Sprint CEO Says They're Working On Pro-Rated ETFs
Might just happen sometime this winter...maybe....
Earlier this week, we noted that due to some tough state consumer protection laws (and resulting lawsuits by State Attorneys General), most wireless carriers had started pro-rating their early termination fees (ETFs). Except Sprint that is, who claims that billing system complexities have prevented it from happening
. Critics charge that Sprint, already reeling from their botched Nextel deal, simply didn't want to take the subscriber hit. Responding to criticism that Sprint was slacking, CEO Dan Hesse yesterday promised the Associated Press
they "could" have pro-rated ETFs in place "as soon as December," which is probably code for Spring.
| |KrKHeavy Artillery For The Little GuyPremium
Same excuse.... I've heard this excuse before. Back in the day at&t claimed it was "impossible" to get dry DSL because "the billing system had no way of tracking you without a POTS number."
Fine, fix it then, or don't bill me anything.
Look, we're not idiots. They can do anything they *want* to do and consider a priority...... anything they don't really want to do, and are forced to do for consumer benefit, well, they'll make excuses, drag feet, and generally cry and gnash teeth.
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Re: Who cares?
said by mlundin:They won't fold as they are a massive company that would be big enough to come out of Chapt 11, which they are nowhere near. But there is a huge chance they'll get sold off in parts as it is already happening...
Sprint is a has-been of a company. It's only a matter of time before they either fold or get sold in parts.
Sprint Local - split off separately as Embarq
Sprint Xohm - to split off with Clearwire (though 51% owned by Sprint)
Sprint LDX - to be sold ATT or maybe MajicJack (hah)
Nextel - to be sold to current Alltel holding company after Verizon merger?
SprintPCS - to be sold to T-Mobile parent or SK Telcom?
Sprint backbone - to be sold to Level 3 or PSINet?
If Sprint doesn't completely sell these divisions to others, I could see divisions partially merging with others where Sprint is a part or majority owner and they become simply a holding company themselves.
They aren't a has-been company though. They still have over 50 million customers. Their revenue is greater than Apple, Coca-Cola, Disney, etc.
Re: Who cares?
said by mlundin:That is just not true unless you happen to be as short-sighted as the previous CEO's of many failing businesses. Sprint is losing money, but rather than have some pathetic knee-jerk reaction and fire middle management and "trim the fat" to turn piddly salaries into temporary revenue, they are actually spending money on things that seem to be helpful in the long run. A complete resurrection is not just going to happen by magic, Sprint needs to make some drastic changes. It looks as though they are doing just that, and what little information we can publicly find seems to indicate that at least they are making better decisions with their money than the competition.
Profit is the ONLY factor that indicates success. If you can't turn a profit, you won't be in business for long.
Your idea of profit being the ONLY factor indicating success is EXACTLY what caused Sprint to be in the situation they are seemingly correcting.
| || |said by mlundin:Neither have any of the car companies, are they hasbeen companies? Probably not. Sprint is nowhere near Chapt 11 and one thing for sure, the network won't just shutoff. It would be sold before that happens.
You're right about the revenue, but who cares if it doesn't result in profit? Apple, Coca-Cola, Disney? They all made money last year. Sprint didn't.
Large companies don't fold but could morph into something else, which is my point.
I suspect they'll at least stabilize by next year or so and show a profit again. The Nextel division could be sold by then, making them a smaller (but still large) F200 company with promise while solving the source of their drainage problems.
The CDMA side is growing, not shrinking. Xohm will be separate, funded by other parties as well, reducing the risk. Sprint's Internet backbone is the second largest in terms of connections.
Re: Who cares? "Neither have any of the car companies, are they hasbeen companies?"
Some of 'em, yea. If you think that a ginormus company can't fold in a matter of days, you don't have to look too far to be proven wrong: Bear Stearns? Enron? Granted, these were epic collapses related to gross negligence and mismanagement, but no one ever thought Studebaker, once a Down Jones Industrial Average component, would fold either... then one day it just disappeared. Companies can just disappear, doesn't matter how big they are. In Sprint's case, there is substantial infrastructure that would certainly be valuable to someone, but they're a disaster waiting to happen. Size does not make a company invincible.
| |said by mlundin:Sprint rocks!
Sprint is a has-been of a company. It's only a matter of time before they either fold or get sold in parts to their competitors... then it won't matter what their ETF policies are.
Edit: Just looked it up: Sprint, once worth $74+/share is now worth ~$3.64/share having posted losses in 2006, 2007, and the most recent quarter. That's a hell of a company right there.
They offer the best packages and if you live in an area with excellent coverage and don't travel abroad, it's great.
Don't think of their low stock value as anything other than a bargain for prospective buyers. I think they are turning things around, I really do.
Besides, I just started a 2-year plan with my BlackBerry, they better not evaporate.
Saint Clair Shores, MI
Re: Who cares?
said by en102:How quick people forget. There was a time when AT&T was at the bottom of the pile. VZ/VZW.. OMG.. I just don't get it. Lots of people I talk to cry and moan about how much they cost, bad customer service.. but refuse to go anywhere else. I think those magic pills they feed their customers work really well..
Definitely a noteworthy metric for a company that's had a reputation for the bottom end of billing and customer service. A step in the right direction, IMO