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Embarq Considers Selling Wireless Business, While Developing FMC Services
Regional landline operator, Embarq Corp., will hold onto its wireless division for the time being but may sell it to another company next year, said the carrier’s Chief Financial Officer, Gene Betts, at a recent analyst conference in Washington, D.C.
Embarq actively marketed cell phone services for over 18 months through a partnership with its former parent company, Sprint Nextel Corp. At the end of December 2007, however, the company discontinued its wireless efforts after capturing only 112,000 customers, well below its initial expectations.
‘’It was becoming apparent that we couldn’t obtain enough wireless customers to make a big difference,'’ Betts explained, noting that Embarq will continue to develop and promote fixed-mobile convergence (FMC) services, such as unified voicemail, and text-to-voice messaging.
‘’We’re trying to make functionality that integrates with any wireless device and isn’t tied to a particular carrier,'’ he said.
Carl Icahn to Attempt Coup at Yahoo
Billionaire shareholder activist, Carl Icahn, who recently succeeded in a proxy battle with Motorola, is now turning his attention to Yahoo Inc., in hopes of reopening failed buyout talks between that company and Microsoft.
Icahn revealed yesterday that he has put together a 10-member state of alternative board members, who support accepting Microsoft’s $47.5 billion bid for the internet company.
“It is clear to me that the board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft,” Icahn wrote, in a letter addressed to Yahoo Chairman, Roy Bostock.
To validate his quest for influence at Yahoo, Icahn has already acquired 59 million shares in the company, and is seeking antitrust clearance from the U.S. Federal Trade Commission to acquire up to $2.5 billion in Yahoo stock.
Qwest Communications Makes Headway with Advanced Broadband Services
American telecom giant, Qwest Communications, is exceeding its goals in terms of 12- to 20-Mbps fiber-optic broadband take up, but has no plans to accelerate the expansion of its FTTN network for the time being.
“The early returns are good,” said Qwest CEO, Ed Mueller. The company is spending approximately $300 million to offer advanced broadband services to 1.5 million households, representing a little over 10% of its 13-million-home service footprint.
Mueller explained that his company is “focused on free cash flow,” and will be “disciplined” about any further expansion, but noted that its current high-speed internet offerings, together with DirecTV satellite television service, gives it a strong competitive position against cable rivals.
As far as wireless goes, Qwest says that it will begin marketing the services of its new cellular partner, Verizon Wireless, this summer, while winding down its existing MVNO partnership with Sprint Nextel.
Mueller said that Qwest “won’t kick people off the (Sprint) network,” but will seek to migrate its mobile phone customers to Verizon as quickly as possible.
Sprint Nextel CEO Faces Hard Questions at Shareholder Conference
Sprint Nextel’s recently-installed Chief Executive Officer, Dan Hesse, had to answer some tough questions yesterday at the company’s annual shareholder meeting, as investors grow increasingly concerned about ongoing subscriber losses.
“Over the last year, AT&T and Verizon have really been eating our lunch, particularly in terms of high-value customers,” noted Sprint investor, Carlos Roberts of McLean, asking Hesse what he was doing about the problem.
The new CEO (hired in December after the board of directors ousted his predecessor, Gary Forsee) assured Robers and other shareholders that Sprint is taking appropriate steps to retain subscriber momentum, but warned them not to expect significant improvement until the end of the year. “Improving our performance will take time,” he said.
Chairman James Hance Jr., meanwhile, blamed the company’s problems on the struggle to integrate Nextel’s network and corporate culture with Sprint’s after the two companies merged in mid-2005.
“Over the course of merging Sprint and Nextel, we lost our focus on how we attract, serve and retain our customers,” Hance explained. “As a result, we lost ground to our competitors. Too many good customers have walked out the door unhappy with us.”
Hesse explained that in the months to come, the company hopes to retain more of its high-end customers through improved customer service and special offers, as well as the roll-out of a new smartphone called the Instinct, which will compete with the Apple iPhone beginning next month.
Overall, Sprint is seeking to provide devices and services that will distinguish its brand from those of larger rivals, AT&T Mobility and Verizon Wireless.
Chief among such innovations will be the company’s forthcoming WiMAX network, developed through a recently announced partnership with Clearwire Corp. WiMAX is a high-speed, long-range mobile broadband technology that is “at least” two years ahead of comparable services from AT&T and Verizon, according to Hesse.
“Sprint will be the only wireless carrier providing landline-level capability to mobile customers,” the CEO said.
Microsoft Launches ‘Messenger TV’ Social Video Application
The world’s largest software producer, Microsoft Corp., has launched a new software application allowing Windows Live Messenger users in 20 countries to chat with their friends while watching online video clips.
Messenger TV, as the new service is called, offers a wide range of MSN Video clips, including MTV shows, Sony BMG music videos, and other content. Microsoft hopes to combine online video and social networking to create an exciting new social experience.
“Online video has exploded in popularity over the last year, but to date it has been something people watch on their own. Messenger TV is set to change all that,” commented Microsoft vice president, John Mangelaars. “Watching video online can now be a social experience, as people watch videos together, make comments and share reactions.”
The Messenger TV service will initially be available in 20 countries including the United States, Canada, Mexico, Australia, New Zealand, Brazil, Singapore, and a number of European countries.
