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Article from zdnet.com
Sprint Nextel showed some signs of improvement in its fourth quarter, but is still losing customers at a rapid clip. Sprint CEO Dan Hesse said the company has �high expectations� that the Palm Pre handset can attract customers to the wireless provider. �We are bullish about the potential for this device,� said Hesse on Sprint�s earnings conference call.
In the quarter (statement), Sprint lost 1.3 million net wireless customers and delivered a churn rate of 2.16 percent, up slightly from the third quarter, but better than a year ago.
Sprint delivered a fourth quarter net loss of $1.62 billion, or 57 cents a share, on revenue of $8.43 billion. In the fourth quarter a year ago, Sprint had a net loss of $29.3 billion, or $10.31 a share, on revenue of $9.84 billion. Sprint reported a loss of a penny a share on an adjusted basis compared to Wall Street expectations calling for a loss of 3 cents a share.
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For the year, Sprint reported a loss of $2.79 billion, or 98 cents a share, on revenue of $35.6 billion, down 11 percent from a year ago.
Hesse said the company remains focused on cutting costs and boosting cash flow. Hesse in a statement also added that Sprint has enough cash to meet its debt service requirements through the end of 2010. For 2009, Sprint said that it expects subscriber losses to improve in 2009, but didn�t signal that growth is around the corner. Capital spending in 2009 will be flat with 2008 and Sprint expects to generate positive free cash flow.
Although Sprint had a rough 2008, it does seem to be going in the right direction. Sprint has cut its debt load and shared the cost of its WiMax rollout courtesy of a transaction with Clearwire. The big question is whether Sprint can lower its churn rates and actually attract customers.
On a conference call, Hesse hit a few key themes. First, Hesse reiterated that Sprint is improving customer service. He said that customer service improvements have enabled the company to close 11 call centers. Sprint plans to close more in 2009. Hesse also noted that Sprint�s 3G service has been touted by sites such as Gizmodo for performance.
Hesse, who has been working hard to improve the company�s image, also said that Sprint is being considered by more potential customers. But he also acknowledged customer service improvements �take time in a recurring revenue business� to change consumer perception, especially when Sprint�s reputation has been �tarnished� in the past.
The jury is still out whether a new handset from Palm and plans like Simply Everything are enough to convince customers to leave AT&T, Verizon and T-Mobile for Sprint.
Here�s a look at Sprint�s customer metrics with my notes:
By the numbers:
* Sprint ended the year with 49.3 million customers, down from 53.8 million at the end of 2007.
* Credit quality of Sprint�s customer base improved throughout 2008 and �prime� customers are 84 percent of the company�s post-paid customer base, up from 79 percent a year ago. Sprint had a bevy of sub-prime customers via its Boost Mobile unit.
* 10 percent of Sprint�s customers upgraded handsets in the fourth quarter.
* Wireless post-paid churn was 2.16 percent, but Boost churn was 8.20 percent, up from 8.16 percent in the third quarter.
* Average revenue per subscriber $56. Wireless service revenue in the fourth quarter was $6.6 billion, down 13 percent from a year ago.
* Equipment subsidies was $800 million compared to $700 million in the third quarter and $500 million a year ago. Sprint said: �The year-over-year increase in subsidy is primarily due to the increase in the average cost per handset sold as the company continued to sell a greater number of higher-priced units, partially offset by a decrease in the number of handsets sold.�02-20-09 10:41 AMLike 0 -
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I understand the point in improving customer service.
