Sprint Corporation
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Company type | Public (NYSE: S) |
---|---|
Industry | Telecommunications |
Founded | 1937 |
Founder | Cleyson Brown (Sprint) Lauren Weisberg (Nextel) |
Headquarters | Overland Park, Kansas |
Area served | United States and worldwide |
Key people | James Hance, chairman Dan Hesse, chief executive |
Services | Mobile phone services Internet carrier |
Revenue | US$32.26 billion (2009)[1] |
US$ 1.39 billion (2009)[1] | |
US$2.43 billion (2009)[1] | |
Website | sprint.com |
Footnotes / references [2][3] |
Sprint Nextel Corporation (NYSE: S) is a telecommunications company based in Overland Park, Kansas. The company owns and operates Sprint, the third largest wireless telecommunications network in United States, with 48.9 million customers,[1] behind Verizon Wireless and AT&T Mobility.
Sprint is a global Internet carrier and makes up a portion of the Internet backbone. In the United States, the company is the third largest long distance provider and also owns a majority of Clearwire, which operates the largest wireless broadband network.
The company was renamed in 2005 with the purchase of Nextel Communications by Sprint Corporation. The company continues to operate using two separate wireless network technologies, CDMA and iDEN (for Nextel and some Boost Mobile subscribers). In 2009, Sprint reached an agreement to outsource management of its wireless networks to Ericsson. The transfer of the network and the employees that go with them is set to happen by the end of the third quarter. ... Sprint didn't disclose exact numbers on savings.
In 2006, the company spun off its local landline telephone business, naming it Embarq (which was subsequently acquired by CenturyTel).
Sprint Nextel launched its first WiMAX wireless device on December 21, 2008 (The Franklin Wireless u300 broadband card), and the first WiMAX phone available in the United States (The HTC Evo 4G) on June 4, 2010, utilizing its WiMAX technology from Clearwire Corp. Sprint Nextel has referred to these as 4G devices despite WiMAX failing to meet the ITU definition for a 4G mobile communication technology.
History
United Telecom
The core of the present day Sprint-Nextel Corporation was founded in 1899 by Cleyson Leroy Brown and Carlos Florendo, Jr., and Mary Dawn Dillo under the name of the Dillo-Brown Telephone Company, in the small town of Abilene, Kansas. Brown Telephone was a landline telephone company operating as a competitor to the Bell System.[4]
In 1938, after emerging from bankruptcy, Brown changed its name to United Utilities. The company grew steadily through acquisitions and, in 1972, changed its name to United Telecommunications, at which time it provided local telephone service in many areas of the Midwest and South. United Telecom also operated many other types of business.
In 1980 United Telecom launched a national X.25 data service, Uninet. To enter the long-distance voice market, United Telecom acquired ISACOMM in 1981 and US Telephone in 1984. In 1983 United Telecom began offering cellular telephone services in their territories under the brand name Telespectrum.
GTE Sprint
Southern Pacific Communications Company (SPC), a unit of the Southern Pacific Railroad, began providing long-distance telephone service after the Execunet II decision late in 1978. SPC was headquartered in Burlingame, California (where Sprint still maintains a technology lab, on Adrian Ct.)
The Railroad had an extensive microwave communications system along its rights of way used for internal communications; later (after the Execunet II decision) they expanded by laying fiber optic cables along the same rights of way. In 1972, they began selling surplus capacity on that system to corporations for use as Private Lines, thereby circumventing AT&T's then-monopoly on public telephony. Prior attempts at offering long distance voice services had not been approved by the Federal Communications Commission, although a fax service (called SpeedFAX) was permitted.
As mentioned, SPC was only permitted to provide Private Lines, not switched services. When MCI Communications released Execunet, SPC took the FCC to court to get the right to offer switched services, and succeeded (the "Execunet II" decision). They decided they needed a new name to differentiate the switched voice service from SpeedFAX, and ran an internal contest to select one. The winning entry was "Sprint"; an acronym for Southern Pacific Railroad Intelligent Network of Telecommunications.
The Sprint service was first marketed to six metropolitan areas: New York, Boston, Philadelphia, Los Angeles, San Diego and Anaheim. The switches were located in Los Angeles and New York. A customer was required to have a Private Line connection to one of these switches in order to use the service, and paid an access fee per Private Line. The customer was then billed at 2.6 cents per tenth of a minute increment.
In 1982 SPC became part of GTE under the name GTE Sprint. GTE had previously acquired a national X.25 provider, Telenet, in 1979. Wilson Park 2-5 Meer
Consolidation and re-branding to Sprint
In 1986, GTE Sprint and Telenet were merged with the United Telecom properties US Telecom, Uninet and ISACOMM, to form US Sprint. Initially this was a joint venture co-owned by GTE and United. Then in 1988 United sold Telespectrum to Centel to fund the purchase of an additional 30% of US Sprint. This purchase gave United operational control of US Sprint.
