Sprint Nextel Corp. kicked off its “Day 1” operations as a new company last Friday just three weeks after Sprint Corp. completed its $35 billion acquisition of Nextel Communications Inc. The introduction of combined operations was backed by the launch of a wide-ranging advertising campaign, re-branded retail outlets and integrated rate plans.
The company said its multimillion-dollar advertising campaign will target both consumer and business users and will unveil the new Sprint Nextel brand touting the new “Yes you can” tag line. The campaign will use a mix of media, including 60- and 30-second TV commercials this fall, 60-second radio spots, national and local print ads, magazine ads and outdoor boards in 65 markets.
The carrier didn’t provide a specific price for the ad campaign. “We are backing the advertising campaign with very aggressive spending levels,” said Tim Kelly, president of consumer solutions for Sprint Nextel.
Kelly added that despite the carrier’s continued affiliate-related issues, the campaign would be nationwide.
Sprint Nextel also said it was embarking on a retail brand makeover that will include the interior of more than 1,600 company-owned retail stores. The company-owned stores will adopt Sprint Corp.’s previous initiatives that included in-store repairs; eTicket software that allows store staff to quickly assess and manage handset issues; a designated host to assist customers entering the locations; customer reservations to meet with in-store representatives; and an accessory express lane for quick purchases.
Sprint Nextel said the store re-branding included 10,000 banners, 34,000 uniforms, 16,000 nametags and more than 100 million pieces of collateral.
The store re-branding was similar to Cingular Wireless L.L.C.’s overnight conversion of more than 1,000 AT&T Wireless Services Inc. retail locations last November following Cingular’s acquisition of AWS.
The store re-branding also will include the availability of both Sprint Nextel’s CDMA and iDEN products and services in nearly all locations. Kelly noted that store representatives will have access to all customer records. The company does not have plans to consolidate its more than 22,000 retail points of presence through the end of this year, but Kelly said it would begin looking at the possibility beginning in 2006.
The in-store changes will be limited in a number of affiliate markets where Sprint Nextel has agreed to temper the availability of iDEN services in deference to affiliate complaints that Sprint’s acquisition of Nextel violated terms of their affiliate agreement. RadioShack Corp., which is one of Sprint Nextel’s largest third-party sales partners and recently announced an 11-year extension with Sprint Nextel, also noted that it will limit sales of iDEN products and services in select markets until new affiliate agreements are reached.
Sprint Nextel also launched new service plans that will be available to both CDMA and iDEN customers. The company will offer two basic voice calling plans grouped under the Sprint Fair & Flexible overage protection plans that previously were offered by Sprint, and the Sprint Free Incoming plans similar to plans Nextel offered.
The F&F offering will start at $35 per month for 300 anytime minutes with additional buckets available for flat rates. The Free Incoming plan will start at $50 per month for 300 outgoing anytime minutes, unlimited incoming minutes and unlimited nationwide push-to-talk services using either the CDMA ReadyLink service or the iDEN Direct Connect service, which now will be referred to as Walkie-Talkie.
An additional feature for both plans includes unlimited mobile-to-mobile calling between most customers on either CDMA or iDEN networks, including its youth-oriented Boost Wireless L.L.C. service, but excluding some affiliate customers. In addition, the plans offer unlimited night and weekend calling starting at either 7 p.m. or 6 p.m.; text messaging bundles; and unlimited data options. Sprint Nextel also offers bundled plans that include some of the additional features in one package.
Sprint Nextel’s consumer-oriented family plans will be based on the F&F plans and start at $75 per month for two lines of service sharing 800 anytime minutes and night and weekend calling beginning at 7 p.m. Surprisingly, the carrier will still offer most of the previous rate plans offered by Nextel, including its National Power plans and Unlimited plan, though only for iDEN devices.
