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WirelessDevNet.com Press Release
Sprint Announces Plans to Extend Its Wireless Data Leadership
OVERLAND PARK, Kan., -- Sprint (NYSE: FON),
the leader in wireless data, today unveiled plans to meet customers' demands
for faster wireless data speeds and expand the possibilities of anywhere,
anytime wireless access to information and entertainment by deploying EV-DO
(Evolution Data Optimized) technology across its PCS network.
With average user speeds of 300-500 kilobits per second and peak rates of
up to 2.4 Megabits per second for downloads, EV-DO will accelerate
mobile-device data speeds up to 10 times faster than on today's network. In
addition to improved speeds, customers will experience superior application
and service performance on EV-DO-capable handsets and laptops equipped with
EV-DO-enabled Sprint PCS Connection Cards(TM).
Business customers seeking integrated voice and data solutions will reap
the benefits of more powerful applications across Sprint's integrated wireless
and wireline networks -- a distinctive Sprint advantage. The opportunity for
higher-speed data connectivity improves enterprise communications,
particularly for a company's mobile workers who require phone or laptop access
to corporate applications such as email and intranets.
Sprint expects to design and deploy EV-DO with initial service available
in select markets in the second half of 2004 and launch in the majority of top
metropolitan markets in the United States in 2005.
Markets included in the initial launch, pricing plans and upcoming
high-speed applications for consumers and businesses will be announced in the
months to come.
"EV-DO will help Sprint widen its industry lead in wireless data by
leveraging an impressive array of data capabilities the company already offers
in the marketplace," said Len Lauer, Sprint president and chief operating
officer.
"Over the past few years, Sprint has separated from the competition in
delivering superior wireless data solutions with more than 6.2 million
wireless data customers generating over $700 million in annualized wireless
data sales as reported at the end of the first quarter this year," Lauer said.
"We've led in data by being focused and differentiated. As evidence, just
look at the industry-first devices we've launched including the integrated
camera phone; the unique applications we've introduced in Sprint PCS(R) Video
Mail and Picture Mail(SM) services; the simple, unlimited price plans we've
established; our integrated approach that combines wireless data with landline
services; and the considerable knowledge of Sprint business sales makers,
retail representatives and third-party distributors, who have revolutionized
the way that wireless data is sold nationwide."
Lauer added, "Customers are telling Sprint they want applications that
take advantage of the higher wireless speeds, and we intend to deliver.
Imagine downloading music, videos and games to your wireless handset or laptop
in a fraction of the time it takes today. Or download your company's product
inventory or a spreadsheet of a couple hundred kilobytes in a matter of
seconds. EV-DO makes it possible."
Sprint's migration to EV-DO will be relatively simple, requiring no
"forklift upgrades" to the company's nationwide wireless network. Because of
Sprint's network design, Sprint can upgrade cell sites -- simply adding a new
channel card and an additional RF carrier -- without the need to replace the
existing infrastructure. The inherent high-level security of CDMA will
continue with the advancement to EV-DO.
Existing Sprint PCS Connection Cards and handsets will continue to work at
current speeds within EV-DO service areas. To take advantage of the higher
speeds that EV-DO offers, customers will be able to purchase EV-DO-enabled
handsets and Sprint PCS Connection Cards. This will allow customers using the
dual-mode EV-DO device to gain higher speeds in EV-DO-capable areas and
seamlessly transition onto Sprint's PCS network, based on 3G 1xRTT technology,
when outside an EV-DO area.
"Sprint built its network from the ground up with advanced wireless
services in mind," Lauer added. "Because of this foresight, Sprint's network
was ready as the wireless data market emerged and customers demanded phones
capable of much more than making a call. Sprint intends to remain the
industry leader in wireless data by deploying a technology in EV-DO that is
widely available today. We will continue to develop new applications and
devices that will provide the best experience for our customers."
Consistent with prior guidance, Sprint plans to invest approximately
$1 billion to complete its wireless data upgrades. This will include the
deployment of EV-DO as well as the option for a subsequent, more advanced
release of CDMA technology that is expected to be available from equipment
vendors beginning in 2006. The capital investment is expected to be
concentrated in 2005 which represents an acceleration from Sprint's earlier
plan to balance spending evenly between 2005 and 2006.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes "forward-looking statements" within the meaning
of the securities laws. The statements in this news release regarding the
business outlook and expected performance, as well as other statements that
are not historical facts, are forward-looking statements. The words
"estimate," "project," "intend," "expect," "believe," "target" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are estimates and projections reflecting
management's judgment and involve a number of risks and uncertainties that
could cause actual results to differ materially from those suggested by the
forward-looking statements. With respect to these forward-looking statements,
management has made assumptions regarding, among other things, customer and
network usage, customer growth and retention, pricing, operating costs, the
timing of various events and the economic environment.
Future performance cannot be ensured. Actual results may differ materially
from those in the forward-looking statements. Some factors that could cause
actual results to differ include:
-- extent and duration of any economic downturn;
-- the effects of vigorous competition in the markets in which Sprint
operates;
-- the costs and business risks associated with providing new services
and entering new markets;
-- adverse change in the ratings afforded our debt securities by ratings
agencies;
-- the ability of the PCS wireless division to continue to grow a
significant market presence;
-- the ability of the PCS wireless division to continue to improve
profitability;
-- the ability of the global markets division and the local division to
improve cash flow generation;
-- the effects of mergers and consolidations in the telecommunications
industry and unexpected announcements or developments from others in
the telecommunications industry;
-- the uncertainties related to the outcome of bankruptcies affecting the
telecommunications industry;
-- the impact of financial difficulties of third-party affiliates on the
PCS wireless division's network coverage;
-- the uncertainties related to Sprint's investments in networks, systems
and other businesses;
-- the uncertainties related to the implementation of Sprint's business
strategies, including our initiative to realign services to enhance
the focus on business and consumer customers;
-- the impact of new, emerging and competing technologies on Sprint's
business;
-- unexpected results of litigation filed against Sprint;
-- the impact of wireless local number portability on the PCS wireless
division's growth and churn rates, revenues and expenses;
-- the risk of equipment failure, natural disasters, terrorist acts, or
other breaches of network or information technology security;
-- the possibility of one or more of the markets in which Sprint competes
being impacted by changes in political or other factors such as
monetary policy, legal and regulatory changes including the impact of
the Telecommunications Act of 1996 (Telecom Act), or other external
factors over which Sprint has no control; and
-- other risks referenced from time to time in Sprint's filings with the
Securities and Exchange Commission (SEC).
Sprint believes these forward-looking statements are reasonable; however,
you should not place undue reliance on forward-looking statements, which are
based on current expectations and speak only as of the date of this release.
Sprint is not obligated to publicly release any revisions to forward-looking
statements to reflect events after the date of this release or unforeseen
events. Unless specifically discussed in this release, no forward-looking
statements made by Sprint before the date of this release should be deemed to
be reiterated, confirmed or updated by any statement in this release. Sprint
provides a detailed discussion of risk factors in various SEC filings,
including its 2003 Form 10-K, and you are encouraged to review these filings.
About Sprint
Sprint is a global integrated communications provider serving more than
26 million customers in over 100 countries. With approximately 65,000
employees worldwide and over $26 billion in annual revenues in 2003, Sprint is
widely recognized for developing, engineering and deploying state-of-the-art
network technologies, including the United States' first nationwide
all-digital, fiber-optic network and an award-winning Tier 1 Internet
backbone. Sprint provides local communications services in 39 states and the
District of Columbia and operates the largest 100-percent digital, nationwide
PCS wireless network in the United States. For more information, visit
http://www.sprint.com
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