Sprint - Nextel 2006 Annual Report Download - page 8

We offer wholesale services on our CDMA network to resellers, commonly known as mobile virtual network
operators, or MVNOs. MVNOs purchase wireless services from us at wholesale rates and resell the services to
their customers under their own brand names. Under these MVNO arrangements, the operators bear the costs
of acquisition, billing and customer service. We currently provide wholesale services, through multi-year,
wholesale agreements, to a number of MVNOs, including Embarq, Movida Communications, Inc., Helio Inc.,
Qwest Communications International, Inc., The Walt Disney Company and Virgin Mobile USA. Virgin Mobile
USA offers prepaid wireless service targeted to the youth and prepaid markets and is a joint venture between
us and Virgin Group.
We provide wireless services that are marketed and sold by several cable multiple systems operators, or MSOs,
in four markets. We entered into an agreement with several cable MSOs to jointly develop converged services
designed to combine many of cable’s core products and interactive features with wireless technology to deliver
a broad range of services, including video, wireless voice and data services, high speed Internet and cable
phone service, to the participating cable MSO’s customers. During 2007, we expect to develop new products
and services and introduce service in additional markets.
We offer customized design, development, implementation and support services for wireless services provided
to large companies and government agencies.
Sales, Marketing and Customer Care
We focus the marketing and sales of wireless services on targeted groups of customers: individual consumers,
businesses and government customers. We offer a variety of pricing options and plans, including plans
designed specifically for business customers, individuals and families. We use a variety of sales channels to
attract new subscribers of wireless services, including:
kdirect sales representatives whose efforts are focused on marketing and selling CDMA- and iDEN-
based wireless services primarily to mid-sized to large businesses and government agencies that value
our industry and technical expertise and extensive product and service portfolio, as well as our ability
to develop custom communications capabilities that meet the specific needs of these larger customers;
kretail outlets that focus on sales to the consumer market, including Sprint Nextel retail stores owned
and operated by us, as well as third-party retailers such as Radio Shack, Best Buy, Target and Wal-
Mart;
kindirect sales agents that primarily consist of local and national non-affiliated dealers and independent
contractors that market and sell services to small businesses and the consumer market, and are
generally paid through commissions; and
kcustomer-convenient channels, including web sales and telesales.
We market our post-paid services under the Sprint and Nextel brands. We offer these services on a contract
basis typically for one or two year periods, with services billed on a monthly basis according to the applicable
pricing plan. We market our prepaid services under the Boost Mobile brand, as a means to directly target the
youth and prepaid wireless service markets.
Although we market our services using traditional print and television advertising, we also provide exposure to
our brand names and wireless services through various sponsorships. We are the title sponsor of the NASCAR
NEXTEL Cup Series
TM
, the premier national championship series of the National Association for Stock Car
Auto Racing, or NASCAR». We are NASCAR’s official telecommunications sponsor, which entitles us to a
variety of branding, advertising, merchandising and technology-related opportunities, many of which are
exclusive with NASCAR, its drivers and teams, and the racetrack facilities. We also are the official
telecommunications service provider of the National Football League, or NFL, and the provider of exclusive
and original NFL-related content as part of our Sprint-branded wireless service. The goal of these initiatives,
together with our other marketing initiatives, which include affiliations with most major sports leagues, is to
increase brand awareness in our targeted customer base and expand the use of our customer-convenient
distribution channels: web sales, telesales and retail stores.
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