Carriers pay Apple the subsidy that is able to keep the iPhone down to its $199 price point even after cramming in loads of new features in every release. For Apple, this is good. For consumers, this is good. For carriers, this is very bad.

During 2009 and 2010 before Verizon Wireless was selling the iPhone, its EBITDA margin was at an average of 46.4 percent. Right after the Verizon iPhone became a reality, the profit margin dropped to 43.7 percent. Last quarter, which was the first quarter to include iPhone 4S sales, Verizon’s margin was at 42.2 percent.

Fortunately for Verizon, its margins are comparably high to those of AT&T and Sprint. AT&T’s EBITDA service margin last quarter was 28.7 percent, an 8.9 percent decline year-over-year. Sprint’s margin last quarter was even worse at a sad 9.5 percent. The year before that when Sprint wasn’t selling the iPhone, its margin was 16 percent.

The good news is since Apple sells so many iPhones, carriers are still making plenty of money off of them. Don’t ever lose sleep about them not making money — if something doesn’t add to their bottom line, you can bet carriers will not go through with it.

[via CNN Money]

Handset sales are strong and subscriber count is growing, but the company is still bleeding cash. Sprint reported a net loss of $1.3 billion in the quarter and $2.89 billion for the year. Network Vision upgrade costs and both subsidies and sales expenses associated with the iPhone reduced the company’s bottom line.

Sprint CEO Dan Hesse remains optimistic about the company’s performance and its immediate future.

“Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience. During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.”

Of course, such optimism about the company’s future is the job of the CEO, especially when a company is struggling to make ends meet.

[Via Sprint]

The third largest wireless provider plans to shut down push-to-talk service on its iDEN network, in an attempt to move customers to advanced PTT services on its CDMA network. And with the extra 800 MHz iDEN spectrum, the company will use it for advanced voice services as well as for LTE, a process that should be completed in the year 2017. We don’t know exactly when the final transition will occur, but we at least know when the first stage of shutdowns will be taking place.

This is a necessary move Sprint has to take in order to get itself into the 4G market, as the company is not only behind Verizon but AT&T as well. As a customer, I hope this first stage of its “Network Vision” pans out so I don’t have to jump ship.

[via FierceWireless]

Don’t want another two-year contract? Sprint lists the Optik with the regular price of $350, though you can’t seem to buy it without committing to the carrier’s plan. Guess they don’t want you to use it without mobile data.

Strange enough, the HTC EVO View 4G is still more expensive, costing $249.99 with the same kind of two-year contract. Sure it supports WiMAX data, but on the other hand – it has a single-core processor, making it much slower…

Anyway, you can check out ZTE Optik from this page at Sprint’s website.

[Via: Unwired View]

ZTE is about to push itself into the US market harder than it ever has, and while we’ve seen some lower end devices coming from the company, the Optik is a well-rounded tablet that should please just about anyone who picks it up. The Optik rocks a 7 inch display with a 1280 x 800 resolution, a 1.2GHz dual-core Snapdragon processor, 1 GB of RAM, 5 megapixel rear camera, 2 megapixel front-facing camera, and 16GB of storage. It’s also 3G enabled, and only 3G enabled, so if you were hoping for some WiMAX love, you’re going to have to look elsewhere. Still, the lack of “4G” connectivity options helps to keep the price point low.

ZTE Optik is ZTE’s first tablet in North America and makes the tablet experience available to a new segment of consumers,” said Lixin Cheng, CEO, ZTE USA and president, North America Region, ZTE. “Paired with Sprint’s cutting-edge network, ZTE Optik provides an exceptional user experience to consumers who demand affordability, flexibility and mobility in one package.

If you wanted to grab this thing off-contract, you won’t have to break the bank, as it’ll only cost $350. The Android Honeycomb tablet definitely has the specs to get upgraded to Ice Cream Sandwich in the future and we’ll see just how much effort ZTE will be putting in to ensure a hasty update waiting period.

