Tag Archives | Sprint

Should Original iPhone Owners Ditch Apple for a Pre?

Palm Pre vs. ApplePreThinking has noticed that Sprint is running ads for the Palm Pre directed at the earliest of iPhone adopters–the folks who bought first-generation iPhones two years ago, and whose contracts are therefore starting to end. (Or will be in a few days–next Monday is the second anniversary of the iPhone’s introduction.) The ads correctly point out the Pre’s multitasking and Sprint’s all-inclusive $99 service plan as reasons to consider a Pre. They also mention Sprint’s 4G network, which is a tad odd given that the Pre doesn’t support it.

The ads inevitably bring to mind Palm investor Roger McNamee’s amazing prediction that “not one” original iPhone user would still be using an iPhone within a month of the AT&T contract coming to an end. Sprint will presumably be quite happy if even a smallish percentage of first-gen iPhone owners switch. But would doing so be a rational move?

Sure, for some folks. I’d at least consider the possibility myself if I had an old iPhone and my obligation to AT&T was nearing its end.

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Not the Way to Start Your Palm Pre Launch

Palm PreThe Boy Genius Report claims that Best Buy will only receive about 4,250 Palm Pres for its launch on June 6–a pittance considering the retailer has at least 1,000 retail locations set to offer the device. If these initial shipment numbers are true, each store would receive four units, far less that what you’d think would be required for a successful launch. RadioShack is fairing no better–721 stores are slated to receive an average of two Pres.

It gets worse. Best Buy’s launch is supposedly scheduled to actually be in two phases: the first of which lasts about two months after the launch, and the company is specifically warning stores that replenishment may not happen once stores sell out–which they certainly will.

I’m sure hoping Sprint stores are getting much more than four devices per store. If they aren’t, I question whether the Pre is ready for prime time. Why hogtie your launch like this?

We have a request out for comment from Sprint to see if they will shed some light on the planned availability from company stores. Typically, companies will not disclose that information so we’re not holding our collective breath on that one.

If the rumors are true, it’s a shame no company can get its act together enough to both produce and market a device that can match the iPhone.

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AT&T: Palm's Pre Stinks Because…

PreCentral has what appears to be an internal AT&T document designed to prep staffers on how to compare the iPhone 3G with Palm’s upcoming Pre. It’s not completely stunning that it tends to accentuate the negative when it comes to the Pre, and the positive when it comes to the iPhone:

Pre vs. iPhone

As unfair comparisons go, this one isn’t a complete outrage: The Pre’s lack of international capability and a robust, well-developed platform for distributing applications and content are significant limitations. But in case you didn’t know, an AT&T salesperson will never be the most reliable source of advice on how an AT&T phone compares to one which, like the Pre, will be sold only through Sprint.

Meanwhile, I’m sure that Sprint is prepping its own Pre/iPhone 3G head-to-head that point out a bunch of things about the Pre which AT&T forgot to mention: Its more compact size, its ability to multitask applications, integration with Facebook and other social networks, a better camera, and the Sprint network’s reputation for reliability. (Of course, by summertime it’s possible–likely?–that the Pre will be competing against a new iPhone with a better camera and a form factor that’s at least slightly different.)

When the Pre and the new iPhone arrive, I’m thoroughly looking forward to the battle between them. And I’m guessing that the real bottom line may be one that neither AT&T nr Sprint will admit: That they’re both going to be terrific phones that differ enough in key ways that neither is the clear winner for everybody. I can’t wait to judge ’em for myself…

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Sprint a Little Wishy-Washy on WiMax?

sprint_logo1GigaOM is reporting that Sprint has reportedly begun testing LTE equipment, a move that may suggest it may not be completely confident that WiMax may be its eventual route for 4G.

Sprint owns 51 percent of Clearwire, a company commited to bringing near-nationwide WiMax access by 2010. However, its competitors have all decided that LTE is the way to go for next-generation data, leaving the company as the odd man out, so to speak.

The company is not denying that it is testing out LTE, explaning it as a method “to monitor and assess the competitive landscape and any potential impacts to Sprint’s plans.” But you have to think, being that its the only provider comitted to WiMax that maybe it may be having some second thoughts.

Add this to the fact that Clear’s WiMax equipment was built to be converted later to LTE, and one has to wonder.

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Sprint to Undercut Itself With $50 Boost Unlimited Plan

I don’t know but this seems just a bit odd to me. Sprint Nextel owned prepay company Boost Mobile is set to offer a $50 monthly plan which would give its users unlimited voice, text, data, and “chirp” (walkie-talkie for us less hip) beginning on January 22.

Unlike other prepay companies, who offer unlimited plans on a regional basis, Boost’s will be nationwide wherever the company offers service. Indeed, its promotional material highlights this important distinction.

There’s kind of a problem here though. Sprint has its own unlimited plan, which costs $99 per month. That gives the user unlimited data, text, and voice calling, but no walkie-talkie. So really, Sprint’s just taken the unusual step of competing with itself for whatever reason — and we all know they’re not exactly raking in the profits right now.

Indeed, the company is marketing as a way to directly compete with the bigger cellular companies, where offering these unlimited plans has become the in vogue thing to do. It also markets it as a way to get away from all the fees that our celluar providers are so fond of charging.

While I am thrilled to see Boost offering what is a really exceptional deal, I’m a little confused as to why they’d undercut themselves so much. I do have an hunch however that this might just be followed by an announcement by Sprint that they’re lowering the price of their unlimited plans as well.

Let the price wars begin. God knows we all need to save some money in this economy…

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Ouch: Sprint Hemmoraging Customers, Losses Build

sprint_logo1If there was any doubt in your mind Sprint’s in a whole world of hurt, Friday’s results announcments should lead you to conclude this company is in some serious trouble. For the quarter ending September 30, the wireless carrier lost a staggering 1.3 million customers, all but 200,000 of which were contracted customers.

Just to put that in perspective, thats about two percent of its customer base gone in three months. Since last year at this time, the company has lost about 3.5 million customers, although still remains quite large at 50 million users, of which 83 percent are post-pay.

Losses for the quarter were $324 million, a sharp downturn from the profit of $64 million a year ago. Revenue also fell from $10.1 billion to $8.8 billion. Add this to the fact that it cannot seem to get rid of its iDEN network it acquired from the Nextel acquisition (and has been a part of the company’s financial and customer retention problems), and it does not look good.

Of course, the company is blaming it on the economy. Here’s CEO Dan Hesse in a statement on the quarterly results.

During tough economic times, we tightly managed our business to generate and retain cash and maintain substantial liquidity while continuing to reduce debt. At the same time, we made advancements in improving operations and delivering on the promise of the Now Network.

Pardon me for being contrarian, but if the business was so tightly managed, would you be losing customers like this? Out of all the carriers — even the nortoriously bad “old” AT&T Wireless — Sprint holds the title for the most customers lost in a single quarter.

I also find it somewhat odd Hesse talks about reducing debt when the company is actually adding to it by swinging from a profit (however small it may be) and into the red. You can’t reduce debt while spending money you don’t have.

One positive that the company can take out of this quarter is that nearly one in ten subscribers updated their phones, resulting in new contracts. It also said that it expects stabilization within its subscriber adds this quarter.

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Sprint Next to Attempt Throttling With XOHM

Do these companies ever learn? The blogosphere was abuzz Monday with the latest company to try to throttle the bandwidth usage of its users–Sprint’s WiMax venture XOHM. The service launched in Baltimore today, but hidden within its “Acceptable Use Policy” was the fact that it was reserving the right to throttle bandwidth.

Sound familiar? That’s because we’ve been through this drill so many times before.

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