket Nos. 94-103 through 94-110 Preemption ofState Regulation ofCMRS

Dear Mr. Chainnan:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

This announcement constitutes another vote ofconfidence in the vitality ofthe competitive wireless telecommunications marketplace. Indeed, it is a vote ofconfidence in wireless telecommunications in general, and should be kept in mind in your deliberations on all wireless telecommunications proceedings.

I attach copies of articles which cover and analyze the announcement. If you have any questions, please contact the undersigned.

Sincerely, / / (lA~--- /-U---- Robert F. Roche Director for Research

Attachments Building The Wireless Future,.

CTIA Cellular April 6, 1995 Telecommunications Industry Association 1250 Connecticut Commissioner James H. QueUo Avenue, NW. Federal Communications Commission Suite 200 Washington, D.C. 20036 1919 M Street, N.W. 202-785-0081 Telephone Washington, D.C. 20554 202-785-0721 Fax

RE: PR Docket Nos. 94-103 through 94-110 Preemption ofState Regulation ofCMRS

Dear Commissioner Quello:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

This announcement constitutes another vote ofconfidence in the vitality ofthe competitive wireless telecommunications marketplace. Indeed, it is a vote ofconfidence in wireless telecommunications in generaL and should be kept in mind in your deliberations on aU wireless telecommunications proceedings.

I attach copies of articles which cover and analyze the announcement. If you have any questions, please contact the undersigned.

Sincerely, ) /~ts-? /U-. Robert F. Roche ------Director for Research

Attachments Building The Wireless Future.•

CTIA Cellular Telecommunications Industry Association April 6, 1995 1250 Connecticut Avenue, NW. Commissioner Susan Ness Suite 200 Washington, D.C. 20036 Federal Communications Commission 202-785-0081 Telephone 1919 M Street, N.W. 202-785-0721 Fax Washington, D.C. 20554

RE: PR Docket Nos. 94-103 through 94-110 Preemption ofState Regulation ofCMRS

Dear Commissioner Ness:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

This announcement constitutes another vote ofconfidence in the vitality ofthe competitive wireless telecommunications marketplace. Indeed, It is a vote ofconfidence in wireless telecommunications in general, and should be kept in mind in your deliberations on all wireless telecommunications proceedings.

I attach copies of articles which cover and analyze the announcement. If you have any questions, please contact the undersigned.

Sincerely, )/ / .-./~' "".-,' "'- / /~ ...... -, ","" ---- Robert F. Roche Director for Research

Attachments Sulldlng The Wireless Future",

CTIA Cellular Telecommunications Industry Association April 6, 1995 1250 Connecticut Avenue, NW. Commissioner Andrew C. Barrett Suite 200 Federal Communications Commission Washington, D.C. 20036 202·785·0081 Telephone 1919 M Street, N.W. 202·785·0721 Fax Washington,D.C. 20554

RE: PR Docket Nos. 94-103 through 94-110 Preemption ofState Regulation ofCMRS

Dear Commissioner Barrett:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

I attach copies of articles which cover and analyze the announcement. If you have any questions, please contact the undersigned.

Sincerely, 2/ .,/' //) ./ / ( ~s.,; /~t:---- Robert F. Roche Director for Research

Attachments Building 11Ie WINless Future",

CTIA Cellular Telecommunications Industry Association April 6, 1995 1250 Connecticut Avenue, NW. Commissioner Rachelle B. Chong Suite 200 Washington, D.C. 20036 Federal Communications Commission 202-785-0081 Telephone 1919 M Street, N.W. 202-785-0721 Fax Washington, D.C. 20554

RE: PR Docket Nos. 94-103 - 94-104, and PR Docket Nos. 94-106 - 94-110 Preemption ofState Regulation ofCMRS

Dear Commissioner Chong:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

This announcement constitutes another vote ofconfidence in the vitality ofthe competitive wireless telecommunications marketplace. Indeed, it is·a vote ofconfidence in wireless telecommunications in general. and should be kept in mind in your deliberations on all wireless telecommunications proceedings.

I attach copies of articles which cover and analyze the announcement. If you have any questions. please contact the undersigned.

