Sprint Nextel is launching an over-the-air music service, an offering the company hopes will entice customers to pay high per-song fees in exchange for the instant gratification of wireless downloads.
The Sprint Music Store went live Monday with a catalog of songs from EMI Music, Sony BMG Music Entertainment, Warner Music Group, and Universal Music Group that Sprint said numbers in the hundreds of thousands.
For $2.50 per song, customers receive two digital copies, one formatted for use only on their phone and another formatted for downloading to a PC.
Sprint's music service is supported by two new multimedia phones, the Sanyo MM-9000, priced at $380 on Sprint's Web site, and the Samsung MM-A940, priced at $400.
The phones come with a removable memory card for buying and storing songs; an optional 1GB card will store 1000 songs purchased from the Sprint Music Store, according to the.
Needs Power Service The Sprint Music Store service also requires Sprint's Power Vision wireless broadband network, which the company began rolling out throughout the U.S. earlier this year.
Sprint's $2.50-per-song price more than doubles the 99 cents per track price pioneered by Apple's popular iTunes Music Store.
Jupiter Research telecommunications analyst Julie Ask said she expects the new service to be a good demonstration of Sprint's Power Vision network capabilities, but thinks few consumers will change carriers to take advantage of such offerings.
"At the end of the day, it's still all about price and network quality," Ask said.
Sprint's $2.50 price tag means its service won't be the primary way its customers purchase online music, Ask said.
Still, she sees the Sprint Music Store doing decent sales on impulse purchases, and she applauded Sprint for offering both phone- and PC-formatted files for one purchase price
Wednesday, November 30, 2005
Tuesday, November 22, 2005
Sprint Nextel to buy wireless affiliate Alamosa for $3.4bn
Sprint Nextel said on Monday it would buy wireless affiliate Alamosa Holdings for about $3.4bn, ending an exclusivity agreement breach that arose from Sprint’s purchase of Nextel Communications, which operates in some of Alamosa’s markets
Alamosa shareholders would receive $18.75 per share in cash, or a roughly 15% premium over Alamosa’s Friday closing price, under the agreement. The deal is worth $4.3bn, including $900m in net debt.
This is the fourth affiliate Sprint agreed to buy in recent months and it has been in talks with about six others as the Nextel deal interferes with its affiliates exclusive rights to the Sprint brand in their operating markets.
Sprint Nextel is also going through a valuation process for a former Nextel affiliate Nextel Partners, which it is being forced to buy. Both the companies have been engaged in bitter legal battles about how such a deal should be valued.
Alamosa shareholders would receive $18.75 per share in cash, or a roughly 15% premium over Alamosa’s Friday closing price, under the agreement. The deal is worth $4.3bn, including $900m in net debt.
This is the fourth affiliate Sprint agreed to buy in recent months and it has been in talks with about six others as the Nextel deal interferes with its affiliates exclusive rights to the Sprint brand in their operating markets.
Sprint Nextel is also going through a valuation process for a former Nextel affiliate Nextel Partners, which it is being forced to buy. Both the companies have been engaged in bitter legal battles about how such a deal should be valued.
Thursday, November 17, 2005
Sprint and Nextel Merge
Its official! Sprint and Nextel announced the finishing touches of a $36 billion merge, forming Sprint Nextel Corporation. These telecommunication firms agreed to merge last December creating the third largest wireless operator in the United States behind Cingular and Verizon Wireless.
According to the Sprint Nextel Corporation this merge will allow the corporation to become a leading communications provider that will offer a comprehensive range of innovative wireless and wire line products and services to consumer, business and government customers.
Sprint Nextel plans to offer customers a wide range of products and
As a combined corporation, Sprint Nextel will offer greater opportunities for customer's services.
That's great news for roommates Lauren Smith and Elizabeth Bethea, both seniors. The roommates of three years can now talk to each other on their cell phones for free, something they normally did not do before nights and weekends, since the merge of Sprint and Nextel.
"I like the fact that I can call my roommate and actually hold a conversation. Most of our conversations are usually limited to one of us saying, 'I'm low on minutes, I'll call you back after nine,' or 'hurry up, talk fast!' It's a win-win situation", said Betha a Sprint customer.
However, not everyone is satisfied with Sprint. Alexis Piggee, a junior Business Administration major, said "As a Sprint customer I have had several problems with my service. For example, I often lose my signal. Hopefully this merge will bring some sort of improvement to this issue," she said.
Damien Walter, an employee for the Sprint Nextel Corporation, stated "I don't find anything wrong with the merge itself," but said he did have problems with the training techniques.
"There was no hands-on involvement and a lack of information occurred. Now when a previous Nextel customer has issues I find it difficult to assist them," he continued.While the merger of these companies may seem appealing to the average consumer, there are some long-term issues worth considering. Nextel and Sprint's networks are incompatible and it will require a considerable investment of time and money to resolve this issue.
To convert all Nextel subscribers to the Sprint network would require replacing Nextel phones and ensuring that the "walkie-talkie" feature operated on a different network.
In the meantime, a significant financial commitment would have to be made in order to support two different technology platforms at the same time.
