Sprint Nextel (Overland Park, Kan., U.S.A.) said it would need $7 billion in new financing agreements over the next few years to cover a cash shortfall created by Apple Inc's iPhone and a network upgrade.
"If we want to maintain a cash balance as high as $2 billion minimum at any point in time, we would want to extend the maturities of $4 billion that come due in 2012 and 2013 and raise between $1 billion to $3 billion, primarily from vendor financing," said Chief Executive Dan Hesse on Wednesday.
The top two U.S. telecom operators, AT&T Inc (Dallas, Texas, U.S.A.) and Verizon Communications (New York) reported financial results from the third quarter of 2011. Both companies reported increased revenue from the year-ago quarter; although AT&T's revenue was below analyst expectations, while Verizon's revenue was slightly higher than expectations. Both companies’ revenue was affected by weak smartphone sales in the third quarter.
C Spire Wireless (Ridgeland, Miss., U.S.A.), a privately held regional U.S. mobile phone network operator, will become the fourth U.S. operator to sell the Apple Inc (Cupertino, Calif., U.S.A.) iPhone in "coming weeks" beating much bigger rival T-Mobile USA to a Apple deal.
C Spire, which recently changed its name from Cellular South, has about a million customers in four states, making it more than 33 times smaller than No. 4 U.S. operator T-Mobile USA, which has 33.6 million customers.
NRG Energy (Princeton N.J., U.S.A.), one of the largest power operators in the U.S., formed a new company last month with the University of Delaware to test out how vehicle-to-grid (V2G) can keep a grid stable as the share of intermittent renewable energy sources rises. V2G allows electric cars to pump electricity back into the grid when power demand spikes.
Telit Wireless Solutions, the North American technology arm of Telit Communications PLC (Trieste, Italy), announced that its cellular M2M module will provide wireless connectivity for breath alcohol ignition interlock provider LifeSafer’s (Cincinnati, Ohio, U.S.A.) wireless breath alcohol device, which allows law enforcement authorities to monitor DUI offenders in real time.
The third quarter could mark the end of a hot streak for Ericsson (Stockholm, Sweden) as a combination of a global slowdown, tough competition and an increase in low margin business cloud the outlook for the world's top mobile equipment firm.
The last three quarters have seen booming sales at Ericsson's key networks unit, driven largely by investment in mobile broadband in the United States and second generation equipment in China.
The U.S. wireless industry is rolling out more consumer-friendly billing practices, fending off a plan by communications regulators to impose new rules against unexpected charges.
Guidelines unveiled on Monday by the wireless trade association, CTIA, will see companies send alerts to customers when they near or reach monthly limits on voice, text and data services, and before they incur international roaming charges.
The guidelines are similar to rules the U.S. Federal Communications Commission (FCC) was contemplating, and the regulator is backing off its plan for now.
For the first time in history, wireless subscriber connections have surpassed the population in the United States and its territories (Puerto Rico, Guam and the U.S. Virgin Islands), which means the wireless penetration rate in the U.S. is 103.9%, according to a survey connected by CTIA- the Wireless Association.
Live from the CTIA Enterprise and Applications show in San Diego, California, M2M Zone has seen many important announcements from M2M companies, including u-blox (Thalwil, Switzerland), a wireless chip and module company. On Monday, u-blox announced a CDMA module for the U.S. market, as well as partnership with Sprint (Overland Park, Kan., U.S.A.).
Sprint Nextel (Overland Park, Kan., U.S.A.) confirmed that it will sell the next version of Apple Inc's (Cupertino Calif., U.S.A.) iPhone, ending months of speculation about whether it would become the third U.S. operator to sell the device. While carrying the device should help Sprint keep subscribers from fleeing to other operators, some analysts worried whether the costs would outweigh the benefits because Apple phones come at a steep premium to other devices.