http://www.bizjournals.com/kansascity/stories/2010/07/05/daily35.html
Sprint Nextel Corp. has tweaked the targets for its executives to collect short-term bonuses, placing more emphasis on attracting 4G customers.
In a Thursday filing with the Securities and Exchange Commission, Sprint said its board had updated the guidelines for short-term incentives, covering the second half of 2010. Top executives will be graded on those guidelines, with 20 percent of the score now based on the number of customers signed up for fourth-generation wireless Internet service, which is provided through Sprint?s partner, Clearwire Corp. (Nasdaq: CLWR). It made up 10 percent of the score in the first half of the year.
Twenty percent still is based on reducing the number of annual contract customers dropping service, also called churn; net service revenue was reduced from 45 percent of the score in the first half of the year to 40 percent in the second; and adjusted operating income was reduced from 25 percent to 20 percent.
Sprint sees the 4G service, which uses WiMAX technology and is available in 36 markets under Sprint?s brand, as a key way for it to gain customers because competing wireless carriers have yet to begin selling fourth-generation service. Sprint is majority owner of Clearwire, which is based in Kirkland, Wash.
Walter Piecyk with BTIG Research said in a blog posting that the changes should benefit Clearwire, which is rolling out the 4G network to cover 120 million people by the end of the year.
He also said that Sprint?s incentive goals have proved helpful in the past to improving the company?s performance in such areas as customer service and churn.
In addition, Piecyk estimated that Sprint sold as many as 450,000 HTC EVO 4G phones ? the first device to use Sprint?s 4G network ? in the second quarter, which ended last month.
Sprint Nextel Corp. has tweaked the targets for its executives to collect short-term bonuses, placing more emphasis on attracting 4G customers.
In a Thursday filing with the Securities and Exchange Commission, Sprint said its board had updated the guidelines for short-term incentives, covering the second half of 2010. Top executives will be graded on those guidelines, with 20 percent of the score now based on the number of customers signed up for fourth-generation wireless Internet service, which is provided through Sprint?s partner, Clearwire Corp. (Nasdaq: CLWR). It made up 10 percent of the score in the first half of the year.
Twenty percent still is based on reducing the number of annual contract customers dropping service, also called churn; net service revenue was reduced from 45 percent of the score in the first half of the year to 40 percent in the second; and adjusted operating income was reduced from 25 percent to 20 percent.
Sprint sees the 4G service, which uses WiMAX technology and is available in 36 markets under Sprint?s brand, as a key way for it to gain customers because competing wireless carriers have yet to begin selling fourth-generation service. Sprint is majority owner of Clearwire, which is based in Kirkland, Wash.
Walter Piecyk with BTIG Research said in a blog posting that the changes should benefit Clearwire, which is rolling out the 4G network to cover 120 million people by the end of the year.
He also said that Sprint?s incentive goals have proved helpful in the past to improving the company?s performance in such areas as customer service and churn.
In addition, Piecyk estimated that Sprint sold as many as 450,000 HTC EVO 4G phones ? the first device to use Sprint?s 4G network ? in the second quarter, which ended last month.
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