Sprint COO On Pricing, Broadband (S)

| About: Sprint Corporation (S)

Speaking at a Bank of America conference yesterday, Sprint Nextel Corp. COO Len Lauer commented on the slowdown in declining mobile call rates: "There will be some price declines, but I think it will be a little more restrained than previous years."

The decline will be accompanied by a slowdown in growth of cell phone use from the 35% level to 10-16% projected by Lauer this year.

Reuters notes that Ovum analyst Roger Entner call prices in the US have dropped about 72% from 24 cents a minute in 2001 to about 6.5 cents a minute.

Lauer also mentioned that Sprint would select a broadband wireless technology by summer, with WiMax, Flarion, IPWireless and CDMA in the running. He anticipates that roll-out would take a couple of years following the selection of a technology. While Sprint wouldn't compete against partners Comcast, Time Warner, and Cox, he sees room for the company in broadband access:

Our focus for that will primarily be on mobility, but it may also apply in competing with cable and DSL modems because if you’ve got a service that is running at a couple of meg per seconds and price it attractively, you could compete with the cable modem and DSL company.

It could be something we could add to the cable offering…[the cable company could ask its customers] what about for another $10 to $15 per month you could also have the service going across on a mobility basis in all these markets across the U.S.

(Via IP Democracy)