Well, it looks like the
aggressively priced unlimited action really didn't come a moment too soon. We're no economists here, but it doesn't take rocket science, a Ph.D., collegiate level maths, or even a fancy calculator to crunch the cold, hard numbers coming out of Sprint Nextel's fourth quarter earnings call. For starters, the number three carrier in the US reported a net loss of nearly $29.5 billion, which -- get this -- is more than the combined value of its outstanding stock. Let us reiterate for emphasis and drama value: Sprint lost more money in the fourth quarter of 2007 than the company is
worth. Wow. If it's any consolation, the staggering figure is largely due to a $29.7 billion write-down of Nextel's value, which as the Wall Street Journal lays out, makes the 2005 merger officially a "Deal From Hell." With postpaid subscribers continuing to migrate to other carriers, there's no telling how to stop the
hemorrhaging -- especially if the fresh $99 unlimited plan doesn't end up doing the trick -- but something tells us the
move to Kansas isn't going to magically patch it all up.
posted Feb 28th 2008 8:02PM
"the number three carrier in the US reported a net loss of nearly $29.5 billion"
That's not good anyway you try to spin it. Damn.
But what if the $30B (?) gone to the savings of the consumers because they - let's say - slashed their airtime charges by half?
That picture is hilarious.
Wow... looks like Google may be able to pick up a communications company for their Android platform for "Next"el to nothing.
i wish.
Knock knock....
.....Who's there?
Chapter 11..... :)
God that was almost just as stupid the first time you posted it, earlier today.
So by that rationale, it's improving each time I post it.
Keep up the Sprint/Nextel posts Engadget :)
looks like you have a lot of posting to do
As much as I hate Sprint, I hate Verizon and ATT more.. So here's hoping that they'll pull out.
Sprint would have a better chance of surving if they were to abandon ALL analog signals, and move to GSM. Just having to have the analog support in their phones causes them to have a poor selection of phones, and phones that suck. CDMA is a dying system, and the sooner they jump to GSM, the better chance they have surviving.
TEG
Yes. Please Sprint, move to GSM.
howabout sprint ADDING gsm? cdma is excellent in USA. better than gsm in fact.It only sucks for the reason phones cannot be unlocked and its only in USA
Sprint doesn't have analog. Their network is all digital, and since ev-do came out, their phones haven't even supported analog roaming.
Huh? Sprint *never* had an analog network. From the very beginning, they've been all CDMA. In fact, they were the second major rollout of CDMA technology, behind Airtouch, which is now Verizon (although US West, which is now Quest, also had an early CDMA buildout). What *is* true is that Sprint sold dual-mode phones (AMDS/D-AMPS) for many years, but the "analog" portion was only ever for off-network roaming, usually from towers belonging to Airtouch or the original ATTWS.
Everyone except for the two Chris' are dumb.
CDMA is not analog.
CDMA is better than GSM in every possible way.
CDMA phones are unlocked, it's the carriers themselves that are closed.
They may have never "HAD" an analog network, but the reason it took them a full year after VZ to the RAZR was because they required the AMPS/D-AMPS antenna. You are NEVER going to keep your clientele if you can't get the "cool" phones, and right now, the iPhone is the "cool" phone. They can NEVER have it, so goodbye.
Hello! Analog went bye-bye on February 18, 2008. That's like oh, a couplea weeks ago. As for phones that's the decision that the uppers at Snextel decide.
you think CDMA is better than GSM okay....
This makes me feel bad, I'm switching to AT&T from Sprint in 3 days.(contract)
Iphone here I come, sorry Sprint but the numbers don't lie.
I'll be doing the same in two months.
I did it a couple of weeks ago. It feels great to call customer service and speak to a person!
Yeah. I just jumped ship myself.
I just jumped ship from T-Mo to Sprint. While i miss the good customer service, I have great service, it's inexpensive, and fast. It's 3G unlike T-Mo.
"I just jumped ship from T-Mo to Sprint"
Wouldn't that be analogous of jumping off a raft to get on the Titanic?
Meh, chances are, finances will go up when XOHM starts up later this year. After all, XOHM will be the next generation of internet service [4G!].
Yes! I'm sure XOHM will change everything HA!! Especially since the average consumer just wants a decent phone that works, not super high speed internet. That fancy stuff is for people like us who are on this website. Not saying it won't help, but it better pay off or else that will just be another thing to lose money on.
"Yes! I'm sure XOHM will change everything HA!! Especially since the average consumer just wants a decent phone that works, not super high speed internet. That fancy stuff is for people like us who are on this website. Not saying it won't help, but it better pay off or else that will just be another thing to lose money on."
Or you know, businesses, which is really the backbone of the sprint network. XOHM won't be targetted at consumers, it will be targetted at business users, just like EVDO and HSPDA are.
XOHM (wimax) is not for cellular phones, its for mobile devices like labtops. Can't wait for XOHM to come out.
