Sprint Nextel, the nation's Number Three wireless provider, has closed a 427 (m) million dollar deal to buy wireless affiliate I-W-O Holdings, which provides wireless services in New England, upstate New York and Pennsylvania.
I-W-O Holdings provides Sprint-branded services in upstate New York, New Hampshire, Vermont and parts of Massachusetts and Pennsylvania. I-W-O, with 230 employees and 2004 revenue of 187 (m) million dollar, has more than 241-thousand subscribers.
This is the third affiliate that Sprint Nextel has acquired since Sprint acquired Nextel Communications in August.
Friday, October 21, 2005
Tuesday, October 18, 2005
SPRINT PRESENTS 2006 NFL PRO BOWL BALLOTING
Today fans can begin voting to select players for the 2006 Pro Bowl, the NFL's annual All-Star Game, with balloting on Sprint wireless phones, on NFL.com and in stadiums sponsored by Sprint, the NFL announced Tuesday.
Balloting for the Pro Bowl, which will be played in Hawaii on Sunday, Feb. 12 and televised by ESPN, will conclude Dec.13. The teams will be announced at 7 p.m. (ET) Wednesday, Dec. 21 on the 2006 Pro Bowl Selection Show on ESPN.
In addition to casting ballots on NFL.com and in stadiums, fans can cast their Pro Bowl ballot by sending a text message from a Sprint wireless phone to vote for their favorite players at each position. Standard text messaging charges apply.
Fans who vote for their Pro Bowl players then will be able to enter for a chance to win a trip to the Pro Bowl in the 2006 NFL Pro Bowl Sweepstakes presented by Sprint. The Grand Prize includes an all-expense-paid trip to the game in Honolulu as well as exclusive experiences such as the chance to meet and talk football with Pro Football Hall of Fame quarterback JOHN ELWAY, attend practice, take a tour of Aloha Stadium, obtain pregame sideline passes and more.
The AFC and NFC All-Star squads are made up of the consensus votes of fans, players and coaches. Each group's vote counts one-third towards determining the 43-man rosters that represent the American Football Conference and National Football Conference in the Pro Bowl. NFL players and coaches will cast their votes Dec. 19-20.
The NFL is the only sports league that combines voting by fans, coaches and players to determine its all-star teams. It was the first professional sports league to offer online all-star voting in 1995.
Indianapolis Colts quarterback PEYTON MANNING topped all players in fan voting last season, while Philadelphia Eagles quarterback DONOVAN MC NABB was the fans' top NFC choice.
Following is a breakdown of positions and corresponding number of players who will be selected in each conference (43 per conference):
OFFENSE
Wide Receivers (4)
Tight Ends (2)
Tackles (3)
Guards (3)
Centers (2)
Quarterbacks (3)
Running Backs (3)
Fullback (1)
DEFENSE
Ends (3)
Interior Linemen (3)
Outside Linebackers (3)
Inside Linebackers (2)
Cornerbacks (3)
Safeties (3)
Need Player (1-Coach's Choice)
SPECIAL TEAMS
Punter (1)
Placekicker (1)
Kick Returner (1)
Special Teamer (1)
Throughout the season fans can get the latest NFL information from NFL Mobile on Sprint wireless phones. NFL Mobile provides a first-of-its-kind package of programming designed specifically for wireless, giving fans exclusive access to NFL content and original programming. The package includes NFL Network, exclusive video- and audio-on-demand highlights from NFL Films, and up-to-the-minute team/player scores, stats and injury reports.
Balloting for the Pro Bowl, which will be played in Hawaii on Sunday, Feb. 12 and televised by ESPN, will conclude Dec.13. The teams will be announced at 7 p.m. (ET) Wednesday, Dec. 21 on the 2006 Pro Bowl Selection Show on ESPN.
In addition to casting ballots on NFL.com and in stadiums, fans can cast their Pro Bowl ballot by sending a text message from a Sprint wireless phone to vote for their favorite players at each position. Standard text messaging charges apply.
Fans who vote for their Pro Bowl players then will be able to enter for a chance to win a trip to the Pro Bowl in the 2006 NFL Pro Bowl Sweepstakes presented by Sprint. The Grand Prize includes an all-expense-paid trip to the game in Honolulu as well as exclusive experiences such as the chance to meet and talk football with Pro Football Hall of Fame quarterback JOHN ELWAY, attend practice, take a tour of Aloha Stadium, obtain pregame sideline passes and more.
The AFC and NFC All-Star squads are made up of the consensus votes of fans, players and coaches. Each group's vote counts one-third towards determining the 43-man rosters that represent the American Football Conference and National Football Conference in the Pro Bowl. NFL players and coaches will cast their votes Dec. 19-20.
The NFL is the only sports league that combines voting by fans, coaches and players to determine its all-star teams. It was the first professional sports league to offer online all-star voting in 1995.
Indianapolis Colts quarterback PEYTON MANNING topped all players in fan voting last season, while Philadelphia Eagles quarterback DONOVAN MC NABB was the fans' top NFC choice.