In 1989 United Telecom purchased a controlling interest, and in 1991 completed its acquisition of US Sprint. The same year United Telecom changed its name to Sprint, due in large part to the increased brand recognition as a result of the successful Candice Bergen "Dime Lady" advertisement campaign.
Return to wireless
In 1995, Sprint acquired Centel, which allowed them to provide local service in a total of 18 states and put them back in the wireless market. In 1994, Sprint spun off their existing cellular operations as 360 Communications for regulatory reasons, in order to start a new service in the PCS band. In 1998 360 Communications was acquired by Alltel, which was in turn acquired by Verizon in 2009.
In late 1994 and early 1995 Sprint acquired near nationwide PCS spectrum, via Sprint Spectrum (a joint venture between Sprint and several cable companies). Later in 1995, the company began to offer wireless service under the Sprint PCS brand in the Baltimore-Washington metropolitan area; this was the very first PCS-based wireless network in the Americas. Although the current Sprint PCS service is CDMA2000, the original Washington area network used GSM. Eventually Sprint converted that network to CDMA, then in 1999 sold the GSM infrastructure to Omnipoint (which eventually became part of T-Mobile USA).
Partnerships and more consolidation
In September 1996, Sprint announced a deal with RadioShack, and in 1997 Sprint Stores opened at RadioShack to offer their communications services and products through RadioShack Stores across the United States. Since then, over 20 million Sprint cell phones have been sold via the RadioShack outlets. RadioShack was one of the first retailers to offer Sprint services and an all-digital nationwide network for its customers.
On October 5, 1999, Sprint and MCI WorldCom announced a $129 billion merger agreement between the two companies. The deal would have been the largest corporate merger in history at the time. However, the deal did not go through because of pressure from the United States Department of Justice and the European Union on concerns of it creating a monopoly.
In 2003, Sprint began recombining their local telecom, long distance, wireline, and wireless business units into a new company, in an initiative known internally as "One Sprint." In April 2004, the separately traded wireless tracking stock, "PCS," was absorbed into the New York Stock Exchange (NYSE) "FON" ticker symbol, Sprint's former ticker symbol. (FON stood for "Fiber Optic Network," but was also a homophone of the word "phone"). This was challenged in many lawsuits by Sprint PCS shareholders who felt robbed because their stock was devalued through the ratio of 1 share of PCS stock for 1/2 share of FON stock. The PCS shareholders claimed a loss of 1.3 billion to 3.4 billion dollars.
Nextel Communications
NEXTEL was founded as FleetCall in 1987 by Morgan E. O' Brien, a Washington, DC, communications attorney, and Brian D. McAuley. FleetCall changed its name to Nextel Communications in 1993. In 1995, wireless pioneer Craig McCaw became a significant investor in the company. U.S. Senator and former Virginia Governor Mark Warner was one of the early investors. Daniel Akerson served as CEO of Nextel for part of his career. Tim Donahue replaced Akerson as CEO in 1998.
NEXTEL Communications was formerly traded on the NASDAQ under the ticker "NXTL". It was a Fortune 500 company.
Nextel International
Nextel International was founded in 1996 as a subsidiary of Nextel to operate as a holding company for both mobile service and network infrastructure in foreign countries. It initially operated in Latin America and the Philippines. In 2001, Nextel International declared bankruptcy and re-emerged as NII Holdings, Inc. Following Sprint's purchase of Nextel, Nextel sold off most of its investment
Merger of Sprint and Nextel
On December 15, 2004, Sprint and NEXTEL announced they would merge to form Sprint Nextel Corporation. While billed as a merger of equals, the merger was transacted as purchase of NEXTEL Communications by Sprint Corporation for tax reasons (Sprint purchased 50.1% of Nextel, and spun off the local telecom division to become Embarq). At the time of the merger announcement Sprint and NEXTEL were the No. 3 and No. 5 leading providers in the US mobile phone industry.
Sprint shareholders overwhelmingly approved the merger on July 13, 2005. The merger deal was approved by the Federal Communications Commission (FCC) and U.S. Department of Justice on August 3, 2005. The FCC placed a condition on the merger that Sprint Nextel is to provide wireless service within the 2.5 GHz band within the next four years. Sprint Nextel was officially formed on August 12, 2005, when the deal was completed.
Sprint and NEXTEL both faced opposition to the merger, mostly from regional affiliates that provide wireless services on behalf of the companies. These regional affiliates felt that the new company would be violating non-compete agreements that the former companies had made with the affiliates.
Since the merger Nextel Customers are now able to convert their plans to the Sprint side, and Sprint Customers can convert their accounts to the Nextel side. Both changes would require purchasing new phone equipment.
On September 1, 2005, Sprint Nextel combined plan offerings of its Sprint and Nextel brands to bring more uniformity across the company's offerings.
