Sprint releases Q3 2008 results

sprintAs has consistently been the case in recent history, Sprint’s Q3 2008 results show a decline in revenue and a loss of customers. Sprint’s overall revenue fell 12% to $8.81 billion from $10.04 billion a year ago. Sprint’s wireless service also showed a similar decline, losing 13% from last year and 3% from last quarter. The decline in revenues was due primarily to a loss of customers as Sprint’s total number of wireless customers declined by 1.3 million during this quarter alone and almost 3.5 million since Q3 2007. Post paid customers make up the bulk of this loss during the current quarter as 1.1 million post paid customers left Sprint for its rivals. Sprint did have some good news as post-paid ARPU has stayed at $56 compared to Q1 and Q2 2008, primarily due to increase in the numbers of customers using data. Prepaid ARPU also showed a $1 increase from Q2 2008 as the number of Boost Unlimited subscribers also increased. Nonetheless, the take home message is that Sprint is continuing to lose customers at a relatively fast rate. Sprint’s introduction of several customer care programs to keep customers and encourage them to sign up for data plans may help stem the tide of its decline. It also has a decent lineup of new phones but that nagging question still looms, will new phones and new services be enough to compete against the likes of Verizon and AT&T?

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