It is not required for customers to transfer from one provider to the other. Sprint will continue to maintain both networks until 2010.
According to the Sprint Nextel Corporation this merge will allow the corporation to become a leading communications provider that will offer a comprehensive range of innovative wireless and wire line products and services to consumer, business and government customers.
Sprint Nextel plans to offer customers a wide range of products and
As a combined corporation, Sprint Nextel will offer greater opportunities for customer's services.
That's great news for roommates Lauren Smith and Elizabeth Bethea, both seniors. The roommates of three years can now talk to each other on their cell phones for free, something they normally did not do before nights and weekends, since the merge of Sprint and Nextel.
"I like the fact that I can call my roommate and actually hold a conversation. Most of our conversations are usually limited to one of us saying, 'I'm low on minutes, I'll call you back after nine,' or 'hurry up, talk fast!' It's a win-win situation", said Betha a Sprint customer.
However, not everyone is satisfied with Sprint. Alexis Piggee, a junior Business Administration major, said "As a Sprint customer I have had several problems with my service. For example, I often lose my signal. Hopefully this merge will bring some sort of improvement to this issue," she said.
Damien Walter, an employee for the Sprint Nextel Corporation, stated "I don't find anything wrong with the merge itself," but said he did have problems with the training techniques.
"There was no hands-on involvement and a lack of information occurred. Now when a previous Nextel customer has issues I find it difficult to assist them," he continued.While the merger of these companies may seem appealing to the average consumer, there are some long-term issues worth considering. Nextel and Sprint's networks are incompatible and it will require a considerable investment of time and money to resolve this issue.
To convert all Nextel subscribers to the Sprint network would require replacing Nextel phones and ensuring that the "walkie-talkie" feature operated on a different network.
In the meantime, a significant financial commitment would have to be made in order to support two different technology platforms at the same time.
It is not required for customers to transfer from one provider to the other. Sprint will continue to maintain both networks until 2010.
Wednesday, November 16, 2005
Sprint adds pictures to Nextel walkie-talkie services
Sprint recently announced the availability of Nextel Direct Send Picture service, which lets subscribers send and review a picture while on a Nextel walkie-talkie call without having to access a separate data service.
With the new service, a subscriber on a walkie-talkie call can send a picture to the other Nextel subscriber on the call. The picture appears on the handset of both phones during the call, allowing the callers to view and discuss it. Transmission of the picture typically takes 8 to 12 seconds, Sprint spokeswoman Amy Schiska-Lombard said.
Sprint anticipates the feature will be especially popular for subscribers that frequently need to discuss site observations and events in real time.
"While sending pictures between mobile phones has been possible for quite some time, Direct Send Picture is unique in the marketplace because it allows customers to look at and discuss an image at the same time," Tony Krueck, Sprint’s vice president of product development and management, said in a prepared statement. "This kind of simple and efficient communication … is of extreme value to our customers, especially those in the construction, insurance, real estate and public-safety sectors."
Direct Send Picture is an extension of the Direct Send function Nextel unveiled last year. Direct Send lets subscribers send contact information and data into another subscriber’s contact list with the push of a walkie-talkie button.
Only subscribers with a Motorola i870 phone can immediately use the Direct Send Pictures function, which will be included on all future Nextel phones. In coming weeks, software upgrades will be available that will let owners of several existing Nextel phone models use Direct Send Pictures. Among the upgradeable phone models are the Motorola i850, i760, i560, i355 and i275.
“We think [the Direct Send software upgrades] will be available sometime in November,” Schiska-Lombard said.
Direct Send Pictures is exclusive to Nextel phones using the walkie-talkie service formerly known as Direct Connect that operates via the iDEN network, said. The service is not available on the ReadyLink push-to-talk service offered by Sprint PCS and is not compatible with Nextel’s Direct Talk—a radio-to-radio walkie-talkie service, as opposed to one that uses the network—offering, she said.
With the new service, a subscriber on a walkie-talkie call can send a picture to the other Nextel subscriber on the call. The picture appears on the handset of both phones during the call, allowing the callers to view and discuss it. Transmission of the picture typically takes 8 to 12 seconds, Sprint spokeswoman Amy Schiska-Lombard said.
Sprint anticipates the feature will be especially popular for subscribers that frequently need to discuss site observations and events in real time.
"While sending pictures between mobile phones has been possible for quite some time, Direct Send Picture is unique in the marketplace because it allows customers to look at and discuss an image at the same time," Tony Krueck, Sprint’s vice president of product development and management, said in a prepared statement. "This kind of simple and efficient communication … is of extreme value to our customers, especially those in the construction, insurance, real estate and public-safety sectors."
Direct Send Picture is an extension of the Direct Send function Nextel unveiled last year. Direct Send lets subscribers send contact information and data into another subscriber’s contact list with the push of a walkie-talkie button.
Only subscribers with a Motorola i870 phone can immediately use the Direct Send Pictures function, which will be included on all future Nextel phones. In coming weeks, software upgrades will be available that will let owners of several existing Nextel phone models use Direct Send Pictures. Among the upgradeable phone models are the Motorola i850, i760, i560, i355 and i275.
