Sprint plans to spin off cellular business; telecommunications firm will focus on market for wireless PCS line

Article Abstract:

Sprint announced that it will spin off its rapidly growing cellular telephone service unit in favor of an untested personal communications services (PCS) system. The Sprint move is unusual because its cellular unit's revenue growth reached 50% in 1994, and represented 18% of Sprint's total sales growth. Sprint is spinning off the unit because it plans to invest between $2.8 billion and $4.6 billion to construct a nationwide PCS system in partnership with three cable companies. The company has already spent $2.1 billion for PCS licenses from the federal government. Although PCS is untested in the marketplace, it could potentially reach more than 180 million US customers, representing 70% of the US population. The cellular unit, in contrast, has a potential market of only 20 million customers representing only 7.8% of the population. Sprint also cites FCC rules that prohibit the same company from operating a PCS service and cellular service in the same market. The spinoff could fetch more than $4.5 billion for Sprint.

Management, Cellular telephones, Wireless telephones, Cellular telephone services industry, Company restructuring/company reorganization, Reorganization and restructuring, Smart phone, Smart phones, Spinoff company, Spinoffs (Corporate), Company Operations

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Wireless sale winners include AT&T, Sprint

Article Abstract:

The FCC has completed its auction of licenses for new wireless personal communications services, bringing in more than $7 billion for 99 licenses. The licenses will launch the development of at least three competing national wireless networks, which will enable consumers to transmit data messages and place calls wirelessly in approximately three years. The highest bidder was Sprint Corp, with its bid of $2.11 billion for 29 markets. The company plans on offering one-stop shopping for telephone and video services to about 180 million customers. The second-highest bidder was AT&T with its bid of $1.68 billion for 21 markets. AT&T plans to build a coast-to-coast network, with services starting in 1997. The third-highest bidder was a consortium made up of Bell Atlantic, Nynex, US West and AirTouch, with their bid of $1.11 billion for 11 markets. The team plans to offer PCS services within 1.5 years and a national network within two years.

Telecommunications regulations, United States. Federal Communications Commission, Licensing agreements, Government communications regulation, Government Activity

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Sprint, 3 concerns acquire 49% stake in wireless venture

Article Abstract:

Sprint Corp and three cable television providers purchased 49% of American Personal Communications Inc, a high-profile wireless venture run by the Washington Post Co, which may place the carriers a leg up in the hotly contested wireless personal communications services (PCS) arena. Sprint and its partners acquired their stake for $23 million and may begin offering services as early as fall 1995. American Personal Communications is one of three entities given 'pioneer-preference' licenses for PCS from the federal government. New services will be marketed in the Washington-Baltimore region using the well-known Sprint brand name. American Personal Communications' officials say the new services will cost less than current cellular phone services.

Wireless communications, Wireless network, Wireless LANs, Investments, Securities, Mobile communication systems, Marketing Strategy, Telecommunications Service, American Personal Communications Inc.

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