Sprint - Nextel 2013 Annual Report Download - page 6

Table of Contents
ability to view live television, listen to satellite radio, download and listen to music, and play games with full
- color graphics and polyphonic and real - music
sounds from a wireless handset.
Wireless voice communications services include basic local and long distance wireless voice services throughout the U.S., as well as voicemail, call
waiting, three
- way calling, caller identification, directory assistance and call forwarding. We also provide voice and data services in numerous countries outside
of the U.S. through roaming arrangements. We offer customized design, development, implementation and support for wireless services provided to large
companies and government agencies.
Products
Our services are provided using a broad array of device selections and applications and services that run on these devices to meet the growing needs
of subscriber mobility. Our device portfolio includes many cutting edge devices from various OEMs. Our mobile broadband portfolio consists of devices such
as hotspots, which allow the connection of multiple WiFi enabled devices to the Sprint platform. We have generally sold these devices at prices below our cost
in response to competition to attract new subscribers and as retention inducements for existing subscribers. However, subscribers now have the option through
the Sprint Framily plan or through Sprint Easy Pay to purchase eligible devices at full retail price, which allows them to pay in 24 monthly payments in exchange
for reduced service pricing if certain conditions are met. Our Sprint platform can also be accessed through our portfolio of embedded tablets and laptops
devices. In addition, 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 our Sprint platform network. Our Nextel platform, which utilized integrated Digital
Enhanced Network (iDEN) technology, was shut
- down on June 30, 2013. Our Sprint platform uses primarily 3G CDMA and 4G LTE wireless technologies. The
WiMAX technology is in the process of being replaced by LTE, which is expected to be complete by the end of 2015. Our 3G CDMA wireless technology uses a
single frequency band and a digital spread
- spectrum technique 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. Our 4G LTE wireless data
communications technology utilizes an all
- IP network to deliver high - speed data communications. To integrate voice into LTE, we expect to use Voice over LTE
technology (VoLTE). We provide nationwide service through a combination of operating our own network in both major and smaller U.S. metropolitan areas and
rural connecting routes, affiliations under commercial arrangements with third
- party affiliates and roaming on other providers' networks.
Sales, Marketing and Customer Care
We focus the marketing and sales of wireless services on targeted groups of retail subscribers: individual consumers, businesses and government.
We use a variety of sales channels to attract new subscribers of wireless services, including:
We market our postpaid services under the Sprint® brand. We generally offer these services on a contract basis typically for a two
- year period, with
services billed on a monthly basis according to the applicable pricing plan. As a result of the shut
- down of the Nextel platform, our efforts prospectively have
been to focus on profitable growth through service provided on an enhanced wireless network on the Sprint platform. We market our prepaid services under the
Boost Mobile, Virgin Mobile, and Assurance Wireless brands as a means to provide value
- driven prepaid service plans to particular markets. Our wholesale
customers are resellers of our wireless services rather than end
- use subscribers and market their products and services using their brands.
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direct sales representatives whose efforts are focused on marketing and selling wireless services primarily to mid - sized to large businesses and
government agencies;
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retail outlets, owned and operated by us, that focus on sales to the consumer market;
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indirect sales agents and third - party retailers that primarily consist of local and national non - affiliated dealers and independent contractors that
market and sell services to businesses and the consumer market, and are generally paid through commissions; and
•
subscriber - convenient channels, including Internet sales and telesales.