Showing posts with label sprint. Show all posts
Showing posts with label sprint. Show all posts

Friday, December 14, 2012

Sprint Seeks to Buy Rest of Clearwire for About $2.1 Billion

Sprint Nextel Corp. (S) proposed to acquire shares in wireless partner Clearwire Corp. it doesn’t already own in a deal that the third-largest U.S. carrier says would cost about $2.1 billion.

Sprint, which owns more than 50 percent of Clearwire, is seeking to acquire shares at $2.90 each, or 5.5 percent more than the stock’s closing price in New York yesterday, according to a regulatory filing today. Sprint proposed to provide interim financing of as much as $800 million.

Sprint is getting an influx of cash from Japan’s Softbank Corp. (9984), which agreed to buy 70 percent of Sprint for about $20 billion. Sprint agreed to buy Eagle River Holdings LLC’s 4.5 percent stake in Clearwire in October for $2.97 a share.

Clearwire shares jumped 2.6 percent to $2.75 yesterday in New York. The stock is up 42 percent this year.

Sprint originally formed the Clearwire joint venture in 2008, relying on $3.2 billion in investments from Google Inc. (GOOG), Intel Corp., and cable companies such as Comcast Corp. and Time Warner Cable Inc. The idea was to build a national wireless network that could compete with Verizon Wireless and AT&T Inc. (T)

Clearwire never lived up to those ambitions, and the project has yet to break even. Along the way, partners such as Google and Time Warner Cable have sold their stakes for a fraction of their original value.

Thursday, August 9, 2012

Sprint CEO Talks About iPhone Decision, Other Challenges

Story first reported from USA Today

OVERLAND PARK, Kan. – By his own admission, Sprint CEO Dan Hesse isn't ready to hang out a "Mission Accomplished" sign yet. The No. 3 wireless company is in the midst of a turnaround. But, he says, "we're showing good success" in retaining customers, improvements in customer service and other metrics. Sprint last month reported a second-quarter loss of $1.37 billion on revenue of $8.84 billion. "It's blocking and tackling, quarter after quarter, year after year." Hesse hosted a group of journalists at Sprint headquarters this week. Here are highlights of the conversation, edited for space and clarity:

Q: What about the decision to sell the Apple iPhone even though Sprint had to spend billions to get that opportunity?

A: I've said everything has to make sense economically. But we knew our customers wanted the ability to choose the iPhone. We clearly looked at economics both short-term and long-term. Over time it starts to be cash-flow positive. We saw no reason to bet against Apple. You really don't want to be on the outside of that. From a brand perspective, you like having your brand associated with very strong great brands, and nobody can debate just what a great brand Apple has. We thought the benefits greatly outweighed the risks.

Q: You were a vocal opponent of the AT&T/T-Mobile merger. Are you satisfied you can compete now that the merger did not go through?

A: We're certainly working very hard. There's no question that the industry does have an issue with the size of the duopoly of AT&T and Verizon. I believe that over time we'll see more consolidation in the industry outside of the big two, because the gap in size between two and three is so enormous. Consolidation is healthy for the industry as long as it's not AT&T and Verizon getting larger.

Q: What are your thoughts on Google's acquisition of Motorola Mobility?

A: There'll be protections between the Android organization and Motorola. I can't say what will happen internally. But I honestly believe they will try very hard to keep Android's independence. We're actually looking forward to seeing what new devices the new Motorola will bring to the market.

Q: How are you positioning the Virgin and Boost brands, which offer prepaid wireless service?

A: Right now, generally the Boost brand is more kind of "talk and text." Virgin is focused a bit more on data and text. Boost tends to be a bit more urban; Virgin more suburban. Those are the basic differences.

Q: How does the growth of traditional wireless plans with contracts (postpaid) compare with the prepaid business?

A: We see increasingly that prepaid will be an opportunity for value and for customers who don't necessarily want to be tied into a contract for a couple of years. The iPhone on Virgin is an example of what we think is possible.

The (traditional wireless) business is the largest segment of the industry and, historically, it has been the most profitable. The Sprint brand is basically our (vehicle) to go after that industry. The prepaid business is growing more rapidly than the postpaid business. We doubled-down on the prepaid business a few years ago when we acquired Virgin. And we are expanding our offerings. As hockey great Wayne Gretzky reportedly once said, skate not to where the puck is but where it's going. The puck is going more to prepaid.

Q: Do you see a day when the typical household has multiple devices on the Sprint network?

A: As we look at growing overall revenue in the industry, what we're counting on is many more devices than one. We used to think five years ago that growth in the wireless industry is dead when you get to 100% penetration. Now we see numbers much north of that as customers have a variety of devices — wireless chips in your shirts, in your car, in many other areas. It's just another opportunity for us to increase revenues as an industry. We hope that over time there are a number of devices that are enabled by the Sprint platform.

