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Sprint Expects to Lose 337K Postpaid Customers in Q3; CEO Resigns

SystemShock

Oct 8, 2007, 6:39 PM
Updated Operational Metrics and Financial Guidance

[Sprint-Nextel] announced today that it expects to report a net loss of approximately 337,000 post-paid subscribers in the third quarter.


and

Sprint Nextel announced today that Gary Forsee is stepping down as the company's chairman, president and chief executive officer (CEO), effective immediately. A committee of the Sprint Nextel Board of Directors has been formed and is conducting the search for a new CEO.

http://www2.sprint.com/mr/news_dtl.do?page=show&id=1 ... »


Looks like VZW reps are gonna be run ragged signing up all the ex-Sprint customers who are jumping ship. Drink a lotta caffeine, dudes. 😲

An' I guess Verizon and ATT are gonna have some pretty...
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ygbhen

Oct 8, 2007, 7:25 PM
That is not good at all. Do you think that most of the losses are from the Nextel side? I am just having a hard time trying to figure out how they keep losing so many customers per quarter and still able to bankroll the 4g project. You would think they would be a little more frugal because this slide does not seem like it is going to end anytime soon.
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Cellenator

Oct 8, 2007, 7:46 PM
🤣 🤣 🤣 🤣 im glad that they're losing their asses, this is what you get when you treat your customers like sh*T!
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SystemShock

Oct 8, 2007, 8:40 PM
Cellenator said:
🤣 🤣 🤣 🤣 im glad that they're losing their asses, this is what you get when you treat your customers like sh*T!

Yeah, it is hard to have sympathy for 'em. Under Forsee, they kept on talkin' about WiMax all the time, while the basics (customer service, billing) were like a horror movie. And then they wonder why customers are stampeding out the door? 😳

Their commercials are also pretty ineffective. You walk away from them going, "Golly, that was a cool light show n' all, but why should I go with you again?". You just don't come away with any message from them at all.

Hopefully their new CEO will be more focused on things like customer service and marketing.
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nextel18

Oct 8, 2007, 10:12 PM
Forsee didn’t even understand simple concepts though. You see what he did pre merger and after the merger. Both equally horrible.

Saleh is good so he should be able to turn the company around. It will take time though. (A lot of it 🤣
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SystemShock

Oct 8, 2007, 10:18 PM
nextel18 said:
Forsee didn’t even understand simple concepts though. You see what he did pre merger and after the merger. Both equally horrible.

Saleh is good so he should be able to turn the company around. It will take time though. (A lot of it 🤣

Yeah, a lot of time is right.

And I see that you seem to finally be giving up on your previously optimistic "Sprint is improving, really, they are" stance of the past. Really, they're not, if they've gone from netting 16k postpaid ads in Q2, to losing 337k postpaid ads in Q3, as Sprint themselves are projecting. 😳

The scary thing is, even that may not be the bottom. It could get worse before it gets better. 👀
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nextel18

Oct 8, 2007, 10:24 PM
They might have to continue to roll back that 7pm on the nights for the plans to 4pm or less to get things right. I can be optimistic because some of the things are working out. Obviously, the problem is with the IDEN side not the CDMA. I agree with your last statement.
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the_eraser

Oct 9, 2007, 12:48 AM
Honestly, I think that's what's wrong with Sprint. That whole 'Nextel this, Sprint that' They merged more than 2 years ago for crying out loud. They shouldn't be mentioned as two different worlds. I'm sure customers feel this, and just refuse to stick around and wait until they figure out their own mess.
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SystemShock

Oct 9, 2007, 1:07 AM
the_eraser said:
Honestly, I think that's what's wrong with Sprint. That whole 'Nextel this, Sprint that' They merged more than 2 years ago for crying out loud. They shouldn't be mentioned as two different worlds. I'm sure customers feel this, and just refuse to stick around and wait until they figure out their own mess.

