This was disclosed in SprintNextel’s Q2 earnings call earlier this month, but some more details in this interview with Len Lauer, Sprint’s COO. The story says Sprint is grappling with technology troubles that are forcing it to pull back from its MVNO, Boost Mobile. Boost attracted twice as many new customers as Sprint Nextel’s flagship brand in Q2 and is responsible for about half the company’s 2 million new subscribers in 2006. But its customers were straining part of the company’s wireless network. If forced to choose, executives would rather provide good service to existing and new subscribers to the company’s higher-priced Nextel-branded service.
The source of the difficulty can be traced to a government-ordered multibillion-dollar initiative for Sprint Nextel to reduce interference between one of its wireless networks and the radio systems used by public safety agencies nationwide.
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