Q: Will Sprint have an iPad, especially as you move to faster LTE networks?

A: I can't comment on that. But it's a very good question.




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Friday, November 5, 2010

T-Mobile, Sprint Sow Confusion Over '4G'

The Wall Street Journal

Get ready for a confusing new war of words in the cellphone business.

 
 
While many American consumers are still scratching their heads over what exactly to make of current 3G mobile technology, carriers are already aggressively rolling out claims of faster, next-generation service on networks they're spending billions of dollars to upgrade.

The new buzzword is 4G—for fourth generation—and the implication is super fast speeds that make it a snap to watch streaming videos or download big data files on the go.

The catch is the carriers disagree about what counts as 4G. And the one organization that sets anything like an official definition has come up with a surprising conclusion: None of them deliver speeds that qualify.

T-Mobile USA is the latest to jump into the fray, boasting in ads that started running Tuesday that it owns "America's largest 4G network"—the same one it advertised in March as the country's fastest 3G network.

That doesn't sit well with Sprint Nextel Corp., which has been evangelizing the benefits of 4G for the past two years and rolling out an advanced network. Sprint's ads brag the carrier is "bringing you the first wireless 4G network."

"They are putting a mask on 3G and pretending it's 4G," Matt Carter, head of Sprint's 4G business, said of T-Mobile's campaign.

Clearwire Chief Commercial Officer Mike Sievert said the company's ability to deliver more capacity and better value will continue to set it apart. He added customers aren't going to get caught up with the alphabet soup of technology buzzwords.

Sprint's network, which is being built by partner Clearwire Corp., runs on a technology called WiMax, the first wireless broadband standard.

T-Mobile has been upgrading its network to a faster technology called HSPA+.

T-Mobile defends its decision to brand its network as 4G, claiming it is faster—downloading data at five to eight megabits a second versus three to six megabits a second for Sprint and Clearwire.

"If you look at the speed of the WiMax network out there, we're meeting, beating and exceeding them right now," said Reid Walker, a spokesman for T-Mobile USA, which is a unit of Deutsche Telekom AG.

The increased rhetoric underscores the high-stakes game played by the carriers as they jockey for position.

With subscriber growth slowing, carriers are counting on upgrading customers to more powerful phones and more expensive data services in order to drive growth.

Carriers are also trying to lure consumers by advertising new 4G-capable smartphones, such as Sprint's HTC Evo 4G. Consumers in turn are starting to show interest in so-called 4G networks, even if they don't quite know what they are.

The conflicting campaigns probably won't help.

A recent survey by Yankee Group of more than 1,200 consumers found 57% had either never heard of 3G or didn't understand the term. With 4G, the ranks of the confused jump to 68%.

"That is going to get pretty ridiculous really quickly," said Christopher Nicoll, analyst at Yankee Group.

Jamie Monberg, a 38-year-old executive for a Seattle-based design firm, is a gadget enthusiast who covets a 4G phone. But he acknowledges it's tough to sort out all the claims. "To be perfectly honest, even as a technologist, it's incredibly confusing," Mr. Monberg said.

In a sense, T-Mobile and Sprint/Clearwire are both wrong. The International Telecommunications Union, a United Nations agency responsible for setting global standards for communications technology, announced Oct. 21 that only two technologies—LTE-Advanced and WiMax 2—truly qualify as 4G. The ITU determined those could clear its hurdle of speeds of 100 megabits per second for mobile downloads.

While Verizon Wireless is launching an LTE network and Sprint and Clearwire have embraced WiMax, they are using earlier-stage technologies that don't come close to the specifications laid out by the ITU.

"We are comfortable with the way our LTE network will perform," a Verizon Wireless spokesman said.

He declined to comment on whether the carrier would embrace the 4G name. 

The increased noise over 4G only diminishes Sprint and Clearwire's early move into faster technology.

Clearwire, which turned on its WiMax network in the New York area Monday, is available in nearly 60 markets. Verizon Wireless plans to have its LTE network up and running in 38 markets by the end of the year.

AT&T Inc., meanwhile, is rolling out the same HSPA+ technology as T-Mobile.

"Third-party research is clear—AT&T has the nation's fastest mobile broadband network, period," said an AT&T spokesman.

The carrier plans to start moving to LTE next year. It hasn't said whether the network will be called 4G.

Monday, September 13, 2010

AT&T, Sprint, Verizon Said to Plan Samsung Tablet to Rival IPad

Bloomberg

 
AT&T Inc., Sprint Nextel Corp. and Verizon Wireless plan to sell a tablet computer from Samsung Electronics Co. to rival the iPad, said three people familiar with the matter.