“We think [the Direct Send software upgrades] will be available sometime in November,” Schiska-Lombard said.
Direct Send Pictures is exclusive to Nextel phones using the walkie-talkie service formerly known as Direct Connect that operates via the iDEN network, said. The service is not available on the ReadyLink push-to-talk service offered by Sprint PCS and is not compatible with Nextel’s Direct Talk—a radio-to-radio walkie-talkie service, as opposed to one that uses the network—offering, she said.
Sprint Nextel Preps For Disabled Users
Sprint Nextel has completed work on its network that allows the company to prioritize telecommunications relay service (TRS) for individuals with hearing or speech disabilities. The development allows the company to participate in the Federal Communications Commission’s Telecommunications Service Priority (TSP) program that establishes and commits carriers to tiers of “must recover” services under emergency circumstances.
Prior to the Nextel merger, Sprint had provided TRS on a voluntary basis for about 15 years, but its “final milestone” for TSP now offers a network of enhanced call centers geographically disbursed throughout the United States. The FCC’s TSP program – which dates back to 1988 – establishes a priority status for critical circuits communicating with multiple terminating points; if outages occur, carriers in essence offer a guarantee of restoration on these circuits following specific TSP guidelines, essentially making sure services to certain user groups are restored under emergency conditions (Telecom Policy Report, Feb. 23).
The TSP program was established to prioritize restoration when telecom companies are typically overburdened with service requests, such as after natural disaster, but the concept has taken on added significance due to national homeland security concerns.
The special TSP codes for TRS were implemented on the Sprint Nextel backbone, long-haul wireline network, and they will be retained by the recently combined companies even after Sprint’s local exchange carrier (LEC) landline assets are divested as anticipated next year.
Prior to the Nextel merger, Sprint had provided TRS on a voluntary basis for about 15 years, but its “final milestone” for TSP now offers a network of enhanced call centers geographically disbursed throughout the United States. The FCC’s TSP program – which dates back to 1988 – establishes a priority status for critical circuits communicating with multiple terminating points; if outages occur, carriers in essence offer a guarantee of restoration on these circuits following specific TSP guidelines, essentially making sure services to certain user groups are restored under emergency conditions (Telecom Policy Report, Feb. 23).
The TSP program was established to prioritize restoration when telecom companies are typically overburdened with service requests, such as after natural disaster, but the concept has taken on added significance due to national homeland security concerns.
The special TSP codes for TRS were implemented on the Sprint Nextel backbone, long-haul wireline network, and they will be retained by the recently combined companies even after Sprint’s local exchange carrier (LEC) landline assets are divested as anticipated next year.
Tuesday, November 15, 2005
Sprint Nextel to sell ultrathin Samsung phone
Sprint Nextel Corp (S.N: Quote, Profile, Research) plans to start selling a slim phone from Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research) in a few weeks in a bid to attract fashion conscious customers, Sprint Nextel's chief operating officer Len Lauer said on Tuesday.
The phone, which is seen as Samsung's answer to Motorola Inc.'s (MOT.N: Quote, Profile, Research) skinny and highly popular Razr phone, may help Sprint Nextel, the No. 3 U.S. mobile phone firm, compete with bigger rivals Cingular Wireless and Verizon Wireless.
As the number of people who do not already own a phone is shrinking, operators are offering more sophisticated phones and advanced services such as wireless video and music to help them keep their own customers and lure rival customers away.
The No. 1 U.S. mobile service Cingular, a venture of SBC Communications Inc. (SBC.N: Quote, Profile, Research) and BellSouth Corp (BLS.N: Quote, Profile, Research), has seen its growth boosted by the Razr, which has became a design icon, since it started selling the phone about a year ago.
Verizon Wireless, a venture of Verizon Communications (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research), is also widely expected to start selling a version of the Razr by year-end.
Speaking at the sidelines of the UBS Global Communications Conference here in New York Lauer implied that Sprint Nextel would not plan to sell the Razr along with the Samsung phone.
"We think this is a better device," said Lauer adding that he preferred the ergonomics of the Samsung phone.
He would not disclose the price tag for the Samsung A900 phone. For a time period that Lauer also would not disclose, Sprint Nextel has exclusive U.S. rights to sell the phone, a version of which is already on the market in Korea,
Lauer said it was too soon to tell how well consumers are receiving a wireless song download service that Sprint Nextel launched about two weeks ago.
"I think it's six to eight months before we know," said Lauer, who noted that the service only works on advanced mobile phones that the company just recently put in its stores.
The phone, which is seen as Samsung's answer to Motorola Inc.'s (MOT.N: Quote, Profile, Research) skinny and highly popular Razr phone, may help Sprint Nextel, the No. 3 U.S. mobile phone firm, compete with bigger rivals Cingular Wireless and Verizon Wireless.
As the number of people who do not already own a phone is shrinking, operators are offering more sophisticated phones and advanced services such as wireless video and music to help them keep their own customers and lure rival customers away.
