That's a Big 10-4: Walkie-Talkies Are Back
Topic Strategic Marketing and Planning
Key Words Nextel, wireless phones, push-to-talk
InfoTrac Reference CJ106926329
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News Story 

Direct Connect, Nextel's popular two-way communication tool, lets cell-phone customers shave seconds off the time of placing a call. The company's push-to-talk services work much like walkie-talkies. To speak, a button on the side must be depressed; while it is, only the caller can be heard. Once the button is released, the listener can chime in using the same process.

Simple push-to-talk services like Direct Connect are taking off in the wireless phone industry, and competing firms Sprint PCS and AT&T Wireless are now developing this function on their products.

Created more than a decade ago to help construction workers, cab drivers and other business users keep in contact, Nextel's Direct Connect service is now gaining popularity among youth and families. For teens, the Direct Connect function is the voice version of computer text messages, providing an instant way to share gossip or make plans. And families also find it useful as an easy way for mom and dad to keep in touch with each other and the kids.

Questions
1.

Direct Connect, Nextel's two-way walkie-talkie service, was initially designed to serve a very small market of construction workers, taxi drivers, and other blue-collar industries that use walkie-talkies. What new communication trends have led to increasing demand for Nextel's Direct Connect service among families and youth?

Source Jonathan B. Cox, "North Carolina Talkers Connect with Nextel," Knight Ridder/Tribune Business News Service, August 27, 2003, pITEM03239184.
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