Top message: Thinking out loud by cellphonesaretools
Replying to: Re: ????? by gloopey1
"Nextel never had a single year that their customer service or network tied with Verizon, yet Sprint has managed to accomplish this."
Interesting that you are still flapping your gums about all this, but providing absolutely no facts and no reliable sources to back up your opinions. Let me show you how it's done:
Below are several wireless-industry publication articles, along with hyperlinks, which is MY supporting evidence to back up MY statements that Nextel used to have THE LOWEST CHURN IN THE INDUSTRY BEFORE SPRINT TOOK OVER NEXTEL:
http://www.networkworld.com/news/2004/122004-sprint- ... »
Why would Sprint want to merge with Nextel?
>>> Nextel, despite the fact that it has a proprietary network based on Motorola's iDEN technology, is highly valued for a few reasons: its annual revenue per subscriber ARPU), its low churn rates and its high concentration of business customers.
What about churn rate?
>>> Nextel also has the lowest churn, which represents the percentage of users who leave their carrier per quarter. Nextel's rate in the third quarter was 1.5%. Verizon was a close second, with 1.7%, with Sprint and Cingular picking up the rear with churn rates of 2.7% and 2.8% respectively. Churn is a key metric used to gauge customer satisfaction.
What's the big deal about ARPU?
>>> This figure represents how much customers spend with their wireless service providers, and Nextel always has led the pack. In the third quarter, Nextel reported that its ARPU was $69. Sprint's was $63, Verizon Wireless' was $51.58, and Cingular's was $49.78. Nextel has been able to nab a nearly $20 premium per user vs. Cingular primarily because of its high ratio of business to consumer customers (80% vs. 20%). Business users tend to spend more for features, applications and reliability.
http://www.businessweek.com/print/technology/content ... »
DITCHING ITS BASE. The result is that Sprint has had a hard time holding onto what had been an extremely loyal customer base. Before the
merger with Sprint, Nextel subscribers were the most loyal in the industry. Nextel had the lowest churn rate (i.e., the percentage of customers
that leave for another carrier) in the business. "Sprint took that subscriber base and kind of forgot about them," says Paul Catalano, a wireless
expert and partner at RelevantC Business Group. "Now we're seeing much lower growth of the [Nextel] subscriber base."
RCR Wireless News
January 10, 2005
Nextel Communications Inc. has maintained the lowest customer churn levels during the past five years among the nation's largest wireless carriers. The carrier's average monthly churn figures have consistently remained below 2.3 percent since 1999 and reached a low of 1.6 percent during 2003, according to analyst data and RCR Wireless News research. Nextel's subscriber base was less than 5.5 million in 1999, and the company ended 2003 with 12.9 million customers. 2003 figures were used for this chart because 2004 yearly figures have not been posted yet. Nextel counted 15.3 million total subscribers at the end of third-quarter 2004, the last period available. â€¦
Nextel seems to have found a winning recipe. At 1.4%, the operator's churn rate--the percentage of subscribers who terminate their contract within a given period--is the lowest in the industry. By comparison, AT&T Wireless reported a 3.3% churn in the third quarter.
Now, regarding your completely false statement that Sprint has now equalled Verizon in terms of customer satisfaction, I present the Q3-2011 churn values as reported by Fierce Wireless:
http://www.fiercewireless.com/special-reports/wirele ... »
Verizon Churn: Retail postpaid churn in the quarter was 0.94 percent in third-quarter 2011, a slight improvement from the year-ago period. Total retail churn was 1.26 percent, also slightly down from a year ago.
Sprint-Nextel Churn: For the quarter, Sprint reported postpaid churn of 1.91 percent, down from the 1.93 percent it reported in the year-ago quarter. The carrier's prepaid churn was 4.07 percent, also down from the 5.32 percent it reported in the year-ago period.
There, THAT is how an intelligent, diligent, truthful person backs up their statements. You should try it some time, rather than just flap your gums with the same tired opinions and unsupported statements you usually make.
- Re: ????? by gloopey1