Wireless as an Industry with the Longevity for the Future.

Wireless as an Industry with the Longevity for the Future.

Wireless technology has shifted focus from a business tool to a household industry, with an increased concentration on the family and personal consumer.

> According to the 2004 US Wireless Regional CSI Study, overall wireless household penetration has increased 5.4 percent from 2003, to 59 percent. The Northeast region has the highest household penetration with 62 percent.

Thirty-two percent of wireless households say they have at least two or more family members sharing service plan minutes—a year-over-year increase of 52 percent.

> The key focus of the wireless market has shifted to today’s youth, and so thenotion of longevity and staying power has become a crucial characteristic of national carrier strategies.

Wireless technology has shifted focus from a business tool to a household industry, with an increased concentration on the family and personal consumer.

> Wireless as the future of personal telephone technology:

Nextel as a clear choice for long range growth and continued

potential for success.

Nextel has found great success in the wireless industry by recognizing and prioritizing the importance of repair services among its offerings for its customers.

> Service Centers were developed as an aggressive, easily accessible option for Nextel customers who were experiencing problems with their equipment, as part of the carrier’s commitment to customer satisfaction

> Improved equipment quality and ease of repair is one of the primary reasons why Nextel continues to have the lowest churn among wireless carriers, despite its industry-high ARPU.

According to the 2004 US Wireless Regional CSI Study, users report spending $55 per month on wireless service, a full $3 increase over 2003, marking the first spending increase since the study was launched.

Price has become a secondary concern for wireless customers; quality of service and satisfaction with equipment have taken shape as new priorities.

Nextel has found great success in the wireless industry by recognizing and prioritizing the importance of repair services among its offerings for its customers.

> Service Centers became the most cost effective and efficient answer to the growing concern with quality and satisfaction; customers could now find an immediate solution to equipment problems in a manner which ultimately succeeded in remarkable subscriber retention.

Nextel has even taken steps to ensure the role of Service Centers as more than just repair locations; as one of only two carriers who have ‘locked’ networks, Nextel has ensured that any alteration made to their phones (ring tones, wallpapers, etc) must be done through a data cord found only at a Service Center.

Nextel and the Future

Nextel has been working steadily over the past few years to improve the quality of service provided to its customers, whether through the growth of its Service Centers or the temporary sacrifice of frequency for the long-term expansion of its spectrum offerings.

> When the FCC discovered that Nextel’s use of the 800 MHz spectrum was adversely affecting emergency communication transmitting on the same towers, Nextel was quick to abdicate their use of the spectrum in the interests of the greater good.

While this shift caused some disruption in service on an immediate basis, the arrangement coordinated by the FCC in conjunction with Nextel will ultimately provide the carrier with a significantly larger frequency spectrum, for improved signal strength in the years to follow.

> The resolution of the FCC ‘spectrum swap’, partnered with the dissolving of pending lawsuits with Verizon Wireless, have left Nextel stronger than ever, with the corporate commitment and technological infrastructure to continue expanding for years to come.

Nextel maintains a clear focus on the future of its organization and its industry, and as seen through both the creation of its Service Center model and its recent efforts to expand future spectrum strength, it is an ideal partner for development and promotion in nearly any forum, or racetrack…

Nextel and NASCAR

In 2003, Nextel signed a 10-year, $750 million agreement to become title sponsor of NASCAR’s premiere series.

> Limited for years by the rules and regulations governing their past sponsor, Winston cigarettes and its parent company R. J. Reynolds, NASCAR was anxious to forge a new relationship as it looked to the future.

> NASCAR has grown from a sport to a lifestyle in American popular culture, strong enough to stand alone as a brand but perfectly suited for marketing partnerships.

> NASCAR as America’s new television pastime:

In 2003, Nextel signed a 10-year, $750 million agreement to become title sponsor of NASCAR’s premiere series.

> The purchasing power of NASCAR fans as loyal sponsor shoppers:

In 2003, Nextel signed a 10-year, $750 million agreement to become title sponsor of NASCAR’s premiere series.

> The relationship between NASCAR and Nextel has proven beneficial for both sides of the partnership, but where it has had the most important impact is with the fans and consumers.

NASCAR administrators and participants alike praise the new relationship, as it signaled not only a more family-based partnership but more so a marketing relationship participants could be proud of.

In 2003, Nextel signed a 10-year, $750 million agreement to become title sponsor of NASCAR’s premiere series.

Nextel and VIP WirelessThe Future of Wireless Retail

VIP Wireless > Who We Are

> VIP Wireless continues to find great success as one of the most widely respected and recognized wireless distributors in the region through our adherence to our business model and commitment to our strategic partnerships.

We have stayed true to the retail model, concentrating on the development of service centers while keeping a keen eye on the growth of our in-line locations.

Nextel Service Centers are our most valuable opportunities, fueled by an automatic customer flow and supported further by their association with the Nextel name.

Our company’s foundation lay in the relationships we maintain, and we look to establish a mutually beneficial partnership with Simon Malls for the proliferation of Nextel/NASCAR Service Centers through their network of mall locations.

What We Can Do For Simon Malls

> Our Nextel Service Centers provide a service to both mall shoppers and other storeowners; rather that survive on passersby we bring new customers into the mall directed specifically to our locations.

Our relationship with Nextel has established VIP Wireless as a solid and reliable partner for quality of service and integrity of operations, so we are their first resource when sending customer to a Service location.

We will bring new customers into the mall with a service that nearly ensures a brief wait time, so that the other stores in our vicinity can also benefit from the addition.

> The combined Nextel/NASCAR brand carries a consumer following all on its own:

> In September 2004 one public relations executive from the Gem Group, which represents a number of non-Nextel NASCAR sponsors,

remarked:

What We Can Do For Simon Malls

>The correlation between the Nextel/NASCARbrand association and increased sales was documented by Knowledge Networks in September 2004:

How We Will Do It

> We will design each Service Centers to be a full visitor experience, themed to coincide with our Nextel/NASCAR cross promotion strategy.

This marketing strategy includes NASCAR themed phone covers, accessories and wireless phone content.

We will theme our stores under this same brand, designing interiors that reflect the Nextel/NASCAR motif and including elements such as stock cars in the stores to complete the presentation.

Employees will act as ‘pit crew members’; uniformed and managed with the common

theme to get customers in, repaired, and back out to the mall in no time.

How We Will Do It

> The wireless retail user exprience:

How We Will Do It

> Our Service Centers will not simply be a repair center, but rather a lifestyle storefront, with design elements and activity features to provide a well-rounded entertainment experience for mall customers and NASCAR fans.

How We Will Do It

> Our Service Centers will not simply be a repair center, but rather a lifestyle storefront, with design elements and activity features to provide a well-rounded entertainment experience for mall customers and NASCAR fans.

> Our Service Centers will follow through on this potential, harnessing the massive consumer power of the NASCAR brand and channeling this huge potential customer surge to Simon Malls across the nation.

> Recognizing the power of the Nextel/NASCAR brand:

How We Will Do It > What Other Partners Have To Say About VIP Wireless:

How We Will Do It > What Other Partners Have To Say About VIP Wireless:

How We Will Do It > What Other Partners Have To Say About VIP Wireless: