Sprint expected to report a loss of 900,000 subscribers for the second quarter
For some time now, Sprint has blamed the upgrading of its network for the drop in its subscriber rolls. While the mobile operator is finishing the Network Vision update, poor quality service has led large numbers of subscribers to bolt. The trio of Jefferies analysts say that the loss of nearly 900,000 subscribers for the quarter will be among the worst in company history.
The good news is that Sprint could be finished with the modernization of its network by the middle of the year. And once it is done, churn will improve, says the carrier. Sprint has numbers to back that up. In markets where it is 70% complete with the network upgrades, churn has returned to pre-upgrade levels. And in markets where all of the work has ended, churn has dropped below the pre-upgrade level. Thus, Sprint is comfortable with predictions that customer growth will return in the last two quarters of the year.
Of course, there is the possibility that Sprint will offer to buy T-Mobile next month, for $32 billion. The latter has been adding customers thanks to the Pied Piper of mobile, T-Mobile CEO John Legere. Speaking of executives, Sprint CEO Dan Hesse's pay package has received plenty of flak from Institutional Shareholder Services. ISS is a company that suggests to mutual funds and other institutional stock holders, how they should vote their proxies.
ISS says that the $49 million pay that Hesse took home in 2013 was the highest among the executives of the top four mobile carriers, and it has an issue with that paycheck. ISS especially opposes the $18.7 million bonus Hesse received, because it was due to his longevity with the company instead of being performance based. John Legere made $29.2 million, and while that might seem high, if any executive in the industry earned his pay last year, it was the T-Mobile CEO. Legere's number one foil, AT&T CEO Randall Stephenson, made $23.24 million while Verizon's Lowell McAdam took home $15.82 million. Verizon Wireless CEO Dan Mead was not listed in the data.
source: FierceWireless via AndroidAuthority
1. joey18 (Posts: 517; Member since: 20 Jul 2010)
sprint need to place new plans the framily plan are overpriced and some places sprint has bad network why sprint start making his new t mobile copy and try made the same version of plans
2. kzat82 (Posts: 26; Member since: 26 Dec 2013)
what is you say have you ever heard of a punctuating sentences
5. BobbyDigital (Posts: 243; Member since: 29 May 2014)
Have you ever heard of correct grammar?
55. plyfulgentleman (Posts: 41; Member since: 17 Jul 2008)
I'd like to proudly say my four lines are the proud few that jumped ship from Sprint... Laterz
58. Daftama (Posts: 563; Member since: 03 Nov 2012)
I didn't know PA became a Grammer school... Why must people always
56. DonkeySauce (Posts: 158; Member since: 03 Dec 2011)
joey18 hates capitol leters and punctuation he doesn't even like capitols in his name he must be in kindergarten
3. gehrig (Posts: 170; Member since: 17 Apr 2014)
TMobile is just too good of a value. Sprint has nothing going for it.
8. Planterz (Posts: 756; Member since: 30 Apr 2012)
Price. Sprint also has a lot of connections with large employers, giving employees a pretty decent discount too, so some people can get Sprint's full unlimited for like $55-60/mo.
But that's pretty much it. Certainly not speed or coverage.
47. rdaex (Posts: 87; Member since: 24 Oct 2012)
But Sprint discounts apply ONLY to the primary VOICE line... thereby being relatively useless overall.
24. Joshua9007 (Posts: 76; Member since: 08 Jun 2012)
T-Mobile sucked in the past, they still only have 3G/4G in the populated areas and the rest falls to 2G. Anyone trying to say that they have better coverage needs to look at western PA and see the swiss chesse (other areas might be better, but most will see similar). Sprint does not have quite as much overall coverage on a map, but where they do they at least have 3G, not just 2G. And with their NATIONWIDE 800Mhz licenses, they will have LTE at least to overlap the current 3G coverage.
T-mobile was DOA a couple years ago, they did not have enough spectrum to launch LTE nationwide, they were bleeding customers and money. They then got second life when At&t was blocked from purchasing them, and more importantly got 3Billion AND spectrum to launch LTE!
