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printed October 24, 2014
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Sprint Turns to Throttling to Manage Network Congestion

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Open Letter To Robert "Bob" Johnson CFO/CIO for Sprint United

by MadFatMan    May 8, 2014, 6:20 PM

As a now former business analyst who has seen your voodoo economics at work 1st hand while maintaining Sprints public perception as the "good guys".

1st by increasing RPU by

- Drawing a line in the ground that most of the desirable devices will require all inclusive plan Starting with the laughable iPhone killer flop that no device could ever live up to its infamous marketing campaign and hype the Samsung Instinct.

- Requiring WiMax (at 1st) then eventually ALL smartphones to encure a $10 device MRC on top of a supposedly ALL INCLUSIVE plan.

Stopped the huge hemorage of handset subsidies by allowing subscribers to break the full cost of a phone over 24 mos. Guess you figured the allure of a Shiney new phone would keep the bulk of the subscriber's tied down where they will most likely never have a "paid for" device.

This move subtlety shifted the EBITDA and OBITDA very favorably and increased your (choke) "acceptable" operating margin exponentially while looking like the GOOD GUYS...

NOW THIS...

Throttling? Really Bob... As a vested stakeholder Bob and as a paying customer Bob, I find your language purposefully vaugh and amibiguous potentially damaging to the bottom line. You're rolling dice unnecessarily with long term sustainability and true churn.

You said yourself "there are no new wireless subscribers out there. New wireless customers are by in large generated as sub lines on their parents plans as minors. We are passing the same customers back and fourth. We must differentiate ourselves as the GOOD GUYS and offer LOW ALL IN ONE PRICES that will all our customers to use these amazing devices they way they were intended by the manufacturer and for their lives"

"A TRULY UNLIMITED EXPERIENCE"

Bob I KNOW 2 hat it cost to ...

Acquire a new suscriber.
Retain an existing subscriber.
Provide Service to the end user including 3G/4G data
Provide over the phone, Web (preferred) and in person brick and mortar store support.

Bob, this recent move is a blatant cash grab (which you do so incredibly well) under the guise of fair and equal access to all subscribers in data traffic congested areas at peak time?

Sounds like a load of... to me

Rob P.

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