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PSA: Sprint's iDEN push-to-talk network rides into the sunset June 30th
The end of an era arrives Sunday, when Sprint will officially shut the door on its Nextel iDEN push-to-talk service. Subscribers who've held onto the legacy PTT standard with white knuckle grips (and extra fees) will have to switch to its CDMA-based Direct Connect offering for continued chirping capabilities -- or migrate to the likes of Ma Bell's haus. The freed up 800MHz spectrum won't remain idle; if you'll recall, it'll be re-allocated to give a major boost to Sprint's 4G CDMA voice/LTE data rollout for 2014. Hurry up and make that switch if you haven't already and relive some Sprint Nextel memories with us after the break.
Sprint makes formal offer of $2.1 billion to acquire Clearwire
Sprint Nextel has just put a $2.1 billion offer on the table to fully purchase wireless provider Clearwire, verifying recent reports of "active negotiations" between the two. The network already owns a majority stake, but would like complete control of the company (and its spectrum), including roughly 12.4 percent collectively held by Intel and Comcast. However, Japanese carrier Softbank, which wants to buy 70 percent of Sprint, needs to clear the offer before it's truly official. Sprint said in a regulatory filing that the Clearwire deal also hinges on Softbank's purchase going through (expected March or April next year), so there are still a few boxes that need ticking before any formal acquisition process can begin.
Sprint plans $10 monthly charge for iDEN push-to-talk subs in the new year
For Nextel push-to-talk subs, the writing's been on the wall for some time now, what with that legacy service destined to sunset on June 30th, 2013. But for those unwilling to heed Sprint's many early warnings and make the switch to its CDMA-based Direct Connect plan before this coming January, there'll be an additional monthly penalty fee. Sprint's confirmed to us that, starting in the new year, (stubborn) iDEN subs who've yet to migrate away from the network will incur an extra $10 charge per billing cycle. In lieu of that, the carrier's advising users to transition now and take advantage of its myriad incentive programs while they last. It's not a permanent change though, as this recurring fee will last only as long as the Nextel National Network does, at which point that 800MHz spectrum will be rolled over for the carrier's planned LTE build-out. But PTT holdouts irked by this news won't have to tie their fates to Sprint -- AT&T's been anticipating this churn and is waiting with open arms.
Sprint sells 1.5 million iPhones, 1 million other smartphones, but makes a net loss of $767 million
Sprint's latest financials show that while the network is slowly stemming the flow of cash from its veins, it's not quite there in terms of turning a profit. The country's third biggest carrier suffered a $767 million net loss and an operating loss of $231 million -- much less than the $629 million operating loss it had in Q2, but on-par with the $208 million lost in the same period last year. The business did manage to bring in total revenues of $8.8 billion, but had to take a hit on a $397 million write-down on costs related to Network Vision and the continued pain of the Nextel shutdown. On the customer size, it added a further 900,000 users, sold 1.5 million iPhones and a further 1 million "LTE smartphones" in the quarter. Those with long memories will know that the company sold the same number of Apple handsets in the last two quarters, with around 40 percent going to new customers then as now. However, churn, the deadly enemy of all carriers, increased to 1.88 percent, up from 1.69 percent in Q2. The network did manage to coax 59 percent of former Nextel customers to stay tied up with Big Yellow, which may account for it selling nearly 1.2 million Direct Connect devices. While it's hardly a rosy estimation of Sprint's financial health, this report doesn't take into account Softbank's $20.1 billion buy-out or the regained controlling stake in Clearwire -- so we're expecting the next financial announcement to contain some more exciting news. Update: During the conference call, Dan Hesse was asked about adopting a shared data plan to rival Verizon and AT&T, but unlike the last call, he was dismissive of the idea.
Where you at? Sprint Direct Connect Now brings push-to-talk to select Android devices
Sprint announced on Wednesday the availability of its new Direct Connect Now Android app, which brings push-to-talk capabilities to the Kyocera Rise and LG Optimus Elite with support for other devices "coming soon." Compatible with both Nextel and Sprint Direct Connect devices, this free app features group calls for up to 21 people, touchscreen controls, call alert notifications and contact synchronization. While we appreciate this advancement in push-to-talk communication, we can't help but shed a tear reminiscing about the good old days of Boost Mobile's "where you at?" campaign. Please join us as we pour one out and celebrate faded memories of the chirp.
