Disney to offer phone service using Sprint network

[jones]

Disney to offer phone service using Sprint network
Wed Jul 6, 2005 10:59 AM ET



NEW YORK (Reuters) - Theme park and media company Walt Disney Co. <DIS.N> on Wednesday said it would use Sprint's <FON.N> network to offer a mobile phone service geared toward families.

Disney expects the venture to be in investment mode for the next several years, but hopes it will bring solid financial returns in the long run, Steve Wadsworth, president of the company's Internet group, said in a statement.

The company is turning to wireless at a time when U.S. operators are taking aim at very specific market segments, such as the very young, the very old and other special-interest groups, as more than 60 percent of the nation's population already has phones.

Disney's sister brand, ESPN sports network, also plans to sell a mobile service aimed at sports fans, also renting space on Sprint's network.

The Disney Mobile service is expected to launch next year with features including voice calls and entertainment.

Disney said it would be responsible for product development, distribution, marketing and billing. It entered the mobile industry in 2000 in Japan with Disney content such as ring tones, games and graphics.

Disney to offer phone service using Sprint network

[Andy]

Everyone that starts offering service nowadays seems to go with Sprint

[Critic]

Sprint's going to end up with more customers on Nextel and MVNOs than on their own service! (Although that might be the way they want to go...no customer maintenance to deal with...) =)

[bobolito]

That's why I said sometime ago that they should just leave the direct retail business and go as wholesaler. Honestly, they are currently adding as much customers indirectly than directly, if not more than directly. However, the merger with Nextel may just change that picture dramatically.

[larry]

Just think if the AT&T MVNO had panned out how many customers they would be adding.

[Fire14]

Another article on this, I really thought they were going with Cingular but guess they had a much better deal with Sprint.

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Story as compiled from WirelessIQ
www.wirelessiq.info
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Disney Teams with Sprint to Offer National Wireless Service for Families

July 6, 2005 | 11:33 AM

The Walt Disney Internet Group and Sprint have entered an agreement through which Disney will create the first national U.S. wireless phone service specifically designed for families. The service, called Disney Mobile, will use the Sprint Nationwide PCS Network and is slated to launch next year.

Disney Mobile plans to offer a comprehensive mobile service, including wireless voice service, exclusive handsets and a package of features and applications tailored to meet the unique communication needs of families. The service will also include a range of entertainment content for the family.

"Disney Mobile will combine Disney's brand equity in the family market with Sprint's leadership in wireless voice and data services to create an engaging and easy-to-use mobile experience," said Steve Wadsworth, president, WDIG. "This enhanced mobile service offering will ensure Disney's place as a leader in the family mobile market, one of the fastest growing segments of the mobile industry. We'll be in investment mode for the next several years, but expect that over the long run this initiative will generate solid financial returns for the company."

Disney will be responsible for all aspects of the service, including product development, distribution, marketing, customer relations, billing and other business operations.

For Sprint, the agreement with Disney complements its strong brand image as a leading retail provider and provides an opportunity for a new generation of compelling services specifically designed for families. Sprint has capitalized on its Mobile Virtual Network Operator (MVNO) strategy, by partnering with key national brands to expand its assets to more users beyond its traditional customer base.

"As one of the most powerful brands in media and entertainment, Disney Mobile will appeal to families and loyal fans who want an immediate way to enrich and personalize their wireless communications experience," said Tim Kelly, president, Sprint Consumer Solutions. "Combining Disney's family-friendly content and applications with the Sprint Nationwide PCS Network will help spur consumer demand for data services within this important segment."

The newly formed Disney Mobile business is part of Walt Disney Internet Group and will be led by Senior Vice President and General Manager George Grobar, who reports to Steve Wadsworth. Grobar is a ten-year Disney veteran, including recent positions as VP and GM of Disney Auctions and NASCAR Store Online, and VP with the DisneyStore.com. Prior to Disney he spent nearly a decade in finance and product planning in the computer industry.