Following is a breakdown of positions and corresponding number of players who will be selected in each conference (43 per conference):
OFFENSE
Wide Receivers (4)
Tight Ends (2)
Tackles (3)
Guards (3)
Centers (2)
Quarterbacks (3)
Running Backs (3)
Fullback (1)
DEFENSE
Ends (3)
Interior Linemen (3)
Outside Linebackers (3)
Inside Linebackers (2)
Cornerbacks (3)
Safeties (3)
Need Player (1-Coach's Choice)
SPECIAL TEAMS
Punter (1)
Placekicker (1)
Kick Returner (1)
Special Teamer (1)
Throughout the season fans can get the latest NFL information from NFL Mobile on Sprint wireless phones. NFL Mobile provides a first-of-its-kind package of programming designed specifically for wireless, giving fans exclusive access to NFL content and original programming. The package includes NFL Network, exclusive video- and audio-on-demand highlights from NFL Films, and up-to-the-minute team/player scores, stats and injury reports.
Monday, October 17, 2005
Sprint's Trench Coat Guy gets disconnected after 155 commercials
Until last month he was the spokescharacter for Sprint wireless phones, the guy who solved pesky cellular problems wherever and whenever they arose. He was ubiquitous, appearing in 155 commercials over six years. More than that, he was an icon -- the Mr. Whipple, the Madge or Mikey of his time.
Now Trench Coat Guy is gone, dropped like a bad connection.
He is, it seems, a victim of corporate politics. Trench Coat Guy was great when Sprint was selling its services primarily to household customers. But Sprint recently bought Nextel for $35 billion, and Nextel is focused on the business market, and so the company wants a new image.
Trench Coat Guy is therefore "on hiatus," explained spokeswoman Mary Nell Westbrook, who said he might reappear in the future.
Might. At some point. Maybe.
Trench Coat Guy gave a fresh face to an otherwise faceless, multibillion-dollar telecommunications behemoth (and helped make it successful enough to buy another faceless telecommunications behemoth). He was all about underselling.
Trench Coat Guy solved cell phone problems in a way that suggested Sprint knew there was more to life than solving cell phone problems. His commercials were offbeat mini-sitcoms that disarmed the viewer with their gentle absurdity and mocking self-awareness.
He came to the rescue, for example, when a talkative preteen girl faced the agony of waiting until her cell plan's cheaper evening rates kicked in. The girl spent the time braiding the hair of everyone in her family, including Dad and the dog. Trench Coat Guy pointed out Sprint's evening rates start at 7 p.m., instead of the usual 9. Problem solved.
In another ad, Olympic snowboarder Jonny Moseley grew frustrated because his big gloves prevented dialing his phone on the slopes. Trench Coat Guy came tromping through the snow, in suit and tie, to introduce Moseley to Sprint's voice-activated calling.
Another series of commercials touted the supposed clarity of Sprint's network. Mom, using the evidently inferior Brand X phone, called the babysitter, but static interfered: "I asked how are the kids ... and she floured the kids!" Cut to Trench Coat Guy sitting next to two children with faces full of flour.
A grateful customer in another ad once asked Trench Coat Guy: "Who are you"? In typically mysterious fashion, Trench Coat Guy replied: "It's not about me, ma'am."
Trench Coat Guy is a 38-year-old actor named Brian Baker, who doesn't seem a bit like the deadpan dude he's been playing. Baker laughs often as he tells of his character's genesis, and expresses bewilderment about, and gratitude for, a 30-second performance that turned into the role of a lifetime.
Baker was selected from among 350 actors who auditioned in 1999. He worked out the character's fictitious background with the commercial's director, Peter Care. "He said, `This is a guy who won't get married, won't have children, will live in his car, and will forfeit everything to stop static. It's his mission in life,'" said Baker by phone.
The distinctive look was his idea. "We tried on 50 different things -- a black turtleneck, a peacoat, you name it. I felt like the black suit and the black trench coat fit this guy best. It had a kind of iconic feel, this flowing look that you could depict in a silhouette. Not to mention that it's very slimming."
Baker says he was inspired by another unflappable figure -- the late Jack Webb, who played the just-the-facts-ma'am detective on Dragnet.
Sprint originally wanted Baker for five commercials. The early response to Trench Coat Guy -- the character never officially had a name, Baker says -- was so favorable that Sprint's ad agency, Publicis & Hal Riney of San Francisco, kept turning out TV commercials, radio and print ads, and sales-training films, all starring Baker.
With his face constantly before the public, Baker couldn't walk down the street without strangers excitedly approaching him. The attention was "surreal sometimes," he says.
Now Trench Coat Guy is gone, dropped like a bad connection.
He is, it seems, a victim of corporate politics. Trench Coat Guy was great when Sprint was selling its services primarily to household customers. But Sprint recently bought Nextel for $35 billion, and Nextel is focused on the business market, and so the company wants a new image.
Trench Coat Guy is therefore "on hiatus," explained spokeswoman Mary Nell Westbrook, who said he might reappear in the future.
Might. At some point. Maybe.
