Sprint

iPhone’s Competitive Prowess

Bernie — Mon, 06 Oct 2008 23:31:39 -0400

According to the NPD Group, 30% of iPhone purchasers (and corresponding AT&T wireless subs) from June to August 2008 churned from other wireless providers. Nearly half of those new AT&T wireless subs came from Verizon Wireless, 24% from T-Mobile, and 19% from Sprint. So by NPD’s estimate, just under one-third of new AT&T wireless subs came to them as a direct result of the iPhone, and Verizon Wireless felt the most iPhone pain.

Lucky for Verizon, Sprint, on average, is losing 1 million subs per quarter in 2008, many of whom are fleeing to Verizon. So while Verizon lost a fair number of subs to AT&T and the iPhone, they made up for it by welcoming all those disgruntled Sprint customers. Upcoming third quarter numbers will provide a more revealing view of this competitive battle. So far, Verizon has fared quite well next to the iPhone challenge (thanks in part to the aforementioned Sprint). But the third quarter will be the first full quarter of the iPhone 3G bonanza. I’ve seen estimates that suggest 7 million+ total iPhone sales in the 3Q08 alone. All of those sales won’t be AT&T customers, but the majority will. Look for a blowout wireless quarter for AT&T. Now, will Sprint continue to deliver for Verizon?

Sprint Customers Get Mobile Banking and PayPal

Bernie — Thu, 25 Sep 2008 21:34:37 -0400

OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sept. 25, 2008--Customers of Sprint (NYSE:S) can now conveniently access their bank accounts and, in an industry first with PayPal, send payments to friends and family from most Web-enabled Sprint phones* with the launch of MyMoneyManager. MyMoneyManager is an easy-to-use downloadable application that enables Sprint customers with BB&T, Citibank, IBC Bank and PNC Bank accounts to conduct banking functions right on their phones, including checking balances, paying bills and finding nearby branches and ATMs. MyMoneyManager also includes PayPal, making Sprint the first carrier to provide customers easy access to their PayPal accounts, allowing them to send money to almost anyone quickly via their Sprint phone. Read More...

XOHM WiMAX to Launch October 8 in Baltimore

Bernie — Mon, 22 Sep 2008 22:55:48 -0400

The rumors abound and several blogs are now confident in their prediction of an October 8, 2008 launch for XOHM. The long anticipated WiMAX service from Sprint will go live with a ceremony at Bond Street Wharf Park in Baltimore with Sprint CEO Dan Hesse, XOHM president Barry West, and Intel EVP Sean Maloney in attendance, according to Gear Log. The XOHM launch, like many high profile new technology launches, has seen its fair share of delays. The last reported delay culprit was backhaul capacity challenges. Xohm, will offer a broadband wireless service of 2 – 4 Mbps download and 1 -2 Mbps upload speeds, and will initially have limited device availability. Several markets will follow Baltimore, including Washington D.C., Chicago, Boston, Philadelphia, and Dallas. Let the WiMAX competitive implications officially begin.

Not So Fast Sprint and Clearwire

Bernie — Wed, 17 Sep 2008 09:11:27 -0400

A potential hiccup has emerged in the pending Sprint - Clearwire WiMAX transaction. Sprint affiliate iPCS sued Sprint on the grounds that the newly formed WiMAX venture would compete with iPCS and therefore violates non-compete language in their affiliate agreement. Sprint tried to get the lawsuit tossed, but a judge ruled in favor of iPCS. In other words, cha-ching for iPCS. This won’t stop the Clearwire transaction, but it will push Sprint and iPCS in to settlement talks. We’ll hear all kinds of rhetoric from the iPCS side about damage to their core business, etc. That is until there are enough zeros behind the figure they’ll accept to walk away.

The Problem With Customer Service

Bernie — Tue, 09 Sep 2008 10:39:29 -0400

Sprint issued a press release today that highlights a new customer service initiative for its retail stores. The new focus will be “a revolution in the wireless retail experience.” I think we can all agree, if there was ever a retail experience that needed revolutionizing, it’s the wireless retail store. But I digress. The real issue here is why do companies like Sprint seem to put the focus on customer service when times are bad? Seems to me that if customer service were a priority when times are good, the chance of those good times turning into bad times is lessened. Shouldn’t excellent customer service be a priority ALL THE TIME? Sprint goes on to say that this initiative is “Part of Ongoing Plan to Revolutionize Customer Service One Customer at a Time.” Good for them, but the sheer fact that Sprint is admitting that their customer service has to be “revolutionized” speaks to the problem. Memo to large conglomerates who service consumers with a product or service – take good care of customer service all the time and customers will take care of you. You won’t need to execute an expensive PR campaign to convince people of your new found focus on good customer service.

This is not a sweeping indictment on all service providers (or a rant on Sprint - I applaud them for addressing the issue). Some large service providers seem to be doing ok with customer service. I don’t know one that I would characterize as doing well – at least from a customer point of view. From a boardroom view, I’m sure many large conglomerates are patting themselves on the back relative to their perceived view of customer service success. And certainly smaller service providers tend to do much better with customer service. In fact, most of them use customer service as a competitive weapon against larger competitors. I also recognize that customer service does not scale well. The larger you get, the harder it is to do. But I guess the larger question is, why didn’t Sprint decide to make a customer service “covenant with new and existing wireless customers,” when they weren’t hemorrhaging a million plus subscribers per quarter?

