Hyde had previously served as CEO at nTelos Wireless, Lumos Networks and T-Mobile UK, and now will be responsible for overseeing and implementing Sprint’s strategy across its prepaid brands, namely Boost Mobile, Virgin Mobile, and Sprint Prepaid. As for Draper, he was formerly president of Sprint’s prepaid services business. But with the upcoming relaunch of the Virgin Mobile brand, Draper will now take the helm in guiding Virgin as it undergoes a major overhaul of its services. No definite relaunch strategy has been disclosed for Virgin yet, but details should become public in the next few months.
The market for prepaid mobile has increasingly become more competitive over the past year or so, and Sprint is certainly looking to regain some of its bearings. During the first three months of this year, Sprint registered a net loss of 264,000 prepaid users, a significant decrease from the 546,000 net additions it posted exactly a year before. While Sprint’s prepaid woes continue, competitors such as AT&T’s Cricket Wireless and T-Mobile’s MetroPCS keep on racking up prepaid customer additions. The intensifying competition has also helped in pulling down the overall postpaid ARPU (average revenue per user) over the last three years, while prepaid ARPU continues to make some progress, albeit modestly.
Interestingly, industry leader Verizon Wireless has decided not to put too much attention to prepaid, opting instead to focus on its postpaid business. Still, this does not mean an easy road for other carriers, especially Sprint who needs to regain some of the traction it lost in the prepaid market.
Source: Fierce Wireless