Thursday, March 23, 2006

Embarqing on a MVNO

Via TechDirt, Sprint's new spin off, Embarq, will also offer a MVNO.

From RCR News:

"Sprint Nextel Corp.’s local phone service spin-off, Embarq, plans to launch a mobile virtual network operator later this year, according to Embarq’s chief executive officer-to-be, Dan Hesse.

Hesse told attendees during a keynote address at the TelecomNext conference of Embarq’s MVNO intentions, which he said would include dual-mode devices that would allow customers to seamlessly roam between wide area and local area wireless networks. Similar plans were announced by cable companies looking to launch wireless services using Sprint Nextel’s network."

From TechDirt:

"Obviously there's a trend among global telecom providers to divest themselves of legacy voice-centric phone networks, but why, then, have the fixed-line company -- which has been spun out -- offer the branded wireless service? Shouldn't the remaining wireless company resell wired service if the bundle is so important? Indeed this is the strategy Vodafone is pursuing. The Embarq news is also reminiscent of when AT&T flipped out after they took AT&T Wireless public and grabbed the IPO money, then realized they were let out of the wireless business. Shouldn't they think through these things a little more before they spin these things off only to put them back together in some way?"

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