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raye
Premium
join:2000-08-14
Orange, CA
Reviews:
·RoadRunner Cable

Sprint is being killed by NExtel

This will go down as one of the worst acquisition decisions; ranking up there with Time Warner/AOL. Nextel's technology was never compatible with Sprint's; Alltel would have made the better choice as they are CDMA and would have helped fill in the holes. But Nextel had more subscribers and management was either to naive or too ignorant to listen to their technical folks.

Sprint has alwasy been at the vanguard of technology; their internet backbone is one of the largest in the world and is the most reliable IMO. On the business side I have had nothing but good experience with them, both wired and wireless. They have already written down the entire $25B+ cost of the acquisition; the bleed will continue until the nextel technology is completely exorcised from the company (if that has not happened already). Their ongoing 4G deployment should ease the customer loss and a smart acquisition (like say, Level3) should strengthen their backbone for ongoing mobile PDA explosion.

patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Level 3 and Sprint are competitors. Unless Sprint buys Level 3 for its customers/knock out a competitor, it makes no sense. Then again, Sprint just bought VMUSA for its customers. Also it seems like it bought Nextel initially for the customers. There must be some banking executives at Sprint, Sprint grows through buy customers of other successes, not through organic growth.


tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

reply to raye

said by raye:

This will go down as one of the worst acquisition decisions; ranking up there with Time Warner/AOL. Nextel's technology was never compatible with Sprint's; Alltel would have made the better choice as they are CDMA and would have helped fill in the holes. But Nextel had more subscribers and management was either to naive or too ignorant to listen to their technical folks.

Sprint has alwasy been at the vanguard of technology; their internet backbone is one of the largest in the world and is the most reliable IMO. On the business side I have had nothing but good experience with them, both wired and wireless. They have already written down the entire $25B+ cost of the acquisition; the bleed will continue until the nextel technology is completely exorcised from the company (if that has not happened already). Their ongoing 4G deployment should ease the customer loss and a smart acquisition (like say, Level3) should strengthen their backbone for ongoing mobile PDA explosion.
Make sure you parse that statement:
Sprint WIRED business, as it was/is had top of breed service... the wireless venture was floundering until it bought Nextel, then the failure to evolve the Iden network and integrate the two corporate cultures made for a train wreck in slow motion. Verizon and AT&T slowly took over a majority of Sprint's loyal IDEN(aka push to talk) customers with low cost plans, Even TMobile and MVNO's such as Tracfone took the rest. What's left? A few lazy postpaid customers (believe it or not, some stupid people actually pay for AOL service, haha) and a new breed of prepaid "everything customers" who daily complain about the quality of services & coverage/sevice gaps.

If some stupid schmo sends you a check for something you make a killer profit on while providing lack luster service and they're none the wiser, wouldn't you continue to screw them? That's the business equivilent of the American Dream, corporate style.

DarnellP

join:2004-10-12
Las Vegas, NV

reply to patcat88

said by patcat88:

Then again, Sprint just bought VMUSA for its customers.
Actually Sprint bought Virgin Mobile to strengthen their prepaid position as they feel that's where their growth will come from. Virgin customers were already being counted among Sprint's numbers anyway since they utilize Sprint's CDMA network.

raye
Premium
join:2000-08-14
Orange, CA
Reviews:
·RoadRunner Cable

reply to tmc8080
wireless floundering? It was #3 before it bought Nextel. Goal of aquisition was to increase customer base as you said but I would not call their wireless position "floundering." At the time they were still adding customers, though not as fast as PacBel/Cingular/SBC/Bell South/AT&T which was why IMO aquisition was made the AT&T conglomerate thas the advantage of working on one standard (GSM) whereas Sprint and Nextel had two which were not compatible and could never be compatible.

They would have been in better shape buying Alltel instead of Nextel


patcat88

join:2002-04-05
Jamaica, NY
kudos:1

reply to DarnellP
Getting the MVNO out of the picture except for brand licensing makes those subscribers more profitable. Sprint has been MVNOing itself like a whore for many years, since they can't get customers themselves and are desperate for them. The MVNO customers break even to Sprint I think. Most MVNOs are Sprint, in the USA, for a reason.


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