Sprint Nextel takes control of Clearwire after increasing stake to 50.8 percent
A securities filing has just revealed that Sprint Nextel has acquired 50.8 percent of Clearwire Corp giving it control of the firm. The deal comes after buying out Eagle River Holdings' stake in the telco. This comes just days after Sprint was subject to a sale of its own, to Japanese operator Softbank. The news is the latest twist in the up and down relationship between the two firms, and hints at a more assertive LTE strategy -- given that it now has more say over Clearwire's spectrum. Although it remains unclear how this will affect deals with other operators. If you really want to get in to the nitty-gritty, head on down to the Securities and Exchange Commission doc in the source link below. [Thanks, James K]
LightSquared pitches new plans to FCC in attempt to end GPS interference hex
If you thought filing for Chapter 11 bankruptcy was the final chapter in LightSquared's wireless network saga, you'd be wrong. Hedge-fund manager Philip Falcone is back at the FCC's doorstep with yet another proposal, which he hopes might snatch the maligned network from the jaws of GPS interference-related troubles. Two filings placed with the commission apparently outline plans to use its broadband network in a way that it believes won't interfere with GPS signals, along with the 5MHz of spectrum that are known not to cause any issues. Along with the proposed changes, LightSquared is reportedly set to ask for more time to have exclusive rights to propose a reorganization plan. If granted, this could finally mean some progress for the beleaguered project, but with investors worried that money being spent on this could be better-placed back in their pockets, Falcone will have everything crossed, while the FCC deliberates the situation.
AT&T ready to battle Sprint for push-to-talk supremacy starting in November
While Sprint's iDEN network is getting the axe in favor of a new CDMA setup, AT&T will soon be sprucing up its near absent push-to-talk services. Targeting a November release with plans starting around $30, Ma Bell's enhanced PTT will be compatible with smartphones running Android 2.3+, BlackBerry 7, Windows Phone 8 and even Java-powered feature phones. In addition to playing nice with a variety of mobile platforms, this new service will also work across laptops, tablets and smart cars.
Sprint's final deadline for Nextel shutdown is June 30th, 2013
Sprint has revealed that it's aiming to axe Nextel platform in its entirety by June 30th, 2013. The company has already moved well ahead of schedule in deactivating 9,600 iDEN sites -- a third of its network. The company admitted that it's battling with Verizon to coax former Nextel users onto its service, but hopes that since it's got a shiny new Direct Connect platform, the Now Network will be able to keep hold of far more of them than it has done so far.
Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss
Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change. The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people. Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.
NTP reaches agreement with 13 patent defendants including Apple, Microsoft and Google
One of the original "non-manufacturing IP firms," NTP, has just signed an agreement with 13 of the companies it sued for infringing its email patents. The tech industry whales paying for licenses include Google, Microsoft and Yahoo on the software side; wireless operators Verizon, AT&T, Sprint Nextel and T-Mobile; and handset companies Apple, HTC, Motorola, Palm, LG and Samsung. If all the litigation is blurring together in your head, we remind you that NTP is one of the founding patent under-bridge dwellers who made lawyers' eyes everywhere light up with a $612 million payout from RIM back in 2006. That seemingly gave them the courage -- and bankroll, presumably -- to attack the above companies in 2010 for infringement of its eight wireless email patents, including push technology. The terms of the settlement weren't disclosed, but considering the dollars paid out by RIM, "we can imagine quite a bit," to quote Han Solo. [Image credit: Shutterstock]
FCC clears Sprint to run CDMA, 4G LTE on 800MHz iDEN airwaves
Sprint might not have its 4G LTE network up and running to power your EVO 4G LTE, but it's already getting more headroom. The FCC has just tweaked the rules around the ESMR (Enhanced Specialized Mobile Radio) spectrum to let Sprint, and the considerably more regional SouthernLINC Wireless, run their CDMA voice calls and LTE data on the 800MHz band they're currently using for their soon-to-end iDEN networks. In practice, the extra frequency access should be a tremendous help to at least Sprint, which hasn't had the low-level, indoors-friendly airspace that AT&T and Verizon enjoy with their 700MHz networks. Just don't expect your EVO or the rest of the initial Sprint LTE devices to take advantage any time soon, as you'll need to both get an 800MHz-ready phone as well as endure the long, long wait until Sprint switches on the extra LTE band in 2014.