Trench Coat Guy gave a fresh face to an otherwise faceless, multibillion-dollar telecommunications behemoth (and helped make it successful enough to buy another faceless telecommunications behemoth). He was all about underselling.
Trench Coat Guy solved cell phone problems in a way that suggested Sprint knew there was more to life than solving cell phone problems. His commercials were offbeat mini-sitcoms that disarmed the viewer with their gentle absurdity and mocking self-awareness.
He came to the rescue, for example, when a talkative preteen girl faced the agony of waiting until her cell plan's cheaper evening rates kicked in. The girl spent the time braiding the hair of everyone in her family, including Dad and the dog. Trench Coat Guy pointed out Sprint's evening rates start at 7 p.m., instead of the usual 9. Problem solved.
In another ad, Olympic snowboarder Jonny Moseley grew frustrated because his big gloves prevented dialing his phone on the slopes. Trench Coat Guy came tromping through the snow, in suit and tie, to introduce Moseley to Sprint's voice-activated calling.
Another series of commercials touted the supposed clarity of Sprint's network. Mom, using the evidently inferior Brand X phone, called the babysitter, but static interfered: "I asked how are the kids ... and she floured the kids!" Cut to Trench Coat Guy sitting next to two children with faces full of flour.
A grateful customer in another ad once asked Trench Coat Guy: "Who are you"? In typically mysterious fashion, Trench Coat Guy replied: "It's not about me, ma'am."
Trench Coat Guy is a 38-year-old actor named Brian Baker, who doesn't seem a bit like the deadpan dude he's been playing. Baker laughs often as he tells of his character's genesis, and expresses bewilderment about, and gratitude for, a 30-second performance that turned into the role of a lifetime.
Baker was selected from among 350 actors who auditioned in 1999. He worked out the character's fictitious background with the commercial's director, Peter Care. "He said, `This is a guy who won't get married, won't have children, will live in his car, and will forfeit everything to stop static. It's his mission in life,'" said Baker by phone.
The distinctive look was his idea. "We tried on 50 different things -- a black turtleneck, a peacoat, you name it. I felt like the black suit and the black trench coat fit this guy best. It had a kind of iconic feel, this flowing look that you could depict in a silhouette. Not to mention that it's very slimming."
Baker says he was inspired by another unflappable figure -- the late Jack Webb, who played the just-the-facts-ma'am detective on Dragnet.
Sprint originally wanted Baker for five commercials. The early response to Trench Coat Guy -- the character never officially had a name, Baker says -- was so favorable that Sprint's ad agency, Publicis & Hal Riney of San Francisco, kept turning out TV commercials, radio and print ads, and sales-training films, all starring Baker.
With his face constantly before the public, Baker couldn't walk down the street without strangers excitedly approaching him. The attention was "surreal sometimes," he says.
Sunday, October 16, 2005
Sprint Communications sues VoIP carriers for licence fees
A unit of Sprint Nextel is suing Vonage and another VoIP provider, alleging that the companies are infringing its patents.
Sprint Communications claims the companies have violated seven patents relating to technology for processing and delivering packetised voice and data, including VoIP. Its suit seeks an injunction against further infringement and unspecified monetary damages. In addition to Vonage the suit names Voiceglo, says Sprint Nextel spokeswoman Debra Peterson.
Vonage is one of the biggest VoIP service providers in the US, with more than one million active lines, according to the company. Voiceglo, based in Florida, also provides packet-based phone services over the internet.
Sprint Nextel had been talking with the companies for more than a year, Peterson says.
“We had tried to discuss possible licence agreements that would permit them to use our [intellectual property] legally,” Peterson says. But the companies were unable to reach agreement.
“We’re going to take all steps necessary to protect the creativity and innovation of our employees,” Peterson says. She declined to comment on whether Sprint Nextel has been negotiating with other VoIP providers or whether it planned to take legal action against them.
Vonage and Voiceglo were not available for comment.
Sprint Nextel was formed earlier this year through the merger of Sprint and Nextel Communications. It is the third-largest mobile operator in the US and also has wireline operations inherited from Sprint.
Sprint Communications claims the companies have violated seven patents relating to technology for processing and delivering packetised voice and data, including VoIP. Its suit seeks an injunction against further infringement and unspecified monetary damages. In addition to Vonage the suit names Voiceglo, says Sprint Nextel spokeswoman Debra Peterson.
Vonage is one of the biggest VoIP service providers in the US, with more than one million active lines, according to the company. Voiceglo, based in Florida, also provides packet-based phone services over the internet.
Sprint Nextel had been talking with the companies for more than a year, Peterson says.
“We had tried to discuss possible licence agreements that would permit them to use our [intellectual property] legally,” Peterson says. But the companies were unable to reach agreement.
“We’re going to take all steps necessary to protect the creativity and innovation of our employees,” Peterson says. She declined to comment on whether Sprint Nextel has been negotiating with other VoIP providers or whether it planned to take legal action against them.
Vonage and Voiceglo were not available for comment.
