RESTON, Va., SOMERS, N.Y., & DENVER--(BUSINESS WIRE)--
Jan. 18, 2002--
Nextel and IBM to Jointly Develop and Deploy Mobile Business
Solutions; IBM and TeleTech to Manage and Enhance Nextel
Customer Care Services
Nextel Communications, Inc. (NASDAQ: NXTL- and IBM (NYSE: IBM - have
announced a strategic alliance covering the development, marketing and
deployment of mobile e-business solutions to enterprise customers in
the U.S., as well as an eight-year, $1.2 billion customer relationship
management (CRM) outsourcing initiative to manage and enhance Nextel's
customer care capabilities. IBM Global Services will partner with
TeleTech (NASDAQ: TTEC -- a world leader in CRM solutions -- to
manage Nextel's customer care centers. These agreements are expected
to reduce Nextel's future costs by more than $1 billion over the
eight-year term and enhance Nextel's revenues through the deployment
of new wireless data services.
``Nextel's core competency is creating and delivering the highest
quality, most advanced wireless services for business users in the
nation,'' said Tim Donahue, president and CEO of Nextel. ``IBM is the
world leader in developing and integrating technology-based solutions
that help businesses to be more effective and efficient. Together,
Nextel and IBM expect to deliver productivity enhancing mobile
applications for businesses that need to access, manage and use their
information and data on the go.''
``Nextel's key priorities are to drive greater operating
efficiencies while continuing to provide our customers with superior
customer care,'' said Jim Mooney, chief operating officer of Nextel.
``This strategic alliance positions Nextel to achieve both goals. We
are excited to be able to leverage IBM and TeleTech's expertise in
these crucial areas of our business, and expect the relationship to
add value through both cost savings and incremental revenue.''
``This relationship is a win for everyone involved,'' said Doug
Elix, senior vice president and group executive, IBM Global Services.
``By selecting IBM and TeleTech to manage its customer care operations,
Nextel can continue delivering first class wireless services to
businesses across the U.S. while reducing its operational costs. And
for IBM, this relationship represents a unique opportunity to team up
with an industry leader to provide wireless solutions for enterprise
customers.''
The Nextel-IBM alliance agreement will team Nextel's wireless
technologies with IBM's global wireless e-business services to deliver
wireless data solutions for the enterprise. The two companies will
work together to enhance Nextel's market-leading data networking
capabilities, and provide integrated, end-to-end wireless systems that
improve productivity and quality and help companies control costs.
Through the alliance, Nextel will work closely with IBM Research to
leverage new wireless technologies that can be delivered through the
Nextel National Network, using both existing Nextel handsets and other
mobile devices.
IBM has chosen TeleTech to manage Nextel's six customer
relationship centers. These operations currently employ 4,500
professionals who handle customer service and retention. The
transition of these centers will occur during the first quarter of
2002, and will be seamless for Nextel customers. The IBM and TeleTech
solution is designed to enhance customer care and build ongoing brand
loyalty for Nextel through leading edge technology and process
improvements.
``As we approached this engagement, it was clear that TeleTech was
the logical partner given its proven track record in successfully
implementing large, complex CRM solutions for some of the world's most
successful companies,'' said Tom Cotney, general manager,
communications sector, IBM Global Services - Americas. ``This is a
complex undertaking that requires expertise in leading edge
technology, operational excellence and innovative training and
performance management processes, and we believe TeleTech is the
proven leader in this area.''
``We look forward to beginning this partnership with IBM and Nextel
and together building upon the strong customer service foundation
already in place,'' said Kenneth Tuchman, chairman and CEO of TeleTech.
``We believe the IBM and TeleTech relationship provides a powerful
solution that will enable Nextel to focus on customer acquisition
while building more profitable and lasting customer relationships.''
``Safe Harbor'' Statement under the Private Securities Litigation
Reform Act of 1995. A number of the matters and subject areas
discussed in this press release that are not historical or current
facts deal with potential future circumstances and developments. The
discussion of such matters and subject areas is qualified by the
inherent risks and uncertainties surrounding future expectations
generally, and also may materially differ from actual future
experience involving any one or more of such matters and subject
areas. We have attempted to identify in context certain of the factors
that we currently believe may cause actual future experience and
results to differ from current expectations regarding the relevant
matter or subject area. Such risks and uncertainties include the
realization of anticipated cost savings and incremental revenue, the
ability to effectively transition our customer care operations while
maintaining our level of customer care, negotiation and execution of
definitive agreements, the successful performance of new technologies,
including data applications, timely development and delivery of these
new technologies, economic conditions in currently existing and
targeted markets, competitive conditions, market acceptance of new
services, access to sufficient capital to meet operating and financing
needs and those that are described from time to time in reports filed
with the SEC by IBM, Nextel and TeleTech, including each of their
annual reports on Form 10-K and their subsequent quarterly filings on
Form 10-Q. This press release speaks only as of its date, and IBM,
Nextel and TeleTech each expressly disclaims any duty to update the
information herein.
About Nextel
Nextel Communications Inc., based in Reston, Va., is a leading
provider of fully integrated wireless communications services and has
built the largest guaranteed all-digital wireless network in the
country covering thousands of communities across the United States.
Nextel and Nextel Partners Inc., currently serve 195 of the top 200
U.S. markets. Through recent market launches, Nextel and Nextel
Partners service is available today in areas of the U.S. where
approximately 230 million people live or work. In addition, through
NII Holdings, Inc., wireless services are provided outside of Nextel's
domestic markets, primarily in selected Latin American markets.
About IBM Global Services
IBM Global Services is the world's largest information technology
services provider, with approximately 150,000 professionals serving
customers in 160 countries and annual revenue of more than $35 billion
(2001). IBM Global Services integrates IBM's broad range of
capabilities -- services, hardware, software and research -- to help
companies of all sizes realize the full value of information
technology. For more information, visit: www.ibm.com/services
About TeleTech
For twenty years, TeleTech has managed the customer experience for
some of the world's largest enterprises. TeleTech's innovative
customer care services help companies acquire, serve, grow and retain
customers throughout the entire relationship lifecycle. TeleTech
offers solutions to a variety of industries including financial
services, transportation, communications, government, healthcare and
travel. With a presence that spans North America, Asia-Pacific,
Europe, and South America, TeleTech provides comprehensive customer
care services to global organizations. Additional information on
TeleTech can be found at www.teletech.com.
Contact:
Nextel Media
Audrey Schaefer, 240/876-1588
Audrey.Schaefer@nextel.com
or
Nextel Investors
Paul Blalock, 703/433-4300
paul.blalock@nextel.com
or
IBM Media
Nancy Kaplan, 914/766-4265
nkaplan@us.ibm.com
or
TeleTech Media
Chris Arnold, 303/383-4607
or
TeleTech Investors
Karen Breen, 303/397-8592
