Sprint Corporation business operations and history

Sprint Profile

A Profile of Sprint Nextel Corporation

The telecommunications industry is among the most highly flourishing and competitive of industries in today's global marketplace. The inception of wireless internet usages and the proliferation of mobile communication devices have both contributed to a booming marketplace that continues to experience relative growth even in the face of a struggling economy. That said, the recession has had an impact that many leading telecommunications firms have felt palpably. So is this the case with Sprint Nextel Corporation, a leader in the industry but simultaneously a victim of the sagging economy.

Like many of its counterparts, Sprint has experienced both the highs and lows of the unstable economy. Indeed, the company would ascent to its current form in 2005 when the Sprint wireless carrier purchased Nextel Communications. This helped to elevate Sprint to its current status as the third largest wireless carrier in the United States behind Verizon Wireless and AT&T Wireless. According to BusinessWeek (2005), which reported on the aftermath of the acquisition, "Sprint's sales soared 42%, to $39.3 billion in 2005, more than any other telecom services provider that year. How? Sprint decided in 2004 that continuing to chase growth as a long-distance carrier was a slow-go strategy. Instead, it bought wireless player Nextel and added more than $13 billion in revenues." (BusinessWeek, p. 1) This would represent a shift in focus from the dwindling landline business to a far greater emphasis on the expansion of its wireless network. This would also coincide with the proliferation of Clearline, its wireless internet network and its partnership with cable providers such as Comcast and Time Warner. (BusinessWeek, p. 1)

These partnerships would make Sprint a leader in the business category referred to as telecommunications. This is a field which centers on such products as the wireless cellular phone, the smart phone, the tablet, the cable router and a host of other instruments used to facilitate and expedite mobile communications, retrieval of data or interaction with multimedia. In addition, and most importantly, telecommunications is a service industry. The overarching description of the services provided by Sprint helps to characterize the industry's key offerings. According to the New York Times (2011), "the Company operates in two business segments: Wireless and Wireline. Sprint offers wireless and wireline voice and data transmission services to subscribers in all 50 states, Puerto Rico and the United State's Virgin Islands. The Company's retail brands include Sprint, Nextel, Boost Mobile, Virgin Mobile, Assurance Wireless and Common Cents SM." (The New York Times, p. 1)

As the third largest provider of wireless services in the United States, Sprint reports to its investors that as of the end of fiscal year 2009, it served approximately 49 million users. (CrunchBase, p. 1) According to the New York Times, the service to these users is most typically provided by subsidiaries with Sprint functioning as a holding company for its various brands. Sprint's central headquarters are based in Kansas but the company allows its subsidiaries to function according to preexisting labor divisions, marketing strategies, organizational structures and headquarters. As of 2005, Sprint had roughly 60,000 employees working all over the country. (BusinessWeek, p. 1)

It was at the time of its reporting on this number that Sprint would also compose a new set of core values. According to the company's self-authored history, Sprint's current mission would be forged during the acquisition of Nextel. The company site reports that "two great traditions of bold innovation have come together in a new company with a clear mission: To be No. 1 in providing a simple, instant, enriching and productive customer experience." (Sprint1, p. 1) This demonstrates a twin focus on technological innovation and customer service orientation.

Each of these reflects an area critical to Sprint's sustained success, particularly as its chief competitors continue to push forward in both areas. Among said competitors, Verizon Wireless is unparalleled. Indeed, Business Wire (BW) (2006) characterizes this as " one of the strongest competitors due to the foundation of its large nationwide service area and strong customer base. With two quarters of 1.9 million net additions, it has set the bar for competitors to reach." (BW, 1) This is based on a convergence of extremely visible advertising tactics via television, radio, billboard and sponsorship with a service quality that is unmatched. Boasting and demonstrating a wireless network which shows limited gaps in service reliability if any, Verizon is shown to be particularly competent in the area of wireless service quality. This is its most distinctive competency, with the fewest dropped calls recorded by its customer base and the most expansive calling area in the business.