Sprint Trying to Claw Its Way Back

Bernie — Fri, 05 Sep 2008 09:49:17 -0400

The latest J.D. Power rankings on cell phone call quality are out and the findings aren’t terribly surprising, but there are a few caveats. Verizon Wireless rates the best for call quality in the Northeast, Mid-Atlantic, and West regions, and tied with Sprint in the Southwest region. Alltel ranked highest in the Southeast and tied with U.S. Cellular in the North Central regions. Despite the iPhone buzz and success, AT&T didn’t do too well, ranking below average in five out of six regions. As suspected, call quality is an important factor for consumers when choosing a wireless carrier. According to J.D. Power, “among wireless subscribers who say they ‘definitely will’ switch their current wireless provider, problem rates average fifty-one problems per one hundred calls (51 PP100), which is five times higher than problem rates of customers who report they “definitely will not” switch in the next 12 months (9 PP100).”

While Sprint’s ratings are not terribly impressive, they are improving. Sprint is making a concerted effort to address quality and customer service under new CEO Dan Hesse. Properly addressing those issues takes time – a long time. There is a perception issue to overcome. As the sprint connection blog points out, Sprint’s perception problem probably impacts their quality ratings, making it doubly difficult to properly address them. They’ll need to step up their game even more than they already have, because call quality, real or perceived, will be a huge factor in stopping their precipitous fall. “With an increasingly competitive environment and the complexity of services often used in conjunction with cell phones steadily on the rise, carriers that offer superior network quality will improve their likelihood of attracting new customers and will increase customer retention,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. The J.D. Power survey reveals that 14% of current wireless customers “definitely/probably” will switch wireless providers in the next 12 months. That equates to 35 million+ subscribers. How many of that number are current Sprint customers?

Sprint Reveals Xohm Plans

Bernie — Mon, 01 Sep 2008 22:42:52 -0400

Sprint’s WiMAX service, Xohm, will offer a broadband wireless service of 2 – 4 Mbps download and 1 -2 Mbps upload speeds. The service will initially be available with limited devices, including the Nokia N810 and a few wireless modems and PC cards. Several blogs including Engadget Mobile revealed the details, using an internal Sprint site as the source. The service is expected to launch in Baltimore sometime this month. MuniWireless.com is also reporting that beyond the identified Xohm markets of Baltimore, Washington D.C., and Chicago, Boston, Philadelphia, and Dallas are next in line for a WiMAX launch. The launch of Xohm is eagerly anticipated as a potential “third pipe” broadband competitor. Xohm’s launch is a precursor to Clearwire’s WiMAX launch that will provide similar services throughout the country, and will also empower cable company partners to do the same.

Sprint Dramatically Lowers Phone as a Modem Pricing

Bernie — Fri, 22 Aug 2008 00:00:00 -0400

Sprint lowered its phone as a modem (PAM) option to $15/month from $50/month. PAM options allow customers to use 3G enabled handsets as Internet modems for laptops and PCs. In effect, the PAM replaces the need for a broadband data card. The service has specific requirements including the use of qualified handsets and qualified data plans. Customers must subscribe to a Sprint data plan of $30/month or more to qualify.

T-Mobile to be First With Google Phone

Bernie — Fri, 15 Aug 2008 07:45:58 -0400

T-Mobile will be the first carrier in the U.S. to launch Google’s highly anticipated Android phone. Android is the open source mobile operating system being developed by Google and its partners, who together form the Open Handset Alliance. According to the New York Times, the new Google phone may be available in October. The phone will be manufactured by HTC, and is often referred to as the “Dream.” Google can’t wait to get Android going because it believes its long term future resides in mobile computing. The New York Times article quotes Google CEO Eric Schmidt as saying, “We can make more money on mobile than we do on the desktop, eventually.”

A first to market launch of Android could also help T-Mobile. They have been somewhat behind the wireless innovation curve, arriving late to both the 3G and smartphone parties. A successful Google phone launch, and the buzz it will create, could help T-Mobile’s competitive posturing with AT&T and the iPhone and Verizon’s continuing wireless gains. T-Mobile will have to leverage any potential Android buzz effectively, because they won’t have the limelight to themselves for long. Sprint is expected to follow with an Android launch sometime in 2009. Both T-Mobile and Sprint could use a boost from Android. Their competitors, AT&T and Verizon, seem to be hitting on all cylinders when it comes to wireless. Maybe Android can help them catch up.

Sprint Launches New Mobile Browser

Bernie — Tue, 29 Jul 2008 23:37:08 -0400

Sprint announced the launch of Sprint Web, a new mobile browser supported on 40+ handsets. The new web browser “…offers an adaptive home page that delivers content based on the customer's previous usage, along with direct access to search from Google.” The new browser will automatically load on compatible phones, requiring no action by subscribers. The new Sprint Web home page uses technology by ChangingWorlds.