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Sprint still losing customers but prepaid Boost added

February 10th, 2010, 9:04 am · 7 Comments · posted by

Boost MobileSprint continued to lose wireless customers during the fourth quarter of last year but at least it lost fewer than before. What helped? Boost Mobile, the Irvine prepaid mobile service, which celebrated its success with a Super Bowl commercial.

According to the numbers, Boost’s national unlimited plan added enough customers in the quarter that parent company Sprint was able to winnow its prepaid customer churn rate — or customers coming and going —  down to 5.56%, compared to 8.2 % a year earlier. But Boost wasn’t alone in Sprint’s praise. Virgin Mobile, which Sprint acquired in November 2009, was noted for its low churn rate that, on average, was lower than Boost’s.

Boost’s main push last year was unlimited plans, which still allowed customers to pay when they needed service but required a month-long commitment. That helped Sprint make an average of $31 per customer, compared to $30 a year ago. However, before Virgin Mobile joined the prepaid group, the unit made $35 per customer.

Overall, Sprint lost about 200,000 subscribers in the fourth quarter, ending the year with 48.1 million customers. Approximately 10.7 million of those were prepaid subscribers. The company also posted a fourth-quarter net loss of $980 million on revenues of $7.9 billion. Comparably, the company posted a net loss of $1.6 billion on revenues of $8.4 billion in the prior year.

Sprint also updated the world with its 4G rollout, which promises faster wireless data speeds. Sprint 4G is now in 27 markets serving 30 million customers. That should reach 120 million people by the end of the year. This year, 4G will launch in Boston, New York, Houston, San Francisco and Washington D.C.

Matt Carter, president of Boost Mobile in Irvine. Image courtesy of Boost Mobile.While not available yet in Orange County, former Boost Mobile president Matt Carter, pictured on right, was tapped in December to lead Sprint’s 4G division. He is still based in Orange County.

Read the full 4th quarter earnings release HERE.

Earlier on Boost and Sprint:

Posted in: Cell phones
 
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 7 Comments

  • zoe says:

    boost mobile seems to be getting back in the game. i noticed that they now offer blackberry, the phone itself is about $250 but the plan is only 50 or 60 and thats unlimited EVERYTHING. i think thats better than most blackberry plans out there no? and you dont have to commit to a contract, no credit checks or deposits. sounds like a deal to me.

  • LGT says:

    Sprint will be gone soon, they can’t compete with Verizon and AT&T. I’m surprised T-Mobile is around as well.

  • Foothill Matt says:

    The upcoming COX Wireless service will be using the Sprint/Nextel network.

  • Trixie says:

    I had Sprint service about ten years ago and vowed to never return to them. Their service is ABSOLUTELY HORRIBLE. Dont use sprint. They have poor customer service!

  • Sprint Headache says:

    I have had Sprint service since early 2002. This past week I added a second line to my account and everything fell apart from the Sprint store trying to swap out my new phone battery for an old one, to double charging my debit card for the phone, not giving me a receipt for the return of my phone (after not being able to resolve issues) until I indicated I would not leave the store. Then Sprint’s computers would not let me get another phone for the new line I added (how do you use a line without a phone?) – the Customer Service reps are clueless, the Customer Service manager I spoke with was flippant and seemed to care less whether I stayed with Sprint or not. The ONE thing that I LOVE about Sprint is their “30 day satisfaction guarantee” – if it were not for that I would be stuck paying for a phone line without a phone on it. I am moving over to unlimited calling with Verizon. Oh, my services were running about $159.99 (plus taxes and fees) – it’s not much for them to lose but every hundred adds up!!!! Goodbye Sprint!!!! (Read their Stock news – everyone is leaving them!)

  • Terry says:

    Yeah, had the same headaches with Sprint. Bill issues meant I had to phone CS – what a pain! Rude, unhelpful reps just send you round in circles! I eventually opted to pay the ETF just to get out of my contract, still a year before it was supposed to terminate.

    On a brighter note – my troubles with Sprint encouraged me to check out the prepaid market and I’ve now found a much better option with NET10 prepaid. They DON”T add hidden fees, they DON’T charge overages or roaming fees and they DO deliver quality service at a low price.

    Sprint could learn something from them…

  • John Brown says:

    I’m not sure what service you’ve been using, but I’ve never had a problem with Sprint. I’ve been using an HTC Mogul for two years through Sprint before switching to Boost and a Sanyo Incognito. I’ve got better signal with the Sanyo as the HTC’s built-in antenna left something to be desired.

    That said, I switched for the pricing and need for unlimited talk/text/web. A comparable Sprint plan would’ve ran me double the $50 from Boost. And even at that price point, there’s plenty of free software that runs on Java. I’m not forced to use some morally ambiguous app store. Opera Mini works just as fast as any other browser you can throw at it.

    So for argument sake, I can say I’ve never had a problem with Sprint. The only time I’ve had to call them is to change plans (which does not renew your contract) based on my financial situation. If you’re having problems with Customer Service, get another carrier. At least when I call with a legit issue I won’t have to sit on hold.

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