Sprint Nextel says yes to iDEN, acquiesces on termination fees, gets rebanding extension

Sprint Nextel Corp. has decided to continue its commitment to its iDEN network.
After much speculation that Sprint Nextel was lining up buyers for the network, the company announced an extended network partnership with iDEN infrastructure provider Motorola Inc. and plans to launch a few new iDEN handsets.
Indeed, Sprint Nextel plans to release eight new iDEN handsets next year, with five set to launch during the first half of the year.
In addition, the carrier said it would introduce Boost Unlimited on the iDEN network, offering a nationwide home calling area for one monthly fee. The carrier currently offers Boost Unlimited on its CDMA network.
“Exclusively on the Nextel National Network [iDEN], customers have the largest selection of military-specification-compliant, rugged devices, as well as an ecosystem of rich business solutions including GPS, inventory and fleet management, dispatch operations and workforce management,” said Danny Bowman, president of Sprint’s iDEN business unit. “In addition, we have invested billions of dollars in the iDEN network over the past several years, adding thousands of cell sites to bolster capacity and coverage. As a result, our customers on the Nextel National Network enjoy the fewest number of dropped calls in the industry.”
In other Sprint Nextel news, the carrier finally pro-rated its early-termination fee policy. The carrier announced that beginning Nov. 2, its $200 ETF will decrease by $10 for each month of service, but customers must wait until they are six months into their contract to qualify for the ETF. The price drop begins in the sixth month of a contract, so by the 15th month of service, Sprint’s ETF will be down to $100. The policy only applies to customers who activate or reactivate service after Nov. 2.
The other three nationwide carriers all already pro-rate early termination fees, following pressure from regulators. Verizon Wireless’ $175 ETF decreases by $5 for each month of service, with no waiting. AT&T Mobility offers the same terms as Verizon Wireless. T-Mobile USA’s $200 ETF decreases to $100 if customers terminate service with 91 to 180 days remaining on their agreement; and decreases again to $50 with fewer than 91 days remaining. If customers terminate in the last 30 days of service, they pay a $50 ETF or their standard monthly charge, whichever is cheapest.
800 MHz
On a related front, the Federal Communications Commission gave Sprint Nextel until March 2010 to vacate 800 MHz interleaved channels as part of a rebanding plan to eliminate interference to public-safety communications. Sprint Nextel was to have relinquished 800 MHz interleaved spectrum by July 26, but the deadline was extended several times while the FCC reviewed the No. 3 wireless carrier’s petition for regulatory relief.
“We believe the outcome is ideal for Sprint Nextel, especially given where it was earlier this year when its options narrowed substantially after losing a court challenge to the FCC’s original rebanding rules,” said Jessica Zufolo, an analyst at Medley Global Advisors L.L.C.
A federal appeals court on May 2 affirmed the FCC’s June 26 deadline for Sprint Nextel to move off the 800 MHz interleaved channels.
“Sprint commends and appreciates the FCC’s decision to allow Sprint to gradually vacate the interleaved 800 MHz spectrum in stages based on the region-by-region progress made by public-safety licensees in retuning their systems to their new spectrum home,” said Scott Sloat, a Sprint Nextel spokesman. “This phased transition will ensure that this spectrum is turned over to public safety in a timely manner while enabling Sprint to support the 800 MHz reconfiguration and continue to provide best-ever service levels to our iDEN customers.”