sprint corp (S) Key Developments
Sprint Announces Retail Agreement with Dixons Carphone
Jul 2 15
Sprint and Dixons Carphone announced a commercial relationship that pairs Sprint with a premier European consumer electronics retailer renowned for innovation in wireless retail sales. The relationship is expected to accelerate Sprint’s retail transformation, and is the latest inventive move to grow its number of retail stores. As part of the arrangement, in coming months Sprint will work closely with Dixons Carphone Connected World Services division on a pilot program to build and operate about 20 new Sprint stores in select U.S. markets. These Sprint stores will operate similarly to the third-party retailers who operate Sprint-branded wireless stores across the U.S. Sprint will own and staff the stores while CWS will manage them. CWS will also apply its expertise and best practices across all of Sprint’s sales channels. In a former joint venture with Best Buy, the company helped launch Best Buy Mobile. This agreement is the latest in Sprint’s strategy to expand its distribution and provide shoppers with a better customer experience. Earlier in 2015, Sprint quickly and cost-effectively doubled the number of corporate-owned stores by opening Sprint at RadioShack in 1,435 locations, which are currently undergoing renovation. Sprint has launched Direct 2 You, a one-of-a-kind service that brings a personalised sales experience directly to customers whenever and wherever they want for free. If the pilot stores prove to be successful Sprint and Dixons Carphone will establish a joint venture to open and operate a substantial number of new Sprint-branded stores across the U.S. The two companies will equally fund the start-up costs of the joint venture and each will initially have 50% ownership interest.
Sprint Announces the Resignation of Stephen Bye as Chief Technology Officer, Effective July 24, 2015
Jun 23 15
Sprint's chief technology officer Stephen Bye is resigning effective July 24. Bye's exit comes as Claure has begun to tout the company's network performance.
Deutsche Telekom Denies The Report Stating T-Mobile Not Interested In Dish Merger
Jun 10 15
Deutsche Telekom AG (DB:DTE) denies the report that it may not be interested in merging T-Mobile US, Inc. (NYSE:TMUS) and Dish Network Corp. (NasdaqGS:DISH). According to New York Post, Deutsche Telekom Chief Executive Officer, Timotheus Höttges said that he thinks Comcast Corporation (NasdaqGS:CMCS.A) might be interested in acquiring T-Mobile with more scale because in case T-Mobile is acquired by Dish Comcast would lose interest because regulators would likely block the deal given Dish's large spectrum cache. New York Post also reported that Deutsche Telekom is still looking towards a closer relationship with Sprint Corporation (NYSE:S). Deutsche Telekom denied that there was any truth to the report or the comments quoted in the report.
Sprint Names Kevin Crull as Chief Marketing Officer, Effective May 31, 2015
May 20 15
Kevin Crull will join Sprint as chief marketing officer effective May 31, 2015. In his new role, Crull will be responsible for all products and services, brand and advertising, customer acquisition and retention, and all digital and social efforts. Crull will report to President and CEO Marcelo Claure. Crull will be a vital contributor to Sprint’s leadership team, charged with attracting new customers and advancing the company’s push for greater innovation. Crull brings to Sprint 30 years of experience leading sales, marketing and operations teams. Most recently, Crull served nearly five years as chief operating officer and then president of Bell Media.
A.G. Schneiderman Announces $158 Million Mobile Cramming Settlements with Sprint Corporation and Cellco Partnership
May 12 15
Attorney General Eric T. Schneiderman announced multi-state settlements with Sprint Corporation and Cellco Partnership d/b/a Verizon Wireless that include $158 million in payments to resolve charges that the companies engaged in mobile cramming. Mobile cramming is a practice in which cell phone providers place unauthorized third-party charges on consumers' bills. One common cramming charge is a $9.99 per month premium text messaging subscription service for horoscopes, trivia, sports scores or other information that consumers often never requested. The State Attorneys General and federal regulators allege that cramming occurred when Sprint and Verizon placed charges from third parties on consumers' mobile telephone bills without the consumers' knowledge or consent. Sprint and Verizon are the third and fourth mobile telephone providers to enter into a nationwide settlement to resolve allegations regarding cramming. Attorney General Schneiderman announced similar settlements with ATandT in October of 2014 ($105 million) and T-Mobile in December of 2014 ($90 million). All four mobile carriers announced that they would cease billing customers for commercial PSMS in the fall of 2013. Under the terms of the settlements, Sprint will pay $68 million and Verizon will pay $90 million. Of these amounts, Sprint and Verizon are required to provide $50 million and $70 million, respectively, to consumers who were victims of cramming. Sprint and Verizon will each distribute refunds to harmed consumers through redress programs that will be conducted under the supervision of the Consumer Financial Protection Bureau. It is estimated that more than 2 million New Yorkers are entitled to refunds. Sprint will also pay $12 million to the Attorneys General-including $340,301.30 to New York State-and $6 million to the Federal Communications Commission. Verizon will also pay $16 million to the Attorneys General-including $453,900.83 to New York State-and $4 million to the Federal Communications Commission. The national mobile cramming settlements with the four mobile carriers have netted the State of New York a total of $1,882,846.27. The settlements, like the settlements entered into by ATandT and T-Mobile in late 2014, require Sprint and Verizon to stay out of the commercial PSMS business-the platform to which law enforcement agencies attribute the lion's share of the mobile cramming problem. Under each of the four settlements, the carriers, including Sprint and Verizon, must also take a number of steps designed to ensure that they only bill consumers for third-party charges that have been authorized, including the following: The carriers must obtain consumers' express consent before billing consumers for third-party charges, and must ensure that consumers are only charged for services if they have been informed of all material terms and conditions of their payment; The carriers must give consumers an opportunity to obtain a full refund or credit when they are billed for unauthorized third-party charges; The carriers must inform their customers when they sign up for services that their mobile phone can be used to pay for third-party charges, and must inform consumers of how those third-party charges can be blocked if the consumers do not want to use their phone to pay for third-party products; and The carriers must present third-party charges in a dedicated section of consumers' mobile phone bills, must clearly distinguish them from the carrier's own charges, and must include in that same section information about the consumers' ability to block third-party charges.