Why Sprint Nextel is losing clients and money?
I am a Sprint customer since 2004, and at that time Sprint had the best plan that met my needs. Over the years, I have changed to many plans to pay less, but now I have the option to pay less if I change to another carrier. I will have the same amount of minutes that I currently have with Sprint. Currently, AT&T and Verizon are offering better plans for less money. Its no wonder people prefer different carriers other than Sprint and with the collapse of the economy people are looking for the cheapest services. Also, Sprint tends to overcharge for services or features that you never use and they use to renew your contract if you made any changes or upgrades in your plan. Many of the current plans that Sprint has, other carriers have them too, but they added some other features to attract more clients. For instance, AT&T is offering a rollover plan, in which you accumulate all the minutes that you haven’t used. This is very competitive comparing with other cell phone companies.
According to Dan Hesse, Sprint’s chief executive in Kansas City, stated that Sprint Nextel plans are being modified to attract new clients. However, Sprint still is losing subscribers. Until October, the company lost 1.3 million customers (most of them were Nextel users), which decrease its revenue to $8.85 billion. Also Mr. Hesse states that after Sprint acquired Nextel in 2005, the company has struggled with technical issues, lack of marketing and difficulty to combine operations (Nextel works on a different technology). Also, Sprint was planning to sell Nextel but with the current economy it will be impossible to sell it in at a fair price. Will Sprint attract more clients with the new plans, what would happen if Sprint adds rollover minutes to their plans?
Reference:
Yahoo (2008). Sprint Nextel Losing Subscribers and Money. Retrieved on November 10th, 2008, from, http://tech.yahoo.com/news/ap/20081107/ap_on_hi_te/earns_sprint_nextel
I am a Sprint customer since 2004, and at that time Sprint had the best plan that met my needs. Over the years, I have changed to many plans to pay less, but now I have the option to pay less if I change to another carrier. I will have the same amount of minutes that I currently have with Sprint. Currently, AT&T and Verizon are offering better plans for less money. Its no wonder people prefer different carriers other than Sprint and with the collapse of the economy people are looking for the cheapest services. Also, Sprint tends to overcharge for services or features that you never use and they use to renew your contract if you made any changes or upgrades in your plan. Many of the current plans that Sprint has, other carriers have them too, but they added some other features to attract more clients. For instance, AT&T is offering a rollover plan, in which you accumulate all the minutes that you haven’t used. This is very competitive comparing with other cell phone companies.
According to Dan Hesse, Sprint’s chief executive in Kansas City, stated that Sprint Nextel plans are being modified to attract new clients. However, Sprint still is losing subscribers. Until October, the company lost 1.3 million customers (most of them were Nextel users), which decrease its revenue to $8.85 billion. Also Mr. Hesse states that after Sprint acquired Nextel in 2005, the company has struggled with technical issues, lack of marketing and difficulty to combine operations (Nextel works on a different technology). Also, Sprint was planning to sell Nextel but with the current economy it will be impossible to sell it in at a fair price. Will Sprint attract more clients with the new plans, what would happen if Sprint adds rollover minutes to their plans?
Reference:
Yahoo (2008). Sprint Nextel Losing Subscribers and Money. Retrieved on November 10th, 2008, from, http://tech.yahoo.com/news/ap/20081107/ap_on_hi_te/earns_sprint_nextel
2 comments:
Approximately 16 years ago, I became an AT&T customer. At that time cellular phones weren’t popular. Now, I’m a cellular phone customer of AT&T as well. AT&T has a first-rate family plan with rollover minutes. Most importantly, AT&T has unlimited texting for only $30.00 a month. Since “texting” is the popular thing now, it will really save on your minutes. If Sprint adds rollover minutes to its plan, I will still remain a customer of AT&T because of its excellent customer service.
i find your blogs very interesting
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