They then did a reverse merger with Metro PCS, adding the companies resources while lessening DT's share of the company (as well as paving the way for the current merger scenario)
T-mobile is fast, and if you live IN the city, go for it. I don't even have coverage less than 1 hr outside of my city... so do whats best for you, and I will do whats best for me!
42. -box- (Posts: 3784; Member since: 04 Jan 2012)
T-Mobile's fine, great even. I frequently visit Pittsburgh and Erie from Missouri and only lose T-Mobile coverage in a small part of Indiana, I even have it in those deep valleys in that shard of West Virginia between Ohio and PA.
48. rdaex (Posts: 87; Member since: 24 Oct 2012)
Yeeeeahhh... Sprint 3G is SIGNIFICANTLY slower than Tmobile 3G (EDGE) Sprint 3G routinely gets .01 mbps on speed test app.
4. BUFFQREWBBQ (Posts: 16; Member since: 11 May 2014)
Good riddance Sprint. I hope you fail miserably.
15. rallyguy (Posts: 541; Member since: 13 Mar 2012)
Why would you want them to fail? Competition is only good for the consumer. Think of how many people would be laid off if Sprint went under. Why even care if you don't by products/service from the company?
31. BUFFQREWBBQ (Posts: 16; Member since: 11 May 2014)
I've been with sprint for 5 years, their network is awful/borderline non existent. They need to merge or die already, what they provide is the opposite of competitive. Service is over priced and signal is meager at best and random luck most time. It's a lottery if I will be able to connect to their network at all, calls drop constantly.
I could get a prepaid plan on their network with better coverage than what I am being over charged for.
49. rdaex (Posts: 87; Member since: 24 Oct 2012)
So why are you still with them?!
if the item you are paying for doesnt work for you, choose a different item.
26. Slammer (Posts: 1002; Member since: 03 Jun 2010)
The ultimate fail is when comments like yours is made. With VZW and AT&T essentially eating away competition, it has left T-Mobile and Sprint fighting for balance in the American wireless industry. If you don't like Sprint, that's fine. But, don't wish what's left of competition to go away. With very little regulations in the industry, your successful wish would turn to begging for financial mercy and more choices.
32. BUFFQREWBBQ (Posts: 16; Member since: 11 May 2014)
I understand what you're saying and I agree. I just hope they improve service so they can actually compete. What they're offering right now is not competitive.
40. Slammer (Posts: 1002; Member since: 03 Jun 2010)
I can tell you that where I live, the network is on par with 70% completion and is rather solid. I notice some idiosyncrasies but have been reassured that software and hardware fine tuning will improve the issues as it finalizes the network in my area. One thing I didn't notice, is that my phone coincidentally was acting up on me during the network upgrade. My internal radios were failing. I was blaming Sprint for losing calls left and right. Once I got my new phone, it resolved so many problems.
While I don't blame many of the people for leaving under the unfortunate circumstances, impatience can be an illogical enemy. Sprint has done many wonderful things on the customer service end for me and my wife when she was in a terrible accident. I don't think any carrier would've done what Sprint did in order to keep our communications open. I know that VZW surely would've shut us off because it did it to me 7 years ago when I injured myself at work.
46. lsutigers (Posts: 723; Member since: 08 Mar 2009)
That depends where you live and whether or not you market has been upgraded. I travel all the time with Sprint and Verizon and the network has proved drastically in upgraded markets. Speeds have been consistently 6-30 mbps which is fine. If you are in a Spark market with a triband device your speeds will run between 20-60mbps.
6. BobbyDigital (Posts: 243; Member since: 29 May 2014)
I wonder where YouLookFoolish is? I expected him to be here telling everyone how Sprint is still the greatest thing since sliced bread. Oh... I guess he's somewhere looking foolish right about now.
17. youlookfoolish (Posts: 122; Member since: 14 Dec 2012)
I appreciate your man crush on me, but it is not mutual. Until you called I had no idea who you were, you're certainly not anyone self important like PapaSmurf.
I'm not a Sprint backer. I just realize T-Mobile sucks too so it's fun to troll guys like you who are caught up in clever marketing for a bad company. My message has been pretty consistent and obviously enough to enrage some in to looking out for my post.
In terms of this specific article, Hesse should not and will not be retained in the next year. If Softbank completes the T-Mobile acquisition then by all means bring the flim flam man Legere in. He is great with smoke and mirrors. Then, the combined company will bleed customers like old Sprint and lose big money like old T-Mobile.
You nerds will all still worship him.
Funny part is Sprint is moaning about network modernization but when they are forced to shut down CDMA to free up spectrum and move in line with T-Mobile for LTE their footprint will shrink incredibly. Maybe to T-Mobile levels, which is really poor. The roaming agreements with Verizon are the only reason to use Sprint at this point from a coverage stand point.
Sprint sucks. T-Mobile sucks.
18. PapaSmurf (Posts: 8235; Member since: 14 May 2012)
I appreciate your man crush on me, but it is not mutual.
You can continue to say what you want, but T-Mobile works the best in Chicago for the value. Granted, AT&T and Verizon have those 700 and 800MHz up and running, but what I pay for fully unlimited data and having solid LTE signal everywhere I go kind of makes your comment moot.
30. OldNorseBruin (Posts: 183; Member since: 12 Mar 2013)
The BEST coverage here in San Francisco is also T-MOBILE; and the worst is well, SPRINT. You would expect that in major metropolitan areas SPRINT would have at least decent coverage ( and I mean at least 3G) but it does NOT.
33. Derekjeter (Posts: 225; Member since: 27 Oct 2011)
Honestly why is it that the only thing i hear about Tmo fans is "T-Mobile works the best in Chicago for the value" Is Chicago the only city that Tmo has reception? Honestly, this is not a shot at you Papa but lets be honest Tmo is bad not as bad as Sprint but close. If it works where you live GREAT more power to you, but for all others that say its good and can compete with Verizon, those people are a joke. I work for a Logistics company and have to travel from California to Ohio and all in between, i tried Tmo last year and it sucks. In every warehouse i visited, the reception was horrible the signal was not strong enough to get or make a call. Sprint is worst and honestly the company should go under, It doesnt provide good network, customer service, whats worst is that it doesnt even offer any competition against all other networks. I'll say this, at least Tmo has smoking mirros like "youlookfoolish" said. I never wish any compnay or person to fail but when your just not even helping your self thats pathetic and thats what Sprint is.
35. ECPirate37 (Posts: 90; Member since: 14 Jul 2011)
For T-Mobile, I have used it in San Fran, Seattle, Portland, NYC, and I'm currently visiting a town here in NC that has 3500 people. Here I'm getting 6Mb download speed, and 1Mb up. I'm fine with that speed to be in such an out of the way small town in NC. I've found a few small dead spots here and there. However, I spend 95% of my life in larger cities. Plus I LOVE having the free data and text when I am overseas. If T mobile stayed EXACTLY the same for the next five years, I would still recommend it to everyone I know. I love it.
21. BobbyDigital (Posts: 243; Member since: 29 May 2014)
Boy... You're tune sure did CHANGE. You were a clear Sprint fanboy. Harping about how much better Sprint is than T-Mobile with their Sprint Spark crap. Don't try to change up now! Guess you finally realized Sprint is the crappy network we've all been saying it is. And your irrational fixation with the network people choose is borderline psychotic. We like T-Mobile. It's what works best for us. What we eat doesn't make you sh*t so why should you care what we use?
7. joe1blue (Posts: 105; Member since: 25 Jul 2013)
I can say I'm not missing anything from Sprint's crap service, they can add all 3 of my lines onto their loss record and T-Mobile can add 3 new lines to their added total.
9. bugsbunny00 (Posts: 1000; Member since: 07 Jun 2013)
Those 900,000. Customers now with T-Mobile sprint is now buying tmo to get what it lost.
12. Planterz (Posts: 756; Member since: 30 Apr 2012)
It baffles me that Sprint is the one trying to buy T-Mobile, and not the other way around. Then again, T-Mo has only been around since 1990, and Sprint dates all the way back to 1899 (yes, 1899, not a typo), so I guess they've got a bit more in the way of capital and investors.