Sincerely,

7 ~/ ///~ ( ,,r / ,:...' tih/L-- Robert F. Roche Director for Research

Attachments Building The Wireless Future",

CTIA Cellular Telecommunications April 6, 1995 Industry Association 1250 Connecticut Avenue, NW. Ms. Regina Keeney Sutte 200 Chief, Wireless Telecommunications Bureau Washington, D.C. 20036 202·785·0081 Telephone Federal Communications Commission 202·785·0721 Fax 1919 M Street, N.W. Washington, D.C. 20554

RE: PR Docket Nos. 94-103 through 94-110 Preemption ofState Regulation ofCMRS

Dear Ms. Keeney:

I am sure that, by now, you are aware ofthe fact that Mr. Craig McCaw has announced that he and his family will invest up to $1.1 billion in Nextel Communications.

I attach copies of articles which cover and analyze the announcement. If you have any questions, please contact the undersigned.

Sincerely, ./.J 4:JY~"r~" r·./ Robert F. Roche Director for Research

Attachments ~_Y, APRil 6, 1995 McCaw's investment gives Nextel a boost By Kevin Maney gUide the comJllUlY's sualeg)'. one packqe, usilll one device NeXieI is wisely focusing on perception. "When a visionary USA TODAY McCaw does not plan to use that looks like a cellular phone sometbina others are not al throws his weight behind you. Neldel to create a new mass with a small screen. ready doin& .. McCaw says. it's a vote of cooldence," says Craig Mccaw, the most suc market ceUular pbone c0mpa Nextel, IleIped by McCaw, McCaw's investment is a Olarles DiSanza, analyst at Ge cessful entrepreneur in wire ny. "rve been there, done wiJJ pilch the service to busi jOCIsend to Nextel. The~ rard Klauer Mattison. Nextel's leis cooununic:alion, is b8Ck in tbat," says McCaw, who built nesses tbat have "mobile work ny bas struBB'ed since a deal stock rose 3~ to close Wednes the business McCaw Cellular into the groups." An example ofsuch a tor a $1.3 biUioo investment day at $16%. McCaw announced Wednes world's IarJeSt ceUular compa group: a team of COIl9UItanCS in from Mel fell apart last year. It McCaw and his family are day tbat be'D invest up to $1.1 ny before seDi, it to AnT Slalling computers tor a c0m bas had trouble raising money immediately buying $315 mil billion in Nextel Communica last year for 12 billion. pany tbat bas several locations to IRish building lIS network in lion in Nextel stock. The tions. a compeny building a Mccaw left after the de8J. in a city. The group could use nearly every city. Its SIOCk, $.1 McCaws will buy • million closely watched nationwide McCaw thinks Nextel can of the Nextel phones to talk ~ a year aao. hit a 52-week lowof Nextel shares from major wireIeIs network out of a 111M fer the next step in wireless 0fH)Re or as a group at any $9% Feb. 9, making it bard tor shareholder Motorola. ney'" live collection or old radio dis communication. Its all~igitaJ time, plus leave me r or Nextel to use stock to buy other have options that could brine petcb sysaems. Mccaw will set network win be able to oller make wirelesS phone calls. wireless companies and ex the Investment to $1.1 billion. a seat on Nextel's board and ...... dispatch, text rne9Ii8I' "With all the competition ~. Nextel seemed to have McCaw could then own 2K of control a newly created "oper ioa. ceUuJar phone calls and coming in one part of the mar overreached. Nextel. Motorola's stock rose 1 ations committee," which will computer communications in ketplace (cellular phones), Mccaw's move chanles that to clQge at $5-f~. IIJt -"uRtourialtO • HllJRSVAY, APRil. 6, 199.5 / I'A(;I': W, Craig McCaw will invest up to $1.1 billion in Nextel lular Communications Corp., the lower ils slukc ~racdllily in Ncx said al a news conference that the deal with Mr. McCaw. By Nick Louth conlinuin~ hillionaire would pl"Ovide advice, REUIERSNtWS AGENCY nation's largest cellular telephone tel while lu supply it So why is Mr. McCaw keen fill firm, to AT&T Corp. in September with equipmcnt, analysts said. not ~ive orders. Nextel when Mel was not? NEW YORK - Craig McCaw, in a $12.6 billion stock deal. Nextcl will now try build a nel "II is must definitely not a take "I'm looking at the opportllllllY the billionaire entrepreneur in The investment in Nextel will work and market its I"adios to the uver, il is the culmination ofa part as an illvestOl~" MI~ McCaw Silld wireless communications, will in provide thecompany with the cash 20 million Americans on the move nership we first started talking "MCI needed a consumer cUlinec vest up to Sl.l billion in Nextel to build its system and could lead who need to talk to radio-carrying about a coupleof monthsago," said lion and had a different agenda" Communications Inc, to help it to the McCaw family eventually colleagues at unce. A flip of a Nextel Chairman Morgan The McCaw family could end lip builda vast mobile phone network, Kaining control, industry analysts switch would also allow a connec O'Hrien. effectively controlling the COlli officials said yesterday, said. tiun to an ordinary phone system. Nextd's mobile radio network is pany, analysts said. The dt:al III Mr. McCaw and Motorola Inc., The stock the McCaws will re These workers -- at hotels, air expected to cost $2.5 billion over eludes options 10 buy as IIIl1ch as which owns 20 percent of Nextel ceive, plus options if ~xercised, ports, factories and elsewhere, as Ihe next Iwo to three years. But .10 million Nextd shal'es at JI/'Ices hut will be selling some of its would give the family neal"ly a well as executives on the road company filings show Nextel was up to $IH50 a share and an addl stakt:, want to refocus the com quarter of Rutherford, N.J.