Sprint Continues to Bleed Customers, Profit Plummets

By Ed Oswald | Published November 1, 2007, 5:58 PM

Sprint Nextel's third quarter profit plummeted 77 percent as the wireless provider continued to lose customers amid concerns over the carrier's future.

Much of the losses come from the company's Nextel division, which has seen its share of troubles after the merger. Some believe that Sprint has turned its back on the division -- which uses Motorola's iDEN technology -- choosing to focus solely on its CDMA wireless business.

However, even there Sprint has encountered setbacks. The carrier is known for its generally sub-par customer service, and has experienced a number of network outages. It has also for a long time depended on customers with less than stellar credit, a potentially risky situation.

This has likely at least partially led to Sprint's current situation. For the quarter, the company lost another 337,000 post-paid customers, in line with its earlier warnings. Overall, the company's total subscriber base dropped 60,000 to 54 million from the second quarter.

Profits fell from $279 million a year ago to $64 million this quarter. This can be blamed on the average revenue per subscriber -- an important measurement of overall health of wireless carriers -- falling some three percent to $59. Traditionally, Sprint's customers have been some of the quickest to spend extra money on added features.

Sprint says it is working on several measures to improve its business, including a simplification of pricing, expansion of its customer care staff, and widening its distribution network.

Comments

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Some one needs to hurry up and buy Sprint already.

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i bought the i880 for $500 I was so excited nextel finally came into the 2000's with a phone with a camera and mp3 player. then I find out they do not give you to mp3 software to put it on the phone...idiots!! granted the software is free everywhere but for 500 bucks for a phone that everyone else have for $50 and not to include it is bad business.

Do not get this phone!! they can not even fix even a broken antenna without sending it out. not even kidding!
The direct connect monopoly was over years ago! oh and my service and customer service issues a long and reported constantly. Always get money off your bills when companies mess up. don't let them give you anything else!

have a day!

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Oh!!! No!!! What will happen to NASCAR!

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I had expressed my displeasure with the terms of my, not-yet-begun, new Sprint service to a Sprint representative who promptly said "OK", hung up on me, and canceled my service. This was the first time in my life that a company representative did not try in the least to dissuade me from canceling a purchase. After this experience, I decided to upgrade my service with Cingular (AT&T), where the service people actually spoke an understandable version of English (no heavy Indian accents like at Sprint).

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I have nothing but contempt for Sprint. Their customer service is abismal at best. They try to screw their customers every chance they get (and I'm not refering to minute usage). I left NEXTEL for AT&T and have loved every minute of it. My girlfriend has Sprint and the hassles she constantly has is rediculous. Doesn't anyone know about all the billing issues Sprint has? Or how about the fact Sprint will cancel a contract if they feel you roam to much, or call service too often (100% truth). They bagged 110,000 US soldiers for making over seas calls. Remember that? (Truth) I hope Sprint/NEXTEL goes under and every one of its board members get blackballed. F*k Sprint!

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I am currently a Sprint customer, their services is just like every every other carriers. As far as customer services go, it does suck. Every time I can to get an issue resolve, I get a different answer. They messed up my bill recently, and have to call many times try to get it resolve. No luck. I have to send email to ecare, and they took care of it in no time.

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I have T-Mobile and have personally experienced nothing but fantastic customer support since 1998. I have received things such as minutes freely added to my account by request so that I don't go over, a temporary rate plan adjustment for one month, great discounts on phones, and fantastic customer support.

I know that everyone has had a problem with their cell phone provider. I haven't yet and would be afraid to ever move network =).

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Will second this. Their support is fantastic.. I've had them from PCS One->VoiceStream->T-Mobile. I love how at the end of the call they always thank me for being a customer for 7 years hehe

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For me, I just absorbed an account, which was over its minutes. The CS rep at TMO backdated a plan change to cut hundreds off that phone bill. TMO is excellent.

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I hope someone buys Sprint (not Verizon), their customer service does suck. I agree, I can call to get an answer to a problem and get a different answer every time. I get tons of dropped calls and I've been told it was my phone, it was the network, its something in the walls of my house and other things. I was told an engineer was going to come and check out the problem, that they were going to put up a new tower and that that idea was scrubbed. It would cost $600 to dump them so I stay with them keeping my phone on roaming to piss them off (lucky I get free roaming).

