Sprint to Launch iPhone Competitor (That Can Actually Compete)

April 1 (Not an April Fool’s joke for Sprint, fortunately) - Sprint Communications recently announced at CTIA Wireless 2008 the newest release of a touch screen smart phone, rivaling Apple’s iPhone released in June of 2007. The Samsung SPH-M800, dubbed the “Samsung Instinct,” will be available in June 2008. The company noted their focus during the CTIA trade show: create a smart phone with a great user interface.

Similarities – i.e., where Sprint’s creativity team conceded: The Instinct has a large touch screen with nine “home” buttons that launch applications, similar to the iPhone. The Instinct also has a full web browser that zooms in and out with the touch of the finger. The overall build and dimensions seem to mirror the iPhone as closely as possible without triggering patent infringements. Sprint promises to provide its own media and music store on the phone for users to download music. Both devices have a built-in 2-megapixel camera.

Where it picks up votes: The Instinct will use the power of Sprint’s 3G EVDO network, one of the fastest next-generation wireless networks available. The iPhone launched last year on AT&T’s slower, 2.5G wireless network, EDGE. (Click here for discussions of a 3G iPhone due in June 2008). The Instinct also will have access to Sprint’s live TV broadcast reception capabilities. Until now, few people wanted to watch television on such small screens. This seems to be a viable solution. Additionally, the Instinct boasts Microsoft Exchange email program, which has been cited as the iPhone’s weakness. (Apple announced plans to rectify this problem). It will have the capabilities of other traditional Sprint phones, including the “Push to Talk,” complete with chirping (an asset or a liability, depending on who is asking).

The Instinct will also cost “less than the iPhone,” according to Sprint’s announcement. This likely will make the product more competitive with the now-stable $399 lowest iPhone price. Sprint failed to mention whether this phone would be able to access the $99/month “Simply Everything” Plan with unlimited voice, data, and texting. Should this be the case, it would also provide a competitive edge over AT&T, where a comparable unlimited plan starts at $120 or more.

Sprint agreed that the most important thing for this product was the user interface. It is unclear what took so long for people to realize that Apple pretty much had the market cornered on best user interface and to give their methods a real try. What is surprising is how they hired Icon Mobile, a design firm, to come up with the best and most creative user interface. They either robbed Sprint of the money it paid for a creative design or just agreed at the table they would transcribe the iPhone and try and make it better.

Most important about this release is that this phone has better features that the iPhone, and where the Instinct leaves off, it certainly supplements the smart phone experience with other applications. Verizon made a failed attempt with the Voyager to introduce a touchscreen smart phone, which hardly made a blip on the market radar. It turned out to be nothing more than the “EnV,” a phone that opened with a full keyboard and mediocre applications. Though it had web browsing capabilities, it offered little more than traditional Verizon phones. The Instinct has the potential to surpass what the iPhone started. How great the potential is, and who takes advantage of it, will be up to the consumer.

Dimensions:

2.17-inch-by-4.57-inch-by-0.49-inch

4.4-oz Instinct using its 3.1-inch

240-by-432 touch screen.

PC Magazine Reports here.

MSNBC reports here.

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Update: Sprint Joins The Cell Phone Price Plan Battle

Feb. 28 - Sprint announced a $29.5 billion loss for the fourth quarter, writing down much of the leftover value of the Sprint-Nextel merger from the summer of 2005. CEO Dan Hesse conceded that the fourth quarter results were lower than expected and that organizational shifts he plans to make will not take effect immediately. Citing fourth quarter losses and over one million subscribers leaving last year alone to competitors, Sprint also announced a lowering of it’s price for unlimited voice and data “Simply Everything (SM)” plans to compensate:

$89 a month for unlimited voice plans

$99 a month for unlimited voice and data

This immediate shift seems to be an about face when Sprint, just last week, declined to join the AT&T, Verizon Wireless, & T-Mobile price battle.

This decision shows a weak spot in the Sprint decision-making team. This recent announcement undercuts the board and senior management’s credibility and ability to look as though they are calm, collected, and deliberative. Rather, their decisions are starting to look like knee-jerk reactions to competitors and as though they are simply catering to industry analysts.

