Meanwhile, AT&T, the largest wireless operator in the country, said Thursday that it added a record 2.68 million new mobile subscribers in the fourth quarter, bringing its total to 70.05 million mobile subscribers at the end of 2007.
Much of Sprint’s problems stem from the 2005 acquisition of Nextel Communications. Network integration of the two companies has not gone smoothly, and former Nextel customers have complained of worsening service. Investors have criticized the company’s top brass for not focusing enough attention on the core business.
In particular, critics are skeptical of Sprint’s plans to build a fourth generation using a technology called WiMax. Sprint has already committed to spending $5 billion on the network, which is expected to begin commercial roll-outs in the first half of the year.
Even though Sprint’s management has said it plans to continue to move forward with its WiMax plans, a new team in the executive suite could change the strategy dramatically.
- Sprint boots three more execs, CNet.com, January 24, 2008.
2. Egypt’s military, the biggest recipient of U.S. military aid after Israel, is in decline, according to American diplomats, who blame the Arab nation’s top brass for failing to modernize and adapt to deal with new threats.
U.S. diplomatic memos leaked this month show previously unknown friction between the two allies over military assistance and strategy. Military cooperation has always been seen as an unshakable link between Egypt and the U.S., even as the political side of the alliance has gone through public ups and downs over Washington's on-and-off pressure on reform and human rights.
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