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Sprint reportedly confirms data throttling for 'top one percent' of abusers (update: Sprint confirms no throttling)
So, wait -- is unlimited just unlimited, or is it "unlimited?" Let's ask the man who spent a solid 30 seconds (and countless millions) explaining precisely that back in March of last year... oh, wait. Despite Sprint's claims of keeping its "unlimited" plans "truly unlimited," it seems that there is a special asterisk reserved for those who really attempt to push the boundaries. No real surprise, honestly, but CEO Dan Hesse was quoted earlier today as saying the following in regard to heavy data users: "For those that want to abuse it, we can knock them off." Moreover, he affirmed that throttling can be implemented for "about one percent of users," but did continue to say that there were no immediate plans for The Now Network to follow its contemporaries into the deep, dark world of tiered data. Of course, this is also the man who told us that "nothing is guaranteed forever," so make of it what you will -- particularly with an LTE network going live in around six months. Update: TechCrunch says that Hesse was misquoted, and that the quips only apply to people "while roaming." That'd sure make a lot more sense, but don't go overboard just to find out, okay? Update 2: Sure enough, Sprint has confirmed there is no throttling going on.
Daily Update for October 27, 2011
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen.
Sprint announces Q3 earnings: net subs reach five year high, net losses at $300 million
Sprint has just unveiled its Q3 earnings report, and it's looking pretty bittersweet. According to the company, net operating revenues reached $8.3 billion during the quarter (about two percent higher than Q3 2010), while additions of new wireless net subscribers reached a five year high, with 1.3 million customers hopping onboard. Of those 1.3 million, 304,000 were of the postpaid variety, 485,000 were prepaid and about 835,000 were wholesale. Sprint lost about 44,000 net postpaid customers this quarter, but that's a major improvement over last quarter, when a little over 100,000 jumped ship, and marks a 59 percent improvement over last year's report. At the same time, however, the carrier reported net losses of $301 million -- lower than Q2's figures, but not exactly encouraging, either. As far as the future goes, the folks at Overland Park expect to end the year with even more new subscribers, though it remains to be seen whether that long-awaited LTE rollout can make much of a dent in its bottom line. Check out the press release in full, after the break. Update: Listening in on the earnings call it's clear Sprint is really counting on the iPhone to help it run with the big dogs. According to some convoluted metaphor, the carrier is the Oakland A's in Moneyball and Apple's handset is A-Rod (who never spent a day with the Athletics... but we digress). Still, Sprint expects more loyalty and bigger profits from customers who choose the iPhone -- at least for the next four years, after which it'll have to negotiate a new deal with the Cupertino crew. Update 2: Sprint also clarified that, in addition to its deal with LightSquared, it will be working with Clearwire to deliver LTE network coverage. The carrier has reached a preliminary agreement with its WiMAX partner, but expects to announce a wholesale deal soon. Update 3: We already knew that the iPhone 4S launch was the company's best launch ever for a family, but now the company's confirming that it was its best launch ever for any device.
Sprint's LTE getting Advanced in 2013, WiMAX's inferiority complex intensifies
Sprint just started building out its LTE network, but being the eager beavers that they are, the folks in Overland Park are already talking about taking the Now Network to the next level. Iyad Tarazi, Sprint's VP of network development and engineering, said that Sprint will be rolling out an LTE-Advanced network in the first half of 2013. (As a brief refresher, LTE-Advanced is a true 4G technology that can make regular LTE speeds look positively pedestrian in comparison.) Tarazi added that we would see 12 LTE devices in 2012 and that over 250 million people will have access to Sprint-flavored LTE by the end of 2013 -- with voice over LTE service coming in the first quarter of that year. For those (hundreds?) of you worried about the fate of of WiMAX, well, don't. Apparently, the out-of-favor 4G network will continue to be supported for several more years due to Sprint's agreement with Clearwire. So, it appears Sprint's really making a run at Verizon's LTE hegemony. Good luck Mr. Hesse, you're probably going to need it.