The No. 1 U.S. mobile service Cingular, a venture of SBC Communications Inc. (SBC.N: Quote, Profile, Research) and BellSouth Corp (BLS.N: Quote, Profile, Research), has seen its growth boosted by the Razr, which has became a design icon, since it started selling the phone about a year ago.
Verizon Wireless, a venture of Verizon Communications (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research), is also widely expected to start selling a version of the Razr by year-end.
Speaking at the sidelines of the UBS Global Communications Conference here in New York Lauer implied that Sprint Nextel would not plan to sell the Razr along with the Samsung phone.
"We think this is a better device," said Lauer adding that he preferred the ergonomics of the Samsung phone.
He would not disclose the price tag for the Samsung A900 phone. For a time period that Lauer also would not disclose, Sprint Nextel has exclusive U.S. rights to sell the phone, a version of which is already on the market in Korea,
Lauer said it was too soon to tell how well consumers are receiving a wireless song download service that Sprint Nextel launched about two weeks ago.
"I think it's six to eight months before we know," said Lauer, who noted that the service only works on advanced mobile phones that the company just recently put in its stores.
Monday, November 14, 2005
Sprint Completes Voluntary Telecommunications Services
Sprint (NYSE: S) today announced that it has completed the final milestone in enrolling Sprint’s telecommunications relay service (TRS) in the FCC’s Telecommunications Service Priority (TSP) Program. Sprint TRS, communications services available for individuals who are deaf, hard of hearing or have a speech disability, is comprised of a network of call centers geographically disbursed throughout the United States. Effective Oct. 31, 2005, all 14 Sprint Relay call centers were successfully activated under the TSP Program.
"In less than five months, we were able to complete the implementation of the FCC’s TSP program," said Mike Ligas, director of Sprint Relay. "Sprint is dedicated to providing effective communications services for individuals who are deaf or hard of hearing and we recognized the urgency to ensure reliable communications during emergency situations."
In 1988, TSP program was established to prioritize the restoration of telephone service to critical facilities and agencies at times when telecommunications companies are typically overburdened with service requests, such as after a natural disaster. In the event of a regional or national crisis, the program restores telephone services most critical to national and homeland security on a priority basis.
Sprint Relay Portfolio of Services
Sprint more than15 years of experience in providing relay services to persons who are deaf, hard of hearing or deaf-blind or who have a speech disability to communicate with hearing persons on the phone. Sprint offers relay services through an intelligent platform to the federal government, 31 states, the Commonwealth of Puerto Rico and New Zealand. Sprint’s experience in the field provides the assurance that all Sprint Relay services will meet or exceed Federal Communications Commission requirements for telecommunications relay services (TRS). Relay service is available 24 hours a day, 365 days a year, with no restrictions on the number of calls placed or call length.
"In less than five months, we were able to complete the implementation of the FCC’s TSP program," said Mike Ligas, director of Sprint Relay. "Sprint is dedicated to providing effective communications services for individuals who are deaf or hard of hearing and we recognized the urgency to ensure reliable communications during emergency situations."
In 1988, TSP program was established to prioritize the restoration of telephone service to critical facilities and agencies at times when telecommunications companies are typically overburdened with service requests, such as after a natural disaster. In the event of a regional or national crisis, the program restores telephone services most critical to national and homeland security on a priority basis.
Sprint Relay Portfolio of Services
Sprint more than15 years of experience in providing relay services to persons who are deaf, hard of hearing or deaf-blind or who have a speech disability to communicate with hearing persons on the phone. Sprint offers relay services through an intelligent platform to the federal government, 31 states, the Commonwealth of Puerto Rico and New Zealand. Sprint’s experience in the field provides the assurance that all Sprint Relay services will meet or exceed Federal Communications Commission requirements for telecommunications relay services (TRS). Relay service is available 24 hours a day, 365 days a year, with no restrictions on the number of calls placed or call length.
Sprint Nextel Shares Seen Undervalued
David Barden of Banc of America maintained a "buy" rating and $32 price target on Sprint Nextel (nyse: S - news - people ) and updated earnings estimates for the company to capture the latest information now available from the merged company, including third-quarter 2005 results.
"Sprint Nextel remains the best value/growth relationship in our coverage," said the analyst.
Barden lowered Sprint Nextel's 2005 and 2006 estimates for earnings before interest, taxes, depreciation and amortization to $14.12 billion and $16.15 billion, respectively, from $14.16 billion and $16.4 billion. He lowered 2005 and 2006 earnings-per-share estimates to $1.18 and $1.07, respectively, from $1.23 and $1.19. He raised the 2006 pro forma revenue estimate to $47.4 billion from of $47.2 billion.
"Sprint Nextel's exposure to the positive fundamentals of the wireless business is undervalued due to overhanging concerns about the industry and merger-related issues," said the analyst. "The stock should appreciate as management demonstrates the ability to grow the business and extract synergies, resolve affiliate issues and split the company into growth and value components."
In its coverage of wireline and wireless telecommunications services, Banc of America's top picks are Sprint Nextel and Alltel (nyse: AT - news - people ), both rated at "buy" with respective price targets of $32 and $70. Its least favorite is CenturyTel (nyse: CTL - news - people ), rated at "neutral" with a $31 price target.