-based now use old two-way radios thaI more than 5300 million short, ana tional 5 million shares at $21 SO a pany un the 20 million Americans Nextel. can contact only a few colleagues lysts said. share. who work on the move and need to Investors wekomed the news, at the push of a bullon and cannot Nextel's original plan to sell its In addition, Mr. McCaw Will hll~1 communicate with dozens of col pushinK Nextel stuck up 53.375 to connect to regular phones. wireless systems to consumers in 4 million Nextel common sharel> leagues. close at $16.625 on the Nasdaq. Under the agreement, Mr. volved MCI. But negotiations over from Motorola for $49 million alld Nextel plans to end its nirtation Motorola rose 51 to 554.325 on the McCaw and his family will invest MCI buying a stake in Nextel has been granted options un an with selling wireless communica New York Stock Exchange. an initial $315 million in Nextel broke off in September when the other 9 million shares held hy tions to consumers - a move that "U's It vote of confidence by one buying $14.9 million worth of long-distance carrier decided to Schaumburg, III.-based Motonlla. led to failed talks with MCI Com of the visionaries in the wireless stock at 512.25 a share and 8.2 mil abandon the $1.3 billion invest munications Corp. last year - and industry;' said Charles DiSanza at lion units convertible into three ment. The McCaw tamlly, slOce seIling aim clearly at the business mar Gerard Klauer Mattison. Nextel common shares apiece for Nextel, whose stock traded at its wireless group, is the largest ket. For Mr. McCaw, the deal fur $JOO million. $55 in August, hit $10 in January, single shareholder in AT&l: wilh.J "We will mine for gold in the thers his efforts to exploit the pa Craig McCaw will become a and some investors began to doubt percent, an investment wurth new field of wireless communica tential of wireless communica member of the Nextel board and it could get all the cash needed. about 52.5 billion. tions for work groups:' Mr. McCaw tions even beyond what he has control a new operations commit "It does a great deslto reassure "The heauty of this invcsllJlelll said in a statementannouncing the done with cellular telephones and tee that would formulate and pro investors of Nextel's place in the is that it is not in allY way negallve deal. pagers. pose clwporale strategy. wireless world:' Michael Elling at to AT&T," Mr. McCaw told replII·l· Mr. Mccaw sold his Mccaw Cel- The deal also allows Motorola to Mr. McCaw and Nextcl offiCials Prudential Research said of the ers. THE WALL STREET JOURNAL THURSDAY, APRIL 6,1995 Ai business two years ago, buying and linking or 26%, to 516.625 in Nasdaq Stock Market dozens of local systems into a network for trading. Nextel's bonds took a similar McCaw to Buy challenging cellular goliaths - including bounce, rising by eight points to 50. Nextel Mr. McCaw's former cellular company. stock had traded as high as $41. 75 a year MCI CollllllUlllcadoa Corp. later backed ago, but then fell into the low teens. Nextel Stake out of an agreement to invest S1.36 billion, The Mccaw investment will start sending Nextel on a search for a new small - the team has paid SIU million for strategic partner with deep pockets. about 1.2 million common shares. That will :'lews that Mr. Wireless was betting his be followed by a S300 million chunk for -Of Upto23.5% hard-won cellular dollars on the troubled preferred units after the entire deal closes. Rutherford, N.J., company buoyed inves now scheduled for mid-June. But it will go tors, who sent Nextel shares up by 53.375, Please Turn to Page A., Column J By JOHN J. KELLER Staff Reporter of TIIF. WALL STRF.F:T JOLRSAL ~EW YORK - Wireless pioneer Craig O. McCaw and his family agreed to buy a stake of up to 23.5% in struggling wireless upstart Nextel Communications Inc., pay ing up to 51.1 billion in stages over the next six years. ~extel has agreed to grant Mr. McCaw surprisingly broad control over its opera tions and future di rection. While he won't take an exec· utive post at the company: he will name and head an "operations com mittee" to which Nexte!'s recently hired chief execu tive officer, Way land Hicks, will re port. Mr. Mccaw sees Cr . 0 McCaw the Nextel invest- alg . ment as a way of remaining a player in wireless. It is an unlikely alliance between a provider of scratchy radio dispatch services and a superstar who built a national cellular giant. The two may need each other. Mr. McCaw, the 45-year-old industry visionary who sold the nation's NO.1 cellular com pany to AT&T Corp. for sa.5 billion, becoming AT&T's largest individual holder, was outgunned recently in the rich bidding frenzy for licenses to offer- new "personal communications services." Nextel sought to build on its Oeet-dispatch ••IIJ"~'" "...... '

