Sprint plans QChat 40-market launch for June 15

Dan Hesse, president and CEO of Sprint Nextel, speaks during a keynote address at the CTIA Wireless convention in Las Vegas, Nevada April 1, 2008. (REUTERS/Steve Marcus)

NEW YORK (Reuters) - Sprint Nextel Corp <S.N> said on Thursday it will launch a walkie-talkie style mobile phone service in 40 U.S. markets on June 15, based on Qualcomm Inc's <QCOM.O> QChat technology.

The service, which lets customers chat with each other at the touch of a button, rather than having to dial a number, is aimed at helping Sprint hold on to high-value monthly bill-paying customers who have been fleeing Sprint's service.

Sprint, the No. 3 U.S. mobile service, has been working with Qualcomm to get QChat to work on its network based on CDMA technology since it bought Nextel Communications in 2005.

Nextel, which runs a different network based on iDen technology, also offers a walkie-talkie style service that has been hugely popular among workers in such industries as construction and transportation.

But since the companies merged, problems on the Nextel network have depleted its subscriber numbers. QChat could enable Sprint to move Nextel customers to Sprint's service.

Sprint launched QChat in three markets in April for business customers. Starting June 15, it will be available in markets such as Boston, Chicago, New York City, Orlando, Florida, Philadelphia and Houston.

QChat service fees start at $49.99 a month, Sprint said.

It will work on four phones, including the PRO-200 and the PRO-700 from Sanyo Electric Co Ltd <6764.T>; the LX400 from LG Electronics Inc <066570.KS>; and the Z400 from Samsung Electronics Co Ltd <005930.KS>.

The phones range in price from $49.99 to $99.99 for customers who sign up for two-year contracts.

(Reporting by Sinead Carew; editing by Jeffrey Benkoe)