"Sprint Nextel remains the best value/growth relationship in our coverage," said the analyst.
Barden lowered Sprint Nextel's 2005 and 2006 estimates for earnings before interest, taxes, depreciation and amortization to $14.12 billion and $16.15 billion, respectively, from $14.16 billion and $16.4 billion. He lowered 2005 and 2006 earnings-per-share estimates to $1.18 and $1.07, respectively, from $1.23 and $1.19. He raised the 2006 pro forma revenue estimate to $47.4 billion from of $47.2 billion.
"Sprint Nextel's exposure to the positive fundamentals of the wireless business is undervalued due to overhanging concerns about the industry and merger-related issues," said the analyst. "The stock should appreciate as management demonstrates the ability to grow the business and extract synergies, resolve affiliate issues and split the company into growth and value components."
In its coverage of wireline and wireless telecommunications services, Banc of America's top picks are Sprint Nextel and Alltel (nyse: AT - news - people ), both rated at "buy" with respective price targets of $32 and $70. Its least favorite is CenturyTel (nyse: CTL - news - people ), rated at "neutral" with a $31 price target.
Sunday, November 13, 2005
Wireless TV deal to boost medium
When it comes to seeing what's the next big thing for cell phones, the picture can be a bit blurry.
But hindsight, as they say, is 20/20.
First, it was sending text messages. Then it was downloading ringtones. Then it was taking photographs. Then it was listening to MP3s.
Then, just a few weeks ago, it was watching television -- and in many ways, it still is.
It's just that now, Sprint Nextel Corp. has added a new wrinkle. And what that wrinkle means for consumers in Indianapolis and across the United States is just starting to emerge.
This month, the carrier announced an alliance with four cable TV companies, including Advance/Newhouse Communications Inc., parent of local provider Bright House Networks.
The companies, starting in 2006, will deliver their own voice services through Sprint Nextel on co-branded phones. Indianapolis consumers, for instance, would have Sprint Nextel phone that also have Bright House logos on them.
In return, the cable companies are expected to increase the number of live television channels and recorded video clips available on Sprint Nextel cell phones, as well as tailor them to specific markets. If there's a high school football game on television, next year consumers may be able to watch it on their cell phones.
And all of that video will cross Sprint Nextel's new higher- capacity network. That means the images -- especially live television -- will be smoother than what currently is available.
"How do you best leverage what the cable companies already do really well? Make it wireless," said Arthur Orduna, vice president of strategic initiatives for Advance/Newhouse Communications.
"Video has been a core product of ours since day one," added Buz Nesbit, president of Bright House Networks' Indianapolis division.
So far, consumers have tuned in rather slowly to television on cell phones. It's mostly a niche market for now.
Only 1 percent of Americans with cell phones watched video on them in September, according to M:Metrics, a market research firm that specializes in mobile content and applications. MobiTV Inc., a third-party company that puts most of that video on cellular networks, says it has signed up about 500,000 subscribers.
Still, those who do tune in do so regularly.
Nearly 30 percent of the 1.6 million subscribers who watched video clips in September did it at least once a week, and 51 percent of the 1.4 million subscribers who watched streaming video did it multiple times that month.
For those numbers to grow further, carriers must deploy higher-capacity networks, introduce more video-capable cell phones and create a broader range of video content, analysts say.
"The challenge for the industry now becomes one of raising consumer awareness of mobile video and ensuring that programming is packaged and priced in a compelling way," said M:Metrics senior analyst Mark Donovan.
Those are all things that Sprint Nextel's alliance with Advance/Newhouse, Comcast Corp., Time Warner Inc. and Cox Communications Inc. is expected to do.
"We see our customers upgrade their (cell phone) handsets every one or two years," said Kevin Gleason, Indiana's vice president of consumer solutions for Sprint Nextel. "There's so many customers that don't understand what they can get. Customers, once they see it, it's something they want to take advantage of."
Here, or coming soon
Right now, two of the big three U.S. carriers offer live television. But both Sprint Nextel and Cingular Wireless do so over their lower-capacity networks, meaning the video is rather choppy. Sprint Nextel's higher-capacity network is rolling out now, and Cingular's will early next year.
That meshes with predictions about the mobile television market.
British research firm Informa Telecoms and Media predicts that in just five years, there will be more users of broadcast mobile TV worldwide -- 124.8 million -- than there are U.S. TV homes (110 million). And according to M:Metrics, 6.1 million American consumers said they were likely to watch recorded video or live TV on their cell phones in 2006.
"The fact that more people intend to watch mobile video than the number who are downloading games today is very encouraging for this market," Donovan said.
But for consumers in Indianapolis and elsewhere, much of what they will get out of the Sprint Nextel deal will revolve around convergence, analysts say.
More to offer
A slew of services will emerge, combining landline and wireless phone, cable and Internet services.
Examples include the ability to program your home cable box to record a television show from a cell phone and calling plans that combine landline and cell services for unlimited use.