o ...... O.....-,..-..._s.._ ~ .. eM. Mel comm..ill.DnUIII_ID,,-13_Wlf.3l.. 0 1M ~.lUi_.OMQIIIiJl_flIJ_'" 0_ ,...tuiU bIIIioRlll..i'W'ICIt ..-....,.,-.DlIt... 0_ iIt ...... e... n __17'A..~_...._ ~ _ O_7 ,..FCt,.... ••, I '.lI_ ... 0 ...,. - ....CraIt ...... aI 1[1"-, Wireless Pioneer Craig McCaw To Acquire up to 23.5% of Nextel 1 sale Back Objedtves Continued From Page A3 million additional shares within six years a significant way toward closing an S800 In tapping Mr. McCaw's considerable at 521.50 a share. million shortfall that Nextel faces in its wealth and expertise. Nextel has tacitly If the McCaws exercise their options much-vaunted plans to build a nationwide, acknowledged that it may have been aim and Nextel can close its other planned digital, wireless network. ing too high in its original strategic: plan. acquiaitions, the Mceaws will hold 12% of The new deal also could help Nextel Now. instead of turning its patchwork quilt Nextel's stock by mid-summer and about close a few pending major acquisitions of crackly dispatch-radio systems into a 74 million shares. or about 23.5%. of Nextel that are crucial to its strategy. The initial national cellular-phone and data network within six years. Motorola's stake. now at serving businesses and consumen. Neuel 20/11 and slated to rise to 26%. would eventu· infusion by the MCCaws of $300 million should greatly expand Nextel's capital will try to fill a niche. selling enhanced ally drop to 19%. base. allowing it to finalize deals to buy dispatch and data-messaging services to Neltel faces sizable competitive hur the dispatch properties owned by Motorola what it tenns "mobile work-groups." dles. even with the guiding hand of a and OneComm Corp. by the middle of Phone calling will be available to some cellular visionary. AT&T, the Baby Bells and a Sprlat June, said Nextel Chairman Morgan E. users as an option. coalition formed by Corp. and DIll At a hastily arranged news conference three big cable partners are pursuing O·Brien. Another transaction, with wireless services agreuiveJy. Pace Inc. is still awaiting a green lilht at New York's Waldorf Astoria. Morpn E. from the Federal Communications Com O'Brien. Nextel's chairman. gazed almost NonetheJess. Mr. Mccaw's endorse reverently at Mr. MCCaw, calling his bet ment helped iplte Nextel bonds and re mission. The acquisitions had been lated securities. ODe Neuel 934% note, snagged by bondholder tenns that the "the most significant endorsement attain able in the wireless industry." maturing in 280f. rose by eight points, or company was seeking to revise. sao for a bond with a S1,000 face value. to However, Nextel will see a redUdion In Mr. McCaw, affecting an "aw-shucks" SO. "To bave someoae of Crail Mccaw's the role played by its major ~ delivery, described himself as "really just stature bIea tbiI tecbDololY is a fantaltic until now - MItInIa IDe. ,Motorola bid a simple-minded guy who likes to focus endonemellt," said RoIemary TbomIen. extended hundreds of miU10aI of doUIn In on one or two things at a time." He vowed senior portfoUo manqer at Putnam In vendor financ:inI to Nextel and wu set to to "help focus the company." vestmeDts. Bolton. whidl holds S300 mil become its biuest sharebolder. In ex Options to Buy More Sbares lion in Nextel bondI. !!!!!!!!!!!!!!!!!!~ change for selling all of Motorola's dis Under the agreement. whict! must be patch systems to the company. Motorola approved by Nextel shareholders. the had steadfastly expressed its support of MCCaw family will buy 8.16 million Nextel Nextel as the company's fortunes soured. preferred units. each convertible into three But yesterday Motorola said it has common shares. for $300 million. In addi agreed to seU four million Nextel shares to tion. Motorola granted the MCCaws options Mr. Mccaw for 549 million. whicb it to acquire nine million shares it will hoid called "the first step" in a plan to reduce over the next six years at exercise pric:es its ownership in the wireless firm. Its and dates identical to those Mr. MCCaw planned Nextel stake of 26% will be received from Nextel. as well as a right of , reduced to 19% if Mr. McCaw exercises all . first refusal on its existing stock position in i of his purchise options. "It has never been Nextel. I the long-term strategy of Motorola to Mr. MCCaw also will receive options to be in the services business." said Christo bUy up to 15 million common shares within pher B. Galvin, Motorola's president. two years of closing at S15.5() a share; up to In addition. Motorola will no lonrer be 15 million more shares within four years of the exclusive equipment supplier to Nex· closill&' at $18.50 a share: and up to five tel. THI RS04t '\PfUL 0, I. '1'1,) •• , Ii! :, fl", ~-\~IH\'. ill' i'1"; Craig McCaw's Daring High-Wireless Act Investing in Nextel, Cellular Guru Bets On New Technology

