IBM and Nextel sign wireless data deal

Pair will co-develop and market mobile ebusiness solutions

IBM will co-develop and sell mobile ebusiness solutions with Nextel Communications as part of a push into the wireless market.

Under the terms of the deal, Nextel will outsource its customer services to IBM at a cost of more than $1.2bn.

The joint development and sales side of the new partnership was described by Big Blue as the largest and most comprehensive it has signed with any US wireless operator.

Both companies said they would work together to integrate Nextel's wireless capabilities with IBM's global wireless ebusiness services. The plan is to target corporate customers with a new range of mobile products.

Nextel is the smallest of the handful of US nationwide wireless operators, and has carved out a subscriber base primarily comprising small and medium-sized businesses.