Live from CTIA's day one keynote with Dan Hesse, Dan Mead and Ralph de la Vega
We're seated for the official kickoff of this week's CTIA Enterprise & Applications show, the opening keynote address. Today we'll have the pleasure to hear from the Dan Hesse, Dan Mead and Ralph de la Vega, the CEOs of Sprint, Verizon Wireless and AT&T (respectively). The topic: "Return of the Titans -- carrier insights." We can't be quite certain yet as to what this entails, but we expect many of these "insights" will actually be a plethora of witty jabs flying back and forth at each other. Regardless, we're rather stoked to hear what these gentlemen have to say. Tune in after the break!
The cost of switching to LTE: Sprint to spend $10 billion over the next two years
Wonder just how much it costs to phase out iDEN and WiMAX networks and put all your eggs in one, CDMA / LTE-flavored basket? Well, Joe Euteneuer, Sprint's CFO, just offered up a frank answer here at its "Strategy Update" event: $10 billion over the next two years. That's a heckuva lot more than the $4 billion to $5 billion Wall Street was expecting, but Euteneuer assured all the suited-up financial analysts in the room that the company should save $10 billion to $11 billion through 2017 (a figure widely reported before today), with $4 billion of that resulting from not having to maintain the 'ol ball and chain iDEN network anymore. Now it's true, we're a minority in this meeting of industry analysts, but you don't need to be a banker to understand that's one telling figure: clearly, the company's betting its future not just on the (CDMA!) iPhone, but LTE's brand of 4G.
Sprint's LTE plans detailed: phones, tablets and modems coming by 2012
If you were holding out hope that Tuesday's Apple announcement would be trumped by an exclusive iPhone 5 on Sprint, prepare to be disappointed. The company's confirmed that no new handsets would be shown off at its Strategy Event today. Instead, the carrier is focusing on how it intends to bundle all of those separate radios -- CDMA, LTE, WiMAX -- into a future device line up. Emphasizing the need for an enhanced user experience over 4G technology marketing, the operator stressed a commitment to supporting existing WiMAX subs. Dual-mode CDMA / LTE products are set to launch in the middle of next year, with tablets, smartphones and modems across both the high-end and mid-range to be on offer. Motorola's Sanjay Jha appeared in a taped segment to confirm his company's involvement in the production of these 3G/4G products. Of course, Sprint plans to support current CDMA and WiMAX products, offering them for sale throughout 2012. As for Direct Connect, three of those Push-to-Talk handsets will hit the carrier in the last quarter of 2011, with additional devices planned for 2012.
Sprint converts its network to LTE, plans 'aggressive rollout' to be completed by 2013
We knew more or less that an announcement of this sort was coming. Back in July, Dan Hesse had teased us face-to-face with the promise of a "great story this fall around 4G," and now the time to tell that tale has arrived. At its strategy event today, Sprint finally went public with plans to "simplify its network" by converting its 1900MHz holdings and LightSquared's 1600MHz spectrum ("pending FCC approval") to LTE, an industry favorite. Helping the operator make that transition is the swath of 800MHz spectrum it reclaimed from the, now defunct, iDEN push-to-talk network -- which had been a drain on the company's resources. This spectrum, acquired from Nextel, will be phased out by mid-2013 and rolled into LTE. The company plans for a rapid deployment of this new 4G network, with the first LTE markets and handsets to hit in mid-2012, and the full rollout mostly completed by 2013. Current subscribers signed up for WiMAX plans won't have to worry as their devices will continue to be supported throughout 2012. Beginning tomorrow, Sprint's consolidating its 4G LTE (including LightSquared), 3G and Direct Connect networks into one single architecture. All the major technical milestones, such as test calls and field integration, have cleared their hurdles and work on over 22,000 cell sites are currently in process. Samsung, Alcatel Lucent and Ericsson have partnered with Sprint to install multimode 3G and 4G base stations to handle the network's future traffic, essential for deploying the multitude of frequencies required by hosted devices. Prospective iPhone 4S users on the network will be able to take advantage of better signal strength and improved voice service as Sprint intends to also offload the latter onto 800MHz. Expect a steep "reduction in roaming costs" and deeper signal penetration throughout the operator's expanding national footprint over the course of the next two years. Naturally, LTE speeds on this new network will be significantly improved over the currently in-use WiMAX, and a planned implementation of WiFi offloading should help to cut congestion by 20 percent. By the end of next year, Sprint aims to have a combined WiMAX/LTE population coverage of 176 million -- with 123 million covered by LTE and 76 million overlapping both. When the network build-out is nearly complete in 2013, the company should have over 250 million blanketed in LTE, far outstripping the stagnant 120 million served by WiMAX.
