Sprint Nextel
Before you say, "Oh, boy. Who needs that?" consider these cell phone capabilities:
- Remotely program your home digital video recorder to capture the cable show you just heard about at lunch.
- Have only one voice mailbox that serves both your home and wireless phone. (Hooray!)
- Access streaming TV programs, music, video clips, games, and pre-recorded DVR programs. That will redefine what waiting at the airport really means.
And that is just a sample of what is to come.
The cable companies, Comcast
This joint venture is obviously aimed at blunting the emerging threat from the likes of Verizon
The hope is that new high-speed cell phones will be the devices that create a killer application to renew cable subscriber growth and greatly dampen subscriber loss -- while giving Sprint a superior offering. And for Sprint, it will be able to push higher-rate plans to enable customers to watch cable on their phones. Without pricing for this service, which starts in 2006, it is hard to gauge now how successful this venture might be.
The joint venture, which is mutually exclusive for three years (though more cable companies are expected to join), has a 20-year term. For now, Sprint looks like it has the best chance to be the big winner in this joint venture, although it will ante up half of the $200 million initial investment, because it should act to drive sales of high-margin handsets. It should also allow the cable companies to (prospectively) increase average monthly charges through the sale of premium-priced services.
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