http://allthingsd.com/20110808/sprints-virgin-mobile-brand-taking-on-t-mobile-att-in-new-ads/
Between Sprint’s very funny ad where it promotes its Virgin mobile brand and also taking shots at the AT&T/T-Mobile merger, the HTC EVO, the Samsung Conquer, and the Motorola PHOTON, Sprint is really promoting its products. For NASCAR fans like myself, I should also take note of the NASCAR Sprint Cup Series.
Sprint has recently been promoting its Virgin Mobile prepaid by making fun of brand of the AT&T/T-Mobile brand. You have to watch the commercial. It’s cute and funny. It also made me realize just how powerful the Virgin Mobile brand really is.
Sprint’s EVO, made by HTC, is a solid phone. It was a bit pricey when it first came out but now you can find this handset for less than a $100. I don’t mean to sound like an ad for Sprint but the point I am making is that the 4G handsets are very affordable now. I believe a key aspect of Sprint’s ability to succeed in its turnaround is whether or not it can get 4G handsets into the hands of their targeted consumer.
Right now all carriers are trying to push their prices down. However, the other carriers are focused on the postpaid customer base, which is supposed to be price insensitive, while Sprint is focused on the price sensitive customer base.
Frankly I think Sprint will be able to push the same handsets into their prepaid customers as fast if not faster than the postpaid carriers. What I am driving at is that the value of a prepaid customer may now be as high as a postpaid customer. Prepaid customers have already given the carrier the cash. Postpaid customers wait a month or even more now before they even pay their bills.
I have no data as to what the comparative ARPU is between a prepaid and a postpaid customer is. But something is telling me the gap is closing thanks to the continued economic recession.
Sprint has also launched the Motorola PHOTON 4G. The PHOTON 4G supports 3G CDMA and 4G WiMAX. The handset is being reviewed by a variety of industry pundits. I will chime in soon.
What does this all mean? Sprint is competing hard and fast. I like what I see. The company is doing a very respectable job going head to head with AT&T Mobility and Verizon Wireless. However, Sprint needs to keep moving forward with new alliances. The LightSquared alliance is one but I still believe a closer relationship with Comcast is necessary.
The company is rapidly marketing new handsets, the marketing is focused, their strategy appears to be focused, and it is developing alliances.
Sprint still has its hands full; there is a lot to deal with but does anyone remember what the carrier was like in 2006 and 2007? I do. Sprint has come a very long way.