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Offline paul  
#1 Posted : Tuesday, November 4, 2014 12:32:55 PM(UTC)
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Sprint is planning to reduce its workforce by approximately 2,000 employees, or 6.5 percent, a move the company says will save $400 million annually on labor costs. Unfortunately that is what is has come to for Sprint -- looking for ways to cut costs following a dismal quarter underscored by an operating loss of $192 million. Going forward, Sprint's goal is to reduce expenses by $1.5 billion annually.

"We have started a transformational journey," said Marcelo Claure, who was appointed CEO of Sprint in mid-August. "While the company continues to face headwinds, we have begun the first phase of our plan and are encouraged with the early results. Every day we are focused on improving our standing with consumers, improving our network and controlling our costs."

Sprint Store
Image Source: Flickr (Mike Mozart)

Amid fierce competition in the mobile space, Sprint lost 272,000 monthly subscribers during its second fiscal quarter of 2014, the 11th quarter in a row that it's seen subscribers flee the network. No doubt that many of those ended up at rival T-Mobile, which has been aggressively chasing subscribers through a variety of promotions, including an offer to pay off early termination fees from existing carriers.

Indeed, Sprint said it "faced challenges related to competitive positioning," though it also pointed the finger at adverse impacts to the customer experience resulting from network upgrade efforts over the past several quarters.

In response to the news, shares of Sprint have plummeted nearly 17 percent to $5.16 so far today, indicating that investors have little confidence in Sprint's turnaround plan.
Offline AndrewFort  
#2 Posted : Tuesday, November 4, 2014 2:01:04 PM(UTC)
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I somehow doubt "many of them" went to T-Mobile. Neither of them have good coverage, and a huge chunk of their network is borrowed from other carriers. Roam for too long and they kick you out because they get tired of paying roaming fees to the borrowed network providers (Verizon and AT&T). It's certainly not about how cheap cheap cheap the service is when the coverage is garbage and LTE is sparse outside of major cities.

Offline paul_lilly  
#3 Posted : Tuesday, November 4, 2014 4:20:48 PM(UTC)
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The numbers suggest otherwise. Regardless of T-Mobile's coverage (which, btw, isn't that great in my area, hence why I'm currently with Sprint), they've been killing it. In fact, T-Mobile just had its biggest subscriber growth period ever, adding 2.3 million subscribers in Q3. There's no doubt that a good chunk of Sprint's defectors ended up at T-Mobile.

http://hothardware.com/News/TMobile-Adds-23-Million-Subscribers-In-Q3-Its-Biggest-Growth-Quarter-Ever/

Offline paul_lilly  
#4 Posted : Tuesday, November 4, 2014 4:30:03 PM(UTC)
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There's also this tidbit from a Reuters article posted last month:

"Legere also said that the ratio of subscribers moving from rival Sprint Corp to T-Mobile was 17 to 1 at the height of T-Mobile's Contract Freedom campaign, a promotion launched in January, whereby the company pays early termination fees for subscribers who switch to its network.

The ratio of customers moving from Sprint to T-Mobile is now around 2.3 to 1, Legere said."

Offline JosephDFrancois  
#5 Posted : Tuesday, November 4, 2014 10:20:57 PM(UTC)
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Shawn Bacsik lol

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