2008 Woodie Awards
Sprint Nextel to allow more flexibility for customers switching networks
Tyler Larson
Issue date: 11/5/07 Section: News
In order to settle a recent lawsuit accusing Sprint Nextel of anti-competitive practices, the company will begin to allow departing customers to take their handsets with them to different networks by giving these customers the code necessary to unlock the phone.
Although the settlement is still awaiting approval from a Superior Court Judge in Alameda County, Calif., the action from Sprint Nextel is being seen as a huge step in providing more flexibility for cell phone customers. The new system will allow customers to use their phones with other networks using compatible technology.
"It won't help customers switch between non compatible networks because the phones won't work. But between networks that use the same standard this is an option," Jeff Kagan, wireless and telecommunication industry analyst, said.
Examples of network changes that are compatible would be a switch to other networks that use code division multiple access technology, such as Alltel and Verizon.
However, the code will not work for users looking to switch to Nextel brand phones made by Motorola, which use a completely different network protocol called iDen.
Along with these Nextel brands, the code is ineffective for customers switching to AT&T or T-Mobile, which use technology known as global system for mobile communication. If the agreement is approved, Sprint said it would share the unlocking code with all current and former subscribers once they had completed the terms of their contracts, had their phones deactivated and paid the final bill.
Along with sharing the code with current customers, Sprint will also add information into its terms and agreements for new customers signing up. "We are not admitting guilt," Matthew Sullivan, a spokesman for Sprint Nextel, said.
"We think what was agreed upon is reasonable based on the claims made by the plaintiffs," Sullivan added.
Many people spend good money for their phones, so to buy a new one because of a simple switch of a network seems pointless, Kagan says.
"Wireless continues to mature, and as hot new handsets enter the marketplace, customers increasingly want to take them if they switch carriers," Kagan said.
Although the settlement is still awaiting approval from a Superior Court Judge in Alameda County, Calif., the action from Sprint Nextel is being seen as a huge step in providing more flexibility for cell phone customers. The new system will allow customers to use their phones with other networks using compatible technology.
"It won't help customers switch between non compatible networks because the phones won't work. But between networks that use the same standard this is an option," Jeff Kagan, wireless and telecommunication industry analyst, said.
Examples of network changes that are compatible would be a switch to other networks that use code division multiple access technology, such as Alltel and Verizon.
However, the code will not work for users looking to switch to Nextel brand phones made by Motorola, which use a completely different network protocol called iDen.
Along with these Nextel brands, the code is ineffective for customers switching to AT&T or T-Mobile, which use technology known as global system for mobile communication. If the agreement is approved, Sprint said it would share the unlocking code with all current and former subscribers once they had completed the terms of their contracts, had their phones deactivated and paid the final bill.
Along with sharing the code with current customers, Sprint will also add information into its terms and agreements for new customers signing up. "We are not admitting guilt," Matthew Sullivan, a spokesman for Sprint Nextel, said.
"We think what was agreed upon is reasonable based on the claims made by the plaintiffs," Sullivan added.
Many people spend good money for their phones, so to buy a new one because of a simple switch of a network seems pointless, Kagan says.
"Wireless continues to mature, and as hot new handsets enter the marketplace, customers increasingly want to take them if they switch carriers," Kagan said.
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JFWIII
John F. Watlington, III
posted 11/16/07 @ 5:00 PM CST
Interestingly enough, I am a Sprint customer trying to add a new Nokia phone to the Sprint system. Several weeks after this announcement, no one at Sprint is aware of this agreement, and I am told it is not possible to add a non Sprint product. (Continued…)
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