PCSMan
@208.10.x.x
| Sprint ION is HISTORY! *OFFICIAL*
"Today we are announcing several steps to improve our competitive position. These actions include ending our consumer and business ION product and service offerings, suspending further deployment of Sprint Broadband Direct and undertaking consolidations and realignments in our Global Markets Group, Technology Services organization, Local Telecommunications Division and Corporate Center."
6000 layoffs at Sprint! |
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Jestocost
The Poodle Bites.
join:2000-10-19
Saint Louis, MO
| A separate release with details isn't available on the Sprint home page yet, but has crossed PR Newswire:
»quicken.excite.com/investments/n···mbol=FON
[text was edited by author 2001-10-17 16:26:48] |
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xneog375
join:2001-09-10
Chicago, IL | crap! I just got hooked up! |
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Dezbend
Premium,MVM
join:2001-04-20
| reply to PCSMan
From Bill Esrey, Chairman and CEO
Dear fellow associates,
This is one of the most difficult notes that I have shared with you.
Today we are announcing several steps to improve our competitive
position. These actions include ending our consumer and business ION
product and service offerings, suspending further deployment of Sprint
Broadband Direct and undertaking consolidations and realignments in our
Global Markets Group, Technology Services organization, Local
Telecommunications Division and Corporate Center.
These difficult decisions, affecting many dedicated and talented
employees, are driven by several major factors: the economic slowdown
and the uncertainty of when a recovery will occur, significant shifts in
customer preferences for products and services, continued severe pricing
pressures in our core long distance business and regulatory and
legislative changes and uncertainties.
The reality of the situation, and the needed response to it, means that
we must reduce our workforce by approximately 6,000 employees. The
reductions will occur in the Global Markets Group, Technology Services,
Local Telecommunications Division and Corporate Center staffs. Each
employee affected will be eligible to receive salary continuation and
other benefits.
We made every effort to avoid a major layoff. Last November, we
developed an aggressive growth strategy and invested heavily to pursue
it. However, current economic and telecommunications market conditions
make pursuit of that entire strategy economically unfeasible. We can not
afford to passively wait for the economy to rebound or to simply hope
that the other adverse forces affecting our business would quickly
improve. Failure to respond appropriately to the circumstances would
risk the very foundation of our company and risk our ability to compete
and shape our future. We must get our cost structure in line with the
present economic realities, and that means taking substantial,
aggressive actions.
ION technology and architecture are cutting edge. While we will not
deploy ION as originally planned, we will continue to explore
alternatives for utilizing the unique knowledge derived from the proven
technology that we pioneered.
Through tremendous effort on the part of thousands of associates, we
overcame development and technical challenges to bring a product to
market that no other company has ever developed. But it has become clear
over the past several months that despite the efforts to bring ION
services to consumers and businesses across the nation, the return on
this investment could not be realized in a time period that was
acceptable in today’s financial environment. Full deployment of the ION
product line would require significant additional capital investment and
continuing losses for several years as we built the customer base. Given
the difficulty in getting effective and efficient last mile connections
from either the Regional Bell Operating Companies or the cable
companies, along with regulatory uncertainty over continuing access to
local facilities, the financial and implementation risks proved greater
than the potential long-term reward.
In Sprint Broadband Direct we saw an excellent delivery method for ION.
It offered the opportunity to bypass the last mile bottleneck imposed by
the Regional Bell Operating Companies. Our sales indicate that customers
also like and want high-speed fixed-wireless services. But again the
economics of providing the service in today’s environment make it
difficult to support a business case using first generation technology.
As a result, we no longer will accept new customers and we will not open
any additional markets. We will continue to serve the customers we have
and we will closely monitor developments of second generation fixed
wireless services that may make the economics of delivery viable.
