 Z80APremium
join:2009-11-23
 ·Cox HSI
2 edits | What is Sprint's trump card? A bankruptcy filing when they run out of cash?
Finally after eons they finally get some net ads but still lost nearly a billion again this quarter. You can't lose a $760M a quarter forever. And despite the adds they lost 2X the money they did this time last year. Unfortunately for Sprint, their biggest adds are prepaid customers who don't pay nearly as much per user as regular post-paid customers do. For Sprint, ARPU is only $28 for prepaid and $55 for post paid. So you need nearly 2 prepaid adds to cover every postpaid loss. Prepaid customers are also less stable since they aren't bound by contracts so the tiny improvements in churn can easily flip. Sprint still lost nearly a quarter of a million of these lucrative post-paid customers. It is better than the million they lost last year at this time but it is still a horrible showing.
So while you can pick some small bits of good news from Sprint's report, their outlook still looks abysmal until they can rid themselves of these massive quarterly losses and prepaid customer adds aren't going to do the job.
--
"Our goal (was to make) a billion phones Flash-enabled by 2010...We're actually going to get 1 billion Flash-enabled phones by 2009." -Adobe Chief Technology Officer Kevin Lynch in Nov 2008. |
