Sprint Loses $29.5 Billion with a B

By WC Staff
last updated

We know. We know. We rag on Sprint too much. But seriously:

Sprint Nextel Corp. swung to a huge fourth-quarter loss of $29.5 billion on Thursday as it wrote down most of the remaining value of its 2005 purchase of Nextel Communications Inc. and continued to lose customers to competitors. -

Now, most of that huge number is due to the fact that Sprint has basically given up on integrating the Nextel side of things fully. If you exclude those bits, it's not too bad. We already reported that they lost 683,000 subscribers last quarter (though that's offset by big gains in pre-paid, less lucrative Boost mobile accounts). We're not starting the Sprint deathwatch yet, but our finger's on the stopwatch button.

We're not saying the 2 hour Sprint Store closings today for a “special webcast” are really about Alltel buying them out, mind you. We wouldn't suggest that Sprint is ripe for a takeover by an upstart network that's been gaining remarkable traction in certain areas of the country. That would be crazy. Practically Tom Cruise crazy.

Those sessions are probably just about the now-unveiled $99-for-everything plan. Right?

WC Staff
WC Staff
16 Comments
  • I just saw this article on Reuters and was going to start a thread, but I see you've already done that.
    The thing that is even scarier is that they are projecting another 1,200,000 customers lost in the first quarter of this year. That's 2 million customers lost in 6 months time.
    In the Palm Centro threads, I keep seeing people talk about the SERO plan, which gives unlimited access for voice and data, for only $30 a month. I kept asking myself, how in the world can a company make money like that, especially when it has such lousy coverage, and a horrible reputation for customer service? I think we just found out our answer.
    I don't wish poorly on Sprint. I hope they make it, because the more competition there is, the better deals we all get. I WILL be truly unhappy if they get snatched up by ALLTEL, though, because I would have gone back to ALLTel in a heartbeat, if they only had the Palm Centro available.
  • the SERO plan, which gives unlimited access for voice and data, for only $30 a month. I kept asking myself, how in the world can a company make money like that, especially when it has such lousy coverage, and a horrible reputation for customer service? I think we just found out our answer.
    Please get your facts straight before fanning the flames. Sprint's SERO does not include unlimited voice. Unlimited data, yes. Sprint has set minutes something like 500 minutes and 1200 minutes.
    Personally, I don't get it. I have very few problems with service, coverage, or customer support. Friends of mine on AT&T, on the other hand, have horrible coverage and get dropped calls all the time.
  • Please get your facts straight before fanning the flames. Sprint's SERO does not include unlimited voice. Unlimited data, yes. Sprint has set minutes something like 500 minutes and 1200 minutes.
    Personally, I don't get it. I have very few problems with service, coverage, or customer support. Friends of mine on AT&T, on the other hand, have horrible coverage and get dropped calls all the time.
    If those minutes are correct, then I stand corrected. However, I only know what those people have told me, which was unlimited. Sprint's coverage is so lousy where I live, it didn't matter to me how fast their 3g network was or how inexpensive the plan was. I'm guessing you live in quite a bit larger metro area than I do. Where I am from, and where I spend 99% of my time, the coverage is incredibly poor.
    On the other hand, I don't believe that Sprint lost $330 million per day for the last quarter because I, or anyone else, fanned the flames. That is on them. If you look at the last thing I said, I want Sprint to make it, just like I want companies like Ford and XM radio to make it on their own (i.e., without a merger), even though my probability of buying anything they make is practically nil.
  • It's more of a write off than sprint losing 330m per day - they basically are saying "whoops, that didn't work" about the nextel merger and so they have to adjust their books to deal with the fact that they're going to have to transition those people off of iDEN instead of integreating iDEN tech into CDMA.
    ...Or that's my "I Am Not A Financial Analyst" understanding of it.
  • It's more of a write off than sprint losing 330m per day - they basically are saying "whoops, that didn't work" about the nextel merger and so they have to adjust their books to deal with the fact that they're going to have to transition those people off of iDEN instead of integreating iDEN tech into CDMA.
    ...Or that's my "I Am Not A Financial Analyst" understanding of it.
    ...and now you know why I, with a Master's Degree in mathematics, still can't figure out accounting to save my life!!! :confused: :confused: :confused:
    I know you are right, but the facts still scare me about Sprint. They are losing customers left and right and (from what many on these boards are saying) they have the worst customer service out there. Again, I'm not a customer, so it doesn't impact me directly, but 2 million customers is a lot to lose in a 6-month period, especially when the overall mobile business is still growing in the US.
  • EXACTLY.
    That's the reason I'm getting ready to photoshop the Sprint logo in a coffin. ;)
  • My PCC reps are on a conference call now for the Unlimited plan details. I'm pretty sure that's why the stores closed as well. They are going to get a lot of questions about this new plan so I'm sure they are just making sure everyone is trained.
  • Thanks, Infinity - I was gearing up to hassle my local store to see what the deal was, now I can leave them alone. ;)
  • Suddenly, my $30 SERO plan does not seem as rock steady. If things are really that bad financially for them, I could see them killing off the whole program. And then being invited back for the $99 plan.
    That would suck.
  • I have been with Sprint since something like 96 or 97....not due to any loyalty to Sprint whatsoever, but just because every time my contract comes up and I shop around for the best plan and coverage (including cost of roaming in extreme rural areas) I keep on signing another contract with Sprint because they offer the best deal, with the best coverage, and the best options for roaming.
    I personally have had issues with Sprint CS, but never in that time have they not....evidentually....fallen in my favor.
    With that said, numbers talk. Coverage is a matter of geographical perspective. Opinions and experiences with vary greatly. I find it ironic that because a major CS issue with ATT (I think) that went past the regional level of their org that I originally moved to Sprint.
