Sprint Nextel Corp. is expanding its mobile phone alliance with cable companies Comcast Corporation, Time Warner Cable, Cox Communications and Advance/Newhouse Communications by adding 32 new cities to the eight that already have "Pivot." The Pivot service allows mobile phone users to link to their home phones, high speed internet and digital cable service, enabling mobile TV watching, email and voicemail access and unlimited calls between land, wireless and cable lines. Sprint also announced Monday a $2.5-3 billion investment in its high-speed WiMAX multimedia infrastructure. Pivot is part of the cable/Sprint partnership's ultimate plan to sell bundled video, internet and phone services to small businesses, enticing them away from local phone companies. Comcast announced in January its plans to capture 20% of the small business market with its internet, voice and video services. The joint venture's head, John Garcia, said the bundled service is already being tested in an unnamed city, calling small businesses "the next market."
Sources: Wall Street Journal, Mercury News, Kansas City Business Journal, Trading Markets
Commentary: Sprint-Nextel LBO Speculation Resurfaces: Why Now? • Sprint Loses More Subscribers Than Expected • Will Sprint Join the MobileTV Bandwagon?
Stocks/ETFs to watch: Sprint (NYSE:S), Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable (TWC). Competitors: Verizon Wireless (NYSE:VZ). ETFs: iShares Dow Jones U.S. Telecommunications Index (NYSEARCA:IYZ), PowerShares Dynamic Telecommunications & Wireless (PTE), PowerShares FTSE RAFI Telecommunications & Technology Portfolio (PRFQ), Vanguard Telecommunications ETF (NYSEARCA:VOX)
Conference call transcripts: Sprint Nextel Q4 2006, Comcast Q4 2006
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