Our traditional core businesses also continue to evolve such that we can
not operate as "business as usual." We can not plan on relief from
pricing pressures in both voice and data services. We must adapt to the
changing environment, reduce our internal cost structure and access
costs, gain efficiencies and align our investments to the areas with the
best potential for growth and return on investment. To meet this revenue
challenge we need to alter our distribution channels and take an even
more aggressive One Sprint approach to offering long distance service
bundled with PCS and local communications offerings and through
affiliates and partners. We also need to more quickly grow our Internet,
data services, web hosting and international businesses.
Through these actions Sprint will emerge financially stronger and better
able to seize new opportunities. While segments of the
telecommunications industry have suffered over the past year, the
industry as a whole continues to grow at high single-digit percentage
rates. Telecom constitutes about two percent of America’s $10 trillion
economy and is growing faster than most other industries. Consumers and
businesses will spend nearly $300 billion on retail telecom services
this year alone. This is a good and healthy industry.
We are well positioned in the fastest growing segments - wireless
communications, Internet and data services - and by shifting resources
we can increase our competitive advantage in these areas. Today, we
announced more than 1.2 million PCS customer additions in the third
quarter, and dedicated IP services grew at nearly 50 percent this
quarter compared to a year ago. And, just as important, our local
telephone operations had strong results.
In closing, I want to assure you that these decisions come after much
thought and the exploration of many alternatives. It is always extremely
difficult to see people leave our company. They have contributed a great
deal and have led to our past successes. However, these reductions, as
painful as they are, are essential to protect the financial integrity of
our company, to our ability to compete, to grow our business, and to
meet the expectations of our customers and investors. Through our more
than 100 year history, we have met challenges and succeeded. It will be
no different in the future.
Sincerely,
Bill Esrey
Chairman & CEO |
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mballard
Premium,ExMod 1999-03
join:1999-11-15
Los Angeles, CA
clubs: 
| reply to PCSMan
There's a article on nasdaq.com:
mktnews.nasdaq.com/newsv2/pullstory_nasd.asp?textpath=d:\www\nasdaq\news\pr\2001\10\17\PR20011017-1606-CGW066-0.html &usymbol=FON
A couple of items from the article:
-- Discontinuation of Sprint ION consumer and business offerings. Sprint will ensure an orderly transition of ION customers to alternative service arrangements. A substantial portion of the assets that support the ION offerings are expected to be written off in the fourth quarter.
-- Ending customer acquisition for the company's fixed wireless (MMDS) services and freezing the number of MMDS markets served until substantial progress is made on second-generation MMDS technology. The current MMDS customer base will be maintained, as will all video services offered through the fixed wireless spectrum.
Added Esrey: "Several factors influenced our decision to discontinue the Sprint ION initiative, including the rapidly changing industry landscape and future funding requirements for ION especially in light of the economic slowdown and the uncertainty of the timing of a recovery. Great progress was made over the past several months on the technical challenges to developing an on-demand, integrated product offering. The knowledge that we have gained throughout the development of ION is already being put to use in delivering multiple services over our backbone network and will be of additional value as technology continues to evolve. We believe our vision that customers will desire integrated communications services still holds true. However, it is clear that with our current efforts an appropriate return on investment can not be achieved in an acceptable time frame and we are adjusting our plans accordingly."
"Today we find ourselves operating in a more difficult economic climate and a highly competitive telecommunications marketplace. Despite these challenges the industry overall continues to expand, with some sectors enjoying rapid growth. We believe that we are well positioned in these high growth segments -- wireless communications and Internet and data services -- and by shifting resources we can maximize our competitive advantage in these areas."
So at least it does appear that they will be making sure that everyone will have time to go to other services.
