https://urgentcomm.com/wp-content/themes/ucm_child/assets/images/logo/footer-new-logo.png
  • Home
  • News
  • Multimedia
    • Back
    • Multimedia
    • Video
    • Podcasts
    • Galleries
    • IWCE’s Video Showcase
    • IWCE 2022 Winter Showcase
    • IWCE 2023 Pre-event Guide
  • Commentary
    • Back
    • Commentary
    • Urgent Matters
    • View From The Top
    • All Things IWCE
    • Legal Matters
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Reprints & Reuse
  • IWCE
    • Back
    • IWCE
    • Conference
    • Special Events
    • Exhibitor Listings
    • Premier Partners
    • Floor Plan
    • Exhibiting Information
    • Register for IWCE
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Terms of Service
    • Privacy Statement
    • Cookie Policy
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • Mission Critical Technologies
    • TU-Auto
  • In the field
    • Back
    • In the field
    • Broadband Push-to-X
    • Internet of Things
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Call Center/Command
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Network Tech
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Operations
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Regulations
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • Organizations
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
Urgent Communications
  • NEWSLETTER
  • Home
  • News
  • Multimedia
    • Back
    • Video
    • Podcasts
    • Omdia Crit Comms Circle Podcast
    • Galleries
    • IWCE’s Video Showcase
    • IWCE 2023 Pre-event Guide
    • IWCE 2022 Winter Showcase
  • Commentary
    • Back
    • All Things IWCE
    • Urgent Matters
    • View From The Top
    • Legal Matters
  • Resources
    • Back
    • Webinars
    • White Papers
    • Reprints & Reuse
    • UC eZines
    • Sponsored content
  • IWCE
    • Back
    • Conference
    • Why Attend
    • Exhibitor Listing
    • Floor Plan
    • Exhibiting Information
    • Join the Event Mailing List
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Terms of Service
    • Privacy Statement
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • TU-Auto
  • newsletter
  • In the field
    • Back
    • Internet of Things
    • Broadband Push-to-X
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Cybersecurity
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
acc.com

content


Tough times continue for Sprint Nextel

Tough times continue for Sprint Nextel

Beyond rebanding woes, CEO splits, as do thousands of push-to-talk customers
  • Written by Urgent Communications Administrator
  • 1st November 2007

It was more bad news for Sprint Nextel last month, as the wireless carrier announced the departure of its CEO and said it would fail to meet its financial guidance for the year.

Gary Forsee resigned as CEO. He oversaw Sprint’s $35 billion acquisition of Nextel in 2005 — an acquisition that has failed so far to create any synergies or capital savings. Sprint said it has formed a search committee to find a new CEO. In the meantime, Paul Saleh, Sprint’s chief financial officer, will serve as acting CEO.

To make matters worse, the CDMA/iDEN operator said it lost 337,000 postpaid customers during the third quarter, many defecting from the Nextel push-to-talk (P2T) iDEN network. Moreover, investors are growing impatient over the company’s $5 billion WiMAX buildout plans for what is beginning to look like a market experiment concerning the brand-new technology and the company’s open-access business model. In particular, activist investor Ralph Whitworth has criticized management regarding Sprint Nextel’s investments in WiMAX and what he calls poor attention to the company’s core mobile-phone business.

In addition, credit-rating service Fitch Ratings said it is concerned about Sprint’s lagging effort to switch subscribers from Nextel’s iDEN network to its CDMA network and the cost of deploying WiMAX.

Indeed, the effort to reband 800 MHz spectrum that Nextel undertook before the merger to alleviate radio interference for first responders has become more complicated for the carrier. The effort has resulted in a capacity crunch for its high-value P2T users, who now complain about network quality and are defecting to competitors AT&T and Verizon Wireless.

“Rebanding of the spectrum has proven to be much more difficult than management thought it would be,” said John Byrne, a director with Technology Business Research. “The assumptions about the iDEN network in general were wrong. They thought they could scale back on [capital expenditures] before the merger by implementing a new vocoder. But overall, the limitations of that technology are being revealed.”

