4 Comments

Summary:

Sprint-Nextel is moving ahead with its plans to spin-off the local wireline business (LoCo), according to a “registration statement Form 10-12B” as per UBS Research. The documents show that the local business had revenues of $4.65 billion in the first three quarter of 2005. That works […]

Sprint-Nextel is moving ahead with its plans to spin-off the local wireline business (LoCo), according to a “registration statement Form 10-12B” as per UBS Research. The documents show that the local business had revenues of $4.65 billion in the first three quarter of 2005. That works out to about $6 billion in sales. LoCo will have 7.4 million lines, making it roughly the fifth largest local phone company in the country.

LoCo will have roughly 20,000 employees at the time of the spin-off. The good news is that LoCo employees will get to keep their pension plans. The Local Biz will also be an MVNO arrangement for Sprint Nextel and a new brand name will be announced in 1Q06 with the spin on track to occur in the second quarter. The LoCo will have a new board of directors including William A. Owens, former CEO of Nortel Networks Corp and Daniel R. Hesse, CEO of Sprint Nextel Local Telecommunications Division.

You’re subscribed! If you like, you can update your settings

  1. Japan’s Cellphone Edge Tuesday, January 24, 2006

    So, how LoCo will survive in the situation when fixed mobile substitution accelerates? What’s their bet? Broadband? FMC? IMHO, just reselling Sprint Nextel service won’t provide enough money to sustain in business.

  2. I suspect that LoCo will try to come up with some kind of MVNO play, possibly with a sweetheart deal from its former parent company. Just a guess.

  3. Jesse Kopelman Tuesday, January 24, 2006

    Hesse is a wireless guy. How’d he get banished to wireline?

  4. Ma Bell and Its Vanishing Phone Lines Friday, June 5, 2009

    [...] In comparison, AT&T’s problems are reflected in the fact that it now likes to present itself as a “wireless company.” That’s the same line Sprint used to use before it got rid of Embarq. [...]

Comments have been disabled for this post