WSJ: Sprint places $20 billion order for next iPhone, hinges company future on Apple's handset?
Oh, iFaithful, your newest Apple phone(s) are only a day away. Which is even more reason to hunker down into this latest chunk of pre-announcement gossip. According to information obtained by the Wall Street Journal, Sprint's betting the farm on a 30 million-plus order of next-generation iPhones to put it on an even battle ground with heavyweight rivals AT&T and Verizon. The cost of this loss-absorbing gamble? That would be about $20 billion, with the Hesse-led co. subsidizing the $500 cost of each handset. For the third place operator it's matter of do-or-die, as there really isn't an alternative to the critically-praised, Jony Ive-designed handset that set off this smartphone race. Further underscoring the company's current plight are comments Hesse's purportedly made to the company board, linking customer churn to its iPhone omission. It remains to be seen if Sprint pull off this feat, and convert its base of 52 million subscribers (mostly pre-paid) into the contracted customers it needs to stay financially afloat. While an iPhone on Sprint certainly seems a given, it's unclear whether this next device will opt for a WiMAX or LTE radio.
Dan Hesse: Sprint's not following Virgin's tiered data movement, but 'nothing is guaranteed forever'
Without a doubt, it's the 800 pound gorilla in the carrier realm: will Sprint follow AT&T, T-Mobile USA and Verizon Wireless down the woeful tiered data route, laced with pain, confusion and general awfulness? We asked Sprint CEO Dan Hesse that very question today at Sprint's campus, and the answer wasn't exactly heartening. He stated that people are simply willing to pay a price premium (when it comes to rate plans) for something that's just dead simple -- something that they don't have to think about when they use. He (rightly) admitted that most average consumers have no concept of what a gigabyte is, or how long it takes to use one up, and that's why the outfit's unlimited plans are still striking a chord -- and in fact, more so now than ever with its three main rivals giving it an even stronger differentiator. When asked whether Sprint would eventually have no other option but to switch to tiered data plans if heavy users begin to come over in droves, Hesse replied that having enough bandwidth to efficiently go around "could be an issue," and while it's working diligently with OEMs and app developers in order to implement things like WiFi offload, we were told that "nothing is guaranteed forever." We specifically asked if the recent tiered testing implemented at Virgin Mobile (which runs on Sprint's network) was an early indication that Sprint was also leaning this way, and Dan was steadfast in his denial. According to him, the postpaid and prepaid sectors are markedly different beasts, and it's not reasonable to consider that Sprint will follow Virgin's footsteps. Moral of the story? Sprint's clinging to unlimited for as long as it can, but we get the impression that a transition is imminent -- even if it's still a few years out.
Sprint's Dan Hesse: significant 4G plans to be announced this fall
We're here at Sprint's monolithic campus in Overland Park, and part of our day was spent speaking directly with CEO Dan Hesse. Amongst other things, the bigwig confessed that it had been awhile since his company (or Clearwire) had launched a 4G market. While Verizon Wireless has been pushing out LTE to new cities on what feels like a fortnightly basis, there's been nary a WiMAX deployment in the US during 2011. But that, friends, is gearing up to change. According to Hesse: "We're going to come out with a great story this fall around 4G, and it'll all become clear." He seemed curiously excited about whatever's around the bend, and Sprint's VP of Product Development, Fared Adib, seemed similarly giddy about the impending unveiling. Neither of 'em would crack on what markets would be addressed or what tactics would be used to match rivals in terms of 4G reach, but whatever the case, we're guessing Sprint users will be a lot happier with their service once they get through the summertime blues. Oh, and it's worth mentioning that Sprint's "not exclusive to WiMAX, nor the Clearwire relationship." Not a soul on the campus would talk details surrounding that rumored LightSquared investment, but judging by the smiles, it's at least on the table.
