Sprint PCS Chief To Take COO Position At Parent Company

In a move consistent with the prevailing telco strategies of the day Sprint announced that Len Lauer as the President and COO of the parent company, Sprint Corp. Lauer will also continue on as President of the wireless division, Sprint PCS. Moving the wireless head into the parent, while keeping him active in the wireless arm indicates the desire to further integrate the two divisions. More and more, telcos are realizing that bundling services to customers offers benefits of loyalty, simplified billing, higher economies of scale, and more competitive product offers. For example, “Last month, Sprint introduced a new calling package called “Sprint Complete Sense,” which combined local, domestic long-distance and wireless telephone services.” Telcos are also sensitive to the threat of cannibalization of their wireline business by their wireless offspring, and re-integrations can neutralize that threat. Along similar lines, AT&T and SBC/Cingular have begun making stronger ties between wireless and wireline offers.

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