Sprint loses nearly 1.1M wireless customers in Q1
Q1 2008 report shows more trouble for Sprint's wireless segment
Network World - Sprint Nextel Corp. today reported losing nearly 1.1 million wireless customers in the first quarter, marking the sixth time in the past seven quarters that the company has lost postpaid wireless customers.
Overall, the company reported a net loss of just more than $500 million for the quarter. Sprint said one major reason for its net loss was the poor performance of its wireless business, which saw a 9% decline in first-quarter revenue from its revenue in the first quarter of 2007. The biggest reason for this decline, said Sprint, was the loss of 1.09 million wireless customers during the first quarter, including the loss of 1.07 million postpaid subscribers. Additionally, Sprint reported that its wireless postpaid average revenue per user came in just less than $56, a 6% decline from the first quarter of 2007.
"As expected, our wireless business delivered weak financial results," said Sprint CEO Dan Hesse. "While the business will continue to face challenges in the short term, we are making progress in methodically attacking the sources of our performance issues."
Although Sprint has experienced a steady decline in postpaid wireless subscribers over the past year, the loss of 1.07 million in the first quarter of 2008 almost equals the company's total loss in postpaid subscribers for all of 2007. Sprint's well-publicized troubles with its wireless business have recently fueled rumors that the company is considering spinning off its Nextel unit, with Nextel founder Morgan O'Brien, who is currently CEO of telecom company Cyren Call, said to be an interested party.
Telecom analyst Jeff Kagan said that Sprint's continued poor performance and customer losses were to be expected for the first quarter of 2008, as Sprint forecast a net loss of 1.2 million customers. The real test, Kagan said, will come in the next year, after Hesse has had time to implement his turnaround strategy.
"Fixing Sprint Nextel will take several quarters," he said. "The company got off track and spent a few years wandering in the desert, and now it will take several quarters to nudge it back on track. ... There are a variety of areas that need attention, but nothing is unfixable. Over the next few quarters, we will start to see the company get stronger rather than weaker like we see in this quarter."
The financial news follows by less than a week Sprint's blockbuster announcement with Clearwire that they are combining their WiMax businesses to create a new $14.5 billion mobile broadband company.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Separating Work and Personal at the Platform Level: How BlackBerry Balance Works BlackBerry® Balance™ separates work from personal on the same mobile device, right at a platform level. Find out how it can work for...
- Protection for Every Enterprise: How BlackBerry Security Works Get an IT-level review of BlackBerry® Security, addressing data leakage protection, certified encryption, containerization and much more.
- Future Focus: What's Coming in Enterprise Mobility Management (EMM) Find out why Enterprise Mobility Management (EMM) solutions that are truly future-ready must be designed to enable Machine-to-Machine (M2M) capabilities and much more.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts