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.
Reader Comments (Page 1 of 1)
Ryan @ Feb 28th 2008 9:21PM
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?
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.
Ryan @ Feb 28th 2008 9:32PM
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.
packetsniffer @ Feb 28th 2008 9:50PM
"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"
There's no telling how to stop the hemorrhaging, but then you tell one method of stopping the hemorrhaging. Hmmm...
"We're no economists here" Well said! ;-)
packetsniffer @ Feb 28th 2008 9:52PM
@Ryan
Lower prices means more subscribers which means more profits. It works that way with government and taxes too, if you're a Republican. ;-)
@Engadget
Why'd you remove the reply feature?
Josh RStwnSqMall @ Feb 28th 2008 11:24PM
id like to see one that says "Employees jumping ship fast as the speeed of light....thats your employees losing faith, at SprintSpeed"
packetsniffer @ Feb 28th 2008 11:36PM
@Josh RStwnSqMall
Since when are the employees jumping ship? If anything, they're being pushed off. The customers are the ones jumping ship.
Dave @ Feb 29th 2008 1:11AM
Dorthy, Sprint's not in Kansas anymore, wait...
Deus Invictus @ Feb 29th 2008 9:08AM
I said it when the Sprint Nextel merger was announce, I said it when the AMD ATI merger was announced, DON'T DO IT!
But these big companies won't listen to a random anonymous person in an internet forum. Maybe if they did they wouldn't be bleeding money.
Deus Invictus @ Feb 29th 2008 9:08AM
I said it when the Sprint Nextel Merger was announced and I said it when the AMD ATI Merger was announce. DON'T DO IT!
But NO! These big companies never listen to some random anonymous person in an internet forum. Maybe they wouldn't be bleeding money if they did.
Deus Invictus @ Feb 29th 2008 9:09AM
Great now I have to vote myself down for double posting!
PEZ @ Feb 29th 2008 9:18AM
Sprint will be gone within 18 months.
PhilR8 @ Feb 29th 2008 11:06AM
Sprint won't be "gone", per se. It'll probably be called something else, though, or at least owned by someone new.
Anthony @ Feb 29th 2008 11:29AM
I have to say that if my company didn't pay my phone bill then I'd be jumping on Sprint's offer. $100 is a pretty good deal considering what they're offering (& service would generally work for me based on their maps, though travel quite a bit).
sinz @ Feb 29th 2008 1:44PM
so are sprint employee's still gonna get paid???
yea i can see the fcc taking the iden network away from sprint.
sk telecom might even buy them out like a hostile take over, after that much of a loss.
packetsniffer @ Feb 29th 2008 5:22PM
You can see the FCC taking the iDEN network away from Sprint...? If we ignore the fact that that's patently absurd, for what reason would they do that?
backbeat @ Mar 1st 2008 11:03AM
10 years after Sprint finally folds its puptent, the Sprint-trolls will *still* be the biggest loudmouth-whiners on the www.
Workin Man @ Mar 1st 2008 12:24PM
Maybe sprint should try improving the customer experience. i.e. Customer Service, some better devices, etc. It's no coincidence that Sprint has been ranked in the bottom of the JD Powers Customer Service surveys in the last few quarters and also losing customers.
backbeat @ Mar 1st 2008 1:56PM
@ Packetsniffer More subscribers does not equal more profit where gross mismanagement is ever-present, except in theory. Same goes if you're a Republican.