Sprint spin-off will seek rural telco partners

COLORADO SPRINGS—The as yet unnamed local telecommunications division of Sprint, which will be spun off from Sprint Nextel, plans to act in a cooperative manner with other rural telcos, according to Bill Blessing, head of Strategic Planning and Business Development for the new company.

Speaking at the opening of CoBank’s Executive Forum, Blessing said the new telco, which will become the largest non-RBOC local carrier in the U.S., will partner with surrounding rural telcos in several ways. Perhaps most immediately, the company will seek to expand it’s wireless coverage via partnership.

The company is expected to act as an Mobile Virtual Network Operator (MVNO) using the Sprint Nextel network. However, because it will have some territories of local wireline service not covered by that network, the company will work with others.

“We find it essential to seek additional rural coverage through strategic partnerships,” Blessing said.

When the spin-off is completed next year, the local group will be facing competition from cable operators in many areas and wants to offer its customers a package of service that including traditional voice, DSL, video via DBS partnerships and mobility.

The new company also providing the incentive that it will not overbuild wireless facilities in those markets where it has agreements with other rural telcos. However, the agreements will not resemble current Sprint affiliate agreements, Blessing said.

“It’s a much simpler unbranded relationship,” he said.