Sprint-Nextel Continues To Hemorrhage Customers [Despite HTC EVO 4G, WiMAX and Cheap Plans, Customers Flock From Sprint]
Sprint looked like it was in bad shape for the past few years. They excited a lot of people with their HTC EVO 4G and Sprint fans have often held up the company’s (small) WiMax 4G network as a positive sign, but Sprint-Nextel, one of the “Big Four” American mobile phone providers is continuing to lose customers according to to their earnings report.

In their first quarter for 2010, Sprint-Nextel lost a total of 75,000 customers and a whopping $865 million in revenue. While the loss of 75,000 customers may not seem that bad – they lost 578,000 customers who were paying long-term two-year contracts. That’s where all the money is for these guys. The 500,000 new customers were all new to Sprint’s prepaid service through their subsidiary – Boost Mobile. The loss of $865 million actually makes it pretty clear that they aren’t making much money on these Boost Mobile users.
Sprint is actually gaining a lot of these new Boost Mobile customers every quarter – but the problem for the company is that the ‘revenue per customer’ for a prepaid customer is a lot less than a traditional contract customer (which, if you’re seeking value and want to stick it to Sprint, go with prepaid).
Sprint-Nextel CEO Dan Hesse (who appears in a lot of commercials in the United States), tried to put a positive spin on the customer loss by saying that they’ve freed up some cash flow and that they’re continuing to improve brand recognition and customer service ratings. Their WiMAX network (which they love to promote as America’s first 4G network) is pretty small right now, but they’re expanding it and that’s likely a pretty expensive operation.
What’s the outlook in Sprint? As IntoMobile reports, they’ve offered their $70-monthly “Everything” plan which offers unlimited voice, data and texting. That plan actually forced T-Mobile US to do a similar plan called “Even More Plus”. In addition to their cheap plans, they’re also offering some great deals on phones, too. To go after the high-end technophiles (like you reading this blog), they’re offering lust-worthy phones like the HTC EVO 4G.
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