Sprint Nextel Subscribers Dwindling - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile

Sprint Nextel Subscribers Dwindling

To counter losses, the carrier is betting on Android handsets and a plan to roll out WiMax through Clearwire.

The shrinking of its most valuable subscriber base continued at Sprint Nextel as the company said it lost 801,000 postpaid subscribers in its third period. Financial losses grew to $478 million from $326 million in the year-earlier quarter and revenue fell 9% to $8.04 billion.

In recent months, the company has introduced a brace of smartphones and moved to improve its customer service operation, but competitors -- particularly AT&T and Verizon Wireless -- have been signing up disgruntled Sprint subscribers.

Reaching for some good news, Sprint CEO Dan Hesse said the company is working to "manage costs rigorously," while moving to continue to improve its customer care operation. In a statement, Hesse said: "We expect to see sequential quarterly improvement in both post-paid and total net subscriber loses in the fourth quarter of 2009."

To counter the loss of monthly postpaid customers, Sprint has been pushing its prepaid marketing campaign through its Boost Mobile operation and its recent acquisition of Virgin Mobile for $483 million. The company also has a big investment in Clearwire, which has launched a new campaign to spread WiMax connectivity in many U.S. regions. Sprint has a 51% ownership stake in Clearwire.

Like Motorola, T-Mobile and Verizon Wireless, Sprint is betting heavily on a Google Android handset, in Sprint's case, the Hero touchscreen and the Samsung Moment. The company got a leg up on the competition recently when it acquired exclusive rights to market the Palm Pre phone. However, the exclusive deal will soon come to an end and other firms are expected to begin selling the Pre.


InformationWeek has published an in-depth report on new software models. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Slideshows
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll