Steve shimmers into a bar, materializes next to Dan Hesse, Sprint’s CEO, crying in his mojito and whispers: I can fulfill your fondest dream. You’re the Devil, go away! No, I’m merely Steve Jobs and I want nothing to do with your soul or your chiseled body. Relax, it’s just about money.
A little bit of context before we move to the How of Steve’s bargain.
In the US, we have three main carriers (sorry, T-Mobile), AT&T, Verizon and Sprint. Verizon appears to have the better, more modern (EVDO) network.
AT&T is rapidly upgrading to what is known as 3G, a world standard, competitive but not compatible with EVDO. Sprint, the smaller one, has EVDO, almost identical to Verizon, it is losing ground to the two big ones. The Sprint-Nextel merger is a disaster, to the point where Sprint wants to get rid of the company it acquired for $35 billions in 2005. Sprint’s revenue is falling: -11% when compared to the same second quarter last year, this in spite of introducing a $99 Everything plan, unlimited voice, data, music, video. “Some restrictions apply”: look at the minuscule print here, at the bottom of the screen, tiny white characters on a black background. In the almost illegible but instructive gibberish, they have the nerve to add: “Other restrictions apply. See store or sprint.com for details”. But I am on the Details Page on sprint.com!
(Intrigued, I checked: Verizon does a better job of spelling out its conditions and AT&T has the best organized one of all three.)
And, for the first six months of 2008, Sprint has lost 2 million subscribers, nothing to do with the reality and the perception of Apple smartphone sales: probably more than 10 million units in 2008, a majority of in the US.
Now we understand why the CEO is in his cups.
Steve whispers: Dan, look at the iPod Touch here. We’ve added a microphone, already available from third parties, and we grafted a Sprint radio, liberated from Jeff’s Kindle. It’s not a telephone. No, we have this exclusivity agreement with Ma Bell. In 2007, we let them say it was for five years. Now, with our 3G product, it’s been “extended” to 2010. Who knows, next year we’ll extend it to 2009.
Offer this iPod Touch with one of your All You Can Packetize plans. I’m sure the iPhone developers will put one or more Skype-like applications on it, VoIP software. You won’t mind, right? You’re not as uptight as AT&T outlawyering the use of an iPhone as a 3G laptop modem. This iPod is not a phone, it’s an Internet device, you’ll sell millions of them, your errant subscribers will return to Sprint’s fold. And you’ll keep your job. What do you say?
Awright, stop drinking that stuff and sign here. –JLG