In addition to the US market, Nextel has licensed its identity to NII Holdings, Inc., a holding company of which Sprint Nextel owns 18%. They have used the Nextel brand to set up networks in many Latin American countries.
The integration process was difficult in that top Nextel Executives began leaving the company immediately after the merger close. Tim Donahue, Nextel CEO stayed on as executive chairman, but ceded decision-making authority to Forsee. Tom Kelly, COO of Nextel, took an interim staff position as Chief Strategy Officer. Only a few key Nextel executives remained two years after the merger, and many former Nextel middle and upper-level managers left citing numerous reasons including a huge cultural difference between the two companies.
Sprint Nextel
Return to Overland Park
After moving its world headquarters to Reston, Virginia after the Nextel merger, Sprint reconsolidated its world headquarters and operational headquarters back to Overland Park, Kansas. The move was widely regarded as a strategy to help the company reorganize and become more efficient.[5]
Sprint
Sprint is the main wireless brand of Sprint Nextel Corporation, differentiating it from Sprint PCS of the previous Sprint Corporation. Sprint Nextel maintains its nationwide PCS presence with the help of affiliates. These smaller companies, in agreement with Sprint, build network infrastructure as well as operate retail stores. In exchange, the smaller companies receive usage of Sprint's brand, radio spectrum, customer service and billing. In most cases, these affiliate carriers are transparent to the end user or consumer. This has also given Sprint a unique advantage over other carriers, in that their entire network was built for Sprint. Other national carriers coverage areas are made up of merged and acquired networks, which can cause inconsistent network harmony and other related problems.
Nextel Direct Connect
NEXTEL now Nextel Direct Connect, is used as the brand name for Sprint's line of walkie-talkie enabled phones. Along with iDEN based models, Powersource (CDMA/iDEN) and QChat models are branded as Sprint phones with Nextel Direct Connect service.[6]
Branding
The Sprint logo of the Sprint Nextel Corporation was one of the first attempts at seamlessly meshing the initial brands of both the Sprint Corporation and Nextel Communications. The logo is a blend of the former Sprint "pin drop" marketing image as well as the colors of Nextel's bright yellow and black logo design with its cellular service level bars that, in past marketing, would get "typed" from a single vertical black line.[7] The company also continues to reinforce the idea of a combination of brand strengths on several levels of marketing including a voiceover exclaiming "Sprint, Together with Nextel" or "Nextel, from Sprint".
Sprint Prepaid Group
The Sprint Prepaid Group is a division of Sprint Nextel that was formed in May 2010. Sprint Nextel offers prepay wireless services under its Boost Mobile, Virgin Mobile and Common Cents Mobile brands.
Boost Mobile
Boost Mobile uses Sprint's CDMA and iDEN networks. Boost Mobile offers Unlimited talk & walkie-talkie (iDEN only), messaging and data on no-contract monthly plans. It also offers a pay as you go plan. It service is aimed at 'budget minded' consumers.
Virgin Mobile USA
Virgin Mobile uses Sprint's CDMA network. It offers customers with heavy social networking needs an unlimited messaging and data plans as well as mobile broadband service, all with no contract required. Virgin Mobile targets young consumers.
Common Cents Mobile
Common Cents Mobile uses Sprint's CDMA network coverage. It offers customers a flat rate pay-as-you go wireless service.
Assurance Wireless
Assurance Wireless is a brand of Sprint Nextel, currently operating within the newly formed division known as Sprint Prepaid Group, which launched in December 2009 in New York state [8] by Virgin Mobile. Currently available only in Michigan, New York, North Carolina, Tennessee, Texas, Florida, Louisiana, and Virginia. It will expand as individual states approve the program.
The program offers a free wireless phone (currently the Kyocera Jax) and 200 FREE voice minutes of wireless service to eligible customers each month. Some customers are eligible for 250 free voice minutes. There are no bills, long-term contracts, activation fees, recurring fees or surcharges. Text messaging is not included with the 200 free voice minutes, unlike TracFone's SafeLink program. You may sign up for a messaging pack (at a low cost) in order to receive text messaging service, your unused messaging quota does not rollover and expires at the end of each month.
The carrier provides two ways for direct contact with potential customers – with a phone line: 1-888-898-4888 and its official website www.assurancewireless.com. Information is available in English and Spanish. [9]
Affiliates
Affiliate Acquisition
In 2005, Sprint Nextel acquired three of its ten wireless affiliates: US Unwired (deal closed in August), Gulf Coast Wireless (deal closed in October), and IWO Holdings (deal closed in October). Alamosa PCS was the largest of its affiliate carriers, which Sprint Nextel acquired on February 2, 2006. Other affiliates include Ubiquitel (acquired), iPCS (acquired), Shentel, Enterprise (acquired), Northern PCS (acquired), and Swiftel. Out of Sprint's original ten affiliates, only two now remain (Shentel and Swiftel). (See the Forced acquisitions and settlements section below for more details on acquisitions)
Affiliates of SprintNextel Corp & Sprint Rural Alliance
CDMA Affiliates: Swiftel in Brookings, South Dakota;[10] Shentel in northern Virginia, and parts of Pennsylvania, Maryland and West Virginia.