[text was edited by author 2001-10-17 16:52:41] |
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Bodysurf
@pacbell.n | reply to PCSMan
What does this mean for *existing* Sprint ION customers? Anyone know when their service is going to get AXEd? |
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mballard
Premium,ExMod 1999-03
join:1999-11-15
Los Angeles, CA
clubs: | Read my post just above yours. |
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aliasrlz
Premium
join:2000-09-01
the world | I still have no clue what happens to orders OPEN with install dates? The website says I'm still going to be installed on Monday.............I'm SICK! |
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aalmolah
join:1999-12-24
Boulder, CO
clubs: |  reply to PCSMan
Now what? Wait for the dial-tone and DSL line to go silent? |
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Bodysurf
@pacbell.n
| reply to aliasrlz
I'm sick here too. I had an install date of 11/12 and the website still says it's a go. I would think that with Sprint's deep pockets they could have weathered this out until it came to fruition. They should keep the service going for existing customers and those with install dates already set, but stop accepting new orders IMHO :^>
Stuck with bankrupt @HOME cable service for the time being I guess. |
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mballard
Premium,ExMod 1999-03
join:1999-11-15
Los Angeles, CA
clubs:
| reply to aliasrlz
I'm sure that Sprint will begin contacting ION customers soon as to what to do next. From reading what I have, it looks like Sprint will keep the service up until all of their current customers have transitioned to new services, and I would think that all new installs that haven't happened yet are being cancelled. You can always call them to check. |
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drmorley
Premium,MVM
join:2000-12-20
Park Ridge, IL
clubs:
| reply to Bodysurf
It sounds like they're going to keep us up long enough to transfer our service back to the good 'ol rboc. I wonder how long it'll take 'em to dismantle their network?
--
No good deed goes unpunished.
[text was edited by author 2001-10-17 17:07:16] |
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PCSMan
@208.10.x.x
| reply to aalmolah
Sprint says they are going to do a orderly transition. I imagine they will contact you and help you through the steps of going back to your previous phone provider. They may also help with getting an alternative DSL connection. Although, myself I am just going to get Road Runner, and not mess with DSL for now... at least until the DSL world is more stable.
Alhtough, I can't afford 4 phone lines from BELL, like I have with ION... probably only move over 2 lines. |
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aalmolah
join:1999-12-24
Boulder, CO
clubs:
| reply to mballard
The article you have posted said that current customers will be offered an alternative options, but was very vague to what kind of alternative! Nor did it say when they will be shut off!
This is pathetic since I was just installed, and I was assured that service will not be shut off! Now I guess I will need to re connect to my evil local telco! In this case I would like to congratulate the Telco companies for a war will fought, at the end they did successfully destroyed CLEC competition! |
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aalmolah
join:1999-12-24
Boulder, CO
clubs: |  reply to PCSMan
I was just installed, haven't chosen the contract option, and still has not paid for installation, equipment or service, what do you think I should do at this point? |
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Bodysurf
@pacbell.n
| aalmolah wrote:
> I was just installed, haven't chosen the contract
> option, and still has not paid for installation,
> equipment or service, what do you think I should do at
> this point?
2 year contract with the free install/hardware is a no-brainer. |
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djk
Premium
join:2000-11-05
Grapevine, TX
 ·Verizon FIOS
| I just called customer care and they said that they are not taking orders from new customers anymore but they told me that current customers are not in line to be turned off. I think they where just blowing smoke up my ass though, but as the customer care agent told me, it's a wait and see game right now.
--
-daniel
www.shoutclub.com |
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Bodysurf
@pacbell.n
| I just spoke with Customer Care at SprintION too and they said that people *already with install dates* should plan on having the service installed still. It will be very interesting to see what the future holds here, although it appears from Bill Esrey the writing is on the wall.
P.S. I too think they may be just blowing smoke up my ass. |
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aalmolah
join:1999-12-24
Boulder, CO
clubs:
|  I will not pay a dime until I see a solid answer, enough that I got screwed with soon to be useless install and equipment!
I guess since I do not like my phone company, cable is not available to me, and Covad is in trouble too and about to be shutdown by next Feb. I think that I will going to dust off my old dial-up modem! |
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mballard
Premium,ExMod 1999-03
join:1999-11-15
Los Angeles, CA
clubs:
| said by aalmolah:
Covad is in trouble too and about to be shutdown by next Feb.
Why do you think Covad will be shutdown by next Feb? They just (are?) exiting Chapter 11, and things are looking up for them. |
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