However, is improved CS going to switch people from AT&T/Verizon to Sprint? I really doubt it... That mostly caters to keeping current customers happier. You need something bigger and more obvious than that to pull customers in to your company.02-20-09 12:52 PMLike 0 -
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Exactly!!!!! They need a name change, a new slogan, or something!!! If they would got the Iphone, Storm, Bold, or we could go back as far as the first Motorola Razr, or Sidekick we wouldnt even be talking about this right now. Ok we are getting the Pre but is it exclusive for only Sprint? No everybody is going to have it after awhile, people want phones that they dont need to upgrade, I am fine with my 8830 but in 3 months if I dont hear any news about a new blackberry I might go, everyone is talking about how cheap the services is but eventually these companies are going to catch up, even Cadillac has a base model!!!02-20-09 01:13 PMLike 0 -
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Yeah only way I would leave over a bad CS experience with any company is if it was just blatent negligence. CS with just about every industry and company these days is horrible. It's been going down hill everywhere ever since those huge call centers went up in India, so you either have people who you can't understand or don't understand you well, or the lowest common denominator here who they hire at a price point to match the outsourced labor. There are a few exceptions and some good CS out there, but CS has been nickled and dimed over the years everywhere to cut costs. That said though Sprint has always fixed my problems quickly and given me better CS than what I average. I can go to a Sprint store and get good service from those too. But I usually exhaust every fix I can do on my own by researching everything before calling.I understand the point in improving customer service.
However, is improved CS going to switch people from AT&T/Verizon to Sprint? I really doubt it... That mostly caters to keeping current customers happier. You need something bigger and more obvious than that to pull customers in to your company.
Their pricing is the best in the industry, and they have the fastest network (according to recent independent tests in major markets). I think both they would bennefit from implementing the R-UIM technology (CDMA version of the SIM card that is backward compatible with SIM cards too) so someone could change phones whenever they wanted and not have to call in and talk to a person to activate a phone. You want a new phone you go into the store, move your R-UIM from old to new phone and your done... Look at how many people buy unlocked, unsubsidized, GSM phones. R-UIM support has been built into all Qualcomm chipsets for a few years now, just no one is implementing it.
They should be working with Qualcomm to get cheaper CDMA/GSM/UMTS chips developed and just make all their phones world phones so that AT&T can't run those your phone doesn't work overseas stuff.
I think these two things would provide some differentiation from Verizon, and could help. Unfortunately it may be too late to do this now as money to implement these things is harder to get and I think that Dan Hesse is just another moron CEO who will run a company into the ground and have a golden parachute waiting for him. Sprint used to have a major Long Distance section, one of the early major data networks (they owned the Frame Relay market back in the day), but now those segments are done and they don't have anything like Verizon or AT&T's other groups (FIOS, local phone, major Data Centers, etc.) generating extra revenue to help shore up the wireless side. AT&T and Verizon have much deeper, more diverse pockets to pull from. My guess is that one day Sprint will be taken over by something like a Dish/Direct TV, or foreign cell company that can invest and clean house. Verizon won't be allowed to buy Sprint (And they probably wouldn't want to).
That said I was out with a vender yesterday who owns a Bold. I was very impressed and the data was very, very fast. If it weren't for the increase in service cost, I wouldn't think twice about jumping ship as AT&T seems to be investing more in there network and they usually get great BB's first. I think that the price is the only thing keeping people with Sprint, because they have nothing other than that over the competition.02-20-09 02:33 PMLike 0 -
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Exactly. Verizon makes some of the least-customer friendly decisions in a lot of regards out of most of the carrier companies out there, yet they're definitely not hurting like this.
Sprint needs to re-prioritize (for all those people out there that think Dan is doing an amazing job).02-20-09 02:49 PMLike 0 -
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Yeah well, after reading about the release date of Sprint's next qwerty BB, I might be jumping ship.
http://forums.crackberry.com/f40/nia...48/index2.html02-20-09 03:26 PMLike 0 -
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It's not just 1st gen phones. They have been 1-1.5 years (yes years) behind generally on any BB related phone upgrades, this doesn't just mean new OS devices or new input types.
This also includes OS UPDATES. But yeah, you can summarize a ton of people on this board as stupid if you want to...
Also, this is kind of an incorrect assumption in the first place. Sprint's CDMA BB's for example use different hardware (namely the cpu, obviously the radio hardware is completely different too) than their GSM counterparts. So you aren't necessarily getting a "more revised" version of the same phone...Last edited by papped; 02-20-09 at 05:14 PM.
02-20-09 05:05 PMLike 0 -
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Not all 1st gen's are garbage.....and no, people who want updated technology aren't stupid. They just want something that can keep up with the rest of the world. You should really choose you words more wisely.