Hate to agree (ever) with eraser, but yeah, the whole "that's a Nextel problem" bullsheeite has gotten a bit old, considering that its all one company now, and has been for awhile. Just shut the hell up and take responsibility, pls? It's the only way you're ever gonna get out of this mess. 😕

It also sounds eerily like what happened to Daimler-Chrysler when their merger soured... you'd ...
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nextel18

Oct 9, 2007, 12:09 PM
He has an interesting point, but they are indeed two separate companies. They have different cultures and strategies that they have. When Chrysler and Daimler merged it was unbalanced too when it comes to corporate cultures and strategies.
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SystemShock

Oct 9, 2007, 2:16 PM
nextel18 said:
He has an interesting point, but they are indeed two separate companies.

And hence the problem.
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nextel18

Oct 9, 2007, 12:08 PM
However, they are on two different worlds. The cultures and strategies are different. Look at the difference between independent pre merger and post. You can see that Nextel did a lot better given its issues than Sprint.
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bigdaddyjay

Oct 8, 2007, 10:42 PM
Ummm, isn't Saleh the interim CEO until they find the next moron to run the company into the ground??
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the_eraser

Oct 8, 2007, 8:58 PM
I think it is. Best thing they could do is sell the company, new name. Pray!
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shadowstar

Oct 8, 2007, 10:02 PM
Just out of curiosity, do you think if VZW offered to purchase Sprint, they would take the offer? And second, do you think it would be approved by the government?
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nextel18

Oct 8, 2007, 10:10 PM
That won’t happen. Too many divestitures. That is a good idea though as you have Sprint who is dominant in the data area and Verizon who is dominate in the voice area.
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LordObento

Oct 8, 2007, 10:28 PM
If anything... I think a private equity group who's plan is to sell off everything in parts would do a better job. They can sell the iden network/spectrum in parts... sell Sprint's PCS network/spectrum in parts and sell the wimax network/spectrum. This way VZW, Alltel, US Cellular, iPCS, Metro PCS, and GSM carrier, Cable provider, government can bid on what part of sprint they want.

It would be Funny if VZW bought Sprint and changed it's name to Sprint ala AT&T
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nextel18

Oct 8, 2007, 10:38 PM
For a private equity company to buy out Sprint is a stretch though. Selling off a company in parts unlocks shareholder value but it would destroy the company’s focus and ability to make money.
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nextel18

Oct 8, 2007, 10:14 PM
Right now, I think they are in quick sand and slowly sinking, not fast, because they have done some good things, if this continues their failures and/or a buyout doesn’t happen, they won’t be able to get out of the quick sand.
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SystemShock

Oct 8, 2007, 10:51 PM
PS- Great post on why Sprint's CS and billing is in such disarray:


Store Lead said:
outsourcing, poor telephone/transfering systems, lack of consistent training/knowledge in cust care, and lack of purpose for said reps.

there are a lot of internal issues right now with sprint, and i think the biggest issue is, as much as our execs are talking about focusing on customers, their actions are showing a bigger focus on adding new subscribers, and that is killing the company, IMO.

not to mention all the back end issues with the new billing system. instead of combining the two account types onto a somewhat solid, and existing billing platform, sprint made the decision to CREATE A WHOLE NEW BILLING SYSTEM, which has so far, been disa
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SystemShock

Oct 8, 2007, 10:56 PM
SystemShock said:
PS- Great post on why Sprint's CS and billing is in such disarray:


Store Lead said:
outsourcing, poor telephone/transfering systems, lack of consistent training/knowledge in cust care, and lack of purpose for said reps.

there are a lot of internal issues right now with sprint, and i think the biggest issue is, as much as our execs are talking about focusing on customers, their actions are showing a bigger focus on adding new subscribers, and that is killing the company, IMO.

not to mention all the back end issues with the new billing system. instead of combining the two account types onto a somewhat solid, and existing billing platform, sprint made the decision to CREATE A WHOLE NEW BILLI
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matrix2004

Oct 9, 2007, 7:20 PM
Verizon should just buy Sprint and put them out of their misery. Then T-mobile, US Cellular, etc.
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yesVZW

Oct 9, 2007, 9:25 PM
Honestly do you think they will be around in 5 years?
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lilgabe1

