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Sprint CEO Announces Big Changes Coming to Virgin Mobile

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You may already be aware of the big changes happening over at Sprint. And as you probably know, these changes are all inclined for the advancement of the company and its subscribers.

Earlier today, Sprint announced that they have a new strategy set in place for their prepaid brand, Virgin Mobile. Executives from the company spoke with analysts on how they are currently de-emphasizing Virgin Mobile to focus on Boost Mobile. To show how dedicated they are with this, the company has pulled out the new advertising campaigns of Virgin before the new strategy makes its debut.

While the execs were determined to focus on Boost, they did not say what their plans for Virgin was. They did, however, explain that the prepaid brand will not be aggressively advertised as opposed to the practices of competitors MetroPCS and Cricket. According to Sprint CEO Marcelo Claure, they want to to figure out where it is they want to fight and where they want to grow. And at this point, they want to retain customers that play a huge role in the company.

Some changes that the company want to make include relocating some cell towers and to also optimize small/macro cells as a network densification strategy. And to cut down the fees they pay to AT&T and Verizon for fiber carriage, the company is considering shifting to backhaul operations to microwave. 

The CEO has reassured their customers and investors that the network improvement plan they have in place for Virgin will not be disruptive. The strategy is not aimed to be a rip-and-replace plan but rather to be a "progressive build" for the company to be better. With these changes, the CEO believes that they can reach the number one or two spot of the best performing networks within a span of two years.


Source: PhoneScoop

21 comments:

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  1. Sounds like Virgin Mobile is going to be phased out perhaps but would think it would be smart for them to go to per minute plan or something to try to just boost subscribers.
    recent news report of laying off 2500 people and wanting to cut two and a half billion dollars from expenses. It sounds like they need quicker action than more promises of the best network in two more years..haven't we heard this story before?

    Mad money's host doesn't really see a bright future for them looking at the stock value let's hope he's wrong about going to 3 carriers!

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    1. Good to see the face of a carrier leader that, despite his lackluster deals, doesn't break into immature profane tyrades, doesn't consider First Amendment protection groups his enemy, doesn't have his service censor video he doesn't like while advertising it as a benefit, and doesn't make crude sexual jokes in attack adds named at bigger companies.

      It's called being one of the adults in the room. Now, who will change Legere's diaper?

      Delete
  2. I honestly didn't think Virgin Mobile was still relative in the prepaid, non-contract game.

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  3. They all use the same towers? How would infrastructure changes affect Virgin Mobile in any way different than it would Post Paid or any of the other Sprint Subs?

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    1. It won't. The infrastructure changes and de-emphasizing Virgin are separate and unrelated topics that Claure announced today.

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  4. Without roaming partners nothing going to happen.

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  5. Get rid of VM, it's redundant at this point, merge them into Boost so they can compete with Metro and Cricket head on. They're wasting money stocking twice the shelf space all while losing customers at both ends.

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  6. They should just axe virgin mobile and go all in on boost mobile. Oh and get rid of sprint prepaid.

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  7. Major carriers can have just 2 simple plans 1) post paid 2) prepaid.. Why do they need so many MVNOs?..

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    1. Different markets, kinda odd like scion Toyota Lexus, same parent company, different demographics.

      Delete
    2. T-Mobile has T-Mobile Prepaid, MetroPCS and GoSmart
      AT&T has GoPhone and MetroPCS
      Multiple brands means more visibility from more shelf space in big box stores and it gives the illusion of lots of choices when there are few.

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    3. Sprint Boost, VM and SPP are subsidiaries and not MVNOs. :)

      Delete
  8. AT&T has GoPhone and MetroPCS?

    Dennis, do you mean Cricket?

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    1. Yeah I meant Cricket. MetroPCs and Cricket are like tweedledee and tweedledum to me sometimes.

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  9. @Dennis..you mean att has go phone and cricket, right?

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  10. Its just a matter of time when Sprint either folds, or merges with a cable operator or T-Mobile.

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  11. Claure's move to deemphasize the ptepaid sector doesn't make a whole lot of sense when Cricket and MetroPCS shows the growth potential. Sprint's prepaid operation is fragmented and Virgin is all but redundant. I wonder if Claure turns Virgin into an equivalent to GoSmart.

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    1. "We are deemphasizing prepaid" is Claure's excuse for losing prepaid customers last quarter.

      Yesterday's changes to Boost sure don't look like Sprint is deemphasizing prepaid.

      Carriers and investment analysts value postpaid subs much higher than prepaid ones because postpaid traditionally has lower churn and higher ARPU. They say the carrier "owns" the postpaid customer because most are locked in for up to two years by EiP. All the carriers would rather add a postpaid customer than a prepaid one although they will take prepaid one over no customer at all. The markets reacted positively to Sprint reporting postpaid subscriber gains in spite of losing lots of prepaid subs.

      To show postpaid growth, Sprint is trying to move prepaid customers to Boost Premiere and similar unpublicized programs for Virgin and Sprint PP where they count them as postpaid.

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  12. Some glaring grammatical errors in this article. Ouch.

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    1. Pretty much par for posts by Christine. At least one major (& usually several minor) wince(s) every time I read one.

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  13. Sprint should just phase out Virgin/SPP.

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