"The biggest impact will be on the consumer who will suddenly learn that bundled services mean more than discounts. They mean a range of new communications and entertainment choices," wrote analyst Charles S. Golvin in a report for Forrester Research Inc.
What these services will cost will vary by market, and Bright House hasn't cited any yet.
The price structure, like the technology that will support these novel services, will be developing over the next few months.
"We're gonna build the mousetrap, but the cheese had better be good," Orduna said.
But hindsight, as they say, is 20/20.
First, it was sending text messages. Then it was downloading ringtones. Then it was taking photographs. Then it was listening to MP3s.
Then, just a few weeks ago, it was watching television -- and in many ways, it still is.
It's just that now, Sprint Nextel Corp. has added a new wrinkle. And what that wrinkle means for consumers in Indianapolis and across the United States is just starting to emerge.
This month, the carrier announced an alliance with four cable TV companies, including Advance/Newhouse Communications Inc., parent of local provider Bright House Networks.
The companies, starting in 2006, will deliver their own voice services through Sprint Nextel on co-branded phones. Indianapolis consumers, for instance, would have Sprint Nextel phone that also have Bright House logos on them.
In return, the cable companies are expected to increase the number of live television channels and recorded video clips available on Sprint Nextel cell phones, as well as tailor them to specific markets. If there's a high school football game on television, next year consumers may be able to watch it on their cell phones.
And all of that video will cross Sprint Nextel's new higher- capacity network. That means the images -- especially live television -- will be smoother than what currently is available.
"How do you best leverage what the cable companies already do really well? Make it wireless," said Arthur Orduna, vice president of strategic initiatives for Advance/Newhouse Communications.
"Video has been a core product of ours since day one," added Buz Nesbit, president of Bright House Networks' Indianapolis division.
So far, consumers have tuned in rather slowly to television on cell phones. It's mostly a niche market for now.
Only 1 percent of Americans with cell phones watched video on them in September, according to M:Metrics, a market research firm that specializes in mobile content and applications. MobiTV Inc., a third-party company that puts most of that video on cellular networks, says it has signed up about 500,000 subscribers.
Still, those who do tune in do so regularly.
Nearly 30 percent of the 1.6 million subscribers who watched video clips in September did it at least once a week, and 51 percent of the 1.4 million subscribers who watched streaming video did it multiple times that month.
For those numbers to grow further, carriers must deploy higher-capacity networks, introduce more video-capable cell phones and create a broader range of video content, analysts say.
"The challenge for the industry now becomes one of raising consumer awareness of mobile video and ensuring that programming is packaged and priced in a compelling way," said M:Metrics senior analyst Mark Donovan.
Those are all things that Sprint Nextel's alliance with Advance/Newhouse, Comcast Corp., Time Warner Inc. and Cox Communications Inc. is expected to do.
"We see our customers upgrade their (cell phone) handsets every one or two years," said Kevin Gleason, Indiana's vice president of consumer solutions for Sprint Nextel. "There's so many customers that don't understand what they can get. Customers, once they see it, it's something they want to take advantage of."
Here, or coming soon
Right now, two of the big three U.S. carriers offer live television. But both Sprint Nextel and Cingular Wireless do so over their lower-capacity networks, meaning the video is rather choppy. Sprint Nextel's higher-capacity network is rolling out now, and Cingular's will early next year.
That meshes with predictions about the mobile television market.
British research firm Informa Telecoms and Media predicts that in just five years, there will be more users of broadcast mobile TV worldwide -- 124.8 million -- than there are U.S. TV homes (110 million). And according to M:Metrics, 6.1 million American consumers said they were likely to watch recorded video or live TV on their cell phones in 2006.
"The fact that more people intend to watch mobile video than the number who are downloading games today is very encouraging for this market," Donovan said.
But for consumers in Indianapolis and elsewhere, much of what they will get out of the Sprint Nextel deal will revolve around convergence, analysts say.
More to offer
A slew of services will emerge, combining landline and wireless phone, cable and Internet services.
Examples include the ability to program your home cable box to record a television show from a cell phone and calling plans that combine landline and cell services for unlimited use.
"The biggest impact will be on the consumer who will suddenly learn that bundled services mean more than discounts. They mean a range of new communications and entertainment choices," wrote analyst Charles S. Golvin in a report for Forrester Research Inc.
What these services will cost will vary by market, and Bright House hasn't cited any yet.
The price structure, like the technology that will support these novel services, will be developing over the next few months.
"We're gonna build the mousetrap, but the cheese had better be good," Orduna said.
Monday, November 07, 2005
Yahoo Ringing, But Not Sprint
Internet giant Yahoo Inc.'s latest endeavor, a cell phone service, will use the network of Cingular Wireless, a source said Monday.
Its choice of cell phone network operator is a significant one, though to some degree expected.
When well-known brands ranging from "Ma Bell" AT&T to the Virgin retailing empire of Sir Richard Branson wanted to launch a cell phone operation, they would usually deal with Sprint Nextel, the No. 3 U.S. cell phone operator. Just last week, a partnership consisting of cable operators Comcast, Time Warner, Cox Communications and Advance/Newhouse Communications chose Sprint for just such a task.
