Sprint Not Giving Up On iDEN Network

Despite the problems and customer losses that have plagued the iDEN part of their network since they merged with that company, Sprint isn't giving up on the former Nextel network and its technology.

Not entirely a third wheel

The iDEN standard, developed by Motorola, is mostly notable for its ground-up integration of "push to talk" capability, allowing for a mobile phone to be used in a manner similar to a walkie-talkie.

Due to not being compatible with either the CDMA or GSM standards used by most of the US and the rest of the world, iDEN has often been seen as a kind of "third wheel" competitor for which there was no room in the market. Despite this, the technology managed to gain a following among business and industrial users, particularly construction and field workers who take advantage of the direct connection capabilities.

After Sprint merged with Nextel--the largest US iDEN provider--in 2005, mounting subscriber losses and problems on the Nextel side of the company began to drag down the stock value. By February of 2008, Sprint Nextel had lost more than $30 billion in market cap, greater than the original worth of Nextel, leading to widespread speculation that Sprint would try sell off the iDEN system as part of a plan to salvage the company and return to core businesses.

And not going away

During a conversation today with Brighthand, Sprint officials reaffirmed that the company isn't planning to phase out or otherwise get rid of the former Nextel network, and instead intends to continue serving it and rolling out new and improved offerings.

They further emphasized the large foothold that Sprint-Nextel has in push-to-talk users, and that despite the increase in push-to-talk offerings from other carriers, many businesses still rely on the original iDEN system, particularly for its low lag time.

The stock market seems to tentatively concur with Sprint-Nextel's optimism--the stock has risen 40% off its lows earlier this year when the forecast looked bleakest, and the company has been making headlines with several high profile devices, as well as their new Airave femtocell service.