Sprint’s announcement is here.

New York Times discusses the announcement here.

Washington Post has it here.

(In the interest of transparency, the chritic has family employed by Sprint. That family member did not contribute to this article.)

En Garde: The Battle for the Unlimited Cell Phone Plan

Verizon Wireless, AT&T Wireless, and T-Mobile recently waged a price war for unlimited use calling plans on their respective networks. The three cellular companies have unlimited calling plans starting at $99 a month. Verizon customers can upgrade to unlimited messaging an extra $20; that same customer can have unlimited messaging, email, and video to anywhere in the country for $40. AT&T’s customers can upgrade to unlimited data usage for $35 a month. T-Mobile left out any word of data plan add-ons. Sprint admitted they will not join the $99 unlimited calling plan bandwagon.

Putting aside Sprint’s decision to remain uncompetitive, this move signals a positive development for the cellular telephone market. Wireless carriers are beginning to realize that as technologies converge, price plans for services should follow suit. People are tired with the nickel and dime-ing that has taken place over the last few years based on varying usage of multiple features. The piecemeal approach of charging per text, per email, per web launch forces the customer to think more about if the can say something rather than what they can say. Bravo to unlimited calling and data plans for the everyday users on everyday phones.

As much of an epiphany as this business model shift ends up being, it may be a lateral shift in terms of price for now. For example, prior to the announcement, Verizon had 1350 minutes for $99 with $45 added on for unlimited data (on a blackberry). Unlimited calling plans started at $119, totaling $165 for unlimited usage. Is a $25 price drop earth-shattering? Maybe not when the user is willing to spend well over a hundred dollars each month for the service in the first place.

Overall, this is good news for the consumer and for the cellular usage market. Cheaper access to broadband wireless could spur higher demand and faster innovation in wireless devices.

Sprint Leaves Northern Virginia for Kansas, Seeks Refuge in the Past

Feb. 14 - Sprint recently finalized its decision to relocate its headquarters from Reston, Virginia to Overland Park, Kansas. The company has wrestled back and forth with two main operations centers since the merger between Sprint and Nextel in 2006. CEO Dan Hessee also announced plans to cut 4,000 jobs in the Washington area. Former Nextel executive Daniel Ackerson said it this deals a “blow” to the technology region, in the wake of AOL’s recent relocation of headquarters to New York. The Washington Post detailed a report about the announcement here.

More than a blow to the region, Sprint’s announcement seems more like a blow to its own reputation in the wireless telecommunications field. When people think technology, they think California, Seattle, New York, and Northern Virginia. Secondary markets like Montgomery County, Maryland may see small spurts of growth. Kansas, however, is a step in the wrong direction for Sprint. Image means quite a lot in the fast-paced telecom world. Company executives should take care that drastic steps don’t send the wrong message.

Sprint’s merger with Nextel brought the challenge of combining two business juggernauts into one seamless operation. Additionally, Sprint had the perfect opportunity to move away from the old mindset (think of Murphy Brown commercial for ten cents a minute long distance or the mid-nineties PCS system). Sprint could grab on to Nextel’s surge in subscriber base (largely resulting from the NASCAR Nextel Cup Series), adopt the innovative appeal of Nextel’s network, and move forward as a company. Additionally, they had the opportunity to relocate to an area more associated with high technology.

Mr. Hessee’s announcement demonstrates the company’s desire to appeal traditional ways, revert back, and Sprint away from the future and towards the past, rather than “Sprint ahead.” Hessee seeks to bring the two cultures together by uprooting the newer, more progressive Nextel from its home and transplanting it in the middle of a flyover state. Granted, neither party wanted to relocate. When reconciling all of the company’s interests, however, it seems like the more realistic option would be to a place closer to the action, closer to the Federal Communications Commission, and closer to the future. With projects such as Fourth Generation Wi-Max launching in Washington, DC, it seemed inevitable that the company would remain close to its initial market.

Sprint is an innovative company and undoubtedly has a lot of tricks ready for the unveiling. This decision simply seems out of place and leaves local technology experts scratching their heads trying to understand the reasoning.

(In the interest of transparency, the chritic has family that Sprint employs. That family member had no contribution to this piece.)