Sprint - Nextel 2013 Annual Report Download - page 8

Table of Contents
competitor pressures, we decide to make similar offers to our subscribers, then we would expect EBITDA to be negatively impacted in the period of subscriber
acquisition. Our ability to effectively compete in the wireless business is dependent upon our ability to retain existing and attract new subscribers in an
increasingly competitive marketplace. See "Item 1A. Risk Factors—If we are not able to retain and attract wireless subscribers, our financial performance will be
impaired."
Wireline
We provide a broad suite of wireline voice and data communications services to other communications companies and targeted business and
consumer subscribers. In addition, we provide voice, data and IP communication services to our Wireless segment, and IP and other services to cable Multiple
System Operators (MSOs). Cable MSOs resell our local and long distance services and use our back office systems and network assets in support of their
telephone service provided over cable facilities primarily to residential end
- use subscribers.
Services and Products
Our services and products include domestic and international data communications using various protocols such as multiprotocol label switching
technologies (MPLS), IP, managed network services, Voice over Internet Protocol (VoIP), Session Initiated Protocol (SIP) and traditional voice services. Our IP
services can also be combined with wireless services. Such services include our Sprint Mobile Integration service, which enables a wireless handset to operate
as part of a subscriber's wireline voice network, and our DataLink
SM
service, which uses our wireless networks to connect a subscriber location into their
primarily wireline wide - area IP/MPLS data network, making it easy for businesses to adapt their network to changing business requirements. In addition to
providing services to our business customers, the wireline network is carrying increasing amounts of voice and data traffic for our Wireless segment as a result
of growing usage by our wireless subscribers.
We continue to assess the portfolio of services provided by our Wireline business and are focusing our efforts on IP
- based services and de -
emphasizing stand - alone voice services and non - IP - based data services. We also provide wholesale voice local and long distance services to cable MSOs,
which they offer as part of their bundled service offerings, as well as traditional voice and data services for their enterprise use. However, the digital voice
services we provide to our cable MSOs have become large enough in scale that they have decided to in
- source these services and, as a result, we expect this
business to continue to decline over time. We also continue to provide voice services to residential consumers. Our Wireline segment markets and sells its
services primarily through direct sales representatives.
Competition
Our Wireline segment competes with AT&T, Verizon Communications, CenturyLink, Level 3 Communications, Inc., other major local incumbent
operating companies, and cable operators as well as a host of smaller competitors in the provision of wireline services. Over the past few years, our long
distance voice services have experienced an industry
- wide trend of lower revenue from lower prices and increased competition from other wireline and wireless
communications companies, as well as cable MSOs and Internet service providers.
Some competitors are targeting the high - end data market and are offering deeply discounted rates in exchange for high - volume traffic as they attempt
to utilize excess capacity in their networks. In addition, we face increasing competition from other wireless and IP
- based service providers. Many carriers,
including cable companies, are competing in the residential and small business markets by offering bundled packages of both local and long distance services.
Competition in long distance is based on price and pricing plans, the types of services offered, customer service, and communications quality, reliability and
availability. Our ability to compete successfully will depend on our ability to anticipate and respond to various competitive factors affecting the industry,
including new services that may be introduced, changes in consumer preferences, demographic trends, economic conditions and pricing strategies. See
"Item 1A. Risk Factors—Consolidation and competition in the wholesale market for wireline services, as well as consolidation of our roaming partners and
access providers used for wireless services, could adversely affect our revenues and profitability" and "—The blurring of the traditional dividing lines among
long distance, local, wireless, video and Internet services contributes to increased competition."
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