IBM, Nextel Team Up on Mobile Apps

By Carmen Nobel  |  Posted 2002-01-18

Wireless carrier Nextel Communications Inc. and IBM on Friday announced an alliance to develop mobile data applications for large corporations.

The two companies will combine Nextels wireless network expertise with IBMs wireless business services, officials said.

The companies also announced an eight-year, $1.2 billion outsourcing agreement. Throughout the first quarter of 2002, IBM Global Services will join with TeleTech Holdings Inc. to manage Nextels six customer care centers.

 The agreements are expected to reduce Nextels costs by more than $1 billion over the next eight years, said officials at IBM in Armonk, N.Y.

Nextel, of Reston, Va., will have access to wireless technology developed in IBMs research labs, which may be delivered through the Nextel National Network, through both existing Nextel handsets and other mobile devices.

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