13. johnner1999 (Posts: 1; Member since: 26 Jul 2014)
Though Sprint isn’t really the one buying (or wanting to buy TMO); Its SoftBank controlling Sprint. And SoftBank has the means to do so (FCC willing - and my off the wall conspiracy theory is that this type of dire news will assist SoftBank into that mission)
20. youlookfoolish (Posts: 122; Member since: 14 Dec 2012)
You continue to not understand that T-Mobile is extremely unprofitable. Hemorrhaging money. Not doing well.
Their customer influx is majority prepay. That means more than half. So they pay termination fees to other carriers (revenue for their rivals) and then lose money on cheap customers.
22. Awalker (Posts: 281; Member since: 15 Aug 2013)
Sprint sucks harder. Losing 900K customers is not a good business model.
36. Planterz (Posts: 756; Member since: 30 Apr 2012)
Not where I live. 25-30Mb/s during the day, upwards of 40+ at night. Even at work, where I'm exactly between 2 towers and the signal is the weakest, I get 12-15Mb/s. I never saw those speeds when I was with Verizon and got raped up the butt by their plan and overages. Meanwhile my friends on Sprint get 1-2Mb/s downloads.
57. plyfulgentleman (Posts: 41; Member since: 17 Jul 2008)
Planterz you may be the few cities where it works... I'm happy for you..But come in my neck of the woods.. These are the zip codes 90806, 90703, 90810... Let's see if you get those speeds.. And try inside a building... Let me know then.. If you ever in long beach, ca try at this corner long beach blvd and willow st..90806
39. stO_obs (Posts: 6; Member since: 22 May 2014)
Wrong. One can't get an ETF payed from a prepaid or towards a new prepaid.
43. evarod48 (Posts: 137; Member since: 30 Oct 2012)
Wrong. TMo does not pay ETF's to other carriers. They pay the customer and the customer pays the ETF to their previous carrier. Thus, those carriers losing money every month with those customers gone.
19. joe1blue (Posts: 105; Member since: 25 Jul 2013)
Well all i can do is hope that the regulators stop that from ever happening, i personally think it's too much of a risk to allow them to merge because if the new merged company fails then that will leave only Verizon and AT&T which would be horrible for some people in terms of service options, no unlimited data is not an option for me especially in football season when I'm trying to stream games during work or school...
11. AfterShock (Posts: 2799; Member since: 02 Nov 2012)
Why use a picture of a man clearly pinching one off?
14. JunitoNH (Posts: 882; Member since: 15 Feb 2012)
Sprint, over the years have lost millions of dollars. Yet, no one has made a significant effort to replace the dull, and useless CEO.
16. mike2959 (Posts: 225; Member since: 08 Oct 2011)
Millions? I think we're easily into the billions. Failure after failure. Wimax fail. Virgin mobile fail. Nextel fail. Clearwire fail. Really the biggest loss though, ready for the drum roll, Sprint sponsoring NASCAR. Now before you all start freaking out, it's about return on investment. What a absolutely disaster of a company. Even carrying the holy iPhone hasn't helped. If they would have taken just half of each one of those investments, and pumped them into the network, they would EASILY be the dominant player.
29. OldNorseBruin (Posts: 183; Member since: 12 Mar 2013)
Actually, VIRGIN MOBILE is their ONLY winning component that isn't bleeding customers...BUT there are so many BETTER MVNOs out there now that VM better start list BETTER price plans for their pre-PAID.
