Nextel Users Connect With "Push To Talk'; Rivals Entering Fray; Nextel CFO says new entrants' systems not on par with his firm's tech.(INTERNET & TECHNOLOGY)

Byline: REINHARDT KRAUSE

Imitation might well be a form of flattery, but in the business world it's cause for concern.

Just ask wireless phone service provider Nextel Communications Inc. The company has thrived amid tough times in its field because it focuses on business customers, not consumers, and because of Direct Connect.

Developed by Motorola Inc., Direct Connect sets up phone calls via a walkie-talkie technology that's built into Nextel cell phones. At the push of a button, subscribers can talk to dozens of people -- if they also use Nextel phones.

Nextel has been the only service provider with a Direct Connect-type product. But rival carriers plan their own push-to-talk features.

If those copycat products prove popular, that's trouble for Nextel, say analysts. Nextel, however, says it has years of technical and marketing prowess that can't be easily duplicated.

Paul Saleh, Nextel's chief financial officer, recently spoke with IBD about Direct Connect's upcoming competition.