WDIG entered the mobile arena in 2000 with the launch of Disney branded content, including graphics, ring tones, games and utilities, on NTT DoCoMo in Japan. It will continue to distribute its mobile content through carriers and distributors globally.

In 2004, Disney's ESPN unit announced it would launch the first U.S. wireless phone service specifically targeted to sports fans.

[ZaphodB]

Good God. WDIG will stop at nothing until they've taken over the world.

[budney]

I better not start hear "It's A Small World" coming from people's phones, as my brain will explode from hearing that god awful song (Mars Attacks!)

[larry]

I wonder if Disney will allow Sprint to put antennas in Disneyland and Disneyworld now. Currently they only have agreements with GSM carriers I believe.

[Fire14]

Originally Posted by larry

I wonder if Disney will allow Sprint to put antennas in Disneyland and Disneyworld now. Currently they only have agreements with GSM carriers I believe.

I think that would be a given, could you imagine being partners with Sprint & selling a Disney brand phone & not having service at there parks.
I didn't know they only had agreements with GSM carriers though, I figured with there past relationship with AT&T that they at least had coverage for AWE customers, I haven't been down there in 8 years so I couldn't say for sure though.

[bobolito]

Originally Posted by larry

I wonder if Disney will allow Sprint to put antennas in Disneyland and Disneyworld now. Currently they only have agreements with GSM carriers I believe.

So is this how those antennas will look like?

[bobolito]

Another question I have is what happens if you cancel with Sprint and want to port to Disney? Will you have to pay ETF?

[ZaphodB]

Originally Posted by larry

I wonder if Disney will allow Sprint to put antennas in Disneyland and Disneyworld now. Currently they only have agreements with GSM carriers I believe.

There are Verizon towers on the city easement of Disneyland Dr. (formerly West St.) that predate Disney's California Adventure, when that all used to be hotels. So there's great coverage at Disneyland with Verizon. I've never heard anyone complain about Sprint... but there was horrible T-Mobile coverage in Frontierland.

[DarrylLeeOHS30]

So will "Disney Mobile" have the roaming agreements such as with Verizon, that Sprint PCS has now?

[larry]

Originally Posted by ZaphodB

There are Verizon towers on the city easement of Disneyland Dr. (formerly West St.) that predate Disney's California Adventure, when that all used to be hotels. So there's great coverage at Disneyland with Verizon. I've never heard anyone complain about Sprint... but there was horrible T-Mobile coverage in Frontierland.

Interesting. Sprint does not have any cell sites on Disney propery right now. They rely on spillover coverage from a couple of sites out side the park on Edison towers. It's fine for outdoor coverage but inside some buildings deep in the park the signal dies out. I figure Disney will have to be more friendly to Sprint now and let them come in and install some micro cells at least.

[larry]

Originally Posted by DarrylLeeOHS30

So will "Disney Mobile" have the roaming agreements such as with Verizon, that Sprint PCS has now?

Probably not. The MVNO's are usually Sprint coverage only with no roaming.

[larry]

Originally Posted by Fire14

I think that would be a given, could you imagine being partners with Sprint & selling a Disney brand phone & not having service at there parks.
I didn't know they only had agreements with GSM carriers though, I figured with there past relationship with AT&T that they at least had coverage for AWE customers, I haven't been down there in 8 years so I couldn't say for sure though.

Yeah the GSM agreements are a given. Can you imagine how many foreigners come in to the park expecting to use their cell phones? Lack of GSM coverage simply wouldn't fly at Disneyland. That's why the parks had to allow some cell sites for GSM. They figured they could get away with not allowing CDMA carriers to build sites.

[larry]

Originally Posted by bobolito

So is this how those antennas will look like?

LOL good one.

[Andy]

I thought that Nextel was allowed to put sites in Disney World because Disney employees use Nextel's DC. If this is true then Sprint will soon have better coverage in the park as well.
No coverage problems with Verizon in Disneyland, like Zap said.