Sprint looks to make up for slumping cellphone subscriptions

25.03.2009
Sprint Nextel is pursuing wholesale wireless Internet service deals with gadget makers such as Garmin, Kodak, and SanDisk to replace slumping cellular subscriber sales, according to a report.

The basics of the Journal story:

Sprint will rent out its network and generally collect fees from manufacturers based on how much data is transmitted to the devices. Although wholesale subscribers provide less revenue than retail subscribers, Sprint doesn't have to worry about expenses for billing and customer service.

While still a small market, wholesale services are a critical part of Sprint's future, says Chief Executive Dan Hesse.

Sprint already provides the wireless e-book and Web content downloading service for Amazon's Kindle reader.

But the Kindle deal points out a major shortcoming of wholesale deals: Many product makers don't want to mention Sprint, either on their products or in marketing collateral. They want "to have their brand and their brand only," says Hesse. Ford is an exception: Customers who opt for dashboard computers in new trucks and vans will receive a monthly bill from Sprint for their wireless service.