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With a Unique Communication Approach, Nextel Could Not Adapt to New Technologies and Disappeared from the Brazilian Market!
The well-known Nextel, famous for its phone beep and for providing a communication style reminiscent of a walkie-talkie, gradually disappeared from the Brazilian market. The operator failed to keep up with the advancement of more efficient technologies, resulting in its bankruptcy in the competitive context of modern telephony.
Nextel’s Initial Trajectory
Nextel was founded in 1987 by Morgan Edward O’Brien and Brian McAuley under the name FleetCall.
The operator innovated by investing in a communication model using Specialized Mobile Radio (SMR), a protocol developed by Motorola, which allowed real-time communication in the push-to-talk system.
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This differentiated approach positioned it as an interesting alternative for those seeking a practical way to communicate.
In 1993, FleetCall changed its name to Nextel Communications, a name that blended the words “Next” and “Tel.”
Shortly after this change, the company expanded its operations, reaching 50 states in the United States after merging with OneComm.
Nextel also gained presence in Canada, collaborating with Clearnet Communications, which solidified its position in the North American market.
Nextel’s Entry into the Brazilian Market
Nextel arrived in Brazil in 1997, through NII Holdings, its international unit. Initially, it established operations in São Paulo and Rio de Janeiro, and in the same year, the company expanded its presence in Latin America, capturing markets in countries such as Argentina, Peru, and Mexico.
This initial expansion was very successful, and the brand registered around 2 million subscribers globally.
Nextel’s business model stood out for its ease of instant communication, which mainly attracted professionals in sectors such as construction, security, and logistics, where rapid and efficient communication was essential. The ability to communicate without dialing a number, simply by pressing a button, was a differentiator offered by Nextel.
The Evolution to 3G and 4G
In 2010, Nextel gained the ability to offer Personal Mobile Service across Brazil, after acquiring licenses in the 3G frequency band.
However, plans for this technology only began being commercialized in 2012. In 2014, Nextel expanded its coverage to 4G, starting in Rio de Janeiro.
This era of expansion and modernization seemed promising, but the company began facing significant financial difficulties.
Between 2015 and 2018, Nextel recorded consecutive operational losses, raising concerns about its viability.
In an attempt to reverse the situation, Nextel launched new tariff plans and promotions, but the increasing competition and the shift in consumer preferences towards more accessible and comprehensive data plans began to affect the operator’s customer base.
The Decline of iDEN and the Acquisition by América Móvil
The iDEN technology, which had put Nextel in the spotlight, was discontinued in March 2018.
The decision was driven by the loss of attractiveness of the service, which could no longer compete with new emerging technologies such as 4G and later 5G.
The emergence of communication services via apps, such as WhatsApp and Telegram, also contributed to the decline in demand for push-to-talk communication.
Faced with this scenario, Nextel found itself forced to seek alternatives for its survival. In 2019, América Móvil, the Mexican group that controls the Claro operator in Brazil, acquired Nextel for US$ 905 million (approximately R$ 3.47 billion at the time).
This acquisition was seen as a strategy to strengthen Claro’s presence in the already competitive Brazilian market.
The Merger and Transformation into Claro NXT
With the acquisition, Nextel began integrating into Claro, and in 2019, the brand was officially transformed into Claro NXT.
The goal of this change was to demonstrate the union of the two brands, which were merging more and more.
The merger also implied changes in the company’s infrastructure; Nextel customers began using Claro’s network for their communications.
Thus, Nextel’s plans were discontinued, except for the Nextel Happy, which was replaced by Claro Flex.
This integration brought benefits to customers, who now had access to a broader and more stable network, as well as a wider variety of services.
Claro, by incorporating Nextel’s customer base, further solidified its position as one of the leading operators in Brazil.
The Impact of the Transformation on the Telecommunications Market
The merger ensured Claro an even larger market share, now incorporating all customers from the former competitor Nextel.
This expansion strategy allowed Claro to solidify its position in the telephony sector in Brazil, becoming one of the leading operators in the country.
The change also reflected the global trend of consolidation in the telecommunications sector, where companies seek to unite to increase competitiveness and reduce costs.
The story of Nextel, which was once beloved by consumers during its operations, is a clear example of how the telephony market can be dynamic and challenging.
Changes in technologies and user preferences are crucial factors that can determine an operator’s success or failure.
The legacy of Nextel is still remembered by many, especially those who valued the instant communication and practicality that the operator’s services offered.
The Future of Communication in Brazil
With the growing demand for high-quality communication services and the ongoing evolution of technologies, the future of telephony in Brazil promises to be even more interesting.
Operators are adapting to the new market realities, investing in infrastructure and innovation to meet consumer expectations.
The transformation of Nextel into Claro NXT is just one example of how companies need to reinvent themselves to survive in a competitive environment.
Consumers continue to seek not only connectivity, but also services that offer added value, such as data packages, streaming services, and integrated communication solutions.
For more articles about the telecommunications world, keep following CPG.
SOURCE: TECMUNDO
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