Nextel Begins Testing Youth-Oriented Boost Mobile Service

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Nextel Begins Testing Youth-Oriented Boost Mobile Service
By Sue Marek
September 9, 2002
news@2 direct


Boost Mobile, Nextelâ??s youth-oriented service, has debuted in test markets in California.

Nextel President CEO Tim Donohue told analysts at the Morgan Stanley Global Communications Conference today in Miami that the company is experimenting with the youth market through its joint venture with Boost Mobile and has launched the service in California where the company is charging prepaid rates of 35 cents per minute for peak airtime and 15 cents per minute for off-peak airtime.

Like Virgin Mobile USAâ??s prepaid youth-oriented service, Boost is attempting to make its rate plans easy to understand. According to the companyâ??s Web site, Boost 2Way, the companyâ??s push-to-talk service, will be available to subscribers for $1 per day. Likewise, for unlimited access to the wireless Web and unlimited two-way text messaging, Boost subscribers will just have to pay 20 cents per day for each service. Voicemail appears to be the only area where Boost diverts from the its daily fee-based pricing, instead charging customers 30 cents for each message that is retrieved.

The companyâ??s handsets, all Motorola models, vary in features and pricing. The least expensive model, the i50sx, costs $99 and features interchangeable faceplates and the ability to access Java games and Java-based applications. The priciest model, the i95cl, costs $399 and comes with a color display and pre-loaded ringtones.

To draw subscribers to its service, Boost is offering a special incentive. According to the Web site, subscribers will receive Boost 2Way service, unlimited text messaging and unlimited wireless Web access for free until Oct. 31.

While enthusiastic about Boostâ??s debut, Donohue characterized the joint venture as an â??experimentâ?? and says that only if the results from the trial markets live up to expectations will Nextel proceed with rolling out the service across the United States. â??Now we have the opportunity, time and money to experiment with the youth market,â?? Donohue says. â??But we will not roll out this new segment unless we understand it and it brings us profitable customers. Weâ??re not growing for the sake of growing.â??

Nextel Begins Testing Youth-Oriented Boost Mobile Service