Well, actually, the company had a book value of $51 billion, of which they wrote down the $30B, leaving a net book value of $21B. The market, in all its cleverness, had already taken into account the sh*tty, worthless part (i.e. Nextel) and had given Sprint a market cap of only about $25.
So, while you may reiterate and dramatize as you please (don't get me wrong, $30B is still $30 billion!), the market was expecting something like this.
Market cap here is actually $42B - $23b in equity and $19b in debt. So the loss is really not bigger than the enterprise value of the company, but we are splitting hairs here - it's ugly no matter what way you slice it.
XOHM will help - that's of course if they are not acquired/merge with Clearwire or they don't spin off into their own entity and don't consolidate up to Sprint.
The Market Cap is $23B. 2.84B shares at $8.09 per share is $23B. I think you are talking about equity, which is not on Google finance yet since they just reported today.
Just amazing that they lost over $10 a share. Even more amazing is that the stock is only down $.04 after hours...
Exactly EV is the better metric for the "value of the company" (if you own the buy all the equity you also get the debt).
BUT let's remember - the $29bn write-down is not a cash loss, its simply an accounting change on the balance sheet.
AND I think their CDMA business actually added around 3m subscribers last year... while their iDEN operation lost 4m... Anyway - keep going in that direction and it'll soon be a far simpler one-network company!
....AND i believe they are talking of using WiMax for mobiles.
Since the current 700MHz auction has taken $19.5bn so far, has anyone done the maths as to how much you should pay for Sprint's spectrum plus their 40m subscribers?
lol
I would TOTALLY switch to Sprint/Nextel for their $99 plan.
Unlimited EVERYTHING?! Verizon (my current provider) offers a similar plan for $140... and that doesn't even include DATA.
$99 for unlimited EVERYTHING is an amazing deal, I think.
So, how does this new unlimited plan help Sprint financially?
Wouldn't many of the likely subscribers to this plan ultimately be
unprofitable for them anyway?
Wouldn't that just keep "digging a hole" so to speak?
Homer: I know! We'll dig our way out!
Chief Wiggum: No, no dig UP, stupid.
Sprint stores are a joke.
I've gone into a sprint stores with the intention of buying a new phone, and each time I left without giving sprint a dime because the sales people I encountered are not just uninformed, they're belligerent toward the customer. The sprint store closest to me is the worst. I knew the sales people would be terrible, so I went there with the intention of just choosing a phone from the wall displays that fit in my price range and then choosing the best one based on the physical dimension and the voice clarity in some test calls. But guess what, when I walked in there were no prices on the display model's info cards and the sales person said I have to ask him for the prices of any phone I'm interested in. WTF?! Once again Sprint did everything they could to keep me from gibing them my money.
I love how some people have bad experience with an company and everyone just thinks hey that must be how it is. Ive had SPRINT for 7yrs now. NEVER EVER had an issue except when my phone was sending out duplicate texts. And that was resolved after two calls to customer SVC. Cmon we all know ever company has horrible customer svc these days. Is that acceptable? NO. Should it be worked on? Yes. My GF has the SERO plan and she pays $55 for 1250 1000 text messages and unlimited DATA. There isnt a carrier in the world that can beat that price for what shes getting.
Now does sprint have the coolest phones? NO But most trolls out there dont even know how to work the simpliest phones. Does sprint have the best cheapest DATA network....HELL YEAH.
Id love to compare ATT or Tmobile data to sprints EVDO which prob gives me comparable speeds to some peoples DSL. I use my phone to TETHER to my laptop or IPOD TOUCH all day and dont get charged for it. Cant beat that ATT or verizon or Tmobile.
Do they have an uphill battle ahead of them? Hell yeah..But the whole cellular industry needs to be overhauled. The fact that now there offering these unlimited options means that for years we were all paying for grossly overpriced services and still prob are now.
Ill be sticking with sprint cause with all there issues iam getting great deals everytime i call them. And to everyone who says there customer svc is horrible they now have the option to communicate to them with a chat svc thats fast and easy to get what u want if u dont wanna talk to a person. Took me less then 5min to upgrade my plan and add a svc.
I tell ya, I've had Nextel for about 7 years. Since Sprint took over it is nothing but a pain for me and everyone I work with. The only upside is the hybrid phone gives me a better signal but I still lose the PTT. Nextel had pretty good customer service. Sprint is comparable to the old AT&T, it sucks if not worse. If I didn't use it so much for work I would drop it in a second.
I heard all the bad things about Sprint, but SERO was too good to pass up. Hopefully they're still around in two years.
