Following months of speculation, sports entertainment company ESPN Inc. reported a deal with Sprint Corp. to begin offering ESPN-branded wireless services using Sprint PCS’ network. The mobile virtual network operator agreement is expected to be similar to Sprint PCS’ existing agreement with Virgin Mobile USA L.L.C., though ESPN said its service will be a postpaid offering once it launches late next year.
As part of its ESPN Mobile offering, ESPN said that in addition to voice services it would provide sports news, information, commentary, analysis, statistics, ringtones, graphics, photos and logos as well as streaming audio and video using Sprint PCS’ data network. Sprint noted that its current multimedia service using the carrier’s CDMA2000 1x network is providing streaming video at 15 frames per second, and it expects to offer up to 30 frames per second once it launches its higher-speed EV-DO network beginning next year.
ESPN said it will be responsible for billing, customer relations, pricing, packaging, distribution and other operational aspects of the offering, and it is in discussions with several third-party vendors to supply services. The company also said it is in discussions with several handset manufacturers to supply ESPN-branded devices, noting that current Sprint PCS suppliers would likely have an advantage in gaining business.
Pricing for the service was not announced, though ESPN said the service would be have to be competitive with what is being offered today by traditional wireless operators. ESPN added that the MVNO arrangement with Sprint would not interfere with its current content agreements with other carriers.
ESPN said it counts about 90 million cable TV subscribers.
