Sprint posts Q3 net loss of $326 million, sees 1.3 million subs leave
[Via The New York Times]
Posts with tag SprintNextel
We told you it wasn't over, and now, that once "manageable" $73 million payment could possibly balloon to upwards of $1.2 billion. As predicted, the prior suit -- which was held in a California state court -- has led to a far reaching class-action lawsuit that could "potentially cost the company as much as $1.2 billion." The suit alleges that the $150 to $200 fees violated the Federal Communications Act and laws in every state of the country, and when summed from 1999 to 2008, they total a magical $1.2 billion. Things aren't looking great for Sprint on this one either, as lawyer Scott Bursor is running the show. Who's he? Just a guy who was involved in getting Verizon to fork over $21 million for the same thing earlier this year.
Last summer, Sprint was the laughing stock of the major US carriers in terms of customer service. Fast forward 15 months, and the very same carrier is now sitting atop the pile. A recent report compiled by Pali Research has found that Sprint's wireless customer care response times were best in class, and just 2.5 years ago in its first survey, Sprint was dead last. The carrier answered a whopping 91% of calls that researchers placed to the care center in under 30 seconds, while 99% of calls were answered within 2 minutes. If you're curious how the other guys did, try this: Verizon grabbed the silver with 85%, T-Mobile followed with 43% and AT&T took home the award of shame with just 33% of test calls answered within half a minute. So, the real question is: have you Sprint customers noticed an uptick in service levels? And are you AT&T subscribers growing increasingly impatient?
Still committed to iDEN, eh? After another relatively brutal quarter of lost cash, lost subscribers, and lost opportunities, word on the street is that Sprint might be rethinking its approach to its legacy push-to-talk network -- the obsolescence-bound spectrum it acquired via its purchase of Nextel a few years back for the questionable price of $35 billion. Given Sprint's current financial state, a liquidity crunch means that the carrier is looking to offload any salable piece; Nextel's not exactly the most attractive piece of that puzzle with a declining subscriber base, limited bandwidth, and a limited range of Moto hardware to back it up, but even at its current estimated value of $5 billion, analysts are suggesting that Sprint could be willing to bite at a deal. NII Holdings, which operates iDEN networks under the Nextel brand in Brazil, Mexico, and a handful of other Latin American countries, is being tossed around as a potential suitor, as are private equity firms looking to make a quick buck. How one goes about making a quick buck on a network as old and quirky as iDEN in the year 2008, though, remains to be seen.
It's been known for years that some of Sprint Nextel's Direct Connect spectrum causes bouts of interference with public safety equipment, and the FCC got the ball rolling on a plan several years ago for the carrier to swap some airwaves with agencies around the country by June of this year to keep everyone happy. Problem is, some 500 of those agencies still aren't ready to trade, and Sprint has taken issue with the fact that the FCC wants it to meet its end of the bargain by next month anyhow. Nevertheless, a federal appeals court has ruled in the FCC's favor, setting the wheels in motion for a possible massive loss of Nextel coverage on the drop-dead date of June 26 -- but industry analysts aren't too worried. Most seem to be predicting that the FCC will end up extending the deadline by six months or so anyway, so Kevin Martin and his ragtag gang must just love watching carriers sweat. Oh, not to mention a few million Direct Connect customers.




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