AT&T and Sprint plan to offer the device, called the Galaxy Tab, for less than Samsung’s wholesale price by bundling it with monthly wireless service contracts, two people said. Samsung, the world’s second-largest maker of mobile phones, is scheduled to announce the carriers’ support at a Sept. 16 event in New York, said the people said, who asked not to be named because the plans aren’t public.

Subsidies may help tablets such as the Galaxy stand out against Apple Inc.’s iPad, which starts at $499. Verizon Wireless hasn’t yet decided on such subsidies, said one person.

“The carrier-subsidized model would be very interesting,” said Ashok Kumar, an analyst at Rodman & Renshaw. “The market is going to be very crowded.”

Several companies including Hewlett-Packard Co. and LG Electronics Inc. are introducing tablet computers following the success of the iPad, a 9.7-inch touch-screen that acts as an e- reader, media player, word processor and calendar. The PCs access the Web through data plan contracts that represent the fastest-growing source of sales for the carriers.

Ashley Zandy, an AT&T spokeswoman; Cristi Allen, a Sprint spokeswoman; Jeffrey Nelson, a Verizon Wireless spokesman, and Ashley Lane, spokeswoman for Suwon, South Korea-based Samsung, declined to comment.

First in Europe


The Galaxy tablet goes on sale in Europe in October, before the U.S., and the company has plans for more of the devices next year, WP Hong, Samsung’s head of global planning, said at a electronics conference in Berlin this month.

The device, based on Google Inc.’s Android operating system, has a 7-inch screen and is able to play high-definition videos. The Galaxy has a global-positioning system, cameras on each side for video calling and acts as a mobile phone.

Research In Motion Ltd., the maker of BlackBerry smartphones, plans to introduce a tablet in November, people familiar with the plans have said. Motorola Inc., which makes Android-based smartphones, is also planning a tablet device for the holiday season, people familiar with the matter had said.

“I don’t think any of them are going to seriously challenge Apple for the lead over the holiday season at this point,” said Rhoda Alexander, an analyst at researcher iSuppli. “From a manufacturing standpoint, it would be a huge hurdle unless they’re going to start out of the gate at the volume that Apple is doing -- which would be risky at best.”

Apple, based in Cupertino, California, sold more than 3 million iPads in the first 80 days after it went on sale. To compete, tablet makers will have to offer something unique that the iPad doesn’t have, or cut their prices, Alexander said in an interview.

Thursday, September 3, 2009

Sprint to Sell Its First Google Android Phone

By The Wall Street Journal

Sprint Nextel Corp. said Thursday that it will sell its first phone running Google Inc.'s Android software in October, giving the Internet company a larger foothold in the mobile world.

Consumers have been slow to embrace the mobile platform, which has been available only through T-Mobile USA. With Sprint, Google has a larger subscriber base to potentially tap.

The decision by Sprint will "help Android become a more mainstream operating system," said Roger Entner, a telecommunications analyst at Nielson & Co.

Sprint, meanwhile, needs as many weapons as it can get to fend off other carriers that want to poach its subscribers. The company, based in Overland Park, Kan., continues to lose its most valuable subscribers. But over the past few months, Sprint has released a string of high-profile devices including the Palm Inc., in the hopes of finding a match for the Apple Inc. iPhone.

Enter the HTC Corp. Hero. The Android-based smart phone uses HTC's own customized user interface, called Sense, and is regarded by the company as its flagship product. The device has been available overseas, but Sprint will be the first carrier to offer it in the U.S.

The device will sell for $179.99 after a $100 mail-in rebate and two-year service contract. It is to be available in stores on Oct. 11.

The Hero marks the first in a wave of Android devices expected to hit the market in the next few months. Motorola Inc. and Samsung Electronics Co. are expected to unveil Android-based phones in September. But because so many Android phones are expected to hit the market, few are expected to post iPhone-like numbers, analysts say.

Google is pushing the open-source mobile operating system to handset manufacturers in a bid to expand its presence in the mobile sector and generate mobile advertising revenue. The Internet company hopes the Android phones generate mobile advertising revenue.

But the first Google phone, dubbed the G1, didn't turn many heads, and the follow-up device, the MyTouch 3G, was just one of many high-end smart phones launched during the past few months. Both devices were made by HTC and sold through Deutsche Telekom AG's T-Mobile.

Sprint is the latest carrier to join the Android platform. Verizon Wireless, a joint venture between Verizon Communications Inc. and Vodafone Group PLC, has committed to carrying Android phones before the end of the year. While AT&T Inc. has remained mum, industry observers say it will be pressured to follow suit.