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Sprint Launches First 3G/4G Dual Mode Device
17 Dec, 2008
Sprint announced the launch of a dual mode USB modem that can access both their 4G WiMAX service and their 3G EVDO Rev. A service. The USB Modem sells for $149.99, with a two year service plan. Customers have to sign up for a $79.99/month service plan to access both networks. Unfortunately for Sprint and its customers, their 4G network is only currently available in Baltimore. But I guess they have to start somewhere. Sprint’s WiMAX partner Clearwire announced a while back that they will also offer dual mode devices, allowing Clear customers to roam onto Sprint’s 3G network. The obvious goal is to provide some form of broadband wireless coverage across a wider footprint, until the better 4G network is completely built out. Sprint claims their 4G service will provide “average downlink speeds of 2-4 Mbps,” while their 3G service provides “average downlink speeds of 600 Kbps - 1.4 Mbps.”
Sprint Launches "Cyber Monday" Campaign
01 Dec, 2008OVERLAND PARK, Kan., Dec 01, 2008 (BUSINESS WIRE) -- Sprint (NYSE:S) is giving customers the gift of value this holiday season with six power-packed devices offered free with a two-year contract for a limited time only exclusively through Sprint.com. Sprint customers already enjoy the best savings in wireless service today - for families, that can mean at least $240 and up to $1,000 in annual savings based on comparable rate and service plans offered by Verizon and AT&T. Read More ...
Clear is Born
01 Dec, 2008
Clearwire announced the official launch of its new company, having completed the transaction with Sprint Nextel “to combine their next-generation wireless Internet businesses.” Clearwire is also in receipt of the $3.2 billion investment from key partners including Comcast, Google, Intel, Time Warner Cable, and Bright House Networks. “With significant spectrum holdings yielding unmatched network capacity, a next-generation all-IP network, and an open Internet business model, Clearwire will deliver a simple value proposition aimed to improve productivity and make the Internet experience more enjoyable, wherever our customers happen to be,” said Clearwire CEO Ben Wolf in a company statement.
Perhaps the biggest news of the day is the launch of the new brand “Clear.” Clear will replace Sprint’s XOHM brand, and will be marketed as Clearwire’s mobile WiMAX product. Clearwire will still be the official company name and will also be used as the brand in existing “pre-WiMAX” markets. But once those markets migrate over to true mobile WiMAX, the Clear brand will be used. Cable partners including Comcast, Bright House, and Time Warner Cable will be able to brand their mobile WiMAX product as they see fit.
Other news of note from today’s announcement:
- Portland, Oregon is the next Clear market, scheduled to go live in 1Q09
- Clearwire customers will be able to roam onto Sprint’s existing 3G network with Clearwire branded 3G/4G dual mode devices
- Clearwire cable partners have a footprint of 100 million potential homes for a wireless broadband product
- Clearwire intends to have an “open” network, allowing any standards based WiMAX enabled device to roam on to it, regardless of service provider
On a conference call announcing the news, Wolf said Cleawire has the “opportunity to reinvent wireless” and he is not concerned about WiMAX’s looming competitor, LTE. He says they’ll explore all options and won’t rule out embracing LTE if they need to. He also cited precedence in multiple wireless standards being able to co-exist, pointing to the success of CDMA, despite the existence of the more globally dominant GSM standard. “Mobile WiMAX and LTE is not a win or lose proposition,” he said.
Full Speed Ahead for Clearwire and WiMAX
21 Nov, 2008
With the approval from shareholders now behind them, Clearwire is set to embarq on an historic journey to build a national footprint of 4G mobile Internet in the U.S., potentially creating a new formidable competitor for both wireless and wireline broadband. All regulatory and business structure hurdles have been removed, and Clearwire and Sprint can now combine their WiMAX business units into one. They aim to formally close the transaction by the end of the year. "With an unmatched spectrum portfolio, a next generation all IP network, an ever-expanding ecosystem of mobile 4G devices, and the backing of some of the most innovative communications, entertainment and technology companies in the world, Clearwire is ready to redefine mobile Internet services in the U.S.,” said Benjamin Wolf , CEO of Clearwire, in a company statement.
Now it’s time to perform. Talk is cheap in these competitive times. Clearwire has some huge challenges ahead of them. Building the type of network they aim to do has never been done on a nationwide scale. Among the successes they will surely exploit, there will be bumps in the road, missed expectations, and a huge amount of skepticism to overcome. Are they up to the challenge?
Sprint Partners With Cisco for Unified Communications
10 Nov, 2008OVERLAND PARK, Kan.--(BUSINESS WIRE)--Nov. 10, 2008--Sprint (NYSE: S) today announced availability of Sprint Wireless Integration with Cisco Unified Communications Manager, an integrated mobility solution that delivers fixed mobile convergence to businesses - only on the Now Network(TM). Sprint Wireless Integration extends customers' Cisco Unified Communications Manager functionality to Sprint mobile phones, providing productivity, cost efficiencies, and greater control of mobile devices. Read More ...
Sprint: We Love Nextel
30 Oct, 2008
Sprint issued a company statement reaffirming its commitment for its Nextel unit. The iDEN powered network has been rumored to be “on the block” for months. "The iDEN network is a key differentiator for Sprint, as it allows us to offer products and services no other carrier in the industry can match. We continue to build on our support for our industry-leading push-to-talk Nextel Direct Connect franchise through our aggressive marketing efforts which exploit the unique features and functionality of the iDEN network," said Dan Hesse, CEO of Sprint in a company statement. Let me translate the corporate PR speak - "we couldn’t find a buyer." A large chunk of the millions of customers Sprint has lost over the past couple years have been iDEN subscribers. Talk to many of them and they’ll tell you that the iDEN network went to hell after the Sprint Nextel merger.