Sprint Nextel was formed earlier this year through the merger of Sprint and Nextel Communications. It is the third-largest mobile operator in the US and also has wireline operations inherited from Sprint.
Mobile phones morph into on-the-go computers
WEREN'T cell phones made for talking? That is so yesterday.
Cell phones are quickly becoming an on-the-go entertainment center.
And everyone from carriers to handset makers to software firms is jumping on the bandwagon.
Just look at the blitz of recent product introductions:
- Phones that double as MP3 music players.
- Phones that air broadcast news and TV shows.
- Phones that play movie clips.
- Phones that allow multiplayer gaming.
For business-minded users, there are phones that download e-mails with attachments at broadband speeds, phones that allow users to work in corporate databases and customer relations programs, and phones attached to cars that diagnose mechanical problems.
Never mind that 96 percent of mobile industry revenue comes from plain old voice telephone calls, according to statistics gathered by the Cellular Telecommunications & Internet Association.
"Voice is the core of the industry. But when you look at the growth in data revenue, then you see a very impressive trend in how people are adopting to the services available to them," said CTIA vice president John Walls, explaining the hype.
Industry revenue from transporting data — digitized content in everything from videos to e-mail to music and photos — grew 85 percent in the year ending June to $3.8 billion, according to the CTIA. It's still a small piece of the $108 billion in overall mobile revenues in that year, but voice revenues only grew by 4.5 percent, according to CTIA.
Analysts at M:Metrics and other research firms say that disparity is pushing carriers to pursue data services. In search of growth — that holy grail of business — carriers, handset makers and software developers are fast introducing non-voice uses.
Indeed, even hardware companies not before involved in telephony have introduced products.
To wit: Apple Computer Inc. launched the iTunes ROKR, an iTunes-capable mobile phone, with Cingular Wireless and Motorola Inc. Hewlett-Packard Co. is working on an iPaq Pocket service that uses GPS mobile technology to tell the history of where the user happens to be.
Verizon Wireless in the last month alone launched half a dozen new data uses for its network, including several gaming services, a smartphone with Palm Inc. and Microsoft Corp., a productivity application for wireless laptops, and an MP3 phone. And like its competing carriers, itlaunched a mobile TV service.
The average cell phone user produces $47.93 in voice revenues and $3.50 in data revenues per month. But last year, average revenue per user grew less than 1 percent even though average minutes of use grew 15.8 percent, according to the CTIA.
So companies are turning to data services to ring up more sales.
"What you see happening, on the business side or the consumer side, is the cellular phone or wireless device has become the primary communications tool for most people," said Richard Garwood, president of Verizon Wireless' Northern California and Nevada region.
"Look at college kids and high school kids — it's the main tool for their tribe. Also, in the business community people want everything on one device, so they don't have to carry pager, laptop, calendar," Garwood said.
Verizon Wireless invested $1 billion in the past year above its usual $4 billion yearly expenditure on network upgrades to add high-speed broadband capability. Verizon thus became the first cellular carrier to roll out a broadband wireless network.
Cingular and Sprint, the other two major wireless carriers in the U.S., quickly followed with announcements of broadband intentions. Sprint has already begun to roll out its broadband service.
While Verizon said it upgraded to broadband because subscribers wanted it, the carrier is not sitting around waiting for subscribers to decide to use it. Instead Verizon is spending millions of dollars to underwrite the marketing of games and music and business applications developed by independent software developers for use on its network. In the month of September alone, Verizon helped launch applications by Gameloft, Namco America, Dell Computer, Palm Inc. and Microsoft Corp. It also launched its own MP3 music player mobile phone.
Meanwhile, Nokia Inc., the largest maker of mobile handsets worldwide, did its own share of underwriting the marketing efforts of third-party developers who created software for its Series 60 platform.
Nokia estimates 1.5 million developers worldwide are creating software for its mobile phones and for smartphones made by its competitors Research In Motion, which makes BlackBerry,
Cell phones are quickly becoming an on-the-go entertainment center.
And everyone from carriers to handset makers to software firms is jumping on the bandwagon.
Just look at the blitz of recent product introductions:
- Phones that double as MP3 music players.
- Phones that air broadcast news and TV shows.
- Phones that play movie clips.
- Phones that allow multiplayer gaming.
For business-minded users, there are phones that download e-mails with attachments at broadband speeds, phones that allow users to work in corporate databases and customer relations programs, and phones attached to cars that diagnose mechanical problems.
Never mind that 96 percent of mobile industry revenue comes from plain old voice telephone calls, according to statistics gathered by the Cellular Telecommunications & Internet Association.
"Voice is the core of the industry. But when you look at the growth in data revenue, then you see a very impressive trend in how people are adopting to the services available to them," said CTIA vice president John Walls, explaining the hype.
Industry revenue from transporting data — digitized content in everything from videos to e-mail to music and photos — grew 85 percent in the year ending June to $3.8 billion, according to the CTIA. It's still a small piece of the $108 billion in overall mobile revenues in that year, but voice revenues only grew by 4.5 percent, according to CTIA.
