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Sprint Struggles, but Shows Improvement
'iPhone Continues to be a Significant Threat to Us'
by Karl Bode Friday 29-Apr-2011 tags: business · wireless · stats · consumers · Sprint Broadband Direct · wireless
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Sprint's first quarter results indicate that the company narrowed its quarterly loss from to $439 million from from $865 million in the same quarter one year earlier. Sprint lost 114,000 postpaid, or contract, subscribers during the quarter. facing a new challenge with both Verizon and AT&T offering the iPhone for the first time. "Historically, with the iPhone we see a significant impact with the launch of new devices," Sprint CEO Dan Hesse noted in a conference call with analysts and the press. "And the iPhone continues to be a significant threat to us." Despite their continued postpaid slide, Sprint's prepaid business remained strong with 846,000 subscriber additions -- and the company's churn or customer defection rate hit an all time low despite the company's expansion of their $10 WiMax access fee during the quarter.

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kapil
The Kapil

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Sprint...

...has been performing admirably for the last several quarters. But a loss is still a loss and eventually the bleeding will have to stop or the investors will run out of patience.

Nevertheless, These are fantastic numbers in the face of competitive and macroeconomic forces of historic proportions.
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Romney2012
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1 edit

Re: Sprint...

Here is their presentation to Wall St:
»phx.corporate-ir.net/External.Fi···lPTI=&t=

Sprint actually made some money, before they continued to write off their disastrous Nextel investment which they are still depreciating.


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xenophon

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Re: Sprint...

The post-paid losses are on the iDen side. They gained over 300K post-paid CDMA customers. The iDen side is planned to be phased out by 2013.
BiggA

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Re: Sprint...

I was gonna say, Engadget had 310K postpaid adds.

Good for them, they are aggressively going after the prepaid market, which they can compete in even with a small network with Boost and Virgin. I wouldn't be surprised is Sprint starts to bleed post-paid subs, but if they keep adding pre-paid like that, they have a sustainable business model based on pre-paid.

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said by xenophon:

The post-paid losses are on the iDen side. They gained over 300K post-paid CDMA customers. The iDen side is planned to be phased out by 2013.

Million's of customer's gone because Sprint is too incompetent to come up with a NOW solution to keep iDEN customer's. Who ironically before the Sprint merger, Nextel customers had a MUCH higher ARPU than Sprint customer's.
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xenophon

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Re: Sprint...

What could they do? iDen was dead when they bought it. Sprint's mistake was buying an iDen network in the first place. Nextel had nowhere to go but down.
BiggA

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Re: Sprint...

Say that in a couple of years when Sprint is running low-band CDMA on the SMR spectrum.

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Re: Sprint...

said by BiggA:

Say that in a couple of years when Sprint is running low-band CDMA on the SMR spectrum.

Right, because that will automatically put them in line with Verizon and AT&T.
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BiggA

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Re: Sprint...

They won't without a MASSIVE network build-out, but at least in the areas they do serve, it will help building and terrain propagation issues over PCS.
bnceo

join:2007-10-11
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Re: Sprint...

You do understand that for WiMAX to be LTE, all it takes is a software upgrade and a network card swap. So I see LTE coming their way once stuff with Clear gets settled along with some testing. Sprint is here to stay.
BiggA

join:2005-11-23
EARTH

Re: Sprint...

It has nothing to do with that, it's an issue of how big the network is. They need a massive build-out of thousands of cell sites if they want to be at the level of AT&T/ Verizon.
diz17

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That's why Sprint has such bad CS ratings. They bought out Nextel with the sole intention of turning off iDEN and reallocating the spectrum. They offered a half-ass PTT solution and when Nextel customers complained, they told them to pound sand.

Noah Vail
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2yrs w/ Sprint - mostly positive

I've carried Verizon and AT&T (also Nextel, T-Mobile and others).

I've been happier w/ Sprint than anyone else.
Their 3G EVDO is solid. I'm very happy with the technology and their deployment.

Their 4G WiMax is pretty limited. It attenuates over short distances which has them having to deploy more equipment to cover an area.
It's best suited for home/office use if you can live with u/l capped at 1Mb.

I get very few dropped calls and their coverage in my market is measurably better than Vz or ATT.

Sprint needs to get LTE online. Then they'll be in a better position trash Vz in their ads.

