Nextel Communications Inc. is looking for a new chief executive officer, moving its headquarters to the Seattle area and investing in a Chinese digital cellular system through its new subsidiary, McCaw International Ltd.
In the course of those recent announcements, Nextel has not been shy about admitting that investor Craig McCaw now leads decision-making for the New Jersey-based specialized mobile radio operator.
“Nextel is McCaw’s baby,” said Nextel spokesman Paul Blalock. “He wants to keep it close and he wants his own man.”
The cellular pioneer announced in April he would invest $1.1 billion in Nextel during the next six years. McCaw also said he would provide strategic direction for the company and hold a seat on the Nextel board of directors.
Recently, Nextel CEO and Vice Chairman Wayland Hicks resigned. Hicks was hired a year ago from Xerox Corp., where he had been executive vice president of operations.
Brian McAuley, a Nextel founder, has moved from his spot as president to the vice chairman’s seat vacated by Hicks.
“We believe,” McCaw said, “the ideal president and CEO to lead Nextel in this highly competitive environment would be a senior communications executive.”
Dennis Weibling has been named acting chief executive officer. Weibling is a member of the Nextel board and operations committee and is president of Eagle River, McCaw’s private investment firm. Weibling and O’Brien will lead the search for a new president/CEO, Nextel said.
Justin Jaschke, former president of OneComm, is Nextel’s chief operating officer. Prior to joining OneComm, Jaschke was president and CEO of Bay Area Cellular Telephone Co., a joint venture between PacTel and McCaw.
“Keeping it close” may be one reason Nextel is moving its headquarters from Rutherford to the greater Seattle area, the home of McCaw.
“As a result of our recent merger activity, Nextel has corporate employees across the country, some of whom are performing the same functions,” said Nextel Chairman Morgan O’Brien. Nextel recently completed mergers with Denver-based OneComm Corp. and American Mobile Systems Inc. of Pompano Beach, Fla.
The search for office space for about 250 employees is underway, with the first relocation phase scheduled to be completed by the end of the first quarter 1996.
Nextel’s $22 million investment in China will make the company a 23 percent partner in a Global System for Mobile communications cellular system being built in Shanghai, a city with a 7.5 million population.
Nextel’s investment is being handled by McCaw International Ltd., which was formed about a year ago by McCaw and has been held by Eagle River. Nextel recently purchased McCaw International from Eagle River for $1 and holds it as a wholly owned subsidiary, the company said.
A lead partner in the Shanghai system is China United Telecommunications Corp. (Unicom), a consortium created by three Chinese state ministries to create competition for China’s Ministry of Posts and Telecommunications. Unicom hopes to build a network to serve 100,000 customers.
The new network began offering service in July and has about 5,000 subscribers. This will be Nextel’s third international venture. Nextel holds 27.3 percent equity in Pickering, Ontario-based Clearnet Communications Inc., Canada’s largest SMR operator. Nextel also has invested in Corporacion Mobilcom S.A. de C.V., a Mexican SMR operator.