Overall, the ZTE Optik seems like a great option for many people and even the off-contract pricing is reasonable. That said, with the 7-inch Asus/Tegra 3 Ice Cream Sandwich tablet for $250 should be on its way at some point, which may be worth waiting for. We’ve also got some hands on with ZTE’s 7-inch Ice Cream Sandwich tablet at CES but that particular model likely won’t land on US shores any time soon, if at all.

At the moment, the release date for the Optik is unclear but we’ll be sure to keep you in the know as we hear more!

[Via: TheVerge, Sprint]

The DuraPlus is also a Sprint Direct Connect capable device, providing users with access to a portfolio of push-to-talk services, including Guaranteed Talk Permit, Call Alert with Text, Group Connect, TeamDC, NextMail, Availability Notification and One-Touch Direct Connect.

All in all, it’s one of those phones that doesn’t support apps or any other advanced features modern smartphones have; however, it’s a superb choice for its targeted market.

When it comes to availability information, Kyocera DuraPlus will start selling in the first half of the year, with pricing and exact availability set to be announced closer to launch…

The two ID packs Gameloft and Sprint launched are:

• HD Games ID Pack – features access to high-definition games like Dungeon Hunter 2 HD+, Assassin’s Creed HD+, Let’s Golf 3 and Order and Chaos Paymium HD+ for devices such as Samsung Epic 4G, Samsung Epic 4G Touch, Samsung Galaxy Tab and Motorola Photon 4G.
• Top Games ID Pack – a collection of games including Iron Man 2, Gangstar 2, N.O.V.A. and NFL 2011 for devices such as Sanyo Zio, Samsung Transform and LG Optimus S.

Both Gameloft ID packs are free to download with an Everything Data plan from Sprint. Customers can download up to five ID packs at a time and easily swap them out for new ones or switch between them.

Future planned updates for the Gameloft ID packs include an RSS feed, push notifications, direct links to freemium titles and a Gameloft Live application…

Now how are these two companies related? LightSquared initially wanted to build their own network with the help of Nokia Siemens Networks, but in the summer of 2011 they changed their mind and signed a deal with Sprint. Under the terms of the agreement Sprint would build LightSquared’s network in exchange for $9 billion in cash. Sprint also agreed to become a LightSquared customer, with the added bonus that they would get $4.5 billion in “credits” to use LightSquared’s services. In other words, LightSquared and Sprint merged without merging. This contract came with a clause however, and a mighty big one at that. None of what we just explained would happen unless LightSquared got the FCC’s approval regarding their spectrum. Thing is the FCC has delayed their decision numerous times, which in turn has caused Sprint to delay working with LightSquared. Sprint’s obviously had enough of this and yesterday they announced that they’ll be giving LightSquared one more extension. After that, forget about it.

The new deadline? Mid-March.

So it’s nothing major but still we advise you to keep your phone’s software up to date. Moreover, you do want to delete any reference to Carrier IQ and let Sprint wonder what you’re doing online… actually they have other ways to follow your whereabouts but that’s another story.

Make sure you phone is fully charged and that you’re connected to a fast Wi-Fi hotspot. Once that is on place, check for the new software and “push the button.” Voila – within about 10 minutes you’ll be running the latest firmware.

[Via: SprintFeed]

The phone color isn’t a big deal for you? Then get the black version of the Epic Touch. It costs $79.99 for new users, or the same $149.99 for existing ones. That deal too is available at Amazon from this page.

As you probably know, Sprint’s version of the Galaxy S II rocks a “larger than usual” 4.52-inch screen, while rest of the specs are on par with the original device…

It is said that the new tablet will start selling online on February 5th with Sprint stores getting it more than a month later on March 11th…

So what do you say? Are you going to be one of those grabbing the Optik once it’s out? It’s certainly an affordable option, even though you’ll still have to commit on a two-year contract…

[Via: SprintFeed]