With apparently not enough on its plate, Sprint is reportedly looking at bringing back the Nextel brand to target enterprise customers as well as consolidate its prepaid operations under one brand, according to TechCrunch.
The story, citing un-named insiders at Sprint, said that the carrier was looking to tap into the enterprise equity the Nextel brand could still have to offer a “premium” Sprint service. That offering will include a focus on LTE-based offerings, including both fixed and mobile services.
Sprint earlier this year shuttered the remains of the Nextel brand when it turned off the iDEN network in order to reduce operational costs and free up spectrum in the 800 MHz band to support broader LTE and CDMA coverage. That process began with Sprint’s $35 billion acquisition of Nextel in 2005 that saw a majority of Nextel customers flee to other carriers and an eventual write down of the deal.
Following the shutdown of the iDEN network, Sprint picked up the remaining stake in Clearwire that it did not already own for more than $5 billion and then approved Japan’s Softbank $21.6 billion acquisition of a 78% stake in the company. More recently, Sprint has reportedly been moving towards putting in place the finances needed to acquire Deutsche Telekom’s controlling stake in T-Mobile US, which would combine the nation’s No. 3 and No. 4 operators into a more formidable rival to Verizon Wireless and AT&T Mobility.
Sprint Freedom
A consolidation of its prepaid offerings would see Sprint combine operations of its Sprint As You Go, Boost Mobile, Virgin Mobile USA and Assurance brands under the “Sprint Freedom” banner, according to the TechCrunch story. The carrier has repeatedly said its various no-contract brands were effective in targeting different segments of the market despite the fact that the differentiation between the offerings has dwindled to basic branding.
The move would also seem to strengthen the carrier’s position in the space that is seeing a number of new entrants and more robust offerings from established rivals. T-Mobile US has done away with all service plan-related contracts and has been aggressively expanding its MetroPCS brand into new markets. AT&T Mobility is in the process of acquiring Leap Wireless, which will spearhead that carrier’s no-contract plans that currently include GoPhone and Aio Wireless. Verizon Wireless has also ratcheted up the pressure in the no-contract space, having altered its branded offerings to be more competitive and partnered with a number of mobile virtual network operators and resellers to target the prepaid market.
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