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Related Topics >> Sprint | Litigation | Ipcs | iDEN | Dan Hesse

Sprint reassures iDEN subscribers in wake of legal battle

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Sprint Netxel is trying to reassure its subscribers using the Nextel iDEN network that they will not be affected by the fact that the carrier has to been ordered to stop operating the iDEN network in territory where its affiliate iPCS has exclusivity rights.

"The message that we're trying to get out there as much as possible is that customers don't need to take any action at this time," Sprint spokesman Matt Sullivan said. "We are not shutting down the iDEN network and have no plans to shut down the iDEN network. We have a plan that we're implementing to address the court's ruling. We're committed to our customers, and we're going to make sure they're taken care of."

This echoed statements made by Sprint Nextel CEO Dan Hesse during the company's earnings conference call last month, in which he seemed to indicate that Sprint was considering other options to the court's mandated order. "It's business as usual for our customers there, and we're taking all of the actions," Hesse said. "There are alternatives with respect to complying with what happens in the courts." Some of the options floated for Sprint include divesting the iDEN territory or possibly buying iPCS. 

In early February, the Circuit Court of Cook County, Ill., made a final order that Sprint stop owning, operating and managing the offending portion of the Nextel network by Jan. 25, 2010. This followed a ruling in November, when the Illinois Supreme Court refused to grant Sprint's petition to appeal a ruling by the Appellate Court of Illinois issued in March 2008.

The Appellate Court had unanimously, in turn, upheld a 2006 ruling by Circuit Court in Cook County that said Sprint violated the terms of its Management Agreement with iPCS following Sprint's 2005 merger with Nextel, because Sprint had wanted to operate Nextel's iDEN network in territory where iPCS had exclusivity rights.

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Comments (10) | Post a comment
More stories about Sprint   Litigation   Ipcs   iDEN   Dan Hesse  

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Sprint is a disaster and an embarassment to the telecommuncations industry.

What is most interesting is Sprint's ability to dance around the issue. I like the way that they say that they are not shutting down the IDEN network. While that may be true it does not mean that they will not be shutting it down in the iPcs area!!!

As I see it they have very little choice left. With all of the pending lawsuits etc., it is highly unlikely that they can afford to buy out iPcs, and with their losses at even the Supreme Court level, there probably is no more legal manuvering left for them in regard to this issue.

Onepotential solution would be to con iPcs into selling this product line as well, which would enable Sprint to ditch another large batch of employees, however I personally think iPcs is too smart to buy into that dead horse network.

Sprint is bleeding customers so fast that their competitors can't hardly keep up with the influx. And it is only going to get worse. In my opinion this is going to go down hill at a faster and faster rate until Sprint finally folds up. I give them 2 years tops and I think that is probably being generous. I expect that by the end of 09 they will be at 47 million post paid customers, and that in the 4th quarter the real exedous will begin. By the end of 2010 they will likely make headlines as the next big dying company.

The sad part is that it all could have been avoided if the management team had not been so arrogant to dismiss without consideration the marketing strategies of the legacy Nextel people. They knew how business got DONE.

The comment about a disaster must either be a competitor or an ex-employee. Sprint probably does have other options such as a payoff - x number of dollars to iPCS for any iDEN customer in its territory. The bottom line here is income for iPCS and if it get a revenue stream for this from Sprint without having any customer service ties to iPCS it could be a win for them. Sprint could buy iPCS given the market cap plus a premium. Even if the premium is twice the current market cap it is a good deal for Sprint. The additional revenue stream would be good for Sprint. Sprint has the cash to do this if they want.

