Sprint says iDEN network will stick around

by Joe P on January 31, 2008

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We know that Sprint isn’t doing too well. They’re losing money, they’re losing customers, and they’re losing executives. But that doesn’t mean that they’re going to trim from their core business. Nextel, acquired by Sprint in 2005, has long been known for their iDEN network, which features push-to-talk. This is a favorite feature in many industries, including construction. Plans originally had been to “cap off” investment in the network after 2007. We’ll, we’re there, and iDEN is losing customers faster than the CDMA end. Yet Sprint has committed to at least another four years of iDEN investment.

Beyond the losses on the Nextel end, Sprint has seen losses in their traditional Boost service, which utilizes the iDEN network. You know, those whole “Where you at?” ads, or the newer (and I think defunct) campaign, “Chirpies.”

So why would Sprint continue to fund a dying aspect of their company? According to IDC analyst Godfrey Chua, they need the customers. They still have 18.7 million customers on that network, and many of them are of the very loyal type.

“It just hasn’t been as easy for Sprint to consolidate its network architecture as it has been for AT&T,” Chua said.

Without the iDEN customers, Sprint is closer to the level of the nation’s No. 4 carrier, T-Mobile. They ended the year with about 28 million subscribers. Sprint has 34.1 million — and falling — on their CDMA network.

It appears that Sprint’s new CEO has a plan. Why else make an announcement like this?

[InfoWorld]

Filed under : Sprint