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Old 04-10-2007, 12:56 AM
Scott
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Default Re: Sprint's Big Pipe Dream

"Mij Adyaw" <mij@SpamBucket.com> wrote in
news:WEvSh.158200$p17.128201@newsfe11.phx:

> What is the reason that Sprint lost the contract? Does anyone have any
> information? Navas, do you know anything?
>
>

Navas doesn't know anything if it's not contained in a Google link.

One thought on the street is that Sprint might have half-assed the whole
thing because while the dollars sound great, margin on those types of
accounts are horrible. Between huge equipment subsidies (including
contracted cell towers and private networks), huge pricing discounts,
special billing requirements, budget shortfalls (which stop payment in a
heartbeat) and the necessity to go through the GSA for payment puts net
revenue far below any other tier of customer in the industry. The money
looks good coming in, but id of no value if most of it goes right back out.

The budget piece is of particular importance- the contract was advertised
as being worth "up to $48B" over ten years. The real value won't be
determined by the carriers- it will be determined by Congress.

There is a secondary contract being offered later in the year with fewer
requirements and worth $20B. Sprint may be focusing their energies there.

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