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Sprint expected to report a loss of 900,000 subscribers for the second quarter

Posted: , by Alan F.

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Sprint expected to report a loss of 900,000 subscribers for the second quarter
Sprint is expected to release its second quarter earnings on July 30th, but analysts aren't expecting to hear good things. In fact, three analysts from Jefferies, Mike McCormack, Scott Goldman and Tudor Mustata, forecast that the carrier will report a drop of 879,000 in phone subscribers for the three month period that ended in June. In the face of subscriber additions by Verizon and AT&T announced last week, just what is going on with the nation's third largest carrier?

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.

"While network issues are likely to abate, leading to better churn, we believe it will take years and intense marketing to fix brand perception, pressuring gross add share for a prolonged period. Pricing changes will almost certainly have to be adopted as S(print) remains relatively uncompetitive. Nonetheless, any pricing move will likely elicit an immediate response from competitors, putting S(print) in an unenviable position...over the past couple of years, the fundamental investment thesis for Sprint shares has hinged on future operational improvements. We believe investors are growing increasingly fatigued with the network improvement story, and will begin to assign a more discounted valuation to the shares. In addition, we stress that executing yet another turnaround is increasingly difficult, and will likely take longer as scale erodes and competition intensifies."-Mike McCormack, Scott Goldman and Tudor Mustata, analysts, Jefferies

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.

Sprint continues to bleed customers

Sprint continues to bleed customers

source: FierceWireless via AndroidAuthority

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posted on 26 Jul 2014, 00:40 3

1. joey18 (Posts: 597; 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

posted on 26 Jul 2014, 01:29 4

2. kzat82 (Posts: 27; Member since: 26 Dec 2013)

what is you say have you ever heard of a punctuating sentences

posted on 26 Jul 2014, 04:01 10

5. BobbyDigital (Posts: 2101; Member since: 29 May 2014)

Have you ever heard of correct grammar?

posted on 28 Jul 2014, 07:13

55. plyfulgentleman (Posts: 43; Member since: 17 Jul 2008)

I'd like to proudly say my four lines are the proud few that jumped ship from Sprint... Laterz

posted on 28 Jul 2014, 23:01

58. Daftama (Posts: 619; Member since: 03 Nov 2012)

I didn't know PA became a Grammer school... Why must people always

posted on 26 Jul 2014, 17:08 1

41. Crispin_Gatieza (Posts: 2108; Member since: 23 Jan 2014)

Is you a colej grajuet?

posted on 28 Jul 2014, 07:16

56. DonkeySauce (Posts: 194; 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

posted on 26 Jul 2014, 02:33 6

3. gehrig (Posts: 375; Member since: 17 Apr 2014)

TMobile is just too good of a value. Sprint has nothing going for it.

posted on 26 Jul 2014, 05:33 1

8. Planterz (Posts: 2110; 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.

posted on 27 Jul 2014, 10:56

47. rdaex (Posts: 152; Member since: 24 Oct 2012)

But Sprint discounts apply ONLY to the primary VOICE line... thereby being relatively useless overall.

posted on 26 Jul 2014, 10:49

24. Joshua9007 (Posts: 94; 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!

posted on 26 Jul 2014, 19:46 1

42. -box- (Posts: 3991; 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.

posted on 27 Jul 2014, 10:58 1

48. rdaex (Posts: 152; 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.

posted on 26 Jul 2014, 02:39 7

4. BUFFQREWBBQ (Posts: 46; Member since: 11 May 2014)

Good riddance Sprint. I hope you fail miserably.

posted on 26 Jul 2014, 08:19 8

15. rallyguy (Posts: 620; 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?

posted on 26 Jul 2014, 14:28 1

31. BUFFQREWBBQ (Posts: 46; 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.

posted on 27 Jul 2014, 10:59

49. rdaex (Posts: 152; 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.

posted on 26 Jul 2014, 12:01 5

26. Slammer (Posts: 1515; 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.

John B.

posted on 26 Jul 2014, 14:30 1

32. BUFFQREWBBQ (Posts: 46; 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.

posted on 26 Jul 2014, 16:59

40. Slammer (Posts: 1515; 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.

John B.

posted on 27 Jul 2014, 09:57 2

46. lsutigers (Posts: 821; 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.

posted on 26 Jul 2014, 04:03 3

6. BobbyDigital (Posts: 2101; 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.

posted on 26 Jul 2014, 08:45 2

17. youlookfoolish (Posts: 180; 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.

Sprint sucks.

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.

posted on 26 Jul 2014, 09:01 3

18. PapaSmurf (Posts: 10457; 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.

posted on 26 Jul 2014, 12:46 2

30. OldNorseBruin (Posts: 232; 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.

posted on 26 Jul 2014, 14:40

33. Derekjeter (Posts: 1087; 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.

posted on 26 Jul 2014, 15:07 1

35. ECPirate37 (Posts: 220; 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.

posted on 26 Jul 2014, 10:06 5

21. BobbyDigital (Posts: 2101; 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?

posted on 26 Jul 2014, 04:38 3

7. joe1blue (Posts: 169; 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.

posted on 27 Jul 2014, 12:11

52. AyBau27 (Posts: 16; Member since: 01 Aug 2012)

Have fun with throttling

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