Uncommon Wisdom

Jul 29 2010   12:00PM GMT

Sprint gains customers, but MNVOs/wholesale dominates

Tom Nolle Tom Nolle Profile: Tom Nolle

Sprint gained customers overall in the last quarter, turning around a problem that it’s had for three years, but it continued to lose people in the post-pay market where most profits are found. The gains were also largely from MVNO/wholesale partners rather than in Sprint’s own service brands.

We’re seeing a trend toward polarization of wireless customers into those with active smartphone interests and data plans (who remain in post-pay contracts) and those who rarely use non-call features and are gradually moving to prepay models. Sprint needs to find a way to eliminate its increased dependence on MVNOs and prepay or it can’t hope to sustain economic viability.

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