LAS VEGAS-Sprint Nextel Corp. doesn’t expect to add many new mobile virtual network operators to its network and plans to take time to digest the ones it already has and see how they do, company officials said at CTIA Wireless 2006.
Len Lauer, Sprint Nextel’s chief operating officer, noted that a number of postpaid MVNOs are slated to launch service on the operator’s network this year, including Helio L.L.C. and Disney Mobile. Mobile ESPN began offering service nationwide earlier this year.
Lauer said that Sprint Nextel “[turns] down a lot of companies” that want to use its network and that the carrier does not want to hurt its core Sprint and Nextel brands by enabling many MVNOs. However, he noted, the virtual network operators are part of Sprint Nextel’s multi-brand strategy, and 2006 will be the year to see how much traction such brands gain in the marketplace.
“We don’t believe that one communications brand can apply to all segments,” Lauer said. “We believe there are segments that our brand may not be able to penetrate”-and that would be where the MVNOs on Sprint Nextel’s network come in.
Lauer added that analysts should give MVNOs three to four quarters before judging what gains they make.
Oliver Valente, Sprint Nextel’s senior vice president for product development, reiterated the company’s goal of introducing a dual-mode CDMA/iDEN phone in the fourth quarter of this year, with another two dual-mode handsets to follow. The company is focused on making its user interface and devices simple to use to attract wireless users, most of whom have yet to take advantage of data services, Valente said.
Valente noted that in the case of Sprint Nextel’s Samsung Electronic Co. Ltd. A900 handset, the slim handset has proved popular with consumers, about 80 percent of whom sign up for an accompanying data services plan. Valente added that he expects devices to continue to evolve with larger screens, more horsepower, excellent audio and video capabilities and the capability to use multiple technologies.
Sprint Nextel also is exploring the possibility of the CDMA/WiFi handset.