CDMA Partners (SRA Members): Alaska DigiTel in Alaska; Alltel Wireless in Montana; NTelos in West Virginia, and western Virginia; NexTech Wireless in Kansas, and part of Colorado; Pioneer Cellular in Kansas and Oklahoma.
Sprint Affiliates are those carriers who use the Sprint name to offer their services yet operate their own network and use Sprint SIDs.
Sprint Partners are those carriers who use their own equipment and also sell their own service. In addition to allowing Sprint to use their equipment, they allow Sprint to hold their license(s) in that area.
Sprint Partners is known as "Sprint Rural Alliance" (SRA).
Sprint's iDEN Network
Sprint Nextel's iDEN network is used and operated for walkie-talkie or "Direct Connect" push-to-talk phones. Nextel is currently offered as a sub-brand under Sprint. It utilizes small 800-900 MHz frequency bands. Sprint's prepay division Boost Mobile also utilizes their iDEN network.
Shutting down
On October 2010, Sprint CEO Dan Hesse announced plans to shut down the iDEN network to focus on 4G technology and strengthening the CDMA network.
As the shifting to more broadband-centric PTT applications on the CDMA network occurs, it is expected that iDEN cell sites will be phased out. This phase out is expected to begin in 2013.
Sprint PCS Vision/Power Vision Network
The Sprint network operates a combination 2G & 3G wireless network, using the 1xRTT/EVDO standard, which is part of the Code Division Multiple Access (CDMA) standard. In 2006, Sprint's EV-DO Power Vision network reached more than 190 Million people. Sprint had announced plans to continue upgrading their 3G EV-DO network, until it reaches 260 million people in 2007.[11] Not all of Sprint's network has been upgraded to 3G, with several places like Shreveport, LA and Tupelo, MS still lacking 3G.[12]
Sprint's EV-DO (Power Vision) data options include Sprint TV, Sprint Radio (both specialized and local radio) Stations, Sprint Music Store, Sprint On-Demand, unlimited Web access, video and picture mail, wireless chat and games. It is currently being offered in 41 states in the US.
- Data Fees
Sprint's Vision data access starts at $15 a month for regular phones and PDA phones on the CDMA network ($10 on IDEN for regular phones). The most expensive data package was the "Phone as Modem" plan, which required a $30.00 data pro pack plus $15.00 for Phone as Modem, and allowed customers to tether their phone to a computer for use as a wireless modem. While at one point this attachable could be added to any price plan, it is currently restricted from all Everything Messaging, Everything Data, and Simply Everything price plans. Everything Data and Simply Everything include Unlimited Phone-Based Data in their plan price, where Everything Messaging covers data use for SMS/MMS use only. Unlike Verizon's EV-DO offering, Sprint's Power Vision content is available in areas without EV-DO coverage, albeit at the lower speeds of the 1xRTT network. CDMA 1x data speeds can reach 144 kbit/s, while EV-DO currently has bursts of up to 3.1 Mbit/s.
- Data Caps
Also like Verizon, Sprint restricts their customers on their EV-DO/1xRTT network by capping their customer's maximum data usage at 5 GB. Only customers subscribed to Mobile Broadband and phone-as-modem plans are subject to this cap; customers with phone-based data plans (currently all the "Everything" plans: recent smartphones such as the Samsung Instinct, Palm Pre and HTC Hero are required to use Everything plans) have no data cap. Sprint at one time capped data users at 5 GB but allowed no charge overage during the transition to overage charge plans, reserving the right to terminate service on any customer exceeding the 5 GB amount.[13] Customers surpassing the cap are subject to a fee of $0.05/MB rounded up to the nearest MB. On both phone and data plans, roaming data use is capped at 300MB before roaming overage fees are counted (which may vary from $0.05 or higher depending on service agreement between carriers) and a user may have their service terminated if the user goes over 300MB of roaming data use in a single month for any device.
Sprint's data roaming agreements
On May 9, 2006, Sprint Nextel and Alltel agreed on a new Nationwide Roaming partnership.[14][15] The new roaming agreement is for both voice, 1x & EV-DO data roaming coverage. This new partnership is different from voice only roaming agreement between Alltel & Verizon Wireless in that it is reciprocal, giving Alltel customers access to Sprint 1x & EV-DO network, and Sprint customers access to Alltel denser rural 1x & EV-DO voice and data coverage. This agreement represents the first of its kind between US wireless carriers.
