Sprint seeks FCC approval to shutter consumer wireline biz by Sept. 17
Sprint is looking to drop its consumer wireline business and some associated services by Sept. 19 due to “changing market conditions.”
In a filing with the Federal Communications Commission, Sprint noted that it stopped adding new wireline customers earlier this year and is seeking regulatory approval to shutter the commercial service. Areas impacted are to include operations in the United States, Guam, Puerto Rico and the U.S. Virgin Islands.
The other services included in the request include “message telecommunications service (i.e., 1+ long distance) (‘MTS’), Fōncard, directory assistance, and operator service (collectively, the ‘Sprint Services’).” Sprint said it will continue supporting “casual caller” telecommunications relay services in the 35 locations where it’s under contract to provide services.
“The proposed discontinuance will not result in material harm to the affected customers because they easily can obtain alternative services from other wireline interexchange carriers,” Sprint noted. “Customers also may purchase substitute long-distance services and features from wireless carriers such as Sprint or from a host of other alternative providers such as interconnected voice over Internet protocol providers.”
Sprint’s wireline operations have become a shrinking portion of the carrier’s overall business operations as it continues to focus on improving performance of its wireless services. During its last fiscal quarter, wireline services generated $668 million in revenue, which was down more than 13% from the previous year. Overall, Sprint’s wireline service accounted for just over 8% of its total revenue during the latest quarter and past year.
Sprint in 2006 spun off its local telecom business under the Embarq brand and under the leadership of former Sprint CEO Dan Hesse. Embarq was eventually acquired by regional telecom operator CenturyTel for $11.6 billion.
Sprint continues to offer wireline services to enterprise customers, having earlier this year launched its Workplace-as-a-Service offering, which bundles a package of telecom services into a platform managed by the carrier.
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