23. Joshua9007 (Posts: 76; Member since: 08 Jun 2012)
Everything you say is technically true, but you are skewing the facts to make your point... WiMax was a FAIL, but given the options they had at the time, they HAD to do it because they had no other choice! When they merged with nextel (yet another bad choice) they got 2 different bands of spectrum; 800Mhz and 2500Mhz, of which both had strings attached. The 800Mhz had interference issues with public safety (this is the boiled-down way of saying it, I know the technical reasons too) and so they had to endure an 8yr re-banding process that saw them loose some of this spectrum and not be able to launch LTE or voice on the rest until last year. They were compensated with the 1900Mhz PCS G-block spectrum, which sprint launched LTE on, but it doesn't have the propagation characteristics of the lower band spectrum. The 2500Mhz spectrum has even worse propagation characteristics, but is great for urban capacity (where is it most needed anyway) but had build-out requirements that had to be met or the spectrum would go back to the government.... this is where they had to choose WiMax, because LTE was not going to be ready for deployment until after they would loose the spectrum! It was a bad situation that sprint's hands were tied.
To try and take some of the financial strain off sprint because they did not have the resources to complete a full WiMax buildout (smaller propagation = Many extra towers = huge costs) they did a joint venture with a company called Clearwire, where they gave them their 2500Mhz spectrum and money and owned 51% (49% voting), but other investors would also invest and clearwire would sell service in addition to providing it to sprint. Well, deployment was slow and money dried up, other investors did not want to invest more, so sprint had to keep dumping money in just to keep the lights on.
Dan Hesse has turned things around, but not to the extent that is outwardly visible. He has overseen the shutdown of an aging network infrastructure (nextel), the complete gut & renovate of all old towers (network vision), the purchase of clearwire so they could properly integrate the towers and spectrum, and the controlling interest of sprint being purchased by a telecom with much greater financial leverage that will secure their future (merger with t-mobile or not). That being said, I think that much of his compensation this year had to do with the softbank transaction, but it is still very high!
Sprint has unlimited potential, and has set the bar low, so the only way to move is up!
54. plyfulgentleman (Posts: 41; Member since: 17 Jul 2008)
I agree totally with some of the facts you said Joshua but coming from the side of the consumer I've had my reservations with sprint. Here's my story. Coming from Verizon with their launch of LTE 2010-2011 I didn't like the fact that customers with unlimited data would lose there unlim data when upgrading to anew LtE device. At that time I did my homework and found out that sprint was offering unlimited data with their 4G wimax, and every my daily routine tasks me had 4g wimax service. To make a long story short I had great service. Fast forward to 2012. And id like to bring this point across, before the iPhone came to sprint my 3g was great. I was getting 500-800kbps, almost 1meg in certain places with my 3g and exceptional wimax coverage. I frequent long beach, Ca Carson. Ca and reside in cerritos,Ca. BTW offered excellent data speeds.
But after iPhone came over noticed significant performance drop in sprints 3g service. At most in long beach current I don't even get 100kbps.. Sprints 3g is slower than dial-up speed. And to note this is when they claimed to begin network vision upgrades. Currently I've done a speed test long beach memorial hospital 3g speeds on peak times 120 kbps( but check this out download was much slower but uplink speed was almost 1meg 650kbps.) And this is after the fact made numerous attempts to call Cust care claiming there working on upgrading theyre network.
OK this is where I was foolish and got tricked. Sprint finally caved and released there LTE on 1900mzh band... I balked but eventually have in... I succumbed to sprint Samsung nexus. Big mistake to say the least. Issues after issues with this phone. 1st problems with MMS, had to use a separate app to handle MMS.2nd since this phone came out this only has 1 band of LTE 1900mzh unlike spark had the triband. When traveling with this phone I would go in and out of 3g coverage and back to LTE, my phone wouldn't connect to data. I found support blogs that says turn on airplane mode them off I'd connect back to data. Luckily I was smart enough to get repair and replacement for $5. And told them I have faulty phone. Long story short again after 6 calls to Cust care 3 visits to a tech support store they finally replaced my phone. But it gets worse... This phone has that known issue and as of 10 days ago I choose to upgrade. HTC one m8 which is spark capable... Didn't have the data issues..BUT still had the same horrible coverage of their LTE. Unlike my OG evo on wimax I had in house coverage but this sprint LTE with spark is garbage. I suppose I would get better speeds and be on a different band but I wasn't. I've finally got fed up and give to Tmobile. Better in house data service did the test drive and my LG G3 works... I mean it just works... I've been with sprint for 4 years... PLEASE TAKE MY ADVICE AND RUN FAR FROM THIS COMPANY. And if you do keep them make sure you get service where you work, play, and finally sleep.. Cuz long beach, area is a show zone.
