Sprint Nextel names local spinoff Embarq
Sprint Nextel is largely known for its wireless business, but the company also has over 7.4 million local telephone lines across 18 states. As part of the Sprint-Nextel merger, the company will spin off the landline business to a separate company, named Embarq.
Dan Hesse, who will be the CEO of the new company once the spinoff is complete in the second quarter, said, “This is a company that will be aggressive and innovative in the marketplace.”
“Sprint’s wireless division is so much larger than its landline operations. They competed with each other.”
The spinoff will allow Sprint Nextel to concentrate on its wireless offerings, and Embarq to focus on landline service. The company will offer service bundles of local, long distance, wireless, Internet and television services.
The landline unit started as Brown Telephone Company in 1899 in Abilene, Kan. Embarq will be the fifth-largest local telephone company in the country, and its headquarters will remain on a part of the Sprint Nextel campus in Kansas City, Mo.