Analysts at M:Metrics and other research firms say that disparity is pushing carriers to pursue data services. In search of growth — that holy grail of business — carriers, handset makers and software developers are fast introducing non-voice uses.
Indeed, even hardware companies not before involved in telephony have introduced products.
To wit: Apple Computer Inc. launched the iTunes ROKR, an iTunes-capable mobile phone, with Cingular Wireless and Motorola Inc. Hewlett-Packard Co. is working on an iPaq Pocket service that uses GPS mobile technology to tell the history of where the user happens to be.
Verizon Wireless in the last month alone launched half a dozen new data uses for its network, including several gaming services, a smartphone with Palm Inc. and Microsoft Corp., a productivity application for wireless laptops, and an MP3 phone. And like its competing carriers, itlaunched a mobile TV service.
The average cell phone user produces $47.93 in voice revenues and $3.50 in data revenues per month. But last year, average revenue per user grew less than 1 percent even though average minutes of use grew 15.8 percent, according to the CTIA.
So companies are turning to data services to ring up more sales.
"What you see happening, on the business side or the consumer side, is the cellular phone or wireless device has become the primary communications tool for most people," said Richard Garwood, president of Verizon Wireless' Northern California and Nevada region.
"Look at college kids and high school kids — it's the main tool for their tribe. Also, in the business community people want everything on one device, so they don't have to carry pager, laptop, calendar," Garwood said.
Verizon Wireless invested $1 billion in the past year above its usual $4 billion yearly expenditure on network upgrades to add high-speed broadband capability. Verizon thus became the first cellular carrier to roll out a broadband wireless network.
Cingular and Sprint, the other two major wireless carriers in the U.S., quickly followed with announcements of broadband intentions. Sprint has already begun to roll out its broadband service.
While Verizon said it upgraded to broadband because subscribers wanted it, the carrier is not sitting around waiting for subscribers to decide to use it. Instead Verizon is spending millions of dollars to underwrite the marketing of games and music and business applications developed by independent software developers for use on its network. In the month of September alone, Verizon helped launch applications by Gameloft, Namco America, Dell Computer, Palm Inc. and Microsoft Corp. It also launched its own MP3 music player mobile phone.
Meanwhile, Nokia Inc., the largest maker of mobile handsets worldwide, did its own share of underwriting the marketing efforts of third-party developers who created software for its Series 60 platform.
Nokia estimates 1.5 million developers worldwide are creating software for its mobile phones and for smartphones made by its competitors Research In Motion, which makes BlackBerry,
Saturday, October 15, 2005
Sprint Nextel Board Approves New Deferred Compensation Plan
Sprint Nextel Corp. (S) disclosed Friday that its board approved a new deferred compensation plan, to be effective Jan. 1, 2006.
Eligible participants will be employees of the communications company and its units at director level and above and outside directors, according to a document filed with the Securities and Exchange Commission.
Sprint Nextel said eligible employees will be allowed to elect, in the year before the compensation is earned, to contribute up to 75% of base salary and up to 100% of incentive compensation, in increments of 1%, to the deferred compensation plan.
Outside directors will be allowed to contribute up to 100% of director fees in increments of 1%, the filing said.
The company said that all contributions, and earnings credited to contributions, will be 100% vested.
Investment options will be selected by the employee benefits committee in a manner designed to offer diversification across asset classes, according to the filing.
The investment options will include phantom share units representing shares of Sprint Nextel common stock. All investments will be unfunded obligations of Sprint Nextel.
The company said participants will be able to transfer between investment options on any business day, but only four transfers may be made in each calendar year and three months must elapse between transfers.
In addition, participants will be able to elect payment of benefits to begin on a specified date at least five years in the future or upon termination of employment, the filing said.
Eligible participants will be employees of the communications company and its units at director level and above and outside directors, according to a document filed with the Securities and Exchange Commission.
Sprint Nextel said eligible employees will be allowed to elect, in the year before the compensation is earned, to contribute up to 75% of base salary and up to 100% of incentive compensation, in increments of 1%, to the deferred compensation plan.
Outside directors will be allowed to contribute up to 100% of director fees in increments of 1%, the filing said.
The company said that all contributions, and earnings credited to contributions, will be 100% vested.
Investment options will be selected by the employee benefits committee in a manner designed to offer diversification across asset classes, according to the filing.
The investment options will include phantom share units representing shares of Sprint Nextel common stock. All investments will be unfunded obligations of Sprint Nextel.
The company said participants will be able to transfer between investment options on any business day, but only four transfers may be made in each calendar year and three months must elapse between transfers.
In addition, participants will be able to elect payment of benefits to begin on a specified date at least five years in the future or upon termination of employment, the filing said.
Monday, October 10, 2005
Is VoIP Killing Big Telecom?
Last week's Sprint Nextel patent infringement suit against VoIP providers Vonage and Voiceglo make one thing clear: VoIP is killing off Big Telecom. The courts are always the last refuge of a dying industry.
VoIP challenges telecom providers as well as wireless companies and cable companies --- virtually anyone who still thinks that providing dialtone is a good business plan.