I've been fascinated with the Bold ever since the first time I played with one. It has everything I need and it's the perfect device for me. If Sprint doesn't get the 9030 by the time my contract expires (August), I'm jumping ship.02-20-09 06:19 PMLike 0 -
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The Bold is sooo sexy. Probably the best device out right now. I'm giving them til June...or I'm outta here. I'm tired of waitingNot all 1st gen's are garbage.....and no, people who want updated technology aren't stupid. They just want something that can keep up with the rest of the world. You should really choose you words more wisely.
I've been fascinated with the Bold ever since the first time I played with one. It has everything I need and it's the perfect device for me. If Sprint doesn't get the 9030 by the time my contract expires (August), I'm jumping ship.
Posted from my CrackBerry at wapforums.crackberry.com02-20-09 07:22 PMLike 0 -
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Same here. I love sprint but what's really really pissing me off is the lack of new blackberrys. This is the only thing that's making me think about leaving sprint. If I had the new Bold I'd be happy for at least two years.
Posted from my CrackBerry at wapforums.crackberry.com02-20-09 09:22 PMLike 0 -
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This black guy doesn't believe it!!! :-) lmfao
But yea Sprint better get me a Bol...err Niagara asap. I'm sick of waiting. Not only do I have an outdated BB (8830 WE), but I have an outdated BB with the outdate 4.2 OS and makin me really upset
Smile :-)
Posted from my CrackBerry at wapforums.crackberry.com02-20-09 11:01 PMLike 0 -
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Well from what everybody says I have to say I am happy for now. Every iphone and storm or bold I play with data wise cannot keep up with my sprint curve. They just seem soo laggy compaired to the speeds I get with my 8330 on sprint.
I guess this is my way of saying I am still happy and a new phone means I have to spend more money that I don't need to because my curve does everything I need it to and more.
Sprint dosent need a phone like the iphone or storm they just need to release a bunch of usless apps for a phone and that device would be all the rage.
Posted from my CrackBerry at wapforums.crackberry.com02-20-09 11:22 PMLike 0 -
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I think that in today's economy, the lower pricing that sprint delivers plus the improved customer service may reverse their fortunes. Not to be political or anything, but 2008-2009 bailout/stimulus packages total $1.9T, and as we begin paying it back, Sprint may advance into the 2nd or 1st position. This would possibly see newer devices earlier. Just my $.02I understand the point in improving customer service.
However, is improved CS going to switch people from AT&T/Verizon to Sprint? I really doubt it... That mostly caters to keeping current customers happier. You need something bigger and more obvious than that to pull customers in to your company.02-21-09 04:13 AMLike 0 -
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I get the train of thought, but I really doubt it. I really doubt people are going to choose carriers based on their paying back stimulus packages. I doubt that even enters most people's minds when making a purchase like this...I think that in today's economy, the lower pricing that sprint delivers plus the improved customer service may reverse their fortunes. Not to be political or anything, but 2008-2009 bailout/stimulus packages total $1.9T, and as we begin paying it back, Sprint may advance into the 2nd or 1st position. This would possibly see newer devices earlier. Just my $.02
Also, Sprint's lower prices have not gained them any revenue back (in fact they are still losing it by the ton) even though we've "officially" been in a recession for quite some time now.
Sprint's reasons behind not releasing new BB devices early I would imagine probably has a lot do with them always wanting to rely on one saving grace. Before it was the Instinct and HTC. Now it's Palm (I think they already went down this road before and it ran them into trouble...). Meanwhile, every other carrier mass releases new devices from many manufacturers. Sprint is still doing the same mistake with the Pre so far...02-21-09 04:24 AMLike 0 -
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They got one thing right and that the HTC phones they are the shhhh right now and if they could have jumped the gun and atleast have one Android phone on sprints fast 3g, i am not saying I would switch but my beloved sprint would be in a better place, I am not trying to dog sprint, and it might look like I hate them but I am really proud to be a sprint customer, but they are backwards *** ****, its like your ugly mother dropping you off at school everyday somebody is going to talk smack, lol02-21-09 07:32 AMLike 0 -
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Word of mouth about Sprints good points would also be very beneficial. Most people just seem to complain about them, but I have never really had any problems with them. It seems from talking to my friends, most that have left have been from the Nextel side. The service for Nextel just seemed to be deteriorating, I had 0 bars in my office but on the Sprint side I have 5 bars. I was on the Nextel side for 6+ years before getting my Curve last June, so I am still very happy with it. Hopefully by the time my love of it is wearing off they will have the 8930 or something else. I still think that the rates are great. With 2 county employees my everything data 1500 plan for 3 with taxes is only about $125.02-21-09 10:25 AMLike 0 -
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Dude, I hear you as it pertains to wanting a Bold, but I think you would be trading one problem for another. Not only will you be paying more per month, but you will now be on a GSM network. IMHO, CDMA voice quality is much better than GSM. I talk to people almost every day who have AT&T, and the voice quality on their end is horrible. They also get that horrible intereference with other electronic devices, like speakers in your car or office where you hear that dit-dit di dit- di di dit- di di dddddddddddddd......Yeah well, after reading about the release date of Sprint's next qwerty BB, I might be jumping ship.
http://forums.crackberry.com/f40/nia...48/index2.html
If getting a Bold on AT&T meant paying just a little more, but getting better service, it would be tempting, but that just isn't the case.02-21-09 12:39 PMLike 0 -
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It is all in what each individual is looking for, as for me, happy with my new Curve, love the monthly SE prices, and the reception is super in my area, so I will be sticking with Sprint.
Should something else come out that I like, I will just pull a 12 hour over-time shift and buy it outright.02-21-09 03:50 PMLike 0 -
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When i had Nextel they usee to let me upgrade all the time but my contract would start over the day I upgrade, and I was fine with that, customer service was good and I had no problems, Sprint should do that because I always have to advise people thinking of going to Sprint that if your going to get a phone get a phone your in love with because your going to be stuck with the same phone for 2 years, and thats a long time to hang on to a phone especially the free phones sprint gives away, lol02-22-09 09:51 AMLike 0 -
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I've already made the choice to get the Pre when its released. I'll keep my BB as my work line, but the Pre is going to be my toy. When the 9030 is released, I'll grab that too and make it my super awesome work phone! Lol
Dude, I hear you as it pertains to wanting a Bold, but I think you would be trading one problem for another. Not only will you be paying more per month, but you will now be on a GSM network. IMHO, CDMA voice quality is much better than GSM. I talk to people almost every day who have AT&T, and the voice quality on their end is horrible. They also get that horrible intereference with other electronic devices, like speakers in your car or office where you hear that dit-dit di dit- di di dit- di di dddddddddddddd......
If getting a Bold on AT&T meant paying just a little more, but getting better service, it would be tempting, but that just isn't the case.
If I do decide to jump ship, I wouldn't be going to AT&T. I would be going to Verizon. The article states that Verizon is going to get the 9030 no sooner than May.02-22-09 05:10 PMLike 0 -
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Verizon? Makes you wonder if the 9030 will have the GPS disabled? How much more would your bill be for the same service you currently have with Sprint?I've already made the choice to get the Pre when its released. I'll keep my BB as my work line, but the Pre is going to be my toy. When the 9030 is released, I'll grab that too and make it my super awesome work phone! Lol
If I do decide to jump ship, I wouldn't be going to AT&T. I would be going to Verizon. The article states that Verizon is going to get the 9030 no sooner than May.
I've got the $99 everything plan, and I get unlimited roaming on the Verizon network when Sprint doesn't have reception. Works great.
Yes, a new BB from Sprint is in order, but I'd hate to pay more for the same service, and then get crippled GPS- just so I can get a new handset. I think the newness of it would wear off pretty quick. Actually, about the time Sprint gets a new BB, and now you're left wondering if you should have jumped ship.
I guess to each his own, but I'd hate to switch carriers just for a handset unless I'm getting comparable service at close to the same price.02-22-09 07:50 PMLike 0
lol 
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