28 July 2016
The US fourth largest carrier CEO hints that their “half-off” promotion will not continue longer though it works pretty good for Sprint adding new customers. For all US smartphone users, if you are looking forward to changing your carrier to Sprint to avail their latest “half-off” offer, you should not delay it as the promotion won’t stay much longer.
As per Sprint new promotion, the users existing rate plan will be reduced to half and so far this promotion from Sprint is a hit and company recently revealed at the end of Q2 they managed to attract 173,000 postpaid customers after this promotion.
This new promotion is a reversal for the company from the loss of 12,000 customers which leave Sprint network last year. According to the latest statement from Sprint CEO Marcelo Claure, the new half off promotion will not stay forever and also hinted that prices will be increased later in summer after the announcement of iPhone 7 lineup.
Claure said "You can expect us to come up with a new set of rate plans before the next iPhone,"
Well, the promotion certainly helps Sprint to lure customers to start looking at the company once again but the latest statement from company CEO underscore what Sprint achieve was at the heavy cost. Back in 2015, Sprint posted a loss of $20 million when company customers left them and in the first half of 2016 company faced a loss of $302 million to attract customers once again.
This kind of promotion was the must for Sprint to get the attention of customers. After years of poor wireless service, the company is now trying to rebuild their reputation which cost them a hefty loss. The CEO didn’t clearly mention about price increase but for sure to increase their shareholder value, the company will have to do game-changing moves and without giving many details he intends to do aggressive moves in future as well.
Everyone was keen to know about Sprint’s prepaid business loss as well because during the first half of 2016 company lost nearly 331,000 customers. For the budget, conscious customers company runs Boost Mobile and Virgin mobile but in the last couple of quarters, the company is losing their strong area. The reason behind this loss is AT&t’s Cricket Wireless and T-Mobile’s MetroPCS which won hearts of conscious customers who take care of the budget. Claure accepted company lost business in their lifeline business. To overcome this loss, the company is planning to overhaul Virgin’s plans in September this year.