NV
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DaveDude
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A GSM sprint 5 years ago

If sprint were GSM, it would have had alot of defectors from ATT, and Tmobile. Instead it stuck with Cdma. Now it has to go gsm anyway. Welcome to LTE.

fdafdsf45454

@thvilledigital.net

Re: A GSM sprint 5 years ago

LTE is not GSM or CDMA

DaveDude
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Re: A GSM sprint 5 years ago

said by fdafdsf45454 :

LTE is not GSM or CDMA

LTE is GSM its the upgrade path of 3GPP. Which is GSM.

»en.wikipedia.org/wiki/3gpp

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Re: A GSM sprint 5 years ago

Nope, GSM is Global System For Mobile Communication's, it uses TDMA for it's Air Interface and is a technology from the 90's. UMTS W-CDMA is the next direct upgrade path for GSM and is what AT&T and T-Mobile use right now for their "4G" solution's. LTE is the successor to UMTS and eventually will migrate to a totally IP 4G LTE Advanced Protocol. To call LTE GSM would be like calling CDMA Analog since CDMA was an upgrade path from Analog..

Verizon has ridden out the CDMA EVDO wave for the last 7 year's just fine and only now has the 3G network been caught up by in speed by AT&T's 3G while they are already migrating to LTE.
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DaveDude
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Re: A GSM sprint 5 years ago

said by iLive4Fusion:

Nope, GSM is Global System For Mobile Communication's, it uses TDMA for it's Air Interface and is a technology from the 90's. UMTS W-CDMA is the next direct upgrade path for GSM and is what AT&T and T-Mobile use right now for their "4G" solution's. LTE is the successor to UMTS and eventually will migrate to a totally IP 4G LTE Advanced Protocol. To call LTE GSM would be like calling CDMA Analog since CDMA was an upgrade path from Analog..

Verizon has ridden out the CDMA EVDO wave for the last 7 year's just fine and only now has the 3G network been caught up by in speed by AT&T's 3G while they are already migrating to LTE.

Why yes it is ...

Did you read the link ? LTE is just the next release of umts. Its the gsm family of protocols. Similar to cdma family. LTE is next release of the gsm family.

»en.wikipedia.org/wiki/3GPP_Long_···volution
----

3GPP Long Term Evolution (LTE), is the latest standard in the mobile network technology tree that produced the GSM/EDGE and UMTS/HSPA network technologies.[1][2] It is a project of the 3rd Generation Partnership Project (3GPP), operating under a name trademarked by one of the associations within the partnership, the European Telecommunications Standards Institute.

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Re: A GSM sprint 5 years ago

Right but to call LTE GSM is just wrong. LTE is an OFDMA based technology with no relation to GSM except it's the upgrade path to GSM.

It's not even using the GSM MAP core anymore as it's moved to an all IP architecture. It may be based on the "GSM" family protocol's but it is in no way shape or form even related to GSM technologically. It's a completely different technology as an evolution path like TDMA to GSM. You don't hear CDMA being called Analog because it has an ANSI core.
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Re: A GSM sprint 5 years ago

said by iLive4Fusion:

Right but to call LTE GSM is just wrong. LTE is an OFDMA based technology with no relation to GSM except it's the upgrade path to GSM.

It's not even using the GSM MAP core anymore as it's moved to an all IP architecture. It may be based on the "GSM" family protocol's but it is in no way shape or form even related to GSM technologically. It's a completely different technology as an evolution path like TDMA to GSM. You don't hear CDMA being called Analog because it has an ANSI core.

Thats because you are not seeing the difference of 3gpp and 3gpp2. LTE was always part of 3gpp, which is the gsm tree. 3gpp2 is UMB, which is the cdma tree. Hence LTE is 3gpp (GSM)

»en.wikipedia.org/wiki/3GPP2

----

In November 2008, Qualcomm, UMB's lead sponsor, announced it was ending development of the technology, favoring LTE instead.[1]

3GPP2 should not be confused with 3GPP, which specifies standards for another 3G technology known as UMTS.

3GPP is the standard body behind UMTS (also known as W-CDMA) that is the 3G upgrade to GSM networks. 3GPP2 is the standard body behind the competing 3G standard CDMA2000 that is the 3G upgrade to CDMA networks used mostly in the United States (and to some extent also in Japan, China, South Korea and India).

GSM/GPRS/EDGE/W-CDMA is the most widespread wireless standard in the world. A few countries (such as USA, India, South Korea and Japan) use both set of standards, but most countries only the GSM family.

