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Saturday, November 21, 
11:43 pm

Sprint and Moto hold spinoffs, collaborate for Nextel

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BlackBerryCurveNextelMobilePhoneBig.png Sprint Nextel Corp. more than stumbled integrating Nextel's iDEN network after their merger. And CEO Dan Hesse has said he would consider a "compelling" offer for iDEN. However, Sprint now says after careful review of the business, it will "retain and rejuvenate this important asset." As part of this initiative, Sprint and Motorola Inc. extended their long-term partnership to provide enhanced network and infrastructure support, including software upgrades.

Moto also put a spinoff on hold. Our sister blog Tech Confidential reported that seven months after announcing plans to spin off its handset division by next year, the firm now says the split won't happen before 2010 because of the macro-economic environment, stresses in the financial markets and the changes underway in its mobile devices business.

Cell-phone users are always looking for the next cool upgrade. So Sprint and Moto plan to launch the Motorola i576 on Nov. 2, and later this year will debut the BlackBerry Curve 8350i smartphone, which contains Nextel Direct Connect, Sprint's industry-leading push-to-talk offering, as well as Bluetooth and GPS. Sprint also plans to launch eight Nextel Direct Connect handsets as part of its new device portfolio in 2009, with five expected to come before August.

Also, as part off its efforts to recover from customer defection after its troubles with iDEN, Sprint plans to use the global economic turmoil to its advantage, refocusing on its prepaid business, Boost Mobile, by giving better pricing options and, next year, unveiling Boost Unlimited on the iDEN network, offering a nationwide home calling area for one monthly fee.

Sprint is also banking on WiMax to boost profits as its massive joint venture with Clearwire Corp. gets underway. The JV partners hope to have between 120 million and 140 million customers in the U.S. on its WiMax network by the end of 2010. - Baz Hiralal

Sprint refocuses on iDEN with Motorola


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