Subject: [NEXTEL-1] Sprint Cuts PCS Ready Link Service Price

From: [email-masked]
Date: Mon, 24 May 2004 02:50:44 -0400

Sprint Cuts PCS Ready Link Service Price

DAVID TWIDDY

Associated Press

KANSAS CITY, Mo.

Looking to improve its position in the tight "push to talk"
market, Sprint Corp. is lowering the price of its PCS Ready Link
service.

The Overland Park, Kan.-based company, which has signed up 275,000
customers for the nationwide walkie-talkie product since its November
announcement, said Monday that customers wanting to add Ready Link to
their
existing service will now pay $10 per month, down from $15 per month.

Sprint also says it will release a Ready Link-equipped phone next week
that
costs less than half of a comparable product from competitor Verizon
Wireless.

The Sanyo RL-4920, which includes a color screen equipped for Sprint's
PCS
Vision online service, would cost $69.99 after rebates. Verizon's
comparable V60p, made by Motorola, retails for $199.99.

Company officials said the price cuts will help penetrate the consumer
market, which has less experience with the service than industries like
construction, landscaping and personal service.

"We're pleased with the result so far," said Jim Hallock, vice president
of
consumer marketing. "The timing is right for seeding the market and
building the right base of customers, and we see this as adding fuel to
the
fire."

Verizon, which rolled out its own service last summer, declined to say
how
many customers it has, but analysts said the numbers are comparable to
Sprint's.

Both companies, however, still lag far behind industry leader Nextel
Communications, which provides its Direct Connect service to all 12.9
million of its customers. The Nextel phones, which are marketed largely
to
business customers, are also considered technologically superior,
providing
less delay between transmissions.

"It still don't think (Sprint is) on par with what Nextel has because
they've been doing it longer," said James Breen, a Boston-based analyst
with Thomas Weisel Partners. "With Sprint and Verizon, when you look at
their customer base, it's much more consumer. It's being marketed to a
smaller group."

Still, independent telecommunications analyst Jeff Kagan said the
changes
should keep Sprint competitive until the technology changes to allow
'push
to talk' customers of different phone companies to communicate. Once
that
happens, which Kagan said could be within the next few years, depending
on
consumer demand, Sprint could bring to bear its wealth of video and
graphic
capabilities.

"Right now, they're competing with one arm and one leg tied behind their
back," said Kagan. "When interoperability comes, I expect the numbers to
skyrocket."

Sprint has about 21 million U.S. wireless customers.

Sprint press release on ReadyTalk:
http://www3.sprint.com/PR/CDA/PR_CDA_Press_Releases_Detail/0,3681,1112059,00.html

http://www.miami.com/mld/miamiherald/business/national/8742534.htm?1c

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