The Sprint/Nextel Saga - Is the Merger Nearing Completion?

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The recent news over at phonescoop.com got me thinking about Sprint's future.  These 2 Sanyos are starting to make a full transition off of the iDEN network (which is what runs Sprint's Nextel devices).  So far Sprint has released 4 hybrid units.  These units help with the transition because the phone calls and data access run on the Sprint network (CDMA) while the Direct Connect (walkie talkie) operates on the Nextel iDEN network.  These are a good start, but the Sanyos represent a full transition away from Nextel to Sprint.



From phonescoop.com

Sanyo's First Direct Connect Phones Approved By FCC

Friday, 12:57 PM   by Eric M. Zeman   updated Saturday, 1:53 PM

Today documents on the FCC site revealed the PRO 700 and PRO 200 phones from Sanyo. Both are clamshell CDMA phones with dual displays, EVDO data, Bluetooth, and Direct Connect Push-To-Talk capability. Not much else is shown in the documents, although there is no indication that either phone has a camera nor memory card slot. Sprint has announced plans to introduce a CDMA-based version of Direct Connect to eventually replace the aging iDEN system and legacy ReadyLink technology. This PRO series from Sanyo - along with the recently-approved Samsung Z400 - are expected to be among the first phones to support the new Direct Connect service.



If Sprint can release CDMA versions of the i580 (a high-end camera phone that is also rugged) and a CDMA BlackBerry with Direct Connect to replace the Nextel 7100i and 7520 they would have effective alternatives for the majority of their iDEN customers.



A big reason why this transition is so important is that Sprint is not bidding on the 700MHz spectrum.  Sprint has decided to go with WiMAX technology for its next generation broadband network.  By eliminating iDEN they can focus that time, energy and money on successful roll out of a nationwide WiMAX network. They're anticipating  nationwide roll-out this spring.  If they don't make a large and earnest push to transition the remainder of their iDEN customers to CDMA they'll be running three different networks.  If they can get it together and launch on schedule they may have enough of a lead on the competition, who will most likely still be bidding on the 700MHz spectrum, to gain back some of the customers they've lost.



Currently, Sprint and Verizon both have EV-DO high-speed data.  This connection is generally faster than the EDGE data offered by AT&T and T-Mobile.  In fact, when Andrew was out here in San Jose we compared the connection speed of his Blackberry 8800 and my 8830.  Except for the fact that his phone accesses GSM and EDGE and that mine accesses CDMA and EV-DO, they are the same phone.  EV-DO was much faster.



So right now we have Sprint and Verizon on one level and AT&T and T-Mobile on another.  If Sprint can differentiate itself from Verizon and find its own niche (AT&T is the biggest, Verizon has marketed themselves as the most reliable and T-Mobile is number one in customer satisfaction) it has a real chance of closing the gap with Verizon.



Will WiMAX get Sprint out of third and into second?  Probably not.  Can WiMAX help Sprint get its stock back up from $9.29 on the 26th (versus Verizon Communication's $36.81) and start to revitalize an entire brand?  I think it can. 


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1 Comments

Yea, Sprint needs to do something...they have been getting plenty of bad press lately. They still have the fastest data network, although their Rev A build out has been slower than expected...I suspect due to lower revenues. Check out http://moremobileinternet.com/evdo-modem-cards to see Sprints latest data cards. Hopefully, they can add WiMax while keeping their lead in EVDO as well. Time will tell...

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