Sprint - Nextel 2005 Annual Report Download - page 22

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Strategy
The strategy of our Local segment is to sell a bundled package of products and services to meet the needs of our
consumer and business and wholesale customers within our local service territories. To enable us to meet these
needs, we offer a wide array of products and services that we bundle in a variety of packages.
Products and Services
We offer customers a wide array of voice, data and other services. Our voice services include local calling
services to consumers and business customers within our local service territories, generally for a fixed monthly
charge, and a variety of enhanced calling features, such as call forwarding, caller identification, voicemail and
call waiting, for which we generally charge an additional monthly fee.
We also offer switched access services to long distance carriers, wireless carriers and competitive local exchange
carriers, known as CLECs, to enable them to connect their networks to customer locations. As required by
regulations of the Federal Communications Commission, or FCC, we offer CLECs the use of unbundled network
facilities and the ability to co-locate some of their equipment in our central offices.
We offer high-speed Internet access, primarily using a DSL service delivery platform. We also offer large
businesses, long distance carriers, wireless carriers and CLECs dedicated circuits to connect their sites or
networks to our network, their customers’ locations or other network facilities.
We offer customers within our local service territories long distance voice, data and wireless services using the
networks and facilities of our Wireless and Long Distance segments. We also offer video services through a sales
agency relationship with EchoStar Communications Corporation. In addition, we sell service communications
equipment that resides at a business customer’s location for management of voice and data networks and
applications. We also procure, configure and distribute equipment, materials and supplies to many
communication service providers.
Sales and Marketing
We locally manage our service offerings in an effort to serve the needs of each customer, and have sales
representatives with local market knowledge relevant to the service territories in which we operate. We operate
approximately 20 retail stores and two wholesale call centers, located mainly in our local service territories. We
also have automated many of our customer service functions, including Internet e-commerce systems, so that our
customers can receive answers to many frequently asked questions regarding their communications services
without speaking to a customer service representative.
Local Network
The network utilized by our Local segment consists of host and remote central office digital switches and digital
loop carriers interconnected with copper, microwave and fiber facilities. Our equipment typically operates on the
most current software in generally available release. The outside plant infrastructure connecting the customer
with the core network also consists of a mix of copper and fiber optic cables.
Competition
There is widespread competition among wireline communications services providers. The traditional dividing
lines between local, long distance, wireless, video and Internet services are becoming increasingly blurred. We
face competition from alternative communication systems constructed by facilities-based CLECs. We also face
increasing competition from cable operators providing high-speed Internet services, which can be used as a
platform to support voice services utilizing voice over IP technology, or VoIP. Furthermore, wireless
communications services increasingly constitute a significant source of competition, as some customers have
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