Sprint reports Q1 2012 results: 1.5 million iPhone sales but a $255 million operating loss
Sprint Nextel has just deployed its Q1 2012 financials and it's a bit of a mixed bag, with a five percent net revenue growth over this time last year and a whopping 1.5 million sales of that iPhone it paid so dearly for -- twice as many as it sold last quarter and, of those, 44 percent were new subscribers. That helped to drive an overall postpaid subscriber growth of 263,000 but, despite some good news, the company is still suffering a $255 million operating loss and a $863 million net loss. Sprint reaffirmed its LTE plans, a pilot launch of six cities sometime in the middle of this year, with 12,000 sites going online before 2012 turns a year older. Will it be enough? Tune in next quarter to find out.
Sprint kicks LightSquared to the curb as it contests FCC ruling
Sometimes when you start heading downhill, it can be hard to stop. Take LightSquared for instance -- not only were its LTE plans repeatedly contested and eventually shot down, but now Sprint, its long time partner, will indeed be cutting ties with the wireless start-up. According to the Wall Street Journal, the move will officially be announced on Friday, leaving LightSquared alone with its dreams. A representative from the start-up says its filing a 150-page defense of its network on the same day, hoping to refute the Feds' claims that its network interferes with GPS signals. The outfit made no comment on Sprint's plans, but mentioned that it has enough funds to operate on its own for several quarters. We'll let you know when Sprint officially drops the ball.
Telecoms win immunity in wiretapping case, US court approves separate suit against the government
Looks like a case of good news-bad news for the Electronic Frontier Foundation in its fight against warrantless wiretapping. A US appeals court upheld a 2008 ruling, granting telecoms such as AT&T, Verizon and Sprint immunity for cooperating with the government in its surveillance activities. Still, Judge Margaret McKeown of the 9th US Circuit Court of Appeals insists that immunity only applies to telecoms, not the government, and that "the federal courts remain a forum to consider the constitutionality of the wiretapping scheme and other claims." Indeed, while the 9th Circuit upheld immunity for telecoms, it also gave the go-ahead for a separate suit against the NSA, former president George W. Bush, senior members of the Bush administration and President Obama for using AT&T's network to conduct "an unprecedented suspicionless general search," according to the filing. The court's decision to allow this suit to proceed marks a reversal of an earlier ruling, in which a lower court said the plaintiffs did not have legal standing to pursue the case. [Image courtesy PBS]
Lenovo ThinkPad Tablet gets probed by the FCC, will play nicely with all the networks
Mr. & Mrs. Lenovo packed young ThinkPad Tablet on its big trip to Washington, smiling all the while. When it arrived, it was dragged into the FCC's underground bunker and subjected to horrifying experiments by our boys in blue lab coats. Turns out they were looking to see what kind of gear it was packing. They stumbled upon a Qualcomm Gobi 3000, which will happily connect to AT&T, Verizon, Sprint and T-Mobile's 3G internet (nothing faster, though). To show there were no hard feelings, the FCC approved the Tablet and handed it a carton of juice before sending it on its way.
Sprint caps mobile tethering plans to 5 GB per month starting October 2
In yet another move highly suggestive of a major product announcement pending at Sprint (gee, what could it be), insider sources at the company have told Sprintfeed that Sprint plans to cap its tethering plans to 5 GB of data per month starting October 2. Mobile data that goes straight to the phone will still be unlimited (or as "unlimited" as such plans ever are), which remains a key advantage that Sprint will hold over rivals AT&T and Verizon should the iPhone actually launch on its network next month. Like AT&T and Verizon, Sprint charges an additional monthly fee to tether mobile phone data connections to another device, such as a laptop or iPad. In Sprint's case this fee will end up being US$29.99 per month for 5 GB of data, which contrasts with $20 per month for an additional 2 GB from Verizon or AT&T. There's obviously no indication yet whether or not this pricing will apply to the (still theoretical) Sprint iPhone, but it seems likely. So far Sprint has raised its Early Termination Fees, discontinued its Premier service, raised its upgrade fees, and has now capped its tethering plans. These are all quite consumer-hostile moves on the carrier's part in the lead-up to a supposed iPhone launch, and they don't paint a particularly rosy picture of the company's stance toward its customers. Despite rumors pointing to Sprint offering the iPhone with unlimited data in the relatively near future, it's worth noting that other networks who shall remain nameless have buckled under the strain of "unlimited" iPhone data in the past and have summarily discontinued those plans.