8y Mike Mills ...... WWrillr e's often been c:ompII'ed to other youthful t~ pioneers such as MicroIott HCorp. Chairman BiD Gates and Apple Computer Inc. founder Ste¥en)oba. But yesterday Craig McCaw be came the MichIeJ Jordan of the communications industry. He laraetY retreated from public view Iaat year after AT&T bought the cduJar telephone empire he founded, a deal that netted more than $2 billion for him and family members. Now McCaw is back in the pme. He announced yesterday that he and his family would invest $1.1 billion in Nextel Communica tioasCorp. By buyina into Nextel. McCaw is hopin, to transform the sleepy market for two-way radio dispatch services in much the same way that he pioneered the growth of today's celJular teIepbone industry. "l'm aD idea guy," McCaw said in yesterday. the -...... IYU',USYlG-'M( .._.O~ an interview "l'm By '" maater of the obvious. So whenev -,..--NIt....er.II McCaw Is hopInl to tr...... the ....rk.t for two-wlJ r8dIo dlSlNrtch MrVI~ •• er I have an idea that I think is the obWM, I pursue iL" Neltel beIID its push toward a nationwide network of dispatch li MCCaw sur he wants to brinI MEEI' CUll McCAW dispatch communications beyond censes in the late 1980s. when company founders traveled the "pMnbers and contractors." He e& ••45. ..NDTIl STOCIC country buyina local ~W1y radio viIim a 1Qkl of teleccxnmutinl .1lIIt••-= Graduate of Stanford The company 5 stockNas -0 keeIiDI in touch·over JI'i cOlJ1lllllies. It was a strategy they S3.37!h yesterday on 1ews:f wm.n modeled lqely after one pursued Umversity. vale diIital two-way radio ~ McCaw's Investment by McCaw, who snapped up under '!II¥3 At 16. he and which wiI offer not only waIIiHaIl· -e-. CLOSING STOCK PRiCE ie-type communications but also valued ceUular licenses in the hIS three brothers bouitlt a tiny wireless telephone service, ad 19801 to create McCaw Cellular cable system in Centralia, Wash., $lSI the from their father. Developed the vanced PIIinI and data transten. Cornmunicatiaas Corp.. coun 16 "If cellular is ChevroJets and HClft. try's largest ceUular company. nation's largest cellular system as daI, tbiI is aJeep. It's a more fteD. NexteI's ambitions were blunted the chairman of McCaw Cellular 14 hie product," McCaw said. uyau can when Mel CommwUcatiorls Corp. Communications. which AT&T 1 have, for instance, five or six people last year bIcked out of its plans to bought in 1994 for Sll.5 billion. 12 woortci'I in stream-of-eoosciousness buy 17 percent of the company. just over S2 billion of whIch went mode•... They would pick up the With yesterday's announcement to McCaw and his brothers. naiver and reach the whole ~ by McCaw. analysts widely agreed, Yesterday, announced a $1.1 S or just one person. They could nev Nextel hal received a kind of vlndi billion Investment in Nextel er accompIiIIh that with a switch cation from the industry's founding Communications. 6 father. t.-d telephoee." ...... Camping, flying his 4 MtCaw's annaunc:ement imme uyou've lOt one of the true vi Falcon jet. sailing his two yachts. sionaries of the wireless commuru diately revived Nextel's Ragin, .,...... Patton.. 2 stock IIId bonds, and the Ruther cations industry puttinl his stamp ford, NJ.-bued company's future. of approVIl on Nextel's technology .'1MIr. Wife. Wendy; no 0 The commuNcations industry and and tnIfIIIl!IMI1t," said Mark R. children Jan. FeD \1d' Wal Street had been awash with Warner, a Nextel founder who cur- SOuRCES News reoam. B100mlltfl BUSIness !Ij~ ..S douIIts about Nextel's prospects. Set MeCAW, CI"CoL 4 McCaw to Invest $1.1 Billion In Nextel Communications