One thing they can do is if you're having a valid problem they should let you out of your contract if it hasn't been fixed in X amount of time. Every carrier should have a clause like that. I don't like hearing "you should have good service in your area, we can't let you go because you get service", or "The problem is with your house not the service" even though I can roam with Verizon, and my friends who have AT&T can get good coverage in my house. Or my favorite "We don't guarantee you can get a call indoors. What the hell is that?

Talking to tech support is like talking to a 6 year old retarded child. Their just tech support monkeys that read a script instead of fixing a problem. I have AT&T for my internet, house phone and tv service and they have pretty good customer service. They answer pretty quick, if they can't answer your problem they will give you to tear 2. Sprint needs to shape up or get bought out by hopefully a better company.

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Same here! The twits in the store didn't have a clue what they were doing (or they were lying), but T-Mobile's customer service after the sale is wonderful. I've never had them fail to resolve a problem in one quick, friendly phone call.

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Loved Nextel.. Hate Sprint... I would leave if it would not cost me $450. I left sprint before... and now they bought Nextel I am leaving them again.. as soon as my damn contract it up..

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Sprint to Customers: "Where you at?"

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LOL

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I thought Sprint was partnering with Comcast and other cable companies? I would have figured they would be gaining subs. Unless they can't count those.

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As a friend put it, Sprint is like a wh***, doling out their insides to any company who will take a piece. :)

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Why would anyone ever have wanted to sign up with Nextel? Motorola's iDEN technology has consistently been the worst cell phone technology compared to CDMA, WCDMA, TDMA and GSM.

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i'd love to see you back that up.i dropped verizon for an iden phone years ago as they were way ahead of the curve for a while. and if you didn't realize iden is just a modified and upgraded motorola tdma network.

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It may be modified but it's not better than TDMA. It's a special TDMA network that only works with Motorola phones. How is that better?

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Being a very unhappy Sprint customer I can understand why they have lost so many customers. Customer service is the worst of any company I have ever had. I am seriously thinking of paying the early termination fee on two phones to be done with the poor service and poor phone service quality.

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I Left! Once Nextel merged with Sprint it was just a nightmare. I only wish I had joined Nextel before Sprint got its crapie hands on it.

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I work for a company that does collections (and recently customer care) for Sprint/Nextel.

I recently went through a "Customer Care" training. Sprint/Nextel is training two of their collection sites in Customer Care in order to help retain customers and educate them on the poor credit/spending limit accounts they have. I have learned more than a few things in my time with my employer on this project.

The Sprint/Nextel salesforce is NOT educating the customer about their own account or their plans. They just want the sale. Piss on the customer.

All of the foreign outsourced customer care agents are uneducated, lazy and don't CARE about the CUSTOMERS. As a finance/collections person, I shouldn't have to tell them exactly what to do to help the customer. If they wanted GOOD customer care, they should outsource less or make their foreign employees understand how to CARE for the customer.

We are constantly yelled at by supervisors to get our average handle time down, yet they say the goal is "one call resolution". Which is it? If it take me 45 minutes to fix what some greedy sales person screwed up or 60 minutes to fix what some "care" rep in the Philippines couldn't figure out (or didn't WANT to figure out), why would you yell at me about it?

If Sprint/Nextel REALLY wants to fix their issues, then need to look at their entire business process, from sales, to service, to collections....

Done.

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Sprint to customers - "Leave!"

Customers to Sprint - "Okay, we're gone!"

In the end, business is a surprisingly simple concept.

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They've really shot themselves in the foot with the Mogul, the PocketPC that was supposed to save their business. The Mogul has been wracked with technical problems (bluetooth completely dropping out/crappy reception, poor memory management, no promised EVDO Rev A, etc), last week Sprint released a highly anticipated new ROM to deal with many of the issues that the Mogul has been plagued with that completely screwed the device up...the device would completely lock up when it went out of EVDO coverage, bluetooth constently disconnected, just to name a couple of major issues. It has the entire community up in arms (see www.ppcgeeks.com) for more. Their solution - put the older troubled ROM back on the website a full week later, follwed by a statement today that they will release a new ROM to fix the issues sometime in Q1 2008. Wow.
So, this story doesn't surprise me at all. They are reaping what they have sown.

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You sir (I use the term very lightly)...

Are a MORON...

To think that ONE PHONE can make or break a wireless company...

//wrists

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Palm did the same thing with the Treo 700 series. In Palm's case they pulled the update quickly after release and it took 3 months to fix. Thos that did upgrade were told to contact Verizon to get a new phone.

I'll never use Palm again.