Sprint's Virgin Mobile brand to test throttling while Sprint pokes fun at throttlers (video)
Alanis Morrisette couldn't have possibly thought up something this ironic to put in her hit song. On the same day Sprint launches an ad campaign trashing T-Mobile's "unlimited" plan for throttling its data speeds, the Now Network announced that it intends to begin throttling Virgin Mobile's broadband sometime in October. Those who use larger amounts of data on the prepaid brand will experience the briskness of 256kbps as soon as they hit a monthly threshold of 2.5GB. This won't affect postpaid customers on Sprint for the time being, but it's hitting a little too close to home. After all, the company -- always playing the role of consumer advocate -- is now at least experimenting with the idea of employing the same practices it's currently trashing its competitors for. Those who're taking full advantage of Dan Hesse's spoils are safe for now, but the question remains: who'll throttle the throttlers? Check out the vid and press release in all their irony-dripping glory after the break. [Thanks, John]
Sprint teams up with Motorola for June 9 event, finally launching a Tegra 2 device?
Sprint and Motorola have a little special something up their sleeves, and are rolling them up to show off their latest "collaborations" at a press luncheon on June 9th. Since big bosses CEO Dan Hesse and Sanjay Jha will be in attendance, and the event will be held during Apple's WWDC, we have a feeling this is going to be something big. Whatever this project is, it's been kept under the radar very well -- until now. We're hearing buzz about a Tegra 2-powered device planned for a launch next month; different reports have come out over the last few days claiming Sprint will finally take a turn sporting a Tegra 2 Android -- the yin to the EVO 3D's yang, we suppose -- sometime next month. The device may be called the Motorola Photon 4G, a name that first appeared in a WiFi certification form (seen after the break) a month ago. According to the rumors, Sprint was ready to launch its own version of the Atrix 4G back in March, but stalled the phone's release in order to make a few design changes. Some of these changes supposedly include a 4.3-inch display, Gingerbread pre-installed, and a look that closely resembles the EVO 4G (it would even come with a kickstand). The Photon 4G is a probability for the event, but note that the invite mentions "collaborations," implying there will be more than one product to showcase. This could mean a Xoom with WiMAX is just about ready for primetime -- or perhaps it's something else magical and unexpected. No matter what's hiding in Hesse's pocket on June 9th, we'll be there to tell you all about it.
The AT&T / T-Mobile senate hearing: deciphering the war of words
Over the course of the next year, AT&T and its opponents will be in the ring, duking it out in a war of words in attempt to convince the government that a $39 billion takeover of T-Mobile by AT&T should or should not take place. Consumers have the most to win or lose here, yet we are resigned to watching from the sidelines as both sides lob countless facts and stats at each other like volleys in a tennis match. If you look at the merger process as a stairway to climb up, AT&T is still near the very bottom. Every rung will be full of intense scrutiny as it is: if the two companies are allowed to merge, the national GSM market becomes a monopoly, and the wireless industry as a whole would shift to only three national players plus a handful of less-influential regional carriers. The carrier's going to blow as much as $6 billion if the merger is not approved -- almost enough to buy Skype -- it can't just expect to put up some feel-good facts and stats to win the hearts of the decision-makers. AT&T has to be absolutely sure it'll come out victorious in the war, else it risks losing the trust (and money) of its shareholders. But to accomplish such a feat, it has to be on top of its game. There was no better time to show off what it's made of than last week's Senate Judiciary Committee hearing conducted by the Subcommittee on Antitrust, Competition Policy and Consumer Rights. When the Committee entitles a hearing "Is Humpty Dumpty Being Put Back Together Again?," it's either exercising a sense of humor or a preconceived notion of the merger due to the implication that Ma Bell is simply reforming. CEO Randall Stephenson appeared as a sacrificial lamb, going before Congress and his opponents to explain his side of the story, answer hardball questions, and endure a hard-hitting round of criticism. Continue reading as we take you topic by topic and examine what he -- and his opponents -- had to say about the merger.
