Prepaid Reviews Blog » Sprint

Sprint ends litigation by acquiring iPCS

Joe — Tue, 20 Oct 2009 12:30:57 +0000

Earlier this month Sprint and Virgin Mobile settled their outstanding lawsuits, clearing the way for the acquisition they announced in July. There was just one more obstacle in the way, iPCS. A Sprint reseller, iPCS has exclusive rights to sell Sprint services in certain Midwest markets. Virgin sells services in those markets, so once Sprint finished the acquisition they’d be competing with iPCS. This prompted a lawsuit. Many speculated that a takeover of iPCS would be the best move, and that’s exactly what will happen.

The acquisition, valued at around $831 million, will not only clear the Virgin Mobile suit, but will also save Sprint from divesting some of its iDEN network. iPCS previously filed, and won, a lawsuit against Sprint following its acquisition of Nextel. A ruling forced Sprint to divest its iDEN network in iPCS networks, but that is no longer necessary.

The move appears to be a formality. When Spint acquired Virgin Mobile, it had to have known that iPCS would be ready with a lawsuit. The only solution at that point, it would appear, would be for Sprint to acquire iPCS. It stands to reason, then, that Sprint had planned this acquisition along with the Virgin Mobile deal.

All pending litigation has been put on hold, and will come to an official end when the deal closes, which is projected to be in the fourth quarter this year or first quarter next year, around the same time the Virgin Mobile deal is expected to close.

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Sprint ends litigation by acquiring iPCS

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint ends litigation by acquiring iPCS

Another lawsuit over Sprint’s Virgin Mobile acquisition

Joe — Tue, 15 Sep 2009 12:30:35 +0000

Just after Sprint acquired Virgin Mobile at the end of July, an angry investor filed suit against the company alleging that they didn’t get proper market value for their shareholders. We later learned that there was a competition to acquire Virgin, so perhaps Virgin did get market value — only market value did not live up to the perception of this angry investor. There is a new lawsuit on the table, though this from another business. iPCS has sued Sprint over the acquisition. It’s not the first time the two have squared off in court.

iPCS, which resells Sprint-branded services, covers a portion of the Midwest. They have an agreement in place which prevents the parent company from competing with its affiliate. The two first locked horns over Sprint’s acquisition with Nextel. After a hearing, Sprint was forced to stop operating its Nextel network in iPCS territory, which includes parts of Illinois, Iowa, Michigan, and Nebraska.

Another lawsuit came to light after Sprint announced it would merge its WiMax network with Clearwire. That matter is still pending. The Virgin Mobile suit means iPCS will have two open actions against Sprint. The company takes seriously its place in the market, even though their place in said market comes with the use of Sprint’s network.

The current lawsuit seeks to block the Sprint-Virgin deal until Sprint makes it comply with the competition agreement. Since Virgin operates on Sprint’s network, it would ostensibly compete with iPCS. Virgin, of course, did compete with iPCS, but that was as a Sprint reseller. After the merger closes, Virgin will act as Sprint itself, even though it will retain Virgin branding.

Sprint might be better off acquiring iPCS and putting it out of its misery. Shrewd as its executives appear to be, I doubt iPCS goes down without a fight. It is, however, a publicly traded company, so a hostile takeover might be Sprint’s best option to get rid of this thorn in its side.

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Another lawsuit over Sprint’s Virgin Mobile acquisition

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Another lawsuit over Sprint’s Virgin Mobile acquisition

Get out of your Sprint contract through January 31

Joe — Wed, 21 Jan 2009 13:30:10 +0000

It looks like Sprint has set up a quick way for customers to ditch their service. They had previously allowed customers to get out of their contracts ETF-free due to a change in their terms of service (a 75 cent administrative fee). That ended January 1. Now, though, they’re giving customers yet another chance to opt out of their service. In a strange move, they’ve again increased the administrative fee, this time to 99 cents. This creates a ripe opportunity for customers to ditch Sprint in favor of Boost Mobile’s unlimited plan.

The offer will extend through January 31, so there’s still some time for you to call up Sprint and tell them to cancel your contract. You can then try out Boost’s new unlimited plan, available Thursday, to see if it works for you. If it does, that’s great. You’ve found a quality cell phone plan on the cheap. If not you can check out other pay as you go cell phone deals.