Making money off normal phone service is a thing of the past. IP telephony is less expensive and offers more features than normal phone service, both for consumers and corporations.
Sprint Nextel is trodding a well-worn path in resorting to the courts to try and save its business. Rather than fighting upstarts by innovating or offering better services, it's hoping its lawyers can bully them into submission, or maybe bleed them to death in a lengthy lawsuit.
Unless the courts ally themselves with Big Telecom, the tactic won't work. VoIP is here to stay, as are clever competitors like Vonage. As long as companies like Sprint Nextel believe the way to compete is through the courts, the handwriting is on the wall --- they're a thing of the past.
VoIP challenges telecom providers as well as wireless companies and cable companies --- virtually anyone who still thinks that providing dialtone is a good business plan.
Making money off normal phone service is a thing of the past. IP telephony is less expensive and offers more features than normal phone service, both for consumers and corporations.
Sprint Nextel is trodding a well-worn path in resorting to the courts to try and save its business. Rather than fighting upstarts by innovating or offering better services, it's hoping its lawyers can bully them into submission, or maybe bleed them to death in a lengthy lawsuit.
Unless the courts ally themselves with Big Telecom, the tactic won't work. VoIP is here to stay, as are clever competitors like Vonage. As long as companies like Sprint Nextel believe the way to compete is through the courts, the handwriting is on the wall --- they're a thing of the past.
BellSouth to Launch Nationwide Business Data Service
BellSouth (NYSE: BLS) announced today
that it signed an internetworking agreement with Sprint Nextel Corp. (NYSE: S)
to enable seamless connectivity for BellSouth's next generation data customers
across both providers' networks. Terms of the agreement were not disclosed.
The service is expected to launch in the first quarter of 2006 and will
initially utilize the BellSouth private IP backbone in the southeastern U.S.
and Sprint's network in other regions to link businesses with multiple
locations.
"BellSouth customers will now have nationwide access to leading data
capabilities, including full mesh connectivity and class of service priority
routing to support converged applications," said Fred Shaftman, president,
BellSouth Business. "Teaming with other industry leaders to bring both
traditional and next generation solutions to business customers continues to
be an important part of BellSouth's strategy."
BellSouth's nationwide data solution will utilize the security and
flexibility of MPLS (Multi-Protocol Label Switching) to allow internetworking
of multiple access methods. The nationwide service will seamlessly transport
data across both BellSouth and Sprint MPLS networks.
Many businesses have the challenge of linking multiple office locations
that are broadly distributed throughout the country to corporate resources.
Each location often has specific network access requirements and, in the past,
companies have had to self-integrate and manage these disparate networks
across the organization. BellSouth's nationwide service will provide a
managed network-based solution regardless of customer location.
"This new nationwide MPLS data service will immediately increase
BellSouth's addressable customer base and will strategically position them to
more effectively attract and retain large business customers," said Jeff
Kagan, an Atlanta-based telecom industry analyst.
For more information about BellSouth voice and data solutions for
businesses, visit http://www.bellsouthlargebusiness.com.
About BellSouth Corporation
BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, Georgia. BellSouth has joint control and 40 percent
ownership of Cingular Wireless, the nation's largest wireless voice and data
provider with 51.6 million customers.
Backed by award winning customer service, BellSouth offers the most
comprehensive and innovative package of voice and data services available in
the market. Through BellSouth Answers(R), residential and small business
customers can bundle their local and long distance service with dial-up and
high-speed DSL Internet access, satellite television and Cingular(R) Wireless
service. For businesses, BellSouth provides secure, reliable local and long
distance voice and data networking solutions. BellSouth also offers online and
directory advertising through BellSouth(R) RealPages.com(R) and The Real
Yellow Pages(R).
BellSouth believes that diversity and fostering an inclusive environment
are critical in maintaining a competitive advantage in today's global
marketplace.
that it signed an internetworking agreement with Sprint Nextel Corp. (NYSE: S)
to enable seamless connectivity for BellSouth's next generation data customers
across both providers' networks. Terms of the agreement were not disclosed.
The service is expected to launch in the first quarter of 2006 and will
initially utilize the BellSouth private IP backbone in the southeastern U.S.
and Sprint's network in other regions to link businesses with multiple
locations.
"BellSouth customers will now have nationwide access to leading data
capabilities, including full mesh connectivity and class of service priority
routing to support converged applications," said Fred Shaftman, president,
BellSouth Business. "Teaming with other industry leaders to bring both
traditional and next generation solutions to business customers continues to
be an important part of BellSouth's strategy."
BellSouth's nationwide data solution will utilize the security and
flexibility of MPLS (Multi-Protocol Label Switching) to allow internetworking
of multiple access methods. The nationwide service will seamlessly transport
data across both BellSouth and Sprint MPLS networks.
Many businesses have the challenge of linking multiple office locations
that are broadly distributed throughout the country to corporate resources.
Each location often has specific network access requirements and, in the past,
companies have had to self-integrate and manage these disparate networks
across the organization. BellSouth's nationwide service will provide a
managed network-based solution regardless of customer location.
