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Sprint Adds 347,000 Net Postpaid Phone Subs For Q3

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For the third quarter of 2016, Sprint was able to show significant growth in terms of net postpaid phone additions. In the third quarter of last year, the major US wireless carrier only managed to gain net postpaid phone subscriptions of 62,000. But this year, Sprint has recorded a vastly improved 347,000 net postpaid phone adds. Furthermore, the company also showed a better net loss figure, registering $142 million for Q3 2016, compared to the $585 million it suffered in Q3 2015.

Based on its latest quarterly earnings report, Sprint has also displayed marked improvements in several key areas. Its total net operating revenues for the most recent quarter amounted to $8.25 billion, up 3 percent year over year. Its wireless net operating revenues also increased 5 percent to $7.85 billion. With regards to customer turnover, the mobile operator also decreased its churn rate to 1.37 percent, which is down 12 basis points compared to the rate recorded in the second quarter of this year.

Sprint’s decision to aggressively promote a deal that offers to reduce customers’ bills in half may have paid off handsomely. During the third quarter of this year, the wireless carrier posted net postpaid phone additions of 173,000. Still, the company continues to suffer in prepaid -- the latest quarterly report has Sprint register a net loss of 427,000 prepaid mobile users. Sprint originally planned to relaunch its Virgin Mobile prepaid arm later this year, but has since decided to push back the relaunch to early 2017, which could mean that for the final quarter of this year, the carrier may continue to struggle when it comes to luring prepaid customers.

Despite the fact that Sprint has shown some improvement as far as its financials are concerned, industry watchers have pointed out that its average revenue per user (ARPU) has decreased 6 percent to $58.03, compared to the 5.7 percent decline recorded during the third quarter of last year. Because of this, the carrier’s wireless service revenues dropped 6.3 percent to $6.02 billion. However, that still represents an improvement over the 6.9 percent decrease reported in the previous quarter and the 7.2 percent drop registered in the first quarter of this year.


Source: Fierce Wireless

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9 comments:

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  1. Its silly how sprint was doing fine in the first 2 quarters of this year with all the free phones, then they stopped giving away free phones to people who ported to boost and everything hit a brick wall for all our local boost mobile stores...

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  2. So, SPG tried to be an innovator and stopped w FREE PHONE w Port In in August.Knowing this industry well, the FREE PHONE situation is ripe w fraud, perpetuated mostly by customers. Many go to Metro, get a free unlocked phone and ported out to Boost 1-2 months later to claim another unlocked free phone.Often times, this rinse, dry, repeat situation happened alot (some customers even returning back again to the original carrier to get yet another phone! ) At the end of the day, no one was making money off the customer.Evrryone needs to understand that the FREE PHONE w Port In scenario can't be sustained. And SPG assumed Metro & Cricket would follow suit in not giving free phones..but if anything - Metro & Cricket throttled the offerings (Free phone w port - in & waived activation fees) to take advantage of the gap Boost left.i wholeheartedly understand what Boost is trying to do and it's valiant. It's not popular and I hear that soon some "Free phone " options may surface w SPG..but w rules to ensure customers don't game it

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    1. What is SPG?

      Sprint Prepaid Group
      https://en.m.wikipedia.org/wiki/Sprint_Corporation#Sprint_Prepaid_Group_brands

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    2. The problem with the "free" phone from Boost is that its never a good device. Cricket and Metro have very good subsidized phones, but Boost stocks nothing but 1GB/5MP/SD410/8GB devices that NOBODY wants. Cricket has awesome mid-range phones like the Idol 3/4, Metro has the affordable ZMax Pro. Boost keeps releasing junk LG/ZTE phones every 3 months. They also scrapped their referral program (no incentive to join) and they don't offer any special port-in plans (no reason to check them out). Worse is they have competing rates on Virgin Mobile and the Sprint Prepaid brand doesn't have any special benefits (e.g data roaming). The entire SPG is averse to BYOD which is why people go to Cricket/Metro.

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    3. Although not as averse to BYOD as Boost, I do not believe Metro is very BYOD friendly. In my experience, Cricket has been the best of these three in almost all respects. Despite the fact that the parent company is very difficult to deal with, I have not had road blocks with Cricket. If using Sprint or T-Mobile, I prefer to deal with the parent companies.

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    4. So, in reply to Metro having superior phones..that's incorrect. Metro and Boost usually get the same exact phones. Often tines,1 us slightly better (1 more megapixel..) & they give them different names. So, that's absolutely incorrect. Again, I was discussing the bold move to kill the unprofitable Free phones. Sadly, that's the market we live in . No one cares about service quality, but FREE. I know the big carriers won't continue w this for too long. Free phones w port in was a stop gap, a temporary measure. It's not sustainable

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  3. Hahahaha Sprnit No.

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  4. Hopefully they keep their very competitive price points.
    As well to expand their native footprint.
    CS also needs a boost in the people friendly department as well.
    The potential is there but for whatever reason they have been hold ing back for a long time.

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  5. I hope the U.S. Cellular and C spire cover all over the U.S. so it will be more competitive than now.

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