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He didn't say one phone is breaking Sprint, but his story is indicative, like mine above, that companies that release crap products and don't support their end-users will fail.

As a business user the number one thing I need from Vendors is reliability and support-- else I'm going elsewhere.

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"the PocketPC that was supposed to save their business."

Yes he did... the whole story was about one phone with issues...

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Those that did upgrade were told to contact Verizon to get a new phone.

This is the unfortunate, and inherant problem with us geeks keeping up on this tech-stuff with betanews and the-like. We may get all the updates, but that doesn't mean the freaking companies actually adequately FIXED the problem in the first place.

In other news, though, I have a 700 and I went to their site right after reading it and realized it was off the site already. It appalls me that they said "Go get a new phone", although does not surprise me one bit.

This being said, I really REALLY find it s***ty of them to come out with the 700wx? wz? (whichever) that "replaced" the 700w when they realized that they hadn't put quite enough RAM in the device to run applications simultaneously and in good working order. Instead of saying, "Hey guys we screwed up, we know your device really doesn't work like it's suppose to, here's a new phone / chip ... see if that works. Instead they make you spend another $500 for the "newest and greatest" when, really, it was just a fix for the old (and literally) busted 700w.

To sum up everything, I didn't learn my lesson and bought a Palm T|X and have had nothing but heart ache and problems with my device. Why? They decided to "update" the OS (not a problem), but they "updated" something that, in essense, killed compatibility with 90% of the programs made for Palm in some way. About 40-50% of the programs will work SOME of the time, another 40-50% won't work at all or will work for a week or two (or one or two syncs) and then blow up in your face, making you hard reset your device.

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Oh PS- Guess I should write something about the article O:-)

I had Nextel when they were first coming into Ohio/my area. Their service sucked, but their two way was AWESOME for business uses. That being said, I've not had them for *thinks* 6 or 7 years, and I've come to absolutely hate them. In no way-shape-or-form should 2-way features be put on an individual's phone unless it's for business purposes. There's no point to it other than annoy every freaking person at your dinner table, or worse yet, the restaurant you're at. I semi-hope they go under and/or get bought out by a company that KILLS this feature b/c I'm SO FREAKING SICK of hearing an IDIOT's phone go "Beep beep" in a nice restaurant and then hearing an inaudible SCREAMING on the speaker, followed by the owner SCREAMING back.

In short, good freaking riddance. DOWN WITH SPRINT/NEXTEL!

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Me and my wife has Nextel as does the company that I work for which has over 800 nextel phones can attest that their service sucks. Many and I do mean many times someone can call me and it goes straight to voice mail without the phone even ringing for no reason or someone can leave me a voice mail and it does not pop up on my i930 almost 24hrs later.

Considering the cost of service vs the other service companies this is completely uncalled for. If it wasn't for the "need" to have Nextel due to customers I deal with on a regular basis I would have been gone a long time ago.

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... Get unlimited plans from other companies. There's a few that still offer them. They'll have better coverage.

Unfortunately I've run into that with Alltel and (to a hugely greater lesser extent) Verizon.

I'm with Verizon now, and while they aren't perfect themselves by any stretch, their customer service isn't bad, service area rocks (for our area and in general).

They don't have unlimited, but for business use you can go up to 4000 minutes... I, myself, could never use that many, but it is a pretty penny ($149.99) BUT it has "in" and nights and weekends, depending on your business.

Look at other sites... Honestly if you want change, others want change too. If this is the case, talk to a few reps. A LOT of reps would KILL to have 800 phones on their service. That being said, Most reps will give other either ALL free (and expensive) phones for the users, or give you made discounts on bills. You'd be surprised. You just, honestly, have to haggle a bit.

PS- Best part of Verizon is within 20 seconds of turning the phone on you have most or all of your texts, VM's, etc. all ready for you to look and listen to.

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Ok I am a sprint customer
sprint has messed up but i caused it by not sending in my defective phone and keeping replacement. otherwise i am ok happy with sprint.
It is possible time for a Change at the Helm for Sprint/Nextel.
Hopefully they will pull in a steve Jobs type figure or possible clear wire ceo, or someother CEO that Knows Customer Service; (maybe steal Serivice CEO of T-Moblie or Good CEO knowing the Best for Company and Country bring the serice back to America or At Least Care. And bring back old
customers and make a healthy Run For IT. Guys like elison,gates,Jobs and others are out there and they can reinvigorate a company and turn things around.
later
space
michaelorspace at myspace

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