If you’re a gadget hound, as many out there are, you can also wait until Sprint releases the Palm Pre or the BlackBerry Bold. Since you won’t have a contract, you can sign up for a new one and take advantage of a subsidy. Unless Sprint puts something in place which would prevent people who have recently canceled contracts to re-join and receive a subsidy. We’ll have to wait and see on that one, I suppose.

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Get out of your Sprint contract through January 31

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Get out of your Sprint contract through January 31

Nextel, Boost, must fix problems by June

Stuart — Mon, 19 Nov 2007 16:15:17 +0000

Federal regulators are all over Sprint Nextel right now, as the iDen technology of the Nextel branch is interfering with police and fire radios. This, of course, is detrimental to the safety of a certain number of Americans (we won’t venture a guess as to how many). So now Sprint has been given an ultimatum: Fix the problem by June 2008, or face the loss of Nextel and Boost. That should give Sprint enough motivation to get crackin’ on this one. It just comes at a horrible time for the company.

First, this can be construed as another attack on former CEO Gary Forsee, who orchestrated the Nextel purchase. Not only has Sprint had trouble integrating the iDen with their CDMA, but now the iDen is causing further detriment. While we still back Forsee, this will certainly be used against him (not that it really matters at this point).

Sprint has spent the last few years — and at least one billion dollars — to eliminate the interference between 2,200 public safety agencies across the country. But the company’s not on track to have the process finished in time.

The company is expected to seek waivers in order to buy more time. But what if those waivers aren’t granted? Can you imagine Boost and Nextel going kaput? That’s 20 million customers, just under 40 percent of Sprint’s overall subscribers.

[Nebraska.tv]

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Nextel, Boost, must fix problems by June

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Nextel, Boost, must fix problems by June

Sprint pulls out of WiMax deal with Clearwater

Joe — Fri, 09 Nov 2007 17:00:30 +0000

Oh, we were so psyched up for WiMax. We often talk with friends in the wireless industry about the perils of Sprint, and in every conversation someone say, “yeah, but they’re getting WiMax.” It’s almost like a ray of hope for the nation’s No. 3 carrier. But that ray has been covered by clouds, as Sprint has announced that they are breaking off the agreement. While they haven’t made clear their reasons, it seems pursuant to the departure of CEO Gary Forsee (and we still lament that, because we really think he was the guy to turn around Sprint).

Sprint was to spend $5 billion to create a WiMax network that would reach 100 million people two years from now. WiMax start-up and recent IPO Clearwire (CLWR) was also building a network. It was probably going to need to spend as much as Sprint planned to. Both companies decided to link up and cooperate on the build-out and allow one another’s customers to have free roaming privileges around the US.

Doesn’t that sound great? A service that benefits all Americans. And then Sprint goes and messes it all up. So Clearwater is left with a much less appealing service, one which they’ll be hard pressed to offer nationwide.

Thankfully, other companies such as Intel, Nokia, Samsung, and Motorola have a stake in the service. They could all dump a ton of money into Clearwater in order to get this thing built and released to the public.

Don’t get your hopes up, though. Douglas McIntyre of 24/7 Wall St. puts it aptly: “But, it will take something at least a bit extreme to keep WiMax in the US on track.”

[24/7 Wall St.]

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Sprint pulls out of WiMax deal with Clearwater

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint pulls out of WiMax deal with Clearwater

Sprint jumps in on prorated ETFs

Joe — Fri, 09 Nov 2007 14:30:10 +0000

This one flew right under our radar. Apparently Sprint announced that it would join Verizon and AT&T in offering prorated early termination fees at the same time T-Mobile did. Our bad. It’s the same deal as T-Mobile: It won’t be implemented until next year, and it only applies to new contracts. So if you are under contract with Sprint — say you signed up two months ago — you still have to pay a full ETF until your contract is up. The prorated ETF will go into effect when you sign a new contract, nearly two years from now. We’re sure a bit of strategic complaining can get your ETF prorated on your current contract, though.

Sprint announced a few new features along with the prorated ETF. The first is another piggyback of Verizon and AT&T: Change your rate plan without extending your contract. We didn’t see that provision from T-Mobile. We’ll look further into it, but we’d hope that America’s No. 4 carrier would offer the same courtesy as the top three.

