Sprint Loses 1.3 Million Subscribers
February 23, 2009 – 8:50 am
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Sprint Nextel, the nation’s third-largest wireless carrier, said it lost 1.3 million subscribers in the fourth quarter, but the results were not as bad as some had feared.
During the quarter, the Overland Park, Kan.-based company lost 1.1 million postpaid customers, who pay monthly bills. Including wholesale and prepaid customers, it lost 1.3 million.
Its biggest rival, Verizon Wireless added 1.4 million customers in the quarter, while AT&T, the No. 2 U.S. mobile service, added 2.1 million.
The company said it lost $1.6 billion during the three months ending Dec. 31. By comparison, Sprint lost $29.3 billion during the same period a year ago. That figure included a $29 billion write-down of the value of its 2005 purchase of Nextel.
During a conference call, Chief Executive Dan Hesse said he still wasn’t happy with his company’s performance but said he believed Sprint’s efforts to rebuild the company’s image were gaining traction.
“The improvements we have made with the customer experience are the foundation for driving further improvement in the perception of our brand,” said Chief Executive Dan Hesse., pointing out that Sprint lost slightly fewer customers during the fourth quarter than in the third quarter.
Analysts expect Sprint to benefit from selling Palm’s forthcoming Pre phone, expected to be a strong competitor to Apple’s popular iPhone.
Sprint will be the exclusive U.S. carrier for the phone at least through the end of 2009.
In the past year, the company has focused on improving customer service — seen as one of its biggest shortcomings.
Sprint also completed its merger with Kirkland, Wash.-based Clearwire. The new Clearwire began offering services using WiMax technology last month in Portland, Ore., and plans to roll out commercial service in other markets this year.
Sprint announced last month it would slash 8,000 jobs in a bid to save $1.2 billion annually. Analysts predict the company will soon outsource thousands more.
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