Sprint Nextel Corp. ( S ) in collaboration with
U.S. based IT and telecom infrastructure provider, A&T Systems
has received a National Mobile Devices and Services contract from
the U.S. Department of Veterans Affairs (VA). Sprint will now offer
an array of wireless devices like smartphones, push-to-talk phones,
feature phones, tablets, mobile hotspots and cards, M2M solutions,
along with related wireless services.
Sprint's services under this new contract are expected to
benefit VA in several ways. The contract would streamline
operations by providing a single source of asset management for
disadvantaged (SDB), woman-owned (WOSB), veteran-owned (VOSB), and
service-disabled veteran small businesses.
Over the last 20 years, Sprint has been providing services to
the U.S. Department of Veterans Affairs. The new contract continues
to strengthen its alliance with the department and reflects its
growing significance as a premium wireless career.
At present, Sprint's core platform business depends upon the
success of its multi-billion dollar restructuring program known as
Network Vision. Through this plan, the company is concentrating on
the core Sprint platform, which includes CDMA, WiMAX and LTE
technologies, and the eventual termination of the Nextel platform
The company began the deployment of CDMA voice on 800 MHz in the
first quarter and is further expected to deploy LTE on 800
megahertz by the fourth quarter of this year. This network
restructuring will enable the company to abort the Nextel platform
by Jun 30, 2013, ultimately eliminating higher expenses of running
two separate networks.
Further, the company also targets a strong recapturing rate
(currently 46%) of Nextel customers with only 1.3 million customers
remaining on the Nextel platform. This includes 1 million post-paid
subscribers, the majority of whom are enterprise customers.
Apart from cost saving benefits, this program will enhance the
company's operations through cell site reduction, backhaul
efficiencies, better use of capital and reduced churn. The company
expects the Network Vision deployment to be over by the end of
2013, two years ahead of the original schedule.
Going forward, to strengthen its position in the wireless
business, the company is also competing with Dish Network
Corp. ( DISH ) for the
acquisition of broadband provider Clearwire Corp.
( CLWR ).
Sprint, which operates with other industry players such as
AT&T, Inc. ( T ), has a Zacks Rank #3
(Hold).CLEARWIRE CORP (CLWR): Free Stock Analysis
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