In surprise, Nextel, Verizon settle disputes

NEW YORK — Nextel Communications Inc. and Verizon Wireless unexpectedly resolved a heated dispute Tuesday over a federal proposal to clear up interference between cell phones and emergency response radios by moving Nextel’s signals to a more valuable band of spectrum.

In exchange for Verizon dropping its opposition to the spectrum proposal, Nextel is withdrawing its claim of trademark rights for the phrase “Push To Talk” and the word “push” to describe the popular walkie-talkie service which Nextel introduced to cell phones and which Verizon and other rivals now offer.

The agreement announced Tuesday ends a very public argument in which each company nastily accused the other of putting business interests ahead of public safety concerns — often invoking memories of Sept. 11 and the need for reliable emergency communications as an issue being exploited or ignored by the other side.

“It was getting ridiculously bitter, and I think they reached a point where saner, cooler heads could prevail,” said John Ryan, president and chief analyst for the research firm RHK. He noted that both sides may have decided the dispute was an unneeded distraction with the emergence of a powerful new rival now that Cingular Wireless and AT&T Wireless have completed their merger.

Nextel’s shares closed up 81 cents at $26.90, a gain of 3.1 percent, on the Nasdaq Stock Market. Shares of Verizon Communications Inc., 55 percent owner of Verizon Wireless, rose 2 cents to $40 on the New York Stock Exchange. U.S.-traded shares of Vodafone PLC, which owns the rest of Verizon Wireless, rose 24 cents to $25.81 on the NYSE.