---
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Re: A GSM sprint 5 years ago

Believe me. In my line of work. I know the difference.. It may be in the so called "GSM" family, but it has no technological relationship to GSM whatsoever. New air interface, new backend core, new handset's required. And nobody mentioned now defunct UMB or 3GPP2.
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DarnellP

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Re: A GSM sprint 5 years ago

said by iLive4Fusion:

Believe me. In my line of work. I know the difference.. It may be in the so called "GSM" family, but it has no technological relationship to GSM whatsoever. New air interface, new backend core, new handset's required. And nobody mentioned now defunct UMB or 3GPP2.

This is one of those rare occasions where iLive4Fusion is correct. Go figure...

pixxt

join:2010-12-13
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LTE is GSM. GSM is a system that includes a whole host of air interfaces and backends. call it what you will but the fact is LTE is GSM as much as the old TDMA based 2g was GSM

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Sprint iPhone?

Why can't Sprint carry the iPhone? It's available in CDMA now, so should work fine on Sprint's network.

Apple said there were no exclusivity agreements with Verizon, so theoretically Sprint should be able to carry the iPhone any time.

Or is it more complex than this?

IPPlanMan
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Re: Sprint iPhone?

I was thinking the same thing.

Perhaps Apple wants to give the iPhone a bit of a run on Verizon first after AT&T to keep shipping times low. I doubt that Apple would be able to support production levels for AT&T, Verizon, and Sprint customers.

Of course, what do I know? Apple's the one with no debt and 60 odd Billion in cash.
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said by SpottedCat:

Why can't Sprint carry the iPhone? It's available in CDMA now, so should work fine on Sprint's network.

Apple said there were no exclusivity agreements with Verizon, so theoretically Sprint should be able to carry the iPhone any time.

Or is it more complex than this?

Apple like's to think they are a "premium" company. You wouldn't want a "premium" phone on a Tier 2 provider.
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puck0114

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Re: Sprint iPhone?

Then why are they on AT&T, whose network is significantly less robust than Sprint's?

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Re: Sprint iPhone?

said by puck0114:

Then why are they on AT&T, whose network is significantly less robust than Sprint's?

Much better coverage, even if it is GSM. Same reason T-Mobile hasn't gotten it yet.
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said by SpottedCat:

Why can't Sprint carry the iPhone? It's available in CDMA now, so should work fine on Sprint's network.

Apple said there were no exclusivity agreements with Verizon, so theoretically Sprint should be able to carry the iPhone any time.

Or is it more complex than this?

verizon is paying apple extra to keep it off sprint
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IPPlanMan
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Re: Sprint iPhone?

How do you know that?

Alcohol
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Re: Sprint iPhone?

said by IPPlanMan:

How do you know that?

»Verizon May Pay To Keep iPhone AT&T, Verizon Exclusive
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xenophon

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Re: Sprint iPhone?

That's an old report from Dec 2010. When the VZW iPhone was released, there were several reports that it wasn't exclusive and that the door is open to Sprint... I can't find the reports though, so I may be wrong.

Alcohol
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Re: Sprint iPhone?

said by xenophon:

That's an old report from Dec 2010. When the VZW iPhone was released, there were several reports that it wasn't exclusive and that the door is open to Sprint... I can't find the reports though, so I may be wrong.

Yeah, that was just a rumor. But i see no other reason for it not being on sprint and tmobile.

sprint already said they want it.

maybe apple is working on a wimax version..

regardless, i don't know why sprint would want the iphone now. almost all of their smart phones from this year are superior.
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xenophon

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Re: Sprint iPhone?

said by Alcohol:

regardless, i don't know why sprint would want the iphone now. almost all of their smart phones from this year are superior.

because a good chunk of consumers want it. i prefer android but frankly, iphone is more consumer friendly, like a fisher price toy. if sprint views that iphone hurts them, sprint should want iphone.
xenophon

join:2007-09-17
said by Alcohol:

verizon is paying apple extra to keep it off sprint

Last I read VZW does not have an exclusive with CDMA iPhone.. may have changed. I wouldn't be surprised if iPhone ends up on Sprint by end of year to next year. iPhone is losing share now to Android. They'll eventually need all the channels they can get.

