Featured Articles

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC has announced that it will begin volume production of 16nm FinFET products in the second half of 2015, in late…

More...
AMD misses earnings targets, announces layoffs

AMD misses earnings targets, announces layoffs

AMD has missed earnings targets and is planning a substantial job cuts. The company reported quarterly earnings yesterday and the street is…

More...
Did Google botch the Nexus 6 and Nexus 9?

Did Google botch the Nexus 6 and Nexus 9?

As expected, Google has finally released the eagerly awaited Nexus 6 phablet and its first 64-bit device, the Nexus 9 tablet.

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 14 November 2008 11:01

Sprint still chained to Nextel

Written by Nick Farell

Image

$35 billion disaster that will not go away


Sprint is
regretting the ill-advised decision to spend $35 billion to get Nextel Communications in 2005, as it seems to have created more problems than it solved.

The Supreme Court of Illinois has decided that Sprint has to dump its Nextel iDEN network in Sprint affiliate iPCS's territory. It has a year to get rid of the network or shut it down. Sprint had an agreement with iPCS not to operate in its territory, but when it took over the Nextel network in the iPCS territory it was actually breaking the deal.

Now, Sprint must either work out a deal with iPCS or with some other wireless operator in order to continue serving its roughly 500,000 iDEN customers in the iPCS territory. It is the latest in a long line of problems that Sprint's merger with Nextel has caused. The company is desperately trying to flog some of its Nextel network and is still struggling to get its finances back on track.

Since the merger the company has been losing customers by the millions and posted a quarterly loss of $326 million. Before the merger it was making a profit of $64 million.  Recently, Sprint hired a new CEO and has begun an aggressive campaign to improve its customer service. Earlier this year, Sprint tried to sell the Nextel business, but the weak economy has made it impossible.

Yesterday, Sprint began offering some employees a volunteer severance package. The buyout only applies to employees who have non-customer facing jobs.

A company spokesman said that Sprint doesn't have a specific goal in terms of how much money it expects to save with the buyout or even how many employees it hopes will take the package. He also said it is just one of many things the company is doing to reduce costs.

Check it out here.
Last modified on Saturday, 15 November 2008 04:36

Nick Farell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments