Sprint posts wider loss in Q2 as subscribers flock to other carriers

Sprint posts wider loss in Q2 as subscribers flock to other carriers
Sprint has reported its financial results for the second quarter of the year and things are not looking any better for the carrier: it registered its 15th consecutive quarter in the red losing over 101,000 subscribers and likely hurt by the Apple iPhone's availability on both Verizon and AT&T. Not surprisingly most of the losses came from Nextel and iDEN customers, with a total of 327,000 net customers flocking to other carriers. Sprint on its part added 226,000 new users. 

On one hand, the figure is a slight improvement over first quarter subscriber losses which amounted 114,000 users. Analysts, on the other hand, were overly optimistic in their forecasts expecting a loss of only 15,000 contract customers.

But – as many analysts have pointed out – the carrier's rather bleak portfolio and increasing competition from rivals led to the result. Additionally, Verizon has launched a 4G LTE network earlier trumping one of the carrier's biggest advantages – the early launch of its 4G WiMAX network last year. The total revenue of Spring grew 4% to $8.3 billion.

Second-quarter loss stood at $847 million, or 28 cents per share, compared to $760 million, or 25 cents per share, in the same period last year. There seems to be light at the end of the tunnel, though – Sprint signed a 15-year pact with LightSquared to move to 4G LTE.

source: Sprint



1. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Drop Nextel and iDEN and let them die off like Nokia and RIM.

3. rwolf1984

Posts: 536; Member since: Jun 06, 2009

they are...2 new CDMA PTT handsets on the way

8. simplyj

Posts: 406; Member since: Dec 23, 2009

Nokia is nowhere near dead yet, RIM on the other hand...

36. John_Cena unregistered

Didn't the Miz lost to John Cena? Well, he did. So STFU MIZ you crybabie ass slut still losing to A Riley. Miz you don't know anything about wireless companys...FAG!

48. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Like Cena got beat by CM Punk?

37. donpeppino9

Posts: 67; Member since: Jan 24, 2010

why does nokia and rim have to die? if you dont like it, then you aint gotta buy it. theres plenty of other people that would rather have pocketable, qwerty handsets that are designed for messaging than huge 4 inch touch screen phones that might be great for gaming and videos but dont make great communication devices. choice is key here.

41. Alex Riley unregistered

The significant key choice here is "The_Miz is a bitch." End of the entire story.

49. The_Miz

Posts: 1496; Member since: Apr 06, 2011

you mistake me for your mother.

2. Ice unregistered

Here's an idea Sprint, stop with the crap jobs you've been doing, Ohhhh like the Echo and even though the Nexus is a good phone, kinda brought late to the party. Whenever I go see my boy at his repair store and people walk in, they are overwhelmed by the bad phones you have. But on a positive note, keep marketing EVO! Most people that come in are dumb. They hear EVO and they arent sure if its the Shift, the 4G or the 3D, all they know is they have to have an EVO. At least you're doing one thing right.

4. rwolf1984

Posts: 536; Member since: Jun 06, 2009


18. ngo2dd

Posts: 896; Member since: Jul 08, 2011

Wow look at this troll. What bad high end do they have? They are very similar to the rest of the other carrier.

24. Wowe1234 unregistered

I have run speedtest.net speed tests on my Sprint EVO View 4g tablet. Results: 12.6 mbps down 1.5 mbps up, 5th st. btwn 2nd and 3rd ave. NYC 2.1 mbps down 1.5 mbps up, 355 South End ave. NYC 11.5 mbps down 1.5 mbps up, corner 4th st. and 7th ave. NYC 6.5 mbps down 1.5 mbps up, corner 34 st. and 7th ave. NYC The only problem is their freqencies don't go far and don't penetrate concrete well. Wimax speeds are also very inconsistent even thought it is a 5 X 5 network which can more easily be affected by the amount of users. The tech acts more like WIFI so it takes a little longer to connect to the 4g network.

28. Ice unregistered

NGO2DD This is the problem with people like you ready to jump on calling someone a troll. Just FYI, I have 5 lines and an Airrave, 4 Evos and a HTC Arrive on my account. The point I am making is this since you clearly didnt get what I was saying. Sprint has an issue with keeping customers and having the crap phones they have been letting loose isnt helping. The Evo isnt going to save this company. I was also referring to being at a Sprint repair store where my friend is the manager. People come in and when they dont know what phone they want, all they know is the Evo, so it was a point of good marketing that at least they remembered EVO! As soon as they would hear the pricing, most people walked away with an Evo 4G instead of the 3D. High end phones will only go so far but when you add a joke of a phone like the Echo, seriously!!!! You bring in the Nexus but a year later?? Come on, bring good phones in on a timely basis and it will keep the customers you have and also attract new ones. I know this is long post but a troll, highly doubt it. I have been with Nextel/Sprint for 11 years now and not bashing Sprint, just pointing out problems I see with the company, but my concerns dont affect their bottom line.

42. ngo2dd

Posts: 896; Member since: Jul 08, 2011

What about the Epic?, The Photon that is coming out, the HTC Hero 4g? People in Verizon only know about about Droid line and iphone. Go to AT&T and people only know about the iphone so what is your point? Have you even use the echo? The Echo would have been a great phone if is was a dual core. You know Sony has a dual screen tablet coming out call the S1 right? You know Asus has a dual screen laptop coming out right? Name some good phone on Verizon and I can name a similar phone on sprint. Phones are not an issue. WP7 phones are mainly GSM so how many do verizon have? Please name me some bad phone that not feel beside the echo? btw engadget give it a 8/10 and cnet give it a 3.5/5. So it bad because you said so?

5. trey unregistered

When Sprint gets the iPhone it will level the playing field. At that time Sprint will not lose subscribers it will actually gain.

44. SmiLeoGeo

Posts: 22; Member since: Jul 28, 2011

I agree with you trey. Sprint gives you more for the money compared to AT&T and Verizon. I love the fact that I get unlimited data and unlimited calls to any mobile and 450 mins for landline. That is perfect because I don't even use 100 landline mins a month, everyone I call is cell. Then you get free navigation (Sprint Van if you don't have an Android phone) and Sprint TV and unlimited data for $79.99 a month. You cannot get all that with AT&T or Verizon so all Sprint need is an iPhone and I bet they will get some of the iPhone users from Big Red (as they are called) and AT&T. (Not to sound like a commercial for Sprint tho LOL) Just Saying.

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

Move to LTE. Get better indoor reception. More towers. This is your poison- bad reception. I borrowed a friends Samsung Rant to test out Sprint and it's performance in my area. It was shocking to see it at 4 bars at a doorway and drop down to half a bar 2 steps into a store or building. Quit with the gimmicks that are not working. What if you had the Sensation instead of EVO3D? The Echo we can almost forgive- at least it was orignal. But ya'll look like a joke the way you announced it, creating a serious backlash against the phone from the beginning. No comment needed on the Blackberry Style. Not even TRYING to get an HP phone with WeBOS when there are still a larger portion of Palm users on Sprint than on any other carrier (as per Pre Central) is stupid as well. Above all, do not panic. Millions of unhappy T-Mobile customers will be looking for a new home at the mid-2012 point. The Motorola Photon and the Samsung GS2 will help. Getting an iPhone, as mentioned in earlier postings, will be a serious shot in the arm.

11. corps1089

Posts: 492; Member since: Jan 20, 2010

CDMA covers area better than GSM due to the ability for radios to connect to multiple towers at once, and the longer wavelength in Sprint's spectrum penetrates better than ATTs higher wavelength. This higher wavelength and GSM limitation to 1 tower connection for a radio is what resulted in so many dropped calls for iPhones on ATT, especially the over 30% dropped call rate for iPhones in NYC. Sprint and Verizon have an agreement to share each others networks for 3G data, so there is no difference there [for data]; they are one and the same network and coverage area. If there is a Sprint phone with poor phone reception compared to a different carrier's phone, it is due to Sprints 2G voice network coverage, and it simply does not make economic sense for a smaller carrier to build out extra towers for a outmoded technology for so little benefit...

38. donpeppino9

Posts: 67; Member since: Jan 24, 2010

what your saying is completely far off from the current tech scene. in reality you need to look at GSM from a 2g and 3g perspective. edge is older than cdma, but today's cell phone companies that use gsm based technology (98% of the world) the vast majority have upgraded to 3g (umts, hsdpa, etc.) gsm 3g is far superior than evdo rev a. you get faster data speeds, better battery life and reception will be equal because both technologies share the same princples (cdma). So any advantage you are trying to give sprint over ATT doesnt hold weight, especially when you consider that today's ATT 3g network alone is larger than sprint's native cdma network. if you dont believe me just look at the map. Finally, Verizon does NOT share their 3g with sprint. they share 2g coverage in fewer and fewer locations. if you've noticed lately, sprint's coverage area is dropping due to the expiration of bilateral roaming agreements between sprint and the old alltel before verizon bought them out. now that altell is verizon and the contracts have experied sprint has lost everything. all they got left is their native network and uscellular... maybe some other some regional networks. but everything else is 2g roaming, good for nothing more than calling and texting.