Sprint begins briefing sales associates on iPhone 4 for October launch (Updated)
A Sprint Nextel sales associate told TUAW that the carrier has started briefing its employees on an imminent Sprint iPhone 4 launch. The briefing reportedly told the sales team that Sprint will begin offering the iPhone 4 in October 2011 (next month) with standard Sprint data plans; they will include a $10 data smartphone premium that is not specific to iPhone. The associate also suggested that Sprint will carry a 4G iPad, though launch dates and pricing were still unknown. Of course, Sprint already sells 4G access for the iPad via its external mobile 4G WiFi product; maybe that's what the briefing referenced. If the associate's information is accurate, Sprint will not get the iPhone 5 until 2012, most likely by early spring. The sales briefing report aligns with Bloomberg's story about the potential arrival date on Sprint of both the 4 and 5 models, and with but the WSJ reporting on the phone's rollout schedule explicitly called for an iPhone 5 in October along with VZW and AT&T availability. It's not clear why our source was convinced of the iPhone 5's 2012 release schedule on Sprint, but that's what we were told repeatedly. We have reached out to Sprint's press office for comment, but have not heard back (and we don't expect to). The response was a boilerplate "Thanks for your inquiry; we do not comment on rumors or speculation." Update: A commenter suggests one theory for the iPhone 4 vs. iPhone 5 detail: that Sprint's training materials may be featuring the iPhone 4 simply to avoid inadvertently leaking features of the iPhone 5, much as Verizon's initial iPhone training was based on the 3GS rather than the then-unreleased iPhone 4. That does not explain why our source was so solidly convinced that the iPhone 5 introduction for Sprint would be in 2012, however. Thanks, Nick A.
Sprint posts Q2 2011 earnings: net subs up, contract subs down, net loss of $847 million
It's another mixed bag worth of earnings for the folks in Overland Park. Sprint just announced its Q2 2011 earnings prior to the market's open today, and while it's obviously doing its darnedest to paint a rosy picture, the raw numbers show a somewhat different backdrop. Despite having its third consecutive quarter of adding more than one million total net new wireless subscribers, the vast majority of those are coming from the (admittedly less lucrative) prepaid side. In fact, the company lost 101,000 postpaid subscribers in the period, and we're guessing that the one-two punch of WiMAX hitting the expansion skids while VZW built out LTE at a breakneck pace didn't help matters. 674,000 prepaid subs were added to the mix (through Virgin Mobile, Boost Mobile, etc. arms), and despite seeing quarterly sequential and year-over-year growth in wireless service revenue, the carrier still reported a net loss of $847 million. In a way, it's the same story on a different day for The Now Network, and while the just-announced LightSquared partnership may end up bolstering things in time, it'll take something a bit more jarring to turn things around by Q3. Or Q4... right, Dan?
Sprint details Q4 CDMA Direct Connect launch plans and handsets, quietly waves goodbye to iDEN
We're guessing that this isn't the riveting Q4 announcement that Dan Hesse promised us last week at Sprint's Kansas headquarters, but it's a shock to the system nonetheless. The outfit's legacy iDEN network is still kicking around (and in turn, eating up valuable resources to run it), and while we're told that those push-to-talk users are some of the most loyal, it looks as if 2012 will be the year they're forced to try something new. The company's CDMA-based Direct Connect alternative is officially slated to launch this winter, with those who buy in treated to triple the square miles of the company's current push-to-talk coverage area, broadband capabilities and a smattering of new devices. The Kyocera DuraMax and DuraCore will be joined by an unannounced Motorola smartphone, all of which should be rugged enough to handle the expected field work. Furthermore, Sprint will be adding international push-to-talk (alongside "additional capabilities") in early 2012, and users should see a marked improvement in in-building coverage. Finally, we're told that voice and data capacity is expected to increase significantly as Sprint leverages its spectrum holdings in 800MHz, 1.9GHz, and -- through its relationship with Clearwire -- 2.5GHz. And with that, we'd say your iDEN handset stash just became quite the collector's item. Full details are tucked away in the PR just past the break.