In a way, Sprint Nextel may be suffering from its success in pioneering the MVNO (mobile virtual network operator) market. By racking up so many deals, some analysts are worried that its network may not be able to handle more of the MVNO load.
Its choice of cell phone network operator is a significant one, though to some degree expected.
When well-known brands ranging from "Ma Bell" AT&T to the Virgin retailing empire of Sir Richard Branson wanted to launch a cell phone operation, they would usually deal with Sprint Nextel, the No. 3 U.S. cell phone operator. Just last week, a partnership consisting of cable operators Comcast, Time Warner, Cox Communications and Advance/Newhouse Communications chose Sprint for just such a task.
In a way, Sprint Nextel may be suffering from its success in pioneering the MVNO (mobile virtual network operator) market. By racking up so many deals, some analysts are worried that its network may not be able to handle more of the MVNO load.
Sprint Launches the Latest Innovation for Nextel Walkie-Talkie Services - Nextel Direct Send(SM) Picture
Sprint (NYSE: S) today announced the availability of Nextel Direct Send(SM) Picture, a first-of-its-kind service that allows Nextel subscribers with capable Nextel phones the ability to send and review a picture quickly and easily, all while on a Nextel Walkie-Talkie call. The picture simultaneously appears on both the user's and recipient's phones during the call - so they can both view and discuss it without changing between voice and data services. This capability builds upon the Direct Send service launched last year that utilizes the Nextel Walkie-Talkie button to send contact information and transfer the data into another subscriber's contact list.
Nextel Direct Send Picture is ideal for those who communicate frequently about site observations and events taking place in real time. For example, realtors could use it to review and discuss a new property on the market with a client. Insurance adjustors assessing damage claims also would find the service valuable as they instantly communicate on-site information to their home office and customers, all using Walkie-Talkie capability.
"With the launch of Nextel Direct Send Picture, Sprint further expands the benefits of the Nextel Walkie-Talkie portfolio by offering enhanced services that move beyond traditional capabilities," said Rena Bhattacharyya, IDC. "Sprint continues to maintain its leadership and build upon its expertise in the push to communicate arena, leveraging an innovative portfolio with an understanding of business telecommunication requirements."
"While sending pictures between mobile phones has been possible for quite some time, Direct Send Picture is unique in the marketplace because it allows customers to look at and discuss an image at the same time," said Tony Krueck, vice president, product development and management, for Sprint. "This kind of simple and efficient communication that is the hallmark of Nextel Walkie-Talkie services is of extreme value to our customers, especially those in the construction, insurance, real estate and public safety sectors."
Using Direct Send to transmit a picture is easy if you have a capable Nextel phone, and involves just a few simple steps. While in a Walkie-Talkie call, a user can take a picture and send it, or select one already saved onto the handset. As part of a special introductory offer, customers will be able to use the Direct Send Picture service free of charge until Feb. 28, 2006. Following the promotional period, users will be charged a per-image fee of $0.25 for images sent and received. Nextel Walkie-Talkie usage may apply to the period of the call before and after the image is transmitted, depending on a customer's rate plan.
Direct Send Picture is now available on the recently announced Motorola i870, and will be included on all future Nextel phones. Software upgrades to enable Direct Send Picture will also be rolled out over the coming weeks for select Nextel phone models already in the market including the Motorola i850, i760, i560, i355 and i275.
Sprint has been at the forefront of Walkie-Talkie innovation for more than 13 years, and has continually enhanced its portfolio of services to provide customers innovative, instant communications options across the country, across borders and virtually everywhere in between. In addition to Direct Send Picture, Nextel Walkie-Talkie services (previously branded Direct Connect) include:
-- Nextel Nationwide Walkie-Talkie - instantly connect from coast to coast with any other user on the Nextel National Network.
-- Nextel International Walkie-Talkie - instantly connect with other users in and between the U.S. and up to five countries including Argentina, Brazil, Canada, Mexico and Peru.
-- Nextel Group Walkie-Talkie - instantly connect with up to 20 users nationwide at once.
-- NextMail(SM) - send a voice message to any email address worldwide, even if the recipient is not a Nextel user.
-- Direct Talk(SM) - makes short-range off-network walkie-talkie conversations possible between users with compatible phones.
-- Direct Send Contact -instantly send full contact information and import into a phone's Contact list.
Nextel Direct Send Picture is ideal for those who communicate frequently about site observations and events taking place in real time. For example, realtors could use it to review and discuss a new property on the market with a client. Insurance adjustors assessing damage claims also would find the service valuable as they instantly communicate on-site information to their home office and customers, all using Walkie-Talkie capability.
"With the launch of Nextel Direct Send Picture, Sprint further expands the benefits of the Nextel Walkie-Talkie portfolio by offering enhanced services that move beyond traditional capabilities," said Rena Bhattacharyya, IDC. "Sprint continues to maintain its leadership and build upon its expertise in the push to communicate arena, leveraging an innovative portfolio with an understanding of business telecommunication requirements."
