Sprint - Nextel 2010 Annual Report Download - page 4

We believe that our value-driven wireless price plans are very competitive. Our family of Simply Everything®
postpaid price plans bundle together popular data applications with traditional mobile voice calling and the addition of our Any
Mobile AnytimeSM feature to our Everything Data plans offer savings compared to our competition. In addition to savings
offered to consumers, Business Advantage pricing plans are available to our business subscribers who can also take advantage
of Any Mobile AnytimeSM with certain plans. Sprint's prepaid portfolio currently includes four brands, each designed to appeal
to specific customer segments. Boost Mobile serves customers who are voice and text messaging-centric with its popular $50
Monthly Unlimited plan with Shrinkage service where bills are reduced after six on-time payments. Virgin Mobile serves
customers who are device and data-oriented with Beyond Talk™ plans and our broadband plan, Broadband2Go, that offer
consumers control, flexibility and connectivity through various communication vehicles. Assurance Wireless™ provides eligible
customers who meet income requirements or are receiving government assistance, with a free wireless phone and 250 free
minutes of national local and long distance monthly service. Common CentsSM Mobile caters to budget-conscious customers
with 7-cent minutes that Round Down™ and 7-cent text messages.
Services and Products
Data & Voice Services
Wireless data communications services include mobile productivity applications, such as Internet access and
messaging and email services; wireless photo and video offerings; location-based capabilities, including asset and fleet
management, dispatch services and navigation tools; and mobile entertainment applications, including the ability to view live
television, listen to Sirius-XM® satellite radio, download and listen to music from our Sprint Music Store, a music catalog with
thousands of songs from virtually every music genre, and game play with full-color graphics and polyphonic and real-music
sounds all from a wireless handset.
Wireless voice communications services include basic local and long distance wireless voice services, as well as
voicemail, call waiting, three-way calling, caller identification, directory assistance and call forwarding. We offer Nextel Direct
Connect® push-to-talk services on our iDEN network. We also provide voice and data services to areas in numerous countries
outside of the United States through roaming arrangements. We offer customized design, development, implementation and
support services for wireless services provided to large companies and government agencies.
Products
Our services are provided using a wide variety of multi-functional devices such as smartphones, mobile broadband
devices such as aircards and embedded tablets and laptops 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 subscribers and as
retention inducements for existing subscribers. We sell accessories, such as carrying cases, hands-free devices, batteries, battery
chargers and other items to subscribers, and we sell devices and accessories to agents and other third-party distributors for
resale.
Wireless Network Technologies
We deliver wireless services to subscribers primarily through the ownership of our CDMA and iDEN networks or as
a reseller of 4G services.
Our CDMA network, an all-digital wireless network with spectrum licenses that allow us to provide service in all 50
states, Puerto Rico and the U.S. Virgin Islands, uses a single frequency band and a digital spread-spectrum wireless technology
that allows a large number of users to access the band by assigning a code to all voice and data bits, sending a scrambled
transmission of the encoded bits over the air and reassembling the voice and data into its original format. We provide
nationwide service through a combination of operating our own digital network in both major and smaller U.S. metropolitan
areas and rural connecting routes, affiliations under commercial arrangements with third-party affiliates (Affiliates) and
roaming on other providers' networks.
Our iDEN network is an all-digital packet data network based on iDEN wireless technology provided by Motorola
Mobility, Inc. and Motorola Solutions, Inc. (collectively, "Motorola"). We are the only national wireless service provider in the
United States that utilizes iDEN technology and, generally, the iDEN devices that we currently offer are not enabled to roam on
wireless networks that do not utilize iDEN technology. iDEN is a proprietary technology that relies principally on our and
Motorola's efforts for further research, product development and innovation. For additional information, see Item 1A, “Risk
Factors—If Motorola is unable or unwilling to provide us with equipment and devices in support of our iDEN-based services,
as well as improvements, our operations will be adversely affected.”
Beginning in 2009, our subscribers in certain markets now have access to Clearwire's 4G network through an
MVNO wholesale arrangement that enables us to resell Clearwire's 4G wireless services under the Sprint brand name. The
services supported by 4G give subscribers with compatible devices high-speed access to the Internet. This relationship with
Clearwire was developed through a transaction that closed on November 28, 2008, at which time we, third parties and
Clearwire joined together to combine a next-generation wireless broadband business.
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