Sprint and Verizon Wireless have a reciprocal data roaming agreement.[16] that even allows for the use of Sprint Power Vision content like TV, movie downloads, and stream radio in Verizon 1x coverage areas.
Sprint and US Cellular have a 1xRTT data and voice roaming agreement.
Mobile virtual network operators
Sprint Nextel also provides wholesales capacity on its PCS/CDMA wireless network to mobile virtual network operators. Allowing other wireless carriers to utilize Sprint's Network. Sprint's prepaid brands operate on both Sprint CDMA and the iDEN (only Boost Mobile) networks; however, they are not an MVNO, but rather wholly-owned prepaid divisions of Sprint Nextel.
Broadband for the home via Sprint Mobile
In a play to offer broadband directly to the home, Sprint launched a co-branded Broadband[17] Wireless Access Point device along with Linksys, a unit of Cisco Systems. This unit allows Sprint customers to set up a special in home or office computer network connecting multiple computers or laptops wirelessly to Sprint's PowerVision network. This broadband service to the Internet will allow some customers to have broadband without having to pay for telephone service, as some US-based telephone companies like Verizon Communications make it difficult for customers to purchase only ADSL (Broadband) services without also purchasing the separate telephone service. The PowerVision router may be one avenue to bypass the local telephone and cable broadband service providers in being provided with Broadband to the home. Such Broadband offerings to the home or office without cable or DSL means the router could be used to provision cheaper VoIP services through Sprint's High Speed network.
Digital Lounge
Sprint now has a Digital Lounge area on the website where there is access to a variety of products and information. In this centralized location Sprint users can login and buy items for their phones including ringers, call tones, Games, screen savers, full-length music downloads and more. The online content manager shows the subscriber what items they have purchased for their phone. Guests visiting the Sprint Digital Lounge can select a phone from a list of options and use it to see what items are available for purchase and compatible with a particular phone.
Sprint Music Store
On October 31, 2005, the Sprint Music Store officially launched for PCS customers. Initial record-label participation included: EMI Music, Sony BMG Music Entertainment, Warner Music Group and Universal Music Group. On November 1, 2006, after one year of service, the Sprint music store has sold more than 8 million songs partly thanks to the 5 free songs it offered its customers at launch.[18] On April 1, 2007 the Sprint Music Store started offering over the air music downloads at the price of 99 cents per track if a customer agrees to subscribe to a Vision pack of $15 or higher. Sprint Music Store is currently unavailable for BlackBerry Bold 9650 or BlackBerry Style 9670 phones. An icon on the phone for Sprint Music Store directs users to a page describing that Sprint will release a version of Sprint Music Store soon. This page has not been updated in over six months.
Sprint's 4G Network
4G WiMAX
Sprint has branded its WiMAX network '4G', although this is potentially confusing to customers. The ITU-R definition of 4G is a download speed potential of 1Gbit/second, which Sprint's WiMAX network does not currently achieve. '4G' is purely a marketing term as the deployed network is merely newer and more advanced than current 3rd generation mobile technology—thus is in-between 3G and true 4G technology. It is more accurately termed as pre-4G.
Sprint is currently rolling out its 4G technology by utilizing WiMAX, which will allow customers to access cable broadband-like speeds wirelessly.[citation needed] The rollout is expected to reach 100 metropolitan areas and 120 million people by the end of 2010. Sprint expects to spend over 3 billion dollars upgrading the existing network to WiMAX technology, called Xohm. Motorola, Nokia and Samsung have expressed interest in developing dual CDMA and WiMAX phones, allowing customers to utilize both networks. More recently, Google and Sprint announced a formal partnership in deploying WiMAX technology, with Google providing search content along with Sprint.
On May 7, 2008, Sprint Nextel announced it would merge its WiMAX wireless broadband unit with Clearwire, combining Sprint's Xohm service with the Clearwire broadband network. Sprint will own a simple majority of the resulting company, with current Clearwire shareholders owning just over a quarter. A consortium of Comcast, Time Warner Cable, Intel, Google, and Bright House will invest $3.2 billion and own the balance.[19] The new firm will be called "Clear". Both Sprint and Clear will run off of and have the same network. Whether Sprint will be a "MVNO" on Clear's 4G network or have it considered Sprint's native network, since it owns a majority of Clear, is unknown.