What is Sprint to do? Derek Kerton, a consultant with The Kerton Group, said that the only solution is to speed up the rollout of its CDMA EV-DO Rev. A network, the next iteration of EV-DO technology that supports real-time voice-over-IP (VoIP) services, and aggressively move Nextel customers over to the new network. Sprint has been working to do this but has been limited by the number of CDMA/iDEN handsets available on the market.

Shuttering the WiMAX business is out of the question for Sprint as it has entered the point of no return in terms of its commitment, Byrne said. One main factor has to do with the fact that Sprint has promised the FCC it would roll out wireless broadband service in the 2.5 GHz band. In return for the FCC not forcing Sprint to divest the vast amount of 2.5 GHz spectrum it gained through its merger with Nextel, Sprint Nextel promised to offer wireless broadband to at least 15 million people within four years and another 15 million within six years.

To appease concerned investors, Sprint could very well look for partnerships, even a private-equity buyout of the business, analysts say. At any rate, whatever moves Sprint makes to help its existing business and the emerging one will require some painful decisions — and capital.

“Everything they have to do costs money, and that doesn’t help them on Wall Street,” Kerton said. “With this cloud over them, I don’t see their market performance turning around.”

Tags: Commercial content Rebanding Wireless Networks

Most Recent


  • Panel at SBC event examines significant economic, policy challenges facing in-building communications
    Ensuring that public safety can communicate while responding to emergencies inside buildings is a clear need, but identifying the proper solutions and making them affordable to building owners is a significant challenge, according to panelists exploring the topic during a recent Safer Buildings Coalition (SBC) event. Mike Baltrotsky, assistant chief and technology manager for Montgomery […]
  • Indoor 5G and how to solve it
    We all know the problem: mobile phone service is working fine … until you move indoors. Then, sometimes it works (you don’t notice), sometimes it sort of works (meh) and sometimes it clings on by one tiny bar or drops out entirely (argh). Diagnosing the problem is relatively simple. The loss of mobile service indoors […]
  • Honeywell releases cybersecurity, smart-building tools
    Honeywell has released a series of new tools aimed at improving operational efficiency and sustainability, including an operational technology (OT) cybersecurity tool and a smart building management system. The new cybersecurity tool, Cyber Insights, collects information from multiple OT data sources to identify vulnerabilities and threats.  “Organizations should leverage technology to address worker shortages, while […]
  • Small-cell focus still largely on densification, but private-network opportunity growing
    Some big ambitions for small cells were on display during the annual Small Cell World Summit in London this week. But it’s worth remembering that on the ground, their deployment is still at a relatively early stage. Dean Bubley of Disruptive Analysis, who chaired a panel addressing the issues of value creation and monetization, summarized […]

Leave a comment Cancel reply

To leave a comment login with your Urgent Comms account:

Log in with your Urgent Comms account

Or alternatively provide your name, email address below:

Your email address will not be published. Required fields are marked *

Related Content

  • The battle over connected cars drags on
  • UK officials revamp ESN plans again, target Airwave-to-LTE transition for end of 2026
  • PSCR: Dereck Orr highlights features of June 21-24 virtual event
  • FirstNet buildout on pace for March 2023 completion, AT&T official says

Commentary


Updated: How ‘sidelink’ peer-to-peer communications can enhance public-safety operations

  • 1
27th February 2023

NG911 needed to secure our communities and nation

24th February 2023

How 5G is making cities safer, smarter, and more efficient

26th January 2023
view all

Events


UC Ezines


IWCE 2019 Wrap Up

13th May 2019
view all

Twitter


Newsletter

Sign up for UrgentComm’s newsletters to receive regular news and information updates about Communications and Technology.

Expert Commentary

Learn from experts about the latest technology in automation, machine-learning, big data and cybersecurity.

Business Media

Find the latest videos and media from the market leaders.

Media Kit and Advertising

Want to reach our digital and print audiences? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • American City & County
  • IWCE
  • Light Reading
  • IOT World Today
  • Mission Critical Technologies
  • TU-Auto

WORKING WITH US

  • About Us
  • Contact Us
  • Events
  • Careers

FOLLOW Urgent Comms ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.