Sprint wrongfully terminated me on March 10th of this year. The next day I get a call from my manager wanting me to return to work. I'm not stupid my any means and went in before my scheduled time (not having accepted the position back) and was there to negotiate. Megan Fisher who is above my manager all but laughed in my face. I have a wrongful termination suit here and instead of going that route I wanted to be compensated for the humiliation and the devastation I went through. Here is one email I am waiting on a response to......Megan, I came in on Wednesday March 11th to work out some sort of negotiation to return to work. It was admitted that I was wrongfully terminated on March 10th due to a miscalculation on workforce' part. I understand that errors happen on a daily basis just like you said. We are all humans. However, the humiliation and devastation that I went through when I knew you (as in workforce and or Sprint) were terminating me with incorrect information is a BIG thing. When I have both you and John apologizing immensely I knew it was a big deal and that legal action was a part of it, hence negotiating. I love working for Sprint, but we all know I was wronged. I came to you asking for a pay raise that would get me to a pay level to where most people are who started after me. You declined. I asked for ten AAA points due to this being the area of Sprints mistake. I also asked for March stats to be put off because I was not there and am not there to work on them and also because schedule adherence was at 27%due to lunch being in wrong code and for some reason this is not fixable. I am writing because I loved being a part of the company. I loved that my ideas (such as utilization of office communicator) were being used. I wanted to return to work but not without some sort of compensation for being wronged. Now I am not threatening, this isn't my nature. But I do have a wrongful termination suit. I have the attorney and all the information I need. I'm not the type to take this route if something else can be done. I do want my job, but not without being compensated for being wrongfully terminated. If we can agree on something we might be able to get through this in a way that the company as a whole won't be affected by media attention and the sort. If you have any suggestions, please let me know. If you want to leave it as it is I will continue as I need to . As always you can contact me on my cell at 702-808-7795 or reply to this email. I did my job and did it well and came up with great ideas that have since assisted the company in a big way. No matter which way anyone looks at it the whole situation should have never happened. I am willing to put this behind me if some sort of compensation for the humiliation and devastation I went through can be arranged. Please let me know if you are even willing to work on this matter as I already sensed the unwillingness on your part to accomadate anything. Jodi Allerton I also cc'd Dan Hesse on it, but do you really think the CEO of the company has time for something that could ruin the company? Yeah right! Sprint and the customer service that is provided is what is killing the company as well as inconsistency all across the board!

Sprint is clearly a disaster. They have employees intentionally being fired because of crappy, uneducated supervisors, for instance MS/LVNV. You have customers that are so frustrated they would gladly walk away with a bill so there's the millions in bad debt...hmmm way to go Hesse, you did good on Embarq, but can you really save Sprint??? Selling off call centers (shhh its a secret) oh the towers were a great way to go and we wonder why we have no reception IN OUR COVERAGE AREA! Just type in two words Sprint and Lawsuit and you will find years worth of things that have been key in damaging Sprint, and it's still going.

$154 Million Loss on 10K for first quarter. Way to go Sprint!

I cannot believe you named your manager and put your cell phone number on a public comment. That could come back to bite you. You may have wanted to be a little bit less pointed, and although you posted anonymously, you can be identified via your cell phone number and the details provided about your boss.

Precisely the point.

Seriously? I can be identified via cell phone or details about my boss? How about MY NAME that I included?????? Must be a manager or higher up of Sprint, those are the bright ones!

So AT&T get bought by SBC becuase they simply where losing wireline customers as well as complete had lost AT&T wireless...MCI implodes...Global Crossing goes Chapter 11/7/9 - Qwest doesn't even have a wireless network and recently put up their network up for sale...XO - are they still around? Level 3 still struggling to become profitable. Who remains - SPRINT - not only with huge amounts of cash but still investing in CDMA & Global IP/MPLS Services...However, the Nextel purchase was written off and Sprint is moving towards 4G on wireless - Sprint created a 1Billion business providing voice for Cable Providers on the wireline side - Sprint 2nd quarter earnings reported best margins on wireline- Sprint owns a stake in TATA / Owns Boost Mobile & Now owns Virgin Mobile - and finally owns the majority stake in Clearwire... I think Sprint deserves respect from the industry - Amazing how little people know about Sprint....Nextel is tiny part of the business now.

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