Verizon Sues over Missing Prototype Handsets

The US CDMA carrier, Verizon Wireless has filed a lawsuit against the iDEN network, Nextel, claiming that it improperly aquired several handset prototypes and made unauthorised use of its cellular network. According to the lawsuit, filed in the Federal District Court in Alexandria, Nextel has acquired two handsets that are being developed to work on a "push to talk" system that Verizon Wireless is planning to deploy shortly. Push to Talk has been the cornerstone of Nextel's product offering for some years.

"Nextel's unauthorized testing of Verizon Wireless' prototype push to talk handsets and network allowed Nextel to improperly obtain valuable, confidential, and proprietary business information," the suit says. It also alleges Nextel shared that information with an unnamed industry analyst to "improperly influence industry reviews" of Verizon Wireless' upcoming service.

Nextel says that it is confident it has conducted itself properly with respect to the allegations in Verizon Wireless' complaint. The company said in a statement "We are, therefore, baffled by the claims made by Verizon Wireless in its filing. We are still in the process of reviewing the filing, but we believe it is entirely without merit and we will defend Nextel vigorously."

The lawsuit charges Nextel with violating FCC regulations, for using its network without its authorization. "Nextel and its employees and agents had no license from the FCC, or authority from Verizon Wireless, to operate Verizon Wireless' prototype push to talk handsets on frequencies licensed to Verizon Wireless," the suit claims. The complaint also alleges Nextel violated various federal and state computer-fraud and computer-crime laws."

Posted to the site on 30th June 2003