MeCAW, ProIa C13 biddina heavily in Jamaary and Febru· ary, then bIckina out fIom the Fedenl rently is rnInIIinI director of Alexan Communications Commission's auc dria-bIsed CoJlIDbia Capital Corp., a tions for wireIesa te!epboae IiceMeI in venture capital finn. 51 markets natiamride. McCaw's investment does not en· McCaw Slid be WIt CCIIIidenII in sure NexteJ's sucx:ess, however. "He vestint in NexreI at the time be WII does not brinI the marketing muscle tbat an Mel would have brought," said biddint. His bids were motivIted in MichIeI J. 8IW of the Baltimore part, be Slid, by a desire to make Me billed telecommunications investment that future competitors IIIid biIb )IIic firm Lea MIlan Wood Walker Inc. es in markets such as New Yark aad Over the put year, the seJf~ Los AnaeJes. McCaw has dabbled in various commu "I wanted to continue to "bid it up nications investments and taken Ies until at least a fair vaJue was seas to earn federal certification to fly achieved," be Slid. "It's a wondeIful IO~ a mcft powerful duIof jets. dUng that I could help the He and Microsoft's Gates last make more maaey•• Mardl beame the principii owners of McCaw mocIIIItJy debuJIb iii"" TeJedesic Coq)., which plans to IaWlCh ic status as a sbrewd detImaIrer wi» 840 Jow.artb.orbiti sateDites that stays a beat in front of the ~ VIiI provide wireJeu communications pack. "I'm not even sure what fft services worklwide. done," be Slid of his Nextel buy. "Ia it Md:aw aIao surprised observers by the right move?" t

