This should decrease the current price Nextel pays for equipment. It's difficult to crack into the consumer market. It requires strong commitment, a great deal of strategy work, and a vast amount of money for advertising, and extensive distribution. Nextel has little to no rural coverage and cannot make roaming agreements due to the proprietary nature of its technology. The company's name is not widely recognized.
Direct sales is an expensive way to conduct business.
Current data rates are very slow 9.6Kbps. The brand names of established wireless companies are far superior. Customers value brand name and rely on companies with proven track records. Established wireless carriers have a better focus on consumers. Through roaming agreements, many wireless carriers offer better geographic coverage, which is also available in rural areas.