It’s a far different environment now than in Nextel’s heyday – Verizon, and even Sprint itself, have launched competing “push-to-talk” services on CDMA platforms. Sprint will have its work cut out for it to reverse the trend of customers fleeing from iDEN. Announced strategies include launching additional handsets with handset partner Motorola, including an upcoming BlackBerry Curve edition. Sprint also intends to beef up Boost Mobile, their prepaid arm which runs on the iDEN network. An unlimited calling plan will be introduced in February 2009, which hopes to capitalize on the poor economic conditions faced by many consumers today. Will it be enough?
Sprint to Carry Live NFL Network Game Telecasts via Wireless
30 Oct, 2008OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 30, 2008--Sprint (NYSE: S) today announced that it will become the first wireless carrier to offer live NFL game telecasts starting Nov. 6 when NFL Network televises the first game its eight-game schedule. Sprint will be the only wireless carrier to offer the NFL Network game telecasts via its exclusive NFL Mobile Live application and on Sprint TV, free of charge to Sprint data subscribers. Read More ...
Sprint Introduces the Highly Anticipated HTC Touch Pro
24 Oct, 2008Bellevue, Wash. — Oct. 24, 2008 — HTC Corporation, a global leader in mobile phone innovation and design, today launched the HTC Touch™ Pro for Sprint. Bringing a beautiful new angle to mobile business productivity, the HTC Touch Pro uses styling and functionality similar to the recently launched HTC Touch Diamond™ and introduces a variety of business-focused enhancements that make getting work done on-the-go quick and easy. Read More ...
Sprint Dramatically Improves Customer Service
20 Oct, 2008
Sprint’s new found focus on customer service is seeing some results. New research from Pali Research reveals dramatic improvement, including Sprint leaping from last to first place in customer care call response times. Sprint answered 91% of the calls into its call center within 30 seconds, improving from 68% in the previous year. The noticeable improvement also leads all their competitors, with Verizon having the closest percentage at 85%. T-Mobile’s rate was slightly less than half of Sprint’s rate, at 45%. AT&T brought up the rear, coming in at 33%. Sprint’s progress went beyond answering the phone quickly. They also are apparently getting better at resolving customer issues on the first call. Here’s hoping they can maintain these customer service numbers, and not just use them as a short term gimmick to slow their dreadful decline is subscriber counts.
Kudos to Sprint for improving customer service, but you have to wonder if it will be enough to slow their subscriber exodus. The iPhone effect is probably hurting Sprint considerably, and T-Mobile’s G1 will soon have its moment in the sun. Adding insult to injury, Verizon will soon be exclusively trotting out the BlackBerry Storm. Sprint’s going to need some smartphone mojo of their own to keep up. Will XOHM be able to pick up the slack?
Upcoming FCC Meeting Holds Huge Competitive Implications
16 Oct, 2008
Decisions made at the upcoming FCC meeting on November 4th could significantly impact telecom’s competitive landscape. The tentative agenda includes two huge wireless merger approvals, a vote on the “whitespace” unlicensed spectrum order, and revamping of the intercarrier compensation system used among telecom carriers. The wireless merger decisions include the Verizon – Alltell and Clearwire-Sprint sprint deals. The “whitespace” inititiave uses spectrum in the “whitespaces” between television channels that will be freed up upon the digital TV transition. This spectrum is prized because of its good propogation and the significant amount of spectrum that will be available. There is significant opposition from broadcasters and established wireless carriers, including T-mobile, who argue that the use of this spectrum will create serious interference problems for their services. Here’s a breakdown on some of the potential implications if these initiatives pass muster on the Nov. 4th meeting.
Implications from the Verizon-Alltel deal include:
- A combined Verizon-Alltel will create the largest wireless carrier in the U.S., surpassing the current number one carrier AT&T
- As a condition of the merger, the new entity will have to shed numerous rural markets (approx 100 at last count), opening the door for potentially new competitors in those markets
Implications of the Sprint-Clearwire deal include:
- Formation of a true nationwide WiMAX operator, who could potentially offer a third broadband pipe option into the home
- Empowerment of several large cable companies to offer their own branded broadband wireless service
- A first to market lead of months (maybe years) over other 4G competitors
Implications of the “whitespace” initiative include:
- The potential empowerment of numerous competitors who can offer yet another broadband wireless option, who some call Wi-Fi on steroids
- Potential interference with existing wireless carriers and broadcasters that will have to be resolved
- Potential for a plethora of new wireless devices and applications that are designed to take advantage of the new connectivity.
The implications of intercarrier compensation (ICC) reform are really too complex and lengthy to list in a blog post. ICC is a set of rules that dictates how telecom carriers compensate each other for interconnecting calls. It’s a myriad of state and federal rules that is so complex that the reality of this being resolved at this upcoming FCC meeting is laughable. There are billions of dollars at stake and entrenched special interests of large and small wireline carriers, wireless, Internet, and cable companies, most of whom have powerful influence in Washington. If there ever were a contentious issue in telecom policy, this is it. It’s going to take real leadership to reform the system, and with a new administration on deck, it’s highly unlikely that this issue will be dealt with in any meaningful way until next year. If reform does happen, and that’s a big if, it could fundamentally change the telecom system as we know it, with winners and losers, and probably a lawsuit or two to boot. Should be an interesting meeting
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Competitive Watch - we watch the industry so you don't have to. cWatch lists the latest new competitive telecom offerings, providing you first hand knowledge of who is doing what. Check back regularly to gain competitive intelligence, ideas, and analysis. Give us your opinion - what is the impact of these new service offerings?
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Featured Article
Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?

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