JjC/ 71/JJE~ /)f//Z/L Ltl/IC;C;5

Rich From A T&TSale, McCaw May Put $1.1 Billion Into Nextel ,

move and sent Nextcl's shares soaring ing hiS rivals about his goals. Then, just as By EDMUND L. ANDREWS more than 23 percent. abruptly, he pulled out of the auction with Will thi. struggling Saying he had "been there and done out a hint of explanation. Craig O. McCaw, the billionaire who has that," Mr. McCaw made it dear yesterday Still, yesterday's news was the best in been looking for a new project ever since wireless company be that he had no interest in re-cntering the months for Nextel, which has been strug he sold his company to AT& T, has finally cellular-phone business in which he made gling ever since MCI Communications found one: Nextel Communications, a one saved·at the brink? hiS fortune. Rather, he said, he wantcd to called off plans last year to Invest $1.3 time high flier in wireless communications offer a new range of specialized voice and billion in it and form a nationwide wireless that has been flirting with death in recent data services that could link construction venture under the Mel brand name. months. Nextel, for its part, said yesterday that crews, airline mechanks or truck fleets. Nextel lost $130 million in 1994 on $H4 Mr. McCaw announced yesterday that it would drastically scale hack its goal of Mr. M(~Caw's forthcoming investment in million in revenue, virlually all of which he and his family would invest $300 million building the equivalent of a nationwide Nextel caught most people in the industry came from old-fashioned (Ieet dispatch immediately and as much as $I.J billion in cellular-telephone network. Instead, il will by surprise, though it was hardly the first services that are now being altered with Nextel over the next six years. If he exer focus much more narrowly on building time he has done so. Armed with more digital technology. Nextel's stOCk, which cises all his options under his agreement private dispatch networks for business than $1 billion in AT&T stock, he emerged reached a peak of $34.25 last fall, collapsed with Nextel, he would own about 23 percent customers who want to link mobile work as a big bidder in the Federal Govern after the Mel deal was abandoned and of the company and become its largest ers. ment's auction of radio licenses for per shareholder. 4 Investors were delight by Mr.. \1cCaw's sonal communication ser~ ices, bewilder- Clint mue In Page D6 '" THE NEW YORK TIMES, THURSDAY, APRIL 6, 1995

Craig O. McCaw and his family plan to invest up to Morgan O'Brien, right. chairman of Nextel. and $1.1 billion in Nextel Communications. a struggling Christopher Gaivin. chief executive of Motorola. at wireless company. Mr. McCaw was flanked by yesterday's announcement in New York. McCaw May Put Up to $1.1 Billion in Nextel of ~extel stock that it wifl soon ac pete with cellular telephones. lnd Conunued From First Busmess Page qUire when It hands over a raft of that concern has Clouded Sextel radIO licenses to Nextel for stock. ever since the collapse of the de.3l. was trading at $13.25 Tuesday. If Mr. ~cCaw exercises all his But Industry experts say the new Yesterday, Nextel's shares oplJons, he would own about 23 per strategy - to focus on a narrower Jumped S3.3i5 to $16.625 and was the cent of Nexte!. becomma its biggest market With few partiCIpants and most lCtlve Nasdaq stock. Investors shareholder. !'

