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Is your product, in theory, going to compete against Nextel phones and the Direct Connect service? I work for Nextel in the Network Engineering group and can help you assist in what the Nextel phones can\can't do.

As mentioned above, the biggest advantage to a "regular" walkie talkie is that it's a one time fee and they're cheap.
Other advantages and must haves:
Extended battery life would be great.
Built to Military standards
Some type of encryption
Some type of contact list, so you can specify who you want to contact.

Here are some Nextel features that yours would compete against:

Direct-Talk, which is a off air walkie talkie feature. You don't have to have signal for the walkie talkie feature to work. Disadvantage - both parties require Direct-Talk phones

Group Connect - You can walkie talkie a group of people. You can either have a pre-defined group or you can do an ad-hoc group call.

NationWide and International Direct Connect - obviously both need to have service.

Sub-second call setup
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