"This new nationwide MPLS data service will immediately increase
BellSouth's addressable customer base and will strategically position them to
more effectively attract and retain large business customers," said Jeff
Kagan, an Atlanta-based telecom industry analyst.
For more information about BellSouth voice and data solutions for
businesses, visit http://www.bellsouthlargebusiness.com.
About BellSouth Corporation
BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, Georgia. BellSouth has joint control and 40 percent
ownership of Cingular Wireless, the nation's largest wireless voice and data
provider with 51.6 million customers.
Backed by award winning customer service, BellSouth offers the most
comprehensive and innovative package of voice and data services available in
the market. Through BellSouth Answers(R), residential and small business
customers can bundle their local and long distance service with dial-up and
high-speed DSL Internet access, satellite television and Cingular(R) Wireless
service. For businesses, BellSouth provides secure, reliable local and long
distance voice and data networking solutions. BellSouth also offers online and
directory advertising through BellSouth(R) RealPages.com(R) and The Real
Yellow Pages(R).
BellSouth believes that diversity and fostering an inclusive environment
are critical in maintaining a competitive advantage in today's global
marketplace.
Wednesday, October 05, 2005
Sprint Nextel Sues VoIP Firms
Sprint Nextel filed a patent infringement lawsuit Tuesday against Vonage Holdings and another VoIP provider after failed attempts by the telco to license its technology to the two companies.
In addition to Vonage, the No. 1 U.S. VoIP outfit, the suit also names TheGlobe.Com and its VoiceGlo Holdings unit.
Sprint Nextel alleges its patents protect a series of innovations that enable the processing and delivery of voice and data communications via packets, which is the way data is transmitted over the Internet. The company said that these methods also encompass VoIP.
Sprint filed the lawsuit in the U.S. District Court for the District of Kansas, and is seeking an injunction against the two firms from “further misappropriating” Sprint Nextel’s technology. The lawsuit also seeks unspecified monetary damages.
Debra Peterson, a spokeswoman for Sprint Nextel, said the company has a portfolio of patents covering technologies related to voice over packet communications.
While Sprint prefers to resolve disputes amicably, Sprint will take all necessary steps to protect the creativity and innovation of its employees,” she said.
Vonage representatives did not immediately return calls. The company is the leader in the North American VoIP market, with more than 1 million VoIP lines on the continent. Its closest cable rival, Time Warner, reported 614,000 lines at the close of its second quarter.
Vonage is also said to be preparing to go public, with multiple sources including The Wall Street Journal estimating the company is seeking between $400 million and $600 million.
Ed Cespedes, president of theglobe.com and its Voiceglo unit, both based in Ft. Lauderdale, Florida, said the lawsuit was without merit.
Products like ours that are low-cost or free, easy to acquire, and global are a natural threat to incumbent telecommunications companies,” added Mr. Cespedes.
VoiceGlo’s telephony product, GloPhone, has now reached about 5 million users around the world, according to a company release.
The seven patents held by Sprint Nextel relate to telecommunications controls and broadband telecommunications systems. The patents detail methods for how “packetized” communications get routed and verified in a network environment.
In addition to Vonage, the No. 1 U.S. VoIP outfit, the suit also names TheGlobe.Com and its VoiceGlo Holdings unit.
Sprint Nextel alleges its patents protect a series of innovations that enable the processing and delivery of voice and data communications via packets, which is the way data is transmitted over the Internet. The company said that these methods also encompass VoIP.
Sprint filed the lawsuit in the U.S. District Court for the District of Kansas, and is seeking an injunction against the two firms from “further misappropriating” Sprint Nextel’s technology. The lawsuit also seeks unspecified monetary damages.
Debra Peterson, a spokeswoman for Sprint Nextel, said the company has a portfolio of patents covering technologies related to voice over packet communications.
While Sprint prefers to resolve disputes amicably, Sprint will take all necessary steps to protect the creativity and innovation of its employees,” she said.
Vonage representatives did not immediately return calls. The company is the leader in the North American VoIP market, with more than 1 million VoIP lines on the continent. Its closest cable rival, Time Warner, reported 614,000 lines at the close of its second quarter.
Vonage is also said to be preparing to go public, with multiple sources including The Wall Street Journal estimating the company is seeking between $400 million and $600 million.
Ed Cespedes, president of theglobe.com and its Voiceglo unit, both based in Ft. Lauderdale, Florida, said the lawsuit was without merit.
Products like ours that are low-cost or free, easy to acquire, and global are a natural threat to incumbent telecommunications companies,” added Mr. Cespedes.
VoiceGlo’s telephony product, GloPhone, has now reached about 5 million users around the world, according to a company release.
The seven patents held by Sprint Nextel relate to telecommunications controls and broadband telecommunications systems. The patents detail methods for how “packetized” communications get routed and verified in a network environment.