    Mergers can be beneficial in the long run, but also very risky for the current customers with the unknowns of plan policy changes, pricing spikes, CS even becoming more challenging, etc...
    The bottom line if nothing else, is we need competition in the US for the CDMA network. We need at least two big players.
    Are the 2 million lost customers numbers of only those who left? Does it reflect number of how many may have joined during that that time as well? In other words, do we know how many joined Sprint during that same time they lost all those customers?
    If they launch the flat rate unlimited plan nationally, that will be huge. It could even be the spark to help save the company. But more importantly hopefully start a plan war among all the carriers.
    [RIGHT]....I guess this would be my glass half full view of the situation. :D [/RIGHT]
  • I find it ironic that because a major CS issue with ATT (I think) that went past the regional level of their org that I originally moved to Sprint.
    I had my own issues with ATT internet services way back in 2000, but the only reason I am with them now is this isn't the same company. This is really SBC, who bought up the flailing ATT, kept their name, then brought two other great companies into the mix in Dish Network and Cingular.The bottom line if nothing else, is we need competition in the US for the CDMA network. We need at least two big players.
    Amen to that, for both CDMA and GSM.Are the 2 million lost customers numbers of only those who left? Does it reflect number of how many may have joined during that that time as well? In other words, do we know how many joined Sprint during that same time they lost all those customers?
    The way the story reads, it gives me the impression that they had a net loss of those customers. The worst part is, if you read a little further, they expect Q2 losses to be about the same as Q1, which means another million-plus!
    I hope for your sake, and everyone else who is a Sprint customer, that whatever happens, happens quickly. There is nothing worse than waiting for the hammer to hit when you don't know for sure that it will!
    Best of luck. (PS- having raised my own "Calvin", I love your avatar and username!)
  • Just a guess, but I bet most of the customers lost were old nextel customers that don't like how things are now post-merger. That would tie in well with the decision to totally write off the nextel goodwill.
  • I have been with Sprint since something like 96 or 97....not due to any loyalty to Sprint whatsoever, but just because every time my contract comes up and I shop around for the best plan and coverage (including cost of roaming in extreme rural areas) I keep on signing another contract with Sprint because they offer the best deal, with the best coverage, and the best options for roaming.
    I personally have had issues with Sprint CS, but never in that time have they not....evidentually....fallen in my favor.
    With that said, numbers talk. Coverage is a matter of geographical perspective. Opinions and experiences with vary greatly. I find it ironic that because a major CS issue with ATT (I think) that went past the regional level of their org that I originally moved to Sprint.
    Mergers can be beneficial in the long run, but also very risky for the current customers with the unknowns of plan policy changes, pricing spikes, CS even becoming more challenging, etc...
    The bottom line if nothing else, is we need competition in the US for the CDMA network. We need at least two big players.
    Are the 2 million lost customers numbers of only those who left? Does it reflect number of how many may have joined during that that time as well? In other words, do we know how many joined Sprint during that same time they lost all those customers?
    If they launch the flat rate unlimited plan nationally, that will be huge. It could even be the spark to help save the company. But more importantly hopefully start a plan war among all the carriers.
    [RIGHT]....I guess this would be my glass half full view of the situation. :D [/RIGHT]
    Sorry to quote the long post, but I aggree exactly. I have been a Sprint Customer since 7-99. I switched from Cellular one what now is part of AllTell, because of crappy coverage, high cost and don't give a d** attitude.
    I agree that over the 9 years of Sprint service I have had to call *2 a few times and get a uniformed or untrained customer serive rep. Bottom line I have always been treated great and they have given me awsesome deals on phones as well as the best price for my plan, that no other carrier can touch. Plus in my area the coverage is great, the big V coverage is poor and Alltel is very good.
    I am not ready to write them off yet, I think Sprint has a few positive things up the sleeve.
    Final note, I would not have an antiqated, inefficient, GSM crappy call quality service. I would go back to land line.
  • I'm also a Sprint longtime customer (since 99)... I've had my issues with CS over the last year and a half and was about to switch over but they did a complete 180 and gave me a deal on an HTC touch that I couldn't refuse! Since Jan 2008, Sprint CS has been a total pleasure to deal with. With the new $99 unlimited plan and WiMax coming out in April, I think Sprint will recover quite nicely.
    This $29 Billion write-off is surprisingly a good business move on their part, Nextel was starting to bleed them dry and they would've lost much more in the long run.
    WiMax is going to be their saving grace.
  • Please get your facts straight before fanning the flames. Sprint's SERO does not include unlimited voice. Unlimited data, yes. Sprint has set minutes something like 500 minutes and 1200 minutes.
    Personally, I don't get it. I have very few problems with service, coverage, or customer support. Friends of mine on AT&T, on the other hand, have horrible coverage and get dropped calls all the time.
    I think Sprint has great coverage. The reception and volume of calls are awesome, and you just can't beat the SERO plan. I've never really had any problems with customer service, either. :thumbsup:
  • Ragging on Sprint is necessary when they do things that call their customers's trust into question - in terms of their monthly bill. Sprint's Boost Mobile has the same unlimited plan for $50 a month with no contract and on the same network. Really Sprint? I can't afford to break my contract or else I would switch - considering Boost could save me more than $60 a month if not more. I think its time to email the President of Sprint (http://sites.google.com/site/sprintcustomersunite) and let him know how we really feel about this price issue.