Sprint (S) To Give Away Cell Phone Calls For Free
February 20, 2008 by Douglas A. McIntyreNow that its rivals (AT&T NYSE: T) and Verizon Wireless have gone to $99.99 a month unlimited calling plans, Sprint (NYSE: S) needs to get it in gear. It has had trouble adding new wireless subscribers for the last two years while the two larger companies have put on more customers every quarter over the same period.
Sprint’s merger with NexTel killed its subscriber service reputation which has done damage to the company’s revenue and operating income. A recent study by the University of Michigan showed it in last place for customer satisfaction among US wireless providers The company sacked its CEO and has added an activist investor, Ralph Whitworth, to its board, an action it probably would have liked to avoid.
According to Reuters "Sprint has yet to respond (to its competition), but analysts say it could be considering an unlimited calling plan for as low as $60 a month in a bid to stem customer defections."
With its stock down from over $25 less than two years ago to just over $8 now, it may have to give its service away to get new customers.
Douglas A. McIntyre
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