Monday, October 03, 2005
Google's Wireless Plans May Pose Threat To Telecom Companies
Telecom and cable providers are already at battle with a number of government municipalities that are launching free or low-cost Internet services for their communities. Now Google could join the fray with its proposal to provide such services in San Francisco. If chosen as a provider, Google could compete with the city's local telephone and cable companies such as SBC Communications and Comcast.
Google made it public late last week that it was among the vendors that had submitted proposals to offer citywide Wi-Fi in San Francisco, which would give businesses and residents, including lower income neighborhoods, free Internet access. San Francisco Mayor Gavin Newsom launched the city's wireless initiative in August and submitted the Request for Information and Comment, which invited public, private, and non-profit companies to participate.
San Francisco is one a number of municipalities building city-wide wireless networks in hopes of overcoming the "digital divide" that keeps poorer residents from getting online. Telecom and cable providers, including BellSouth, Comcast, Cox, Qwest, SBC, and Verizon, have been lobbying Congress to stop municipalities, claiming that there are plenty of affordable broadband services already available from private providers. And a number of states, including Pennsylvania and Virginia, have passed laws that restrict municipalities' from offering broadband services. California, however, doesn't have such laws.
A law was passed in Pennsylvania late last year that prohibits municipalities from proceeding with wireless services without approval from the local telecom carrier. Philadelphia came to an agreement with Verizon, the state's primary phone-service provider, which will let Philadelphia proceed with its plans to build a citywide wireless network. The city is spending $10 million on a 135-square-mile wireless network, to go live in about a year. Low-income residents will pay about $10 a month for a subscription to the service and businesses will pay about $20 a month per subscription, says Dianah Neff, the city's CIO. "Only about 10% of our low income neighborhoods have Internet connectivity and about 90% of higher income neighborhoods have connectivity. The goal is to give everyone equal access," says Neff. Verizon, however, has indicated that it may not approve requests by other Pennsylvania cities looking to run their own wireless services.
Many technology vendors are encouraging and helping municipalities build wireless networks. Intel has backed Philadelphia's efforts and started an initiative called Digital Communities to increase adoption of wireless technology. Thirteen cities are on-board so far. Cisco Systems, Dell, IBM, Microsoft, and SAP are among the vendors planning to provide software and systems for cities.
Google's move raises the question as to whether it's looking to San Francisco as its entrance into the telecom and cable market, but Google says it doesn't have plans to offer citywide Wi-Fi beyond San Francisco. It's also still unclear if Google is a front-runner. Other companies have responded to San Francisco's request, including EarthLink.
In the meantime, Philadelphia is expected to announce the winner of the "Wireless Philadelphia" contract as early as this week. Hewlett-Packard and EarthLink are the finalists in the bidding, and the winning company will build Philadelphia's wireless network.
Google made it public late last week that it was among the vendors that had submitted proposals to offer citywide Wi-Fi in San Francisco, which would give businesses and residents, including lower income neighborhoods, free Internet access. San Francisco Mayor Gavin Newsom launched the city's wireless initiative in August and submitted the Request for Information and Comment, which invited public, private, and non-profit companies to participate.
San Francisco is one a number of municipalities building city-wide wireless networks in hopes of overcoming the "digital divide" that keeps poorer residents from getting online. Telecom and cable providers, including BellSouth, Comcast, Cox, Qwest, SBC, and Verizon, have been lobbying Congress to stop municipalities, claiming that there are plenty of affordable broadband services already available from private providers. And a number of states, including Pennsylvania and Virginia, have passed laws that restrict municipalities' from offering broadband services. California, however, doesn't have such laws.
A law was passed in Pennsylvania late last year that prohibits municipalities from proceeding with wireless services without approval from the local telecom carrier. Philadelphia came to an agreement with Verizon, the state's primary phone-service provider, which will let Philadelphia proceed with its plans to build a citywide wireless network. The city is spending $10 million on a 135-square-mile wireless network, to go live in about a year. Low-income residents will pay about $10 a month for a subscription to the service and businesses will pay about $20 a month per subscription, says Dianah Neff, the city's CIO. "Only about 10% of our low income neighborhoods have Internet connectivity and about 90% of higher income neighborhoods have connectivity. The goal is to give everyone equal access," says Neff. Verizon, however, has indicated that it may not approve requests by other Pennsylvania cities looking to run their own wireless services.
Many technology vendors are encouraging and helping municipalities build wireless networks. Intel has backed Philadelphia's efforts and started an initiative called Digital Communities to increase adoption of wireless technology. Thirteen cities are on-board so far. Cisco Systems, Dell, IBM, Microsoft, and SAP are among the vendors planning to provide software and systems for cities.
Google's move raises the question as to whether it's looking to San Francisco as its entrance into the telecom and cable market, but Google says it doesn't have plans to offer citywide Wi-Fi beyond San Francisco. It's also still unclear if Google is a front-runner. Other companies have responded to San Francisco's request, including EarthLink.
In the meantime, Philadelphia is expected to announce the winner of the "Wireless Philadelphia" contract as early as this week. Hewlett-Packard and EarthLink are the finalists in the bidding, and the winning company will build Philadelphia's wireless network.
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