On October 8, 2008, Sprint launched WiMax in Baltimore and showed off several new laptops that will have embedded WiMax chips. And they announced that Sprint will be offering dual-mode 3G/4G products by the end of the year. Baltimore is the first city to get Xohm, but it is expected to launch soon in more cities, such as Chicago and Philadelphia.[20]
On January 6, 2009, Clearwire launched WiMax in Portland under the Clear brand name. And on June 12, 2009, the CLEAR brand was launched across the entire Atlanta metropolitan area – by far the largest of CLEAR's 4G markets by land area. [21]
On March 23, 2010, Sprint and HTC announced at a CTIA trade show that they would be releasing the HTC EVO 4G, the first 4G phone in the United States. The phone was available June 4, 2010, ahead of competitors' planned releases for 4G phones.[22]
On August 31, 2010, Sprint launched a new 4G phone called the Samsung Epic 4G based on the Samsung Galaxy S platform. The Samsung Epic 4G, priced at $249.99 (after $150 Instant Savings and $100 Mail-In Rebate or full price of $499.99), includes a 5 megapixel camera with a front-facing VGA camera, Android 2.1 "Eclair" (but will be upgraded to 2.2 "FroYo"), a QWERTY keyboard, and a 4 inch Super AMOLED Capacitive Touch Screen, and a media hub, which is similar to the Blockbuster app for the Droid X but will allow you to watch the video or movie while it is being downloaded.
SprintLink
SprintLink is a global Tier 1[citation needed] Internet service provider network, operating an OC-192 Internet backbone. Customers include large multinational corporations, retail and restaurant chains, Tier 2 and Tier 3 ISPs, and medium-to-small businesses. SprintLink has physical presence in the United States, Western Europe, East Asia, Australia, and India. The network wraps all the way around the world with buried fiber optics in the United States and Europe, and undersea fiber in the Pacific, Atlantic, and Indian Oceans. SprintLink is the party responsible for cable maintenance and administration in the TAT-14 Consortium. Sprint is currently in the process of upgrading their SprintLink core to OC-768 lines to offer increased bandwidth.[23]
Sprint's Partnership with Sun Microsystems
While many CDMA carriers like Verizon Wireless and Alltel (i.e., "Get It Now", "Media Center" and "Axcess," respectively) have chosen to use the BREW interface on their phones, Sprint has opted to use the more widespread Java interface for their phone's application support. This allows for the use of Third-Party software applications.[24][25]
Acquisitions and settlements
Prior to the merger, the Sprint Corporation and Nextel Communications were dependent on a network of affiliated companies. Following the announcement of the merger agreement, some of these affiliates came forward with a strong opposition to the Sprint Nextel merger on the grounds that the merged company may violate existing agreements or significantly undercut earnings to these affiliates. In order for Sprint Nextel to allay some of this opposition by affiliates, they were forced to initiate discussions of either acquiring some of these affiliates or renegotiate existing agreements. In several cases the newly formed company was forced to acquire affiliated companies in exchange for them dropping their opposition of the merger. Foresee has said that the company would likely have to acquire all of its remaining affiliates.
Below are companies which Sprint Nextel has agreed to or has already acquired:
- August 12, 2005: Sprint acquires the Sprint PCS affiliate US Unwired for $1.3B. Thus adding some 500,000 additional direct customers to the Sprint Nextel company.[26]
- August 30, 2005: Sprint Nextel announces the intention to acquire IWO Holdings, Inc. a mainly New England-based network affiliate for the Sprint PCS business. (This acquisition closed on October 20, 2005.)
- Another acquisition forced by Gulf Coast Wireless, added an additional 95,000 customers mainly in Louisiana and Mississippi to Sprint Nextel's CDMA network. (With that closing on October 3, 2005).
- November 21, 2005: Sprint Nextel announces a $4.3B. acquisition agreement for Texas-based Sprint PCS affiliate Alamosa Holdings. Potentially adding an additional 1.48 million customers to Sprint Nextel.[27]
- December 16, 2005: Sprint Nextel announces a $98 million agreement to acquire Enterprise Communications of Columbus, Georgia, thus adding over 52,000 customers to the company's PCS Wireless division.[28]
- December 16, 2005: Sprint Nextel announces acquisition of non-affiliate Velocita Wireless. The transaction will enhance the iDEN network's 900 MHz spectrum position.[29] On July 2, 2007 Velocita Wireless, which became an indirect subsidiary of Sprint Nextel was acquired by United Wireless Holdings, Inc.[30]
- December 21, 2005: Sprint Nextel Corporation and Nextel Partners, Inc finally reach an agreement for a $6.5 billion deal where the Sprint Nextel Corporation will acquire the largest of Nextel's affiliates to end Nextel Partners' opposition to any changes by Sprint in relation to the NEXTEL merger. Once completed the Nextel Partners deal will add more than 2 million customers directly to the Sprint Nextel company.[31]
- April 20, 2006: Sprint Nextel Corporation and Ubiquitel PCS Corporation reached an agreement where the Sprint Nextel Corporation would acquire Ubiquitelpcs, an exclusive Sprint PCS provider.[32]
- March 17, 2007: Sprint Nextel Corporation completes integration of Nextel Partners customers into the Sprint Nextel system. Nextel Partners Las Vegas headquarters shuts down service and all Nextel Partners customers are now handled through the new "Ensemble" billing system. All Nextel Partners customers are now officially Sprint Nextel customers and are entitled to the same promotions as all other Sprint Nextel iDen customers.
