February 10, 2005

Sprint 2005 Business Strategy

Sprint outlined its business strategy plans for 2005. The company plans to spend over $4 billion in capital expenditures. About $2.8 billion will be invested in EV-DO technology and expanding the wireless network footprint. $900 million will be spent on DSL coverage expansion and $300 million will be spent on local long distance.

It's obvious from these numbers the action is in wireless data through EV-DO. I can't wait for an EV-DO enabled smart-phone that will let us access the internet at broadband speeds. Please make unlimited monthly wireless data access cheaper, don't expect us to pay-by-the-drink for content and video streaming. Predecessors have died on a vine trying to do that. This isn't Japan.

In his remarks at the company’s annual investment community meeting in New York, Gary Forsee, Sprint chairman and chief executive officer, said, “Today’s customers want access to voice and data anytime, anywhere – seamlessly from home, the office and everywhere in between. Communications services provide the underpinnings of convergence, whether it is devices, lifestyles, networks or applications. Moreover, this growing convergence is rapidly changing the competitive landscape and the traditional definition of the telecom industry. It is a market poised for growth, particularly as consumers desire more and more data applications like gaming, special ringers and video streaming and as businesses increasingly insist upon an integrated communications experience in the office and on the go.