Nextel Communications Inc.

2001 Edmund Halley Dr.

Year founded: 1987

Industry: Telecommunications

Post 200 Category: Top 125 Companies

Revenue: $13.37 Billion

Net Income/Loss: $3.00 Billion

Earnings per share: $2.62

Dividend: n/a

Stockholder equity: $9.41 Billion

Auditor: Deloitte & Touche LLP

Stock: NXTL

Assets: $22.74 Billion

Market capitalization: $32.49 Billion

52-week high: 30.5 12/10/2004

52-week low: 21.18 8/9/2004

President and CEO: Timothy M. Donahue

CFO: Paul N. Saleh

Employees: 19821

Local employees: 4425

Description: Nextel Communications sells mobile phone service nationally, mostly to business customers, although the company is making inroads into the consumer business through its retail stores. Its phones are best known for their walkie-talkie feature, which is used by more than 90 percent of its 15.3 million customers.

Developments: Until recently, Nextel's growth was limited by a lack of cellular bandwidth and its small size relative to some of its competitors. That changed late last year in two key ways. The company won the regulatory battle of its life, getting the Federal Communications Commission to grant it the rights to new, valuable cellular airwaves worth $4.8 billion. In exchange, Nextel agreed to trade some of its current airwaves and agreed to pay to clear up the interference between its systems and police and emergency communications systems. That not only laid the groundwork for Nextel to upgrade to a faster Internet network, it also made it more attractive to Sprint Corp., which in December negotiated a deal to merge with the company for $35 billion. The deal with Sprint gives Nextel a broader base of customers with more resources, so it can compete with its much larger rivals, Cingular Wireless and Verizon Wireless. The combined company plans to keep its corporate headquarters in Reston to stay close to regulators and members of Congress. Sprint's chief executive Gary D. Forsee will become head of the merged company, but Nextel's longtime chief executive Timothy M. Donahue will remain executive chairman, overseeing cost-cutting operations following the merger. The companies have not disclosed how many jobs will be eliminated when the merger is complete. The integration process will not be an easy one. The companies must win federal regulatory approvals for the deal, which are expected in the second half of this year. Although no one expects the merger to run aground there, the company needs to reconcile its technology with Sprint's, which could be a costly and messy process, analysts say. Nextel and Sprint will continue to operate separate networks until 2008, the companies said.

Executive Compensation
President and CEO: Timothy M. Donahue
Total Cash: $2,804,692.00
Total Compensation: $7,786,307.00

COO: Thomas N. Kelly Jr.
Total Cash: $1,434,630.00
Total Compensation: $7,608,611.00

CFO: Paul N. Saleh
Total Cash: $1,246,503.00
Total Compensation: $6,989,624.00

Chief Technology Officer: Barry J. West
Total Cash: $648,034.00
Total Compensation: $3,943,349.00

General Counsel: Leonard J. Kennedy
Total Cash: $818,349.00
Total Compensation: $3,265,141.00