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Nextel Clears Hurdle Toward Wireless Network

October 28, 1994|From Associated Press

WASHINGTON — Nextel Communications Inc.'s plan to create a national network providing wireless phone, fax and paging services cleared a regulatory hurdle Thursday.

The Rutherford, N.J.-based fleet dispatch company reached an agreement with the Justice Department allowing it to acquire some radio licenses from Motorola Inc. But Nextel is barred from buying new licenses in markets where it already holds similar permits, according to federal regulators.

The licenses are currently used by both companies to provide dispatch services to cab, trucking and delivery companies. But Nextel, with digital technology developed by Motorola, plans to use the "specialized mobile radio" licenses to provide cellular-like service, two-way paging, faxing and messaging.

The companies plan to compete with existing cellular and paging companies as well as the providers of the next generation of mobile phone and data services known as personal communications services.

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