"While sending pictures between mobile phones has been possible for quite some time, Direct Send Picture is unique in the marketplace because it allows customers to look at and discuss an image at the same time," said Tony Krueck, vice president, product development and management, for Sprint. "This kind of simple and efficient communication that is the hallmark of Nextel Walkie-Talkie services is of extreme value to our customers, especially those in the construction, insurance, real estate and public safety sectors."
Using Direct Send to transmit a picture is easy if you have a capable Nextel phone, and involves just a few simple steps. While in a Walkie-Talkie call, a user can take a picture and send it, or select one already saved onto the handset. As part of a special introductory offer, customers will be able to use the Direct Send Picture service free of charge until Feb. 28, 2006. Following the promotional period, users will be charged a per-image fee of $0.25 for images sent and received. Nextel Walkie-Talkie usage may apply to the period of the call before and after the image is transmitted, depending on a customer's rate plan.
Direct Send Picture is now available on the recently announced Motorola i870, and will be included on all future Nextel phones. Software upgrades to enable Direct Send Picture will also be rolled out over the coming weeks for select Nextel phone models already in the market including the Motorola i850, i760, i560, i355 and i275.
Sprint has been at the forefront of Walkie-Talkie innovation for more than 13 years, and has continually enhanced its portfolio of services to provide customers innovative, instant communications options across the country, across borders and virtually everywhere in between. In addition to Direct Send Picture, Nextel Walkie-Talkie services (previously branded Direct Connect) include:
-- Nextel Nationwide Walkie-Talkie - instantly connect from coast to coast with any other user on the Nextel National Network.
-- Nextel International Walkie-Talkie - instantly connect with other users in and between the U.S. and up to five countries including Argentina, Brazil, Canada, Mexico and Peru.
-- Nextel Group Walkie-Talkie - instantly connect with up to 20 users nationwide at once.
-- NextMail(SM) - send a voice message to any email address worldwide, even if the recipient is not a Nextel user.
-- Direct Talk(SM) - makes short-range off-network walkie-talkie conversations possible between users with compatible phones.
-- Direct Send Contact -instantly send full contact information and import into a phone's Contact list.
Tuesday, November 01, 2005
Sprint Nextel Restores Service in Florida.
Wireless company Sprint Nextel Corp. said Tuesday its service in south Florida has nearly been restored, with less than 1 percent of local phone customers remaining without service.
Hurricane Wilma interrupted service in the region and Sprint Nextel estimates that some 2,100 local access lines have yet to be restored. Crews have restored more than 120,000 local lines in the area.
More than 90 percent of wireless networks are currently operational in south Florida, with recovery efforts focused on the southeast coast, primarily in the Miami-Dade, Broward, Palm Beach, Monroe, Martin and St. Lucie counties where power outages remain an issue.
Sprint Nextel also said it is experiencing longer delays for local service installation and repairs in its central and south Florida areas.
Shares of Sprint Nextel added 37 cents, or 1.6 percent, to $23.68 in afternoon trading on the New York Stock Exchange.
Hurricane Wilma interrupted service in the region and Sprint Nextel estimates that some 2,100 local access lines have yet to be restored. Crews have restored more than 120,000 local lines in the area.
More than 90 percent of wireless networks are currently operational in south Florida, with recovery efforts focused on the southeast coast, primarily in the Miami-Dade, Broward, Palm Beach, Monroe, Martin and St. Lucie counties where power outages remain an issue.
Sprint Nextel also said it is experiencing longer delays for local service installation and repairs in its central and south Florida areas.
Shares of Sprint Nextel added 37 cents, or 1.6 percent, to $23.68 in afternoon trading on the New York Stock Exchange.
Sprint Nextel Restores Service in Florida.
Wireless company Sprint Nextel Corp. said Tuesday its service in south Florida has nearly been restored, with less than 1 percent of local phone customers remaining without service.
Hurricane Wilma interrupted service in the region and Sprint Nextel estimates that some 2,100 local access lines have yet to be restored. Crews have restored more than 120,000 local lines in the area.
More than 90 percent of wireless networks are currently operational in south Florida, with recovery efforts focused on the southeast coast, primarily in the Miami-Dade, Broward, Palm Beach, Monroe, Martin and St. Lucie counties where power outages remain an issue.
Sprint Nextel also said it is experiencing longer delays for local service installation and repairs in its central and south Florida areas.
Shares of Sprint Nextel added 37 cents, or 1.6 percent, to $23.68 in afternoon trading on the New York Stock Exchange.
Hurricane Wilma interrupted service in the region and Sprint Nextel estimates that some 2,100 local access lines have yet to be restored. Crews have restored more than 120,000 local lines in the area.
More than 90 percent of wireless networks are currently operational in south Florida, with recovery efforts focused on the southeast coast, primarily in the Miami-Dade, Broward, Palm Beach, Monroe, Martin and St. Lucie counties where power outages remain an issue.
Sprint Nextel also said it is experiencing longer delays for local service installation and repairs in its central and south Florida areas.
Shares of Sprint Nextel added 37 cents, or 1.6 percent, to $23.68 in afternoon trading on the New York Stock Exchange.
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