Nextel goes for lucrative youth wireless market

Nextel Communications today said it would team with Boost Mobile, a wireless distribution and marketing company, to target the youth market.

Nextel and Boost, which already targets youth customers in Australia and New Zealand through partnerships with Singapore Telecom and Telecom New Zealand, plan to test market the service in California and Nevada beginning in mid September. The move follows Virgin Mobile’s recent launch of nationwide services that target youth consumers. Virgin Mobile, a mobile virtual network operator, has partnered with Sprint PCS.

Peter Adderton, Boost Mobile’s founder, said the key his company’s branding strategy would be mobile games. The company has already secured an agreement with international entertainment software publisher THQ. Boost Mobile expects to launch six Boost Mobile-branded Motorola handsets, the majority of which will feature color screens, pre-loaded ring tones, and THQ Java games. Walkie-talkie service is expected to become another key differentiator for Boost Mobile. The pricing scheme will be pay-as-you go.

Also key to the youth strategy is sponsorship of action sports events and teams, television programs, festivals, concerts and other youth activities. Boost Mobile plans to secure endorsements from top sports athletes around the world, including leaders in surfing, skateboarding, snow boarding and motorcross.

Carriers have consistently seen a large opportunity in the untapped youth market. Nextel, which has built a successful business on targeting just the enterprise market, has always indicated that it was looking for ways to tap into the consumer market.

“We want to make it clear. We fully expect Boost to be a success because we don’t believe anyone else in the market will offer service packages relevant to this market,” said Tom Kelly, Nextel’s vice president and chief marketing officer. “We will proceed with a nationwide rollout pending the results [in California and Nevada]. If Boost Mobile doesn’t prove to be successful, then we will continue to evaluate opportunities to get into the consumer market.”