Sprint is also offering a welcome call to all new customers:

Soon after a new customer activates service, a Sprint customer care representative will welcome the customer to Sprint, thank the customer for his or her business, ensure the customer feels fully informed about the product and/or plan chosen, about coverage and answer any questions. The goal is to ensure customers are fully educated about the Sprint products and services they purchased.

Wasted time. The sales representative from whom you purchase the phone should go over all of that with you. And if you buy it online, you should do your due diligence. We suppose the welcome call doesn’t hurt, but it’s not some boon for consumers or anything.

Here’s an idea that’s great in theory but sounds horrible in practice:

Sprint monitors new customers’ wireless usage during the first six months of service. To ensure customers are on the right plan, Sprint will notify them the first time they have incurred significant excess voice, text or data overage charges. Customer service representatives will recommend a new plan for the customer to help them avoid future overage charges and better meet their wireless needs.

Uh, yeah, every company notifies you of overages…on your bill! It doesn’t sound like Sprint is going to call you when you’re approaching your plan limits on the 20th of the month. They’ll wait until after you go over, and then call you. That’s backwards. If they want to do their customers a service, they’ll let them know beforehand, so 1) they can avoid overages and 2) they can change their plan for the next month. The language above suggests that Sprint will gladly take your overage charges, then tell you to spend more money on a larger calling plan.

In another move piggybacking Verizon, Sprint will also offer a “New For You” program, which mimics Verizon’s “New Every Two.” They’re advertising up to $150 off a new handset every 22 months, but we’re sure that figure includes the price for a new two-year contract. Under Verizon, you get either $50 or $100 off a new phone, depending on your rate plan, in addition to the new two-year contract subsidy.

It’s nice to see the No. 3 carrier finally catch up to the companies ahead of it. We’re not sure it’s going to do a ton of good for Sprint, though. They’re in a tailspin, and need to find ways to differentiate themselves from Verizon and AT&T. So while this is a good move, it’s not one that’s going to make up for their lost customers this past quarter.

[Sprint] via [Consumerist]

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Sprint jumps in on prorated ETFs

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint jumps in on prorated ETFs

Sprint loses 337,000 subscribers

Joe — Thu, 01 Nov 2007 17:00:36 +0000

Despite our vocal disdain for earnings reports, we’ve actually been looking forward to Sprint’s. Why? Because along with the financial data come subscriber numbers. With AT&T and Verizon both reporting increases, we figured Sprint had to see a decline. And they did. The company reported losing 337,000 contract subscribers in the third quarter. We’ve actually read elsewhere that these losses mostly came on the Nextel-branded end. The company did add 67,000 customers to its Boost prepaid brand.

The Reston, Virginia-based phone company is on course to post its first annual sales decline since 2003 this year. After losing contract subscribers in four of the past five quarters, Sprint ended September with 41.4 million.

The churn rate, predictably, rose during the third quarter. It went to 2.3 percent, while the previous 10 quarters had averaged out to 2.1 percent. This is in stark contrast to Verizon, who saw a rise from 1.24 percent to 1.27 percent. All of this does not bode well for Sprint.

Perhaps, though, the only place to go from here is up. Looking the financial analysts, six suggest buying the stock, 20 say hold it, and just eight say “sell.” So it appears that there is a level of confidence in the company.

We’ll see how 2008 goes for them, as they probably don’t have enough firepower to make a splash in the last of 2007. WiMax could be on the way, though, and that would be an excellent development for the Nation’s No. 3 carrier. Now, where the hell is T-Mobile’s subscriber data?

[Bloomberg]

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint loses 337,000 subscribers

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint loses 337,000 subscribers

Sprint to provide unlock code for departing customers

Stuart — Mon, 29 Oct 2007 15:00:06 +0000

As a result of class action suits in California and Florida, Sprint will now allow former customers to unlock their phones. This development comes as a settlement, not as a decision rendered by a judge or jury. According to spokespeople, Sprint wants “to avoid the uncertainties and expense of litigation.” While we don’t blame them, this decision should have little effect in the short-run. Yes, customers can have their CDMA phones unlocked when they leave Sprint, but they might find difficulty activating it with another network. As far as we know, Verizon won’t accept phones from other carriers, since they’re “not optimized to the Verizon network.”

The issue of locked cell phones has been much in the news lately as a result of Apple Inc.â€™s decision not to let customers modify their iPhones so that they can work on other networks besides that of AT&T. Lawsuits against both companies allege anti-competitive and unfair business practices.

