February 11, 2011
Sprint added 58,000 net subscribers in its latest quarter ahead of estimates but is still losing money and now must contend with the Verizon iPhone. Beecher Tuttle has the details
on TMCnet. The new challenges for Sprint are twofold.
You can now get an iPhone to work anywhere in the US where Sprint service is strong. Every carrier has some pockets of strength. The basement of Grand Central Station for example is one place where AT&T works very well and Verizon doesn't work at all. In fact, AT&T does fairly well on the train from New York up to Boston.
So for those users on the Sprint network who want the iPhone but don't want to sacrifice the solid connections in their geography, they now have the ability to utilize the Verizon or AT&T networks.
The second challenge is competition between AT&T and Verizon will make both carriers sweeten their offers to attract and/or retain customers. Basically, AT&T's network has become commoditized overnight. How bad is the war between the two major carriers becoming? Well Jason D. O'Grady at ZDNet calls
AT&T's latest set of offers groveling and desperate!
But isn't that a good thing? I think it is - for consumers anyway.
Still, the challenge for Sