A Direct Boost for Nextel

"Despite Nextel's dominant role in the much-coveted business market, the carrier surprised industry analysts earlier this month when it began catering to the less-established youth market.

In what one analyst called "a whole new direction for Nextel," the company partnered with Boost Mobile of Australia and New Zealand and began to offer mobile phone services to teenagers. Boost, which is constantly sponsoring surfing and skateboarding events and whose identity revolves around extreme sports, is hugely popular among teens in both countries, said Seamus McAteer, an analyst with Zelos Group.

For its initial launch in California and Nevada, Nextel is selling mobile phones under the Boost name in 7-Eleven, Best Buy and Nextel retail stores. The majority of the phones have Java software for games, hands-free speakerphones, a 250-entry address book, voice mail, two-way text messaging and a two-way walkie-talkie service....

And unlike its competition, Nextel has a chance at teens with Direct Connect, which could help them, say, create last-minute plans with friends, Kelly said." [Wired News]

In the interim, before American cellular carriers wise up with pricing and we start seeing more "fun" phones, Nextel might make some headway with this. Adolescents already love FRS two-way radios, so providing a broader range for a walkie-talkie service might be just the ticket here. If they launch with some high quality games, this move could be the foot in the door Nextel needs.