Sprint reports Q1 2011 results, adds 1.1 million subscribers
It's financials time and the word hasn't always been rosy for Sprint of late, but this time the company has some good news to share. In this, the first quarter of 2011, Sprint added 1.1 million total subscribers, 846,000 of those were prepaid, the other 310,000 postpaid. Churn was down too, 4.36 for prepaid and 1.81 percent for postpaid, lowest in five years for the former and lowest ever for the latter. Operating income was $259 million on $8.3 billion in revenue, which is up three percent from this time last year, but factor in taxes, lunar landing rights, and all the other fun stuff and the company posted a net loss of $439 million. CEO Dan Hesse called this "slow but steady progress," and the addition of subscribers "a tough streak to keep going as the bar keeps getting higher." A tough streak indeed, but the launch of phones like the Nexus S 4G might just help keep it alive for another quarter.
Live from CTIA's day one keynote with FCC chairman Julius Genachowski
We're seated in the auditorium for CTIA Wireless 2011's first keynote session, featuring FCC chairman Julius Genachowski -- who's frequented CTIAs in years past -- along with the bosses of Verizon Wireless, AT&T Mobility, and Sprint. Needless to say, these are a bunch of heavy hitters about to take the stage... and we're curious whether they'll be saying a peep about AT&T's planned acquisition of T-Mobile USA. Tune in after the break!
Sprint's Dan Hesse differentiates between unlimited and 'unlimited' in latest TV spot
We're not the biggest fans of new tiered data plans that are slowly but surely becoming the norm, and if the latest ad from Sprint is any indication -- that particular carrier isn't either. CEO Dan Hesse takes the offensive, reminding viewers that the word 'unlimited' shouldn't include things like metering or throttling, while touting the company's "Simply Everything" plan that actually does include, uh, everything. With customer gains on the upswing, the move is probably a good one -- though that whole 'premium data' thing is a little iffy. Full PR after the break.
Live from Sprint's 'Industry First' event with Dan Hesse and... David Blaine
We're not exactly sure what kind of rabbit Sprint CEO Dan Hesse is planning to pull out of his hat here in New York tonight, but Sprint says it'll be an "industry first" and David Blaine is scheduled to appear, so we're definitely curious -- and hey, snacks. So what's it going to be? Unlimited multi-device data plans? That dualscreen Kyocera Echo which leaked a bit last night? David Blaine revealing Dan Hesse is actually a murderous robot from the future? We'll find out when things kick off at 6PM ET.
Sprint CEO claims WiMAX is here to stay, says Clear's LTE trials were for potential multi-mode phones
Sprint and Clearwire have characterized LTE as complimentary to WiMAX time and again, but if that doesn't allay your suspicions of turncoat tactics in the wireless data space, take it from Sprint CEO Dan Hesse's lips. "Our 4G strategy is WiMAX, full stop!" he told GigaOM, adding that LTE isn't necessarily on Sprint's roadmap. Quizzed about WiMAX partner Clearwire's LTE trials, however, he dropped a very intriguing hint about the possible shape of phones to come: "We have so much spectrum that we decided to do tests so in case we have multi-modal phones with other air interfaces, we can add LTE on top of WiMAX and run both networks," he told the publication. Dual-mode WiMAX / LTE smartphone, anyone?
Sprint CEO thanks iPad for uptick in Overdrive demand
Well, wouldn't you know it? Seems that tongue-in-cheek marketing campaign may actually be working. Way back in April of this year, Sprint decided it would begin offering its own iPad case, despite the fact that even today the iPad isn't sold in Sprint stores. The reason? It's the perfect opportunity to push the Overdrive, a 4G mobile hotspot that's able to take the iPad (and any other WiFi-enabled device) to 4G speeds where available. In a recent interview with GigaOM, the carrier's CEO (Dan Hesse) confirmed that most iPads being sold are of the WiFi variety, and due to that, "the company has seen an uptick in demand for its Overdrive (3G/4G) wireless-hotspot device, as people use it to connect their iPads to the Internet when on the go." He failed to exaggerate on actual numbers, but it's obvious he's in favor of Apple's darling tablet selling like hotcakes -- after all, how else are you going to get an iDevice into 4G territory?