Did Sprint think that laying off people wouldn't impact their bottom line...You don't treat your employees poorly and then lay them off and expect it that to reflect well to customers...and the business world. You certainly don't treat your customers like crap...yes there are "dead beats" out there that don't pay their bills...but you shouldn't treat customers like dead beats when they miss a payment or are late, especially since they have been paying all along. Nextel and Sprint may not have had good customer service, but they completely trashed customer care once they merged. one of the biggest mistake they did was changing plans on Nextel customers. example customers that had unlimited in coming call plans were changed...one person I know received a $400 plus phone bill, when he called customer care he was told "didn't you see the notice that was in your previous bill (yea, the one printed in nano font that you need a microscope to read) that your rate plan changed" They told him that he had to pay it...he said, no I don't, sue me...he went over to another carrier. Then Sprint is puzzle that they are bleeding customers???
Then Sprint laid off thousands of employees, some that have been loyal employees since they started, but not first without treating them like second rate people because they are older employees and to add insult to injury after they were laid off...hire younger people, which of course they are paid less...
Then Sprint thinks everyone should think they are a good company and all is well and dandy...
Personally, The day Sprint Nextel goes out of business I will be dancing on their grave! Unfortunately the people that will really suffer will be the employees, I would certainly feel sorry for them. Sadly the all the big wigs will have their golden parachutes...
I would like to see Google buy Sprint and cut all narrow minded upper management and Executives and build a new cellular/ data network...maybe a free ad based system...who knows...
I can go on ranting, but I'll spare everyone from my further spouting...
Thanks!
I just hope Amazon can re-flash my Kindle off Sprint when they fall over dead.
Just because the company goes down the tubes doesn't mean the network will go dark. They have lots of very valuable spectrum, tower locations and a very loyal (nextel) subscriber base that isn't going anywhere.
Telecom companies are very hard to value, especially the wireless ones. $30 bil seems to me to be a very light valuation, maybe if only looking at subscriber contracts or stock price. There are a lot of stocks that are upside down these days on valuation, but that doesn't mean someone can just waltz in and buy out Sprint without a huge premium -take, for example, MS-Yahoo. No way they are going to pick up Yahoo that cheap, not when they were much higher just a few months ago.
You are right about the network not going "dark" but...
"...and a very loyal (nextel) subscriber base that isn't going anywhere"
Maybe you missed that part where they dropped more Nextel subscribers (4 million) than they picked up in "regular" subscribers (3 million). Faithful, you say?
"No way they are going to pick up Yahoo that cheap, not when they were much higher just a few months ago."
My guess is you are not a stockbroker. Just because it was at a higher price again, doesn't mean it will ever see that price again. Using your example, some years ago, Microsoft offered $40 per share for Yahoo! now all these years later... $30/share. Much like Yahoo! will never see their pre dotBomb stock price again, the downside seems far greater thant the upside for Sprint. Much of Sprint's "upside potential" seemed to do more with all the MVNO they had signed up. But with that market pretty much going bust sans a couple of players, even that now has limited benefits (along with the added risk of losing money with an MVNO going bankrupt, and thus being unable to pay Sprint).
It seems as though some folks have it all mixed up. For one thing, while the iden network needed work, the company as a whole was in awesome condition - lowest churn in the industry, highest ARPU in the industry, and a dealer channel that was second to none. A strong dealer channel also makes good economic sense for the carrier. Even with the network difficulties, Nextel would have been in better shape today - alone, than Sprint would have ever had a chance to be alone. The merger has not only hurt the customer experience, but it has seriously hurt a dealer channel that had a lot of time, money and soul in their businesses. Their is a larger story here than any of the the comments I have read in USA Today, NewsWeek, or any blog anywhere.
That probably explains why 500 people got laid off at a local call center of mine... Good thing I left that company for a career though.
If your a sprint/nextel customer, you dont mean jack. Trust me as a previous rep for that company, I can say that the customer service the poorest I have ever seen... they dont budge for anything. I worked for AT&T and they would do almost anything for customers. Never worked for Tmobile though :/ but i wish at&t was in canada for cell service.
P.S: Dont go down with the ship! you'd be crazy to take on Sprint/Nextel as a provider...
My favorite line to customers was "We canno gurantee accurate information from any of our representatives" No credit for you! you should have read the fine print or read your bill!
P.S: Dont go down with the ship! you'd be crazy to take on Sprint/Nextel as a provider...
My favorite line to customers was "We canno gurantee accurate information from any of our representatives" No credit for you! you should have read the fine print or read your bill!
...it encourages users who currently pay less than $100/month, to upgrade in order to forever avoid overage penalty fees.
...while S takes a hit on those subs who currently pay over $100.. but there aren't so many of them anyway!
How to right the sinking Sprint ship?
Well a good start would be to STOP TREATING YOUR CUSTOMERS LIKE CRAP!
Is Sprint really that bad... I've been clamoring to get out from under Verizon's thumb (my contract is up in the fall), and get onto a network that has EVDO unlimited at a decent price.. which from what I've been looking like seems like sprint is good for. Whats the deal?