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Sprint’s Boost Mobile – Number 1 – and Two Thoughts, Time to Change the Game
8/5/2011 edit
By PJLouis
Tags: wireless, Sprint, prepaid, Boost, JD Power, smarthandsets

http://connectedplanetonline.com/3g4g/news/sprints-boost-mobile-the-preferred-carrier-in-growing-prepaid-market-0729/

 

Has anyone noticed that the mainstream media has largely ignored Sprint’s Boost Mobile’s accomplishment? Not more than a year ago most pundits were still questioning the wisdom of selling into the prepaid market; and that was despite the market’s growth.


Now we hear that by the end of 2011, 25% of all users will be prepaid. More importantly, Sprint is leading the charge. Sprint has done a great job.


Many industry analysts are still classifying all prepaid users as high risk and price sensitive; in other words, DEADBEATS.


J.D. Power and Associates’ 2011 Wireless Customer care Performance Study found that Sprint’s Boost Mobile received the highest overall customer care satisfaction score among prepaid service providers. This is all good news and it coincided with the announcement from the New Millennium Research Council’s that customers are signing up prepaid subscribers faster and in larger numbers than ever before.


Sprint has done a great job in this sector. The carrier needs to think about taking the necessary actions bolster its numbers. Unfortunately unless a big independent wireless carrier makes itself available to be purchase by Sprint, the only way Sprint will be able to compete head-to-head with Verizon Wireless and AT&T Mobility is by merging with a different type of carrier.


In the past I have stated a merger between Comcast and Sprint would create a different type of wireless telecom carrier; one with a massive content library.


Sprint needs to keep plugging away at the prepaid market and continue charging away at moving the company forward.


One piece of advice to Sprint: The business has been and always will be about collecting nickels, dimes, and quarters.


In other words, it is about volume. Wall Street analysts will scream it is about large margins. However, the telecom and even media business has been always about volume.

 

Here is another thought. The LightSquared deal is great for Sprint and LightSquared. Let us say LightSquared loses the GPS interference battle; who cares? LightSquared can become an MVNO for Sprint. Maybe that is too wild a thought.

services get commoditized and then prices drop. Then service packages are created.  Today these plans are called data plans, service plans, family plans, etc.  In other words, VOLUME.

Sprint needs to change the competitive battlefield by showing up to the fight with a big ally.
PJLouis PJLouis
8/5/2011 edit