@jbtaylor on tech

As part of its commitment to the Federal Communications Commission to cooperate with the FCC’s investigation of the special access market, today Sprint submitted a comprehensive set of network data which clearly demonstrates the lack of competitive alternatives for the special access circuits necessary to operate Sprint’s wireless and wireline networks.

In addition, Vonya B. McCann, senior vice president – Government Affairs at Sprint released the following statement:

“Earlier this week, President Obama called for the expansion of advanced wireless services to cover 98 percent of Americans within the next five years. Perhaps the biggest obstacle to achieving this goal is that the failed and broken special access market has raised the costs of expanding and operating a wireless network to artificially high levels. This in turns limits what wireless carriers can invest in the expansion of these services.

What the public must understand is that special access circuits are relied upon by more than just the country's telecommunications companies. Manufacturers, banks, insurance companies, retail stores, hotels, airlines, educational institutions and government agencies all spend billions of dollars each year to purchase special access. Because special access prices are distorted, the cost of doing business in these sectors of the nation’s economy is substantially higher than it should be; and unfortunately, these costs are passed on to consumers.

Sprint believes the Commission is right to pursue a fact-based and data-driven investigation of the special access market. Now that the data is in, we look forward to the Commission moving forward expeditiously in resolving the outstanding issues in this docket.”

Big news from Newsweek this morning. Their annual ranking of the country's greenest companies is out. Last year Sprint was ranked 15th. This we're 6th and we're thrilled.

It's the recognition of what Sprint has long been committed to, running our business in a greener more sustainable way.

And for those keeping score -- don't national rankings make us all do that? -- Verizon is ranked number 99. AT&T is ranked number 122.

To learn more about our efforts, visit Sprint.com/green.

Today four U.S. Senators introduced legislation to address early termination fees. These are the fees you pay your wireless carrier when you choose to break a contract for wireless service. (The Senators are particularly frustrated with Verizon Wireless, who recently raised their early termination fees to $350 for smart phones.)

While consumer groups love to complain about these fees, what they don't seem to understand the wireless contract system is what makes handsets affordable. If these fees for breaking a contract were legislated out of existence, it's a certainty that the price of a wireless handset would go up significantly.

For example, your wireless carrier may pay the company which makes your smart phone $500 for the device, but sell it to you for $200 if you sign a two year contract. The gamble is that we will recoup that $300 subsidy over the course of the two years when you consider the cost for data and voice services. The early termination fee -- called ETF -- is our insurance that we can recoup that subsidy if you break your contract before the two years is up.

If the fees were eliminated and your wireless carrier charged you full price, would you be willing to pay $500 for a smart phone? I don't know too many people who would.

Earlier today, Sprint issued the following statement in reaction to the bill:

“Sprint Nextel is already offering pro-rated early termination fees as proposed by the Senators’ legislation; we are doing so not because of any legislative action, but because that’s what consumers expect of us. That’s why we don't believe legislation is necessary.

At Sprint, we offer affordable options for consumers, including the ability to purchase phones without an early termination fee. If consumers are dissatisfied with the fees imposed by others we are optimistic that they will move their business to Sprint or other carriers who have chosen not to increase fees.”

What is your take? Would you be willing to pay $500 or more for a smart phone in exchange of the elimination of an early termination fee and a two year contract? Do you think consumers should be able to sign contracts and walk away from them if they are unhappy?

Have you seen the latest issue of Newsweek? This week, Newsweek named Sprint Nextel as the 15th greenest company in the U.S. -- we're the top ranked telecom on the list! We couldn't be more pleased.

At Sprint, we're working very hard to operate our business in a more sustainable way. (It's gratifying that people are starting to notice.)

To learn more, visit Sprint.com/green.