Sprint pulling the plug on PCS Mail, all four users suffer nervous breakdown
[Via RCRWireless]
Posts with tag Sprint nextel
Still committed to iDEN, eh? After another relatively brutal quarter of lost cash, lost subscribers, and lost opportunities, word on the street is that Sprint might be rethinking its approach to its legacy push-to-talk network -- the obsolescence-bound spectrum it acquired via its purchase of Nextel a few years back for the questionable price of $35 billion. Given Sprint's current financial state, a liquidity crunch means that the carrier is looking to offload any salable piece; Nextel's not exactly the most attractive piece of that puzzle with a declining subscriber base, limited bandwidth, and a limited range of Moto hardware to back it up, but even at its current estimated value of $5 billion, analysts are suggesting that Sprint could be willing to bite at a deal. NII Holdings, which operates iDEN networks under the Nextel brand in Brazil, Mexico, and a handful of other Latin American countries, is being tossed around as a potential suitor, as are private equity firms looking to make a quick buck. How one goes about making a quick buck on a network as old and quirky as iDEN in the year 2008, though, remains to be seen.
It's been known for years that some of Sprint Nextel's Direct Connect spectrum causes bouts of interference with public safety equipment, and the FCC got the ball rolling on a plan several years ago for the carrier to swap some airwaves with agencies around the country by June of this year to keep everyone happy. Problem is, some 500 of those agencies still aren't ready to trade, and Sprint has taken issue with the fact that the FCC wants it to meet its end of the bargain by next month anyhow. Nevertheless, a federal appeals court has ruled in the FCC's favor, setting the wheels in motion for a possible massive loss of Nextel coverage on the drop-dead date of June 26 -- but industry analysts aren't too worried. Most seem to be predicting that the FCC will end up extending the deadline by six months or so anyway, so Kevin Martin and his ragtag gang must just love watching carriers sweat. Oh, not to mention a few million Direct Connect customers.
As we mentioned yesterday, Sprint has gone on record saying that it's going to continue to stand behind its legacy iDEN infrastructure, the massive PTT network inherited from its Nextel acquisition and marketed under the Nextel Direct Connect brand. We can understand that there are thousands of companies and millions of individuals that rely on Direct Connect to go about their business -- but by the same token, we're surprised that Sprint isn't instead saying that it intends to aggressively push its upcoming CDMA-based Qchat system over iDEN and make the transition as smooth and inexpensive as possible for its Direct Connect customers. Whatevs; we suppose it's good news that Sprint intends to inject a handful of relatively exciting new hardware into the mix in 2008 -- something Sprint alludes to in its press release, along with the promise of several new "press-to-x" features that will allow users to send texts, pictures and the like just as they would a PTT call. Last time we checked that was called SMS and MMS, but what do we know?
Well, not the very top -- give the guy a chance, will ya! -- but it's clear that heads are already starting to roll at Sprint Nextel following last week's disastrous report of subscriber churn, with the company's chief financial officer, chief marketing officer, and president of sales and distribution effectively getting the boot as of tomorrow. In respective order, Paul Saleh, Tim Kelly, and Mark Angelino will all be "stepping down" on Friday, according to the Wall Street Journal (subscription required) -- the first casualties of a planned 4,000 head count reduction. CFO Saleh is getting replaced in the interim by Senior Vice President and Controller William Arendt, while the other two positions will be temporarily filled by unnamed executives. Sprint lost 639,000 valuable postpaid customers in the fourth quarter, and taking a look at our decidedly unscientific poll may give you some idea why.
New Sprint Nextel CEO Dan Hesse appears to have inherited a company bleeding subscribers by the thousands, and will now officially be dropping the ax on 4,000 employees and 125 retail locations. Amid the loss of 639,000 postpaid customers in the fourth quarter, Sprint will be cutting a total of 6.7% of its work force (following the 5,000 layoffs last year) and 8% of company-owned brick-and-mortar stores, while remaining mute on other rumors that it will consolidate its headquarters in Kansas. Sprint Nextel shares are down $2.89, or nearly 25%, at the time of this writing.
At first, we sorta thought those air raid sirens (you know, the ones that are freakin' loud enough to wake the dead) were enough of an "emergency alert" as it was, but consider this: they usually don't tell you the nature of the emergency or give you instructions on exactly how you're supposed to proceed. That's not the sirens' fault -- a mind-numbingly loud "whoop whoop" really doesn't have the bandwidth to reveal that kind of information to the human ear -- but now that SMS-capable phones are ubiquitous, it's time to smarten things up just a tad. The government's Emergency Alert System has had just such a plan in the works for a while now, and Sprint Nextel is becoming the first national carrier to trial a system capable of sending targeted, location based alerts when bad stuff goes down. The trial is taking place in scenic Contra Costa, California; no word on a national rollout, but if you find out about your next tornado, earthquake, or other scary sitch via text, your area have just gotten swept into the craze.




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