FOR IMMEDIATE RELEASE                                                    AT
THURSDAY, OCTOBER 27, 1994                                   (202) 616-2771
                                                         TDD (202) 514-1888

      JUSTICE DEPARTMENT PRESERVES COMPETITION IN COMMERCIAL DISPATCH
          SERVICES MARKET BY FILING ANTITRUST SUIT AND SETTLEMENT


     WASHINGTON, D.C -- The Department of Justice's Antitrust
Division has moved in court to block Nextel Communications Inc.'s
acquisition of Motorola's specialized mobile radio service, a
dispatch service used by cab and delivery companies, and require
the two companies to relinquish control of certain radio channels
they own or manage.  The Department said the acquisition would
have eliminated competition in 15 major metropolitan cities and
caused higher prices and poorer services for consumers.
     At the same time, the Department allowed the proposed
alliance to proceed with its plans to introduce a new digital
wireless telephone technology intended to compete with cellular
telephone providers.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Antitrust Division, said, "This action is the best of all
worlds for the consumer.  It clears the way for Nextel to offer
wireless telephone service with a new digital technology in
competition with established cellular companies.  At the same
time, it ensures that businesses and individuals that need
dispatch services will not be at the mercy of a single service
provider."
     The proposal would have reduced competition in Atlanta,
Boston, Chicago, Dallas, Houston, Denver, Detroit, Los Angeles,
San Francisco, Miami, New York, Philadelphia, Seattle,
Washington, D.C., and Orlando, Florida, the Department said.
     The two companies are each other's chief competitor in the
provision of the specialized mobile radio service or SMR service,
a type of radio service used by contractors, service companies,
delivery services and other businesses that need to communicate
with fleets of vehicles either on a one-to-one or one-to-many
basis.
     The Department's complaint, filed in U.S. District Court in
Washington, alleges that Nextel is the dominant provider of SMR
service in many major markets, and Motorola is the second largest
competitor.  At the same time, a proposed consent decree was
filed, that if approved by the court, would settle the suit.
     Bingaman said, "Nextel's acquisition would eliminate its
principal competitor in 15 major metropolitan cities.  Unless it
is blocked, consumers in those cities will face higher prices,
poorer quality and decreased amounts of service."  
     The proposed consent decree will eliminate the
anticompetitive effects of the transaction by requiring Nextel
and Motorola to relinquish control of certain SMR channels they
own or manage.
     Nextel's acquisition of Motorola's SMR business is part of
its plan to deploy new digital technology developed by Motorola
to create a wireless telephone service that competes with
cellular telephone service.  This aspect of the transaction will
not be affected by the proposed decree and could enhance
competition by creating a third mobile telephone service
competitor, so long as the competition in the provision of
dispatch services is preserved, the Department said.  
     As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, together with the
Department's competitive impact statement, and any person may
comment on the proposed decree by submitting their comments to
the Department.  After a 60-day comment period, the United States
will address any public comments and determine whether it should
seek entry of the decree by the court.  The decree will expire 10
years after entry.
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