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Sprint commits to iDEN, revives Clearwire talks
Sprint put an end to speculation that the company might sell its Nextel Direct Connect iDEN network. The firm today released a statement from President and CEO Dan Hesse saying that Sprint will focus on enhancing Direct Connect in 2008 with extra functionality and features such as 'push-to-x,' which allows users to instantly send a text message or an image.
Of course, the push-to-x capability is something that Qualcomm has touted for its QChat service, which Sprint is supposed to deploy this quarter. Sprint, however didn't refer specifically to QChat in its statement. In a research note, Pali Research analyst Walter Piecyk noted the company's failure to mention QChat and said that he is doubtful that Sprint will meet its deadline to deploy the advanced technology. In addition, he reiterated his firm's belief that Sprint would be better served by selling the iDEN network along with its 2.5 GHz spectrum.
Speaking of Sprint's 2.5 GHz spectrum, the Wall Street Journal is reporting that the two firms have revived their talks about forming a joint venture and are bringing in outside funding from firms such as Google, Intel and retailer Best Buy. The plan could lower the deployment costs of WiMAX and allow Sprint to focus on its core cellphone business.
Of course, this renewed joint venture discussion isn't a shock to FierceWireless. In our 2008 predictions, we speculated that the two firms would eventually hook up on their WiMAX plans.
For more on Sprint's iDEN statement:
- see this release
For more on Sprint and Clearwire:
- see this WSJ article (sub. req.)
Related stories:
Sprint cuts CFO, CMO and sales head. Article
Sprint: Cutting 4K jobs, closing 8% of stores. Article
QChat exec talks next-gen PTT. Article
Comments (2) | Post a comment
Comments
Posted by Anonymous | January 30, 2008 - 6:18pm
Why on earth would Sprint want to sell it's spectrum. No one would buy it with the FCC auction going on right now anyways and they need it more than anyone else.
Posted by Willam C | March 31, 2008 - 9:26am
Sprint doesn't need to sell it's direct connect service. This would be foolish of them to do so. Nextel has a one-of-a-kind service. Better than all the other competitors products. Plus Sprint has more can do phones too. I wouldn't sell a pioneer and an innovator for nothing. There service is valuable and crucial in adverse weather conditions. I would work to get wimax rolling full steam ahead and continue rolling out Qchat. Sprint and Qualcomm or whoever is taking them to courts over the patents need to come to some agreement. I suspect maybe the courts would ask them to come to this conclusion. It will be a tough win, win situation for both!!! Let's get this company out of legal department and into the "comeback" company department!
