Sprint - Nextel 2007 Annual Report Download - page 6

We also offer wireless services that focus on the youth market, including our Boost Mobile prepaid wireless
service on our iDEN network and Boost Unlimited®, a local calling prepaid service on our CDMA network.
Our services are provided using a wide variety of handsets and personal computer wireless data cards
manufactured by various suppliers for use with our voice and data services. We generally sell these devices at
prices below our cost in response to competition, to attract new customers and as retention inducements for
existing customers.
We sell accessories, such as carrying cases, hands-free devices, batteries, battery chargers and other items to
customers, and we sell handsets and accessories to agents and other third-party distributors for resale.
We offer wholesale CDMA-based wireless services 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 subscriber acquisition, billing and customer service. We currently provide wholesale services,
through multi-year, wholesale agreements, to a number of MVNOs, including Virgin Mobile USA, Qwest
Communications International, Inc., Movida Communications, Inc., Helio Inc. and Embarq. Virgin Mobile USA
offers prepaid wireless service targeted to the youth and prepaid markets and was originally formed as a joint
venture between us and Virgin Group.
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:
• direct 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;
• retail 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;
• indirect 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
• customer-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
Sprint Cup SeriesTM, 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
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