Last year, a state court judge certified the California case against Sprint as a class action. The plaintiffs contended that Sprint had locked their phones with software programming locks, making it impossible or impractical for them to modify the programming of their phones or to switch cell phone providers without buying a new phone.

Now, since Sprint settled this case before judgement could be rendered against them, they’re claiming no wrongdoing. Like most other cell carriers, they say that locking phones was perfectly fine, since customers were told before they signed up. Yeah, they were told, as in the language was in the contract. Just like mandatory arbitration is in the contract. Just because you spell something out doesn’t make it right.

The fact is, consumers have little to no choice when it comes to issues like arbitration and locked phones. All the carriers do it, so it’s not like they could procure a better deal elsewhere. That’s why we’re not buying the Sprint argument.

Customers will also be supplied with information to activate non-Sprint phones with the company. However, the problem with that is unlocking them in the first place. So, in essence, this deal means little now. It could, however, set an apt precedent for future cases against cell carriers.

[Kansas City Star] via [Consumerist]

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Sprint to provide unlock code for departing customers

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint to provide unlock code for departing customers

Sprint launches it’s version of the iPhone

Joe — Thu, 18 Oct 2007 16:01:11 +0000

Here’s the thinking of wireless carriers right now: Apple didn’t just create a product everyone wants when they produced the iPhone. They created a type of product that everyone wants. And they’re basing this thinking on the relevant past. Once Apple created the iPod, for example, everyone wanted one. Thing is, the damned iPod was expensive. So other companies, thinking that people just wanted an MP3 player, created similar devices that sold at a cheaper price. And they found moderate success. So this is where Sprint’s new offering comes from.

It’s called The Touch, and it’s produced by High Tech Computer Corp. of Taiwan. It’s similar in many ways to the iPhone, what with the touch screen, built in memory, and multimedia capabilities. But really, there are a lot of phones out there like that. Ever heard of the Palm Treo? That’s touch screen…and it’s sales dropped with the release of the iPhone.

So we’re not quite sure what Sprint is trying to pull here. The device will be about $150 cheaper than the iPhone, though that’s after a $100 rebate and a two-year service agreement.

It sounds nice, but it reminds us of Creative’s Zen Touch. We bought one of those because the 20 GB model was nearly $100 cheaper than the iPod 20 GB. And guess what? I ended up having a number of bugs, and we eventually junked it in place of a real iPod. We can see the same thing happening with The Touch…moreso because we’ve never heard of High Tech Computer Corp.

But it can be yours on November 4th. We’ll look for reviews after that.

[The Boston Globe]

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Sprint launches it’s version of the iPhone

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint launches it’s version of the iPhone

Sprint releases cheap, full-feature phone

Joe — Fri, 12 Oct 2007 16:00:02 +0000

We never thought we’d see the day: A phone with a full keyboard and decent-sized screen for under $100. But LG has developed one, and Sprint has picked it up. It’s the Rumor by LG, and we think it’s going to sell like hotcakes. It’s basically the Sidekick Lite…only a whole boatload cheaper. And if there’s one thing we like in the telecom industry, it’s cheap phones. Yeah, it’ll cost you a two-year contract, but what won’t these days?

With your mobile web subscription, you’ll get access to AOL Instant Messenger, MSN Messenger, and Yahoo Messenger. Plus you get e-mail through Sprint’s own mobile e-mail service, plus easy access to Yahoo, AOL, Gmail, and MSN mail.

Additionally, Sprint will offer messaging options on the Rumor that go beyond text. Voice SMS, for example, will allow a subscriber record a voice message on the Rumor and send it to any mobile phone, e-mail address, or landline phone like a text message. With Sprint’s text-to-landline service, subscribers can send a text message to a landline phone and it will be converted to a voice message.

So basically this is a messaging haven. It’s going to go over real well with the kids, though that’s not necessarily a good thing. They already don’t pay attention enough in school, and adding a phone like this will only make their text messaging habits worse.

It has all the other basics of a modern phone: 1.3 MP camera, Bluetooh, MP3, GPS, and microSD expandable memory. This leaves us wondering why it’s under $100? We think we’re totally in for this.

[Information Week]

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Sprint releases cheap, full-feature phone

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint releases cheap, full-feature phone