‘Push-to-Talk’ Wireless Competition Probed

Antitrust authorities are investigating the market for walkie-talkie-type telephone service dominated by Nextel Communications Inc., a source familiar with the probe said.

The Justice Department has requested documents from some telecommunications companies regarding competition in the “push-to-talk” business, one source said.

Nextel spokeswoman Audrey Schaefer confirmed that the Reston, Va.-based company had received a request for information from Justice, but would not provide details.

Nextel, the No. 5 U.S. wireless carrier, has been the biggest player in offering push-to-talk service to a lucrative niche market. Its Direct Connect service helped it buck a slump in the U.S. wireless market and lead its peers in revenue per customer and subscriber-retention rates.

Nextel shares fell 63 cents to $26.42 on Nasdaq.