39. donpeppino9

Posts: 67; Member since: Jan 24, 2010

and iphone's problems with dropped calls in congested urban areas does hold wieght for the first iphone back in 2007. at the time most of att's network was edge and i can agree that the 2g gsm network wouldn't be able to handle that heavy traffic. as att's 3g expanded and iphone 3g and 3gs came out the iphone service has turned around drastically.. up until iphone 4 came out but that isn't a network related issue, apple just made a bad phone design.

31. Bacon Hat unregistered

Hmm, guess didn't hear about Sprint's LTE announcement this morning. The HTC EVO 3D and the HTC Sensation are bascially the same phone except for the cameras, 3D (which can be turned OFF btw), and the EVO 3D has 1GB of RAM vs 768 MB of RAM.

33. snowgator

Posts: 3621; Member since: Jan 19, 2011

I didn't mean to sound like I was down on the EVO 3D, which my post did come across like. I do know the specs, and the good reviews for the most part. I was only trying to say that when you push the 3D over the rest of the capabilities of the phone, it sounds like a niche device. If you are a casual consumer, and do not care about 3D, you do not care about the EVO 3D. And that is supposed to be the flagship for Sprint.

7. oddmanout

Posts: 443; Member since: May 22, 2009

Drop the premium data fee, stop rebating every phone on the line up, give a little more option for your rate plans, and I MIGHT consider switching.

30. Bacon Hat unregistered

That "premium fee" is keeping the unlimited data plans that Sprint seems to only have. As far as rate plans they are the cheapest from the major carriars in regards to my needs - data, text, and barely using voice. The biggest thing they have is the "any mobile, any time" feature. As long as its a mobile line your minuets aren't counted against you.

9. WirelessCon

Posts: 311; Member since: May 11, 2010

They need a much larger network with actual coverage. If you're a homebody, Sprint might work for you. If you travel and live in a rural setting, Sprint is not the answer. Sprint's roaming agreements have been declining extremely fast. The AT&T/T-Mobile merger won't help Sprint, but they were falling before the merger anoucement.

12. corps1089

Posts: 492; Member since: Jan 20, 2010

True, but at what cost to biuld out an outdated voice network into rural areas to pick up a few more customers? It is not economically viable for a smaller carrier...

14. remixfa

Posts: 14605; Member since: Dec 19, 2008

Didnt they gain a million customers last quarter? I remember them slaughtering ATT last quarter and posting their first gains in years at the same time. Sprint definately doesnt have the money for a major build out at this point. Maybe when they switch over to LTE so they can have roaming agreements with VZW to help. They have the second largest network in America behind VZW and plenty of bandwith, so for the majority of users coverage isnt an issue. They just need to focus on customer service and some advertisements on their devices.

19. WirelessCon

Posts: 311; Member since: May 11, 2010

Very true, the cost would be huge, but there's so much federal money out there to build rural networks for both voice and data. Rural customers are also long term customers, which is far more profitable. Minimal investment (through grants) for long term customers. I wasn't aware that CDMA was outdated; so GSM is cutting edge?

26. corps1089

Posts: 492; Member since: Jan 20, 2010

Sprint has always had an eye to the future to build out for next gen specs rather than to today's standard [CDMA and WiMax networks as examples]. I expect that Sprint will eliminate voice protocols and send phone calls as data over newer, faster, more reliable technologies. That is why I was referring to voice as outdated, not necessarily to CDMA as outdated. Certainly CDMA is not outdated as compared to GSM [where CDMA performance beats GSM performance for a number of reasons].

10. suck ass network unregistered

well your network is the worse in the country. sprint has always had a crappy network. not reliable. and the phone plans are as expensive as verizon. combine that with outsourced phone service and s**t phones and you've got one disaster in the making!!! your image is kinda ghetto as well, your stores are always full of crusty looking people that seem like there service got cut off again. just saying.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.