Apparently CDMA iPhone orders have been cut in half...
»www.sfgate.com/cgi-bin/article.c···11-4.DTL

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Re: Sprint iPhone?

said by xenophon:

said by Alcohol:

verizon is paying apple extra to keep it off sprint

Last I read VZW does not have an exclusive with CDMA iPhone.. may have changed. I wouldn't be surprised if iPhone ends up on Sprint by end of year to next year. iPhone is losing share now to Android. They'll eventually need all the channels they can get.

Apparently CDMA iPhone orders have been cut in half...
»www.sfgate.com/cgi-bin/article.c···11-4.DTL

iphone cannot compete with the superior android phones even if it's on all carriers including the pre paid ones.
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xenophon

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Re: Sprint iPhone?

said by Alcohol:

iphone cannot compete with the superior android phones even if it's on all carriers including the pre paid ones.

Even so, Apple will likely include more carriers sooner than later. I'll place bets Sprint gets iPhone later this year to early next year, unless Apple waits for Sprint to get LTE. Not likely Apple will make a WiMAX version, but Sprint could get a CDMA only version for a while.

belawrence
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said by SpottedCat:

Why can't Sprint carry the iPhone?

I know it's already been stated, but basically because Steve Jobs doesn't want it to be on Sprint. No big deal to me, anyway.

batterup
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What about Sprint's no caps?

I guess what is important to those on this forum is not important to the masses.

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Re: What about Sprint's no caps?

As far as smartphone's, Verizon has no cap's on 4G, nor has anyone experienced any sort of throttling on 3G. User's in other forums have used over 50GB of data just fine. Verizon doesn't charge an extra fee for having a 4G phone either.

As far as data card's go, well they are about to have a much smaller 4G network than any other provider in the country. They have to have some incentive.
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King P
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Less defections despite $10 fee expansion?

That's because it wasn't considered a "material change of contract" and people would have to pay an ETF to get out of it. Sprint cleverly changed this fee to a "smartphone data" fee, which only activated if you were to activate a different phone, than the one currently on your account. You don't have to pay it if you have a dumb phone like an LG Rumor or Samsung Exclaim, or others like it.

Had the scenario been a "material change of contract" (thus no ETF), then I feel they would have seen more departures.

I'm happy with Sprint, but I don't believe all smartphones should have this 10 dollar fee attached to it. Sprint 3G is much slower than 4G, and while the potential to consume more data is there, the reality is that people won't. I never use Sprint TV or YouTube unless I'm connected to WiMAX because the quality on 3G is terrible. I'll pay the fee for a 4G device, because I burn it up on 4G.
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xenophon

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Re: Less defections despite $10 fee expansion?

It's the way Sprint is doing the $10 fee. The overall plan is still less than ATT/VZW.

What Sprint should do is advertise the plan at $XXX (less than VZW/ATT) and then say dumb/featurephone users get additional $10 off the plan.

smeiners

@isoc.net

Re: Less defections despite $10 fee expansion?

I have been looking to change providers from my local carrier and all of the companies now have some sort of smart phone fee. As far as I can tell, sprint is about the cheapest of the bunch.
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Re: Less defections despite $10 fee expansion?

5 months ago we changed from ATT to Sprint. LOVE IT

I had an iphone, and 3 dumb phones. 1 data plan and no text.

changed to Sprint. no change in quality of service (dropped/indoors/outdoors/etc). got 4 android phones, with unlimited data, text, and basically unlimited minutes (the limitation is small for me) for $20 more. including taxes.

My EVO is 4G - which means i can download (in certain areas) @8MB. uncapped. which means once WiMax expands to my home, i may have found a way around ATT capping my uverse.

in comparison, ATT wouldn't provide texting for $20 including tax on one phone. but, they did offer to send me a new free phone with 2 year contract.
flbas1

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you said $XXX; that is the money that VZW/ATT charge. Sprint Charges $XX

Even by including the $10 fee, the bill is still $XX, unless you add extra lines.

They could use some help in the marketing area - the pricing structure is weird to a shopper.

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said by xenophon:

It's the way Sprint is doing the $10 fee. The overall plan is still less than ATT/VZW.

The problem is, Sprint went from being leaps and bounds ahead in price for retail family packages...to simply being marginal.

• For our plan, the savings were something along $15/month x 6 lines = $90/month.
• After the smartphone fee, Sprint went to a savings of $5/month x 6 lines = $30/month.

At that price range, hopping to Verizon for better service and/or phone selection might actually be worth it for some customers.

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