- August 2, 2007: Sprint Nextel Corporation completed the acquisition of Northern PCS for $312.5 million including debt.[33]
- July 28, 2009: Sprint Nextel announces a $483 million acquisition agreement for Virgin Mobile USA, adding an additional 5 million pre-paid customers to Sprint Nextel, although these subscribers were counted in Sprint's total subscriber count, as Virgin Mobile USA was a MVNO on Sprint's CDMA network.[34]
- October 19, 2009: Sprint Nextel agrees to acquire iPCS, one of its last remaining affiliates.
Airave
On September 17, 2007, Sprint Nextel Corp. launched the Airave, which was initially sold in its stores in Denver, Indianapolis, and Nashville. On August 18, 2008, the Airave unit was launched nationwide in all Sprint non-affiliate markets. Airave increases cell reception over an area of 5,000 square feet and can handle up to 3 calls at once. It hooks into the customer's existing broadband connection, sending unlimited calls through the Internet using VOIP. The Airave box retails for $100 and users pay a monthly charge of $4.99 plus an average of $5 line fees, using their plan minutes or unlimited for $10.00 for individuals and $20.00 for families. Airave helps eliminate the obstacles of poor signal quality inside buildings. Airave is used only for voice calls using a Sprint CDMA phone at this time and is not available for Nextel iDEN phones or data cards/USB modems.
By default, the AIRAVE unit allows any Sprint phone to connect through it, but it can be reconfigured to only accept connections from up to 50 authorized numbers in order to eliminate unwanted use.[35]
Law enforcement cooperation
Sprint Nextel provided U.S. government agencies with its subscribers' GPS locations over 8 million times in a one year period between September 2008 and October 2009.[36] The disclosures occurred by way of a special, secure portal which Sprint developed specifically for government officials, which enables users to automatically obtain Sprint customer GPS locations after submitting a court order, search warrant, or in exigent situations. The GPS function is only allowed after the request has been reviewed and activated by Sprint's surveillance department.
Major sponsorships
- Sprint Nextel is the major title sponsor of NASCAR’s top racing series, formerly called the NEXTEL Cup, which became known as the NASCAR Sprint Cup Series starting January 1, 2008.[37]
- Sprint Nextel holds naming rights to the Sprint Center in Kansas City, Missouri.
- Sprint Nextel is one of the corporate sponsors of the Las Vegas Monorail. Wireless customers are able to purchase tickets for the Las Vegas Monorail from their wireless phones under a system known as Mobile Ticketing.[38]
- Sprint Nextel was the official wireless sponsor of the 2007 MTV Video Music Awards. Sprint Power Vision customers were able to watch the VMAs on a live simulcast on their Sprint Power Vision handset for free.
- Sprint cellphones were used from a product positioning point from movies such as Eagle Eye, 27 Dresses, Wild Hogs, Bride Wars, Beverly Hills Chihuahua, Transformers 2, Dan in Real Life, Spiderwick Chronicles, Superbad (Boost Mobile phones), 12 Rounds & Alvin and the Chipmunks 2
- Sprint is a major sponsor of the television show Heroes on NBC and provide exclusive web content to subscribers.
- Sprint Nextel is the official wireless sponsor of Regal Cinemas, which reminds movie patrons to silence their cellphones before the feature presentation.
- Sprint is a major sponsor of competition reality shows such as Survivor and Big Brother on CBS, offering viewers to vote each week for "Player of the Game." Viewers can text a vote for their choice contestant, and a randomly selected participant who voted for the most popular player wins a cash prize.
- Sprint was a sponsor of the television show 24 (TV Series) on Fox (until its cancellation) and provided exclusive content to its cell phone subscribers
Nextel's NASCAR FanView named to Time Magazine's Best Inventions of 2006
In Time Magazine's November 13 issue Sprint Nextel's NASCAR FanView was added to the list One of Best Inventions of 2006. [39] The NASCAR FanView is a portable PDA device that runs on Sprint's data network. The device offers fans access to "Race telecast and up to seven in-car camera channels, direct audio feeds allowing the user to listen to live driver and team conversations, as well as the radio broadcast and an exclusive audio-replay feature."
Celebrity spokespersons
Actress Candice Bergen (Murphy Brown) served as spokesperson for Sprint Corporation's long distance service from October 1990 through September 1998, most notably during their "10-cents-a-minute" promotion. She was succeeded by fellow Emmy-winner Sela Ward (Sisters) from 1999 until 2002, when emphasis on long-distance service was discontinued.
Spokesperson Brian Baker, an actor, appeared as trenchcoated character "The Sprint Guy" in 155 spots over a six year period, up until the Sprint-Nextel merger in 2005.
On October 21, 2006 Sprint Nextel announced as part of their new "Power Up" campaign, that they would use actor Ron Livingston as a "Straightforward, relatable guy who finds unconventional ways to talk about Sprint's wireless services." Livingston is best known for his work in the film Office Space and the television series Band of Brothers.