25. zinger69 (Posts: 31; Member since: 13 Feb 2014)
I've really tried to like Sprint. I've been with them for 4 years now and yes, it has gotten much better. But issues like bad building penetration, and way too many dead zones here in the Chicagoland area are making me wonder whether it's worth sticking around or not.
Don't get me wrong when the network is working it's great but there have been too times where I've needed to look something up on the web or check for an email or text and the network is either is slow as molasses or I just can't get a signal at all.
If it wasn't for the "unlimited" data (per se) I would of jumped to another network by now. I just hope Masayoshi Son/Softbank can make Sprint into a rock solid network because we do need a solid competitor to At&t and Verizon.
Like you said there is no place to go but up now.
45. TheRequiem (Posts: 153; Member since: 23 Mar 2012)
Weird, I was just in Chicago and Sprint had by far the best service and fastest LTE out of anyone. I had full signal strength just about everywhere. They have the 8-channel radio's being rolled out there pretty rapidly.
27. chebner (Posts: 140; Member since: 17 Oct 2011)
I must be in an area where they are at least 50% or 70% complete with their updates. I've been with Sprint since 2001. I never had an issue with their coverage or service until their data started slowing to a crawl in 2012. Voice was still good. Everything went to crap last fall when they started heavy upgrades in the Twin Cities.
I thought of switching to T-Mobile but their coverage just isn't that great in Minnesota. Things have been much better since Jan or Feb, voice is better than ever and data is perfectly acceptable. I can't wait till they deploy Spark in the Twin Cities. Sprint definitely had their issues for a while, but I'm glad I stuck it out.
That being said, Hesse's pay is still ridiculously excessive!
37. zinger69 (Posts: 31; Member since: 13 Feb 2014)
T-Mo and Sprint are both in the same situation. If you live in a densely populated area more times than not you'll have good coverage. It's when you leave these areas that both networks suffer.
Chicago is a Spark city and it makes a difference if you have a Spark enabled phone. But compared to Verizon or AT&T it's still not as good.
28. OldNorseBruin (Posts: 183; Member since: 12 Mar 2013)
Maybe SPRINT ought to build a FUNCTIONAL 3G network before "rewarding" Hesse with a $49,000,000 salary for...what exactly? SPRINT will also be losing another $4,000,000,000 to T-MOBILE when the DOJ kicks dumf**k Son out of its office for trying to take over T-MOBILE.
38. fjftokyo (Posts: 49; Member since: 06 Jun 2013)
I'm proud to say that I left Sprint two months ago for T-mobile I just couldn't handle the lack of 4g connectivity here in Los Angeles and the fact that I had to pay for a premium data charge was beyond rediculous considering that i could never use Sprint's data network. I'm extatic that I can finally enjoy fast LTE wherever and whenever I want.
44. Relleish (Posts: 2; Member since: 06 Nov 2012)
I had 4 people under my plan on Sprint and paid about $180 a month. One of them later went to the Air Force and is stationed in Korea. Before her deployment, we told Sprint to take her out of the plan and they said it wouldn't be a problem. We've been getting charged $270 a month for the past 3 months and they refuse to help. This is for THREE active lines!
My contract ends this September, and I for one cannot wait to jump ship. I'm thinking T-Mobile or Verizon.
51. AyBau27 (Posts: 13; Member since: 01 Aug 2012)
Sprint trys to do too much and can't deliver. Had their bread and butter with share plans but now the framily plan is confusing and customers don't want to pay monthly for their phone. It's hard for the reps to sell. Corporate stores were even denying people for regular upgrades and trying to force them to installment billing. You can't force your customers to do what you want Sprint. People were happy with how it was.. The network will get better and it has for me here in St. Louis. People have unreasonable expectations with cell providers and generally only know half of what actually is the problem.
53. 0xFFFF (Posts: 2962; Member since: 16 Apr 2014)
Please join me in wishing Dan a nice holiday.