Oct 9, 2007, 11:20 PM
I think they messed up by moving their customer service overseas. I don't know if they will ever recover.
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yesVZW

Oct 10, 2007, 8:24 PM
They do have an outsourced call center in the town I live in called 'Teletech', they got that when they bought Nextel. It handles mostly the B2B PTT customers.
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nextel18

Oct 10, 2007, 8:46 PM
All companies outsource though. Whether outsourcing lowers, the quality of customer service is yet to be seen as we have companies like Sprint who is obviously having many issues with their customer service and American Express who has a very good customer service.
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vzw-csr21

Oct 10, 2007, 9:36 PM
Now correct me if I am wrong but I work for VZW and we don't outsource any of our customer service, technical support, or sales.

Yes outsourcing does lower the quality of customer service because. Everyday i answer the phone i get at least two to three people thanking me that they can understand me. This goes a long way.
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nextel18

Oct 10, 2007, 9:52 PM
Verizon Wireless does outsource their operations, but I do not remember the exact departments because I did the report on outsourcing over a year ago. All companies outsource, but there are some companies out there like AT&T and now Verizon Wireless who are doing what we call in-sourcing which is basically a term that they would outsource their operations in this country to places that do not cost a lot. They feel that paying the extra money and having a handle on things would allow the customer to experience better service. Not sure again, if it is true, but given my research paper, it did show that many people actually preferred people that are not outsourced overseas. The problem, however, many people in this country are paid a lot for ...
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jrfdsf

Oct 11, 2007, 4:08 PM
In the long run, though, do they REALLY save anything?

If outsourcing saves your business 20 million dollars per year, but you lose 21 million in customers leaving because they don't want to talk to "nospeakadaenglish", is it a worthwhile venture?

I guess Sprint and other companies that practice this simply hope they will save $20 million in outsourcing, and only lose $17 million in customer defections, thus a $3 million per year net gain. 😕
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nextel18

Oct 11, 2007, 4:52 PM
I think certain companies do save. The Indian people are more efficient than their American counterparts and they are paid less. Sprint obviously fails with this outsourcing situation while companies like American Express, Dell (somewhat), HP, GE, and others are repeating the benefits of outsourcing.
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yesVZW

Oct 11, 2007, 1:05 AM
vzw-csr21 said:
Now correct me if I am wrong but I work for VZW and we don't outsource any of our customer service, technical support, or sales.

Yes outsourcing does lower the quality of customer service because. Everyday i answer the phone i get at least two to three people thanking me that they can understand me. This goes a long way.

If you are ever looking at remarks in a customers account and it says operator XXX Livebridge, that's an outsource company that handles the overflow volume from our call centers. Also the technical support in some parts of the country are outsourced too. The customer service number that Wal-Mart associates call for activation support is a company called Cytell (I th...
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SystemShock

Oct 11, 2007, 4:37 PM
matrix2004 said:
Verizon should just buy Sprint and put them out of their misery. Then T-mobile, US Cellular, etc.

Man, I'd hate to see that. If history's any judge, really big mergers totally f*** up a wireless company for a good 2 to 3 years. Verizon was smart in that it got its big merger out of the way early.

So why would they want to screw themselves over by buying, and then having to FIX, Sprint? Sprint's a pretty dysfunctional company right now, their next CEO is gonna have his work cut out for him. Let them fix themselves.

Finally, would the FCC even allow such a big buyout? There'd be a lot of divestitures, and if they allowed a merger of that size (the resulting VZW-Sprint-Nextel carrier wou...
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nextel18

Oct 11, 2007, 4:54 PM
The DOJ/FCC would never allow such a merger. They would have more than a 50% market share in the assists area. I would be interesting though combing Verizon Wireless, which is great in voice, and Sprint, which is great on the data. The only way it would happen if that will be billions upon billions of dollars of divestitures in both the wireless and wire line divisions.
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nextel18

Oct 11, 2007, 4:55 PM
Cant. The regulators would not approve this and if they would, there would be billions of dollars in divestitures, which not make the deal good. It does make sense to combine them though but they are just too big on both the wireless and wire line divisions.
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