In 2007 Stacy London, fashion consultant and co-host of What Not to Wear, partnered with Sprint to launch their "My Mobile Style" website which aimed to help people choose a cell phone based on their personal style. She is quoted as saying "I partnered with Sprint on this project because Sprint understands that your mobile phone is a major reflection of who you are."[40]
Since 2007, the use of a spokesperson on Sprint ads has been absent, opting for voiceover announcers, or in the case of the "Simply Everything" series of commercials announcement, current chief executive Dan Hesse.
See also
References
- ^ a b c d Sprint Nextel Reports Fourth Quarter and Full-Year 2009 Results
- ^ "Milestone Events Making Sprint History: 1899 – 1989". Sprint Nextel. Retrieved 2008-08-07.
- ^ "Sprint Nextel Corporation". Google Finance. Retrieved 2008-08-07.
- ^ United Telecommunications, Inc. – Company History
- ^ Kansascity.com[dead link]
- ^ Push-to-Talk on New Devices Will Give Sprint Customers More Ways to Get Things Done at SprintSpeed
- ^ Sprint And Nextel Announce New Branding, Logo To Be Used By Combined Company
- ^ "Virgin Mobile to offer federally subsidized wireless phone service for low-income New Yorkers", New York Daily News, New York, 09 December 2009. Retrieved on 2010-04-30.
- ^ "Florida Energy Star rebate checks almost in the mail (really)", Florida Times-Union, Florida, 18 July 2010 Retrieved on 2010-07-20.
- ^ Contact Swiftel Communication – Brookings, Watertown and Sioux Falls, SD
- ^ Sprint to launch 4G in 2008, Integrated Cable Services This Year
- ^ [1]
- ^ Sprint falls in line, caps "unlimited" data at 5GB – Engadget Mobile
- ^ Sprint News Release
- ^ Alltel news Release
- ^ Engadget
- ^ Linksys.com/Splash/Sprint/Share "Linksys is now available on our Cisco Home Networking website". linksys.com. Retrieved 19 November 2010.
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: Check|url=
value (help) - ^ Nation's First Over-the-Air Song Download Service Celebrates One-Year Anniversary
- ^ Forbes.com[dead link]
- ^ Reardon, Marguerite (2008-10-08). "With WiMax, Sprint cuts the cord in Baltimore | Wireless – CNET News". News.cnet.com. Retrieved 2010-03-16.
- ^ Xohm.com
- ^ Engadget.com
- ^ Paula Bernier (2008-07-15). "Sprint Moves to 40G with Cisco's IPoDWDM Solution". Xchangemag.com. Retrieved 2010-03-16.
- ^ Sprint's Java Developer Program news release
- ^ Sprint's Application Developer Home page
- ^ Sprint to Acquire Wireless Affiliate US Unwired for $1.3B
- ^ Sprint Nextel Completes Acquisition of Wireless Affiliate Alamosa Holdings on February 1, 2006
- ^ Sprint Nextel Acquires Enterprise Communications on January 31, 2006
- ^ Sprint Nextel Completes Acquisition of Velocita Wireless on February 28, 2006
- ^ Sprint Nextel Indirect Subsidiary, Velocita Wireless, is acquired by United Wireless Holdings, Inc. on July 2, 2007
- ^ Sprint Nextel Completes Acquisition of Nextel Partners on June 26, 2006
- ^ Sprint Nextel Completes Acquisition of Ubiquitel on July 7, 2006
- ^ Sprint Nextel Concludes Acquisition of Affiliate Northern PCS
- ^ Sprint Nextel To Acquire Virgin Mobile USA
- ^ "Samsung's AIRAVE femtocell for Sprint | Mobile Phones – PhoneHint". Mobilecomment.com. Retrieved 2010-03-16. [dead link]
- ^ Surveillance Shocker: Sprint Received 8 MILLION Law Enforcement Requests for GPS Data in the Past Year
- ^ NASCAR's Premier Series To Be Named NASCAR Sprint Cup Series Beginning, July 7, 2007
- ^ Press release, Sprint to Bring Mobile Ticketing to Monorail, April 4, 2006
- ^ NASCAR NEXTEL FanView Named One of the Best Inventions 2006 by TIME Magazine, Sprint press release, November 9, 2006
- ^ "Fashion Expert Stacy London Makes Over Mobile". Retrieved 2009-03-27.
External links
- Wikipedia articles needing copy edit from December 2010
- Telecommunications companies of the United States
- Companies based in Overland Park, Kansas
- Companies based in the Kansas City metropolitan area
- Mobile phone companies of the United States
- Companies listed on the New York Stock Exchange
- Companies established in 1938
- Companies established in 2005
- Sprint Nextel
- Tier 1 networks