Friday, January 18, 2008

Sprint's Continuing Marketing Problems

It's a tough world out there in mobile land. Sprint today announced significant layoffs and store closures, due to the company's continuing financial losses and customers to the other carriers.  

This is unfortunate, despite Sprint's continuing customer service complaints and lack of a clear marketing strategy. At one time or another, I've been with all the carriers, who've experienced similar problems. I blasted Sprint, Verizon, AT&T (then Cingular) in my December, 2006  eBay blog  for nickel-and-diming us on ringtones, wallpaper and apps.

More recently, however, Sprint introduced the HTC Touch, an EVDO broadband device that comes closest to my ideal Android-enabled phone. I've received excellent customer service from Sprint via email, although telephone CS is terrible. Plus Sprint has the lowest-price unlimited data plan at only $15 per month--$5 cheaper than AT&T's iPhone service.

The analysts are correct about Sprint's lack of a sound product strategy and its less-than-stellar customer base. Its latest SprintSpeed advertising campaigns have confused potential customers, especially ads displaying low-end flip phones.  And today, the Wall Street Journal compared Sprint's 54 million customer base to homeowners who chose sub-prime mortgages and frequently fall behind on payments.

Cellular is a competitive business in the U.S., exasperated by significant churn, rate plans and more sophisticated handsets. (Sprint lost over one million customers in the past five months.)  Unlike mobile carriers in India and elsewhere, U.S. carriers are in a saturated market. Profitability will only increase as mobile users choose data services, largely dependent on 3G and 4G broadband network and compatible handset availability.

2008, due to the Google Android initiative, will determine to a great extent the future of mobile carriers in this country. 

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