By Bloombera BUSiness News TORONTO, April 5 - Northern Telecom Ltd. and LM Ericsson have won contracts worth more than $170 million to supply equipment for new I Wireless-phone systems. Northern Telecom, part of BeE Inc. of Montreal, received a SI00 million, three-year order, announced today, from a unit of the BellSouth Corporation for equipment to set up networks in the Carolinas and east ern Tennessee. Ericsson's Canadian unit will sup ply more than S70 million worth of equipment to Microcell 1-2-1 Inc. for a field trial across Canada. Micro cell is a joint venture of communica tions companies including Sprint Canada, a unit of the Sprint Corpora tion in Westwood, Kan. The BellSouth order is one of many that Northern Telecom, the Toronto-based telecommunications equipment maker, is expected to win as a result of a recent auction of Wireless licenses in the United States. The Federal Communica tions Commission sold licenses last month to 21 communications groups to offer new Wireless products known as personal communications services. Wireless now represents about 10 percent of the annual revenue of Northern Telecom, which reached $8.87 billion in 199-4. The company officially opened a new wireless manufacturing operation today in Raleigh, N.C. The orders for Northern Telecom and Ericsson are a sign that the technology known as Global System for Mobile Communications, known as GSM, may be taking a lead in North America among cellular p~ viders. GSM is based on time-division multiple-access technology, which has less calling capacity than the competing technology, called code division multiple access. Code-divi sion technology, however, is not yet commercially available, while time division technology has been around for two years. Eric Ensor, president of BellSouth Personal Communications, said GSM had been chosen in part be C8WJe it was a proved technolOl)' and would allow BellSouth to offer subscribers more features sooner. Some features the technology will support include sendinl data and short mes8alinl. Mr. Ensor said. PAGE 3 2ND STORY of Levell printed in FULL format. Copyright (c) 1995 Business Wire, Inc. Business Wire April 5, 1995, Wednesday - 07:03 Eastern Time DISTRIBUTION: Business Editors LENGTH: 1003 words HEADLINE: Craig McCaw, Motorola and Nextel Will Cooperate To Create Wireless Services For Work Groups DATELINE: RUTHERFORD, N.J. BODY: April 5, 1995--Craig McCaw, a pioneer in wireless communications, and other McCaw family members have agreed to invest up to $ 1.1 billion in stock of Nextel Communications, Inc. and will provide strategic direction of the company to focus on enhanced two-way radio dispatch services for business users who need integrated wireless communications. McCaw said he is not interested in attempting to copy cellular, PCS or paging. "I have been there, done that and it is not my intent to do what I've already done," McCaw said. "We will mine for gold in the new field of wireless communications for work groups," he continued, "and by emphasizing dispatch, messaging, and data in combination with telephone interconnect, Nextel can enhance the quality of life for mobile work teams, an important and growing sector of the U.S. workforce. By effectively using Motorola's technology for fleets and crews of mobile workers, I believe that Nextel has the potential to be a unique and important contributor to the wireless .industry." In citing his continuing belief in the development of multiple wireless services packaged in one device, McCaw said, "We know there is a strong base of potential customers for integrated business communications services in the nearly 20 million current two-way radio users in the U.S. alone." While current Nextel shareholders must approve the transaction, Nextel's Board of Directors already has unanimously approved the agreement. Completion of the agreement also is subject to various regulatory and third-party approvals. Under terms of the agreement, McCaw and other members of his family may invest up to $ 1.1 billion in Nextel stock over the next six years through share purchases from both Nextel and Motorola. McCaw will become a member of the Nextel Board of Directors with control over a newly created operations committee. Nextel is a provider of integrated wireless business communications services, including enhanced dispatch, alphanumeric short message paging, mobile telephone and data services throughout much of the U.S. Motorola serves as Nextel's technology provider and supplier of infrastructure and subscriber equipment. PAGE 4 (c) Business Wire, April 5, 1995, Wednesday Morgan O'Brien, chairman of Nextel Communications, Inc., said, "What we are learning is that as we move to new ways of working as groups we need to find new tools to allow them to communicate. Mixing one part Craig McCaw vision with one part Motorola technology gives us at Nextel a recipe for even more potent integrated wireless business solutions." Christopher Galvin, president and chief operating officer of Motorola, indicated that Motorola looks forward to its role as the technology provider and equipment manufacturer. "We invented the dispatch business and now we're reinventing it. This transaction also is the first step in reducing our ownership in Nextel," Galvin said. In a separate announcement, Motorola outlined several steps it is taking to drive the success of this new integrated wireless business communications industry. The company said it would rename its MIRS technology iDEN, or Integrated Dispatch Enhanced Network, and license essential intellectual property rights to qualified manufacturers. In addition, Motorola has committed to make several technology improvements that will enhance reliability and audio quality under terms of a revised supply agreement. Motorola feels these steps will enhance the global opportunties for this exciting technology.

The agreement with the McCaw family includes the immediate purchase of $ 14.9 million of Nextel stock at a per share price of $ 12.25. In addition, upon closing, McCaw will purchase for $ 300 million, 8.16 million preferred units of Nextel shares, each convertible into three common shares. McCaw also will be granted options to purchase: up to 15 million common shares within two years of the closing at an exercise price of $ 15.50 per share, up to IS million common shares within four years of the closing at $ 18.50 per share, and up to 5 million common shares within six years of the closing at $ 21.50 per share. The second and third options will be exercisable only to the extent that the first and second options, respectively, are exercised.

McCaw also will purchase 4 million Nextel common shares from Motorola for $ 49 million. Motorola has granted McCaw options on 9 million shares over the next six years at exercise prices and dates identical to the Nextel options, as well as a right of first refusal on its existing stock position in Nextel. Under the agreement, a newly formed operations committee will be responsible for formulating and proposing key tenets of Nextel's corporate strategy. McCaw is entitled to appoint a majority of the operations committee's members and a total of three board members for so long as he continues to meet certain ownership thresholds and makes certain additional investments in the company.

Nextel reported in a recent 10-K filing that it expected to seek additional financing over the next several years. The investment by McCaw, as well as the potential option exercises, are expected to reduce significantly the amount of money to be raised.

CONTACT: Nextel Paul Blalock, 201/531-5200 Susan Suss, 212/878-4638 or Motorola PAGE 5 (c) Business Wire, April 5, 1995, Wednesday

George Grimsrud, 708/576-2346 Anna-Lise Farmer, 708/538-3113 or McCaw Family Roger Nyhus, 206/915-3878 or 206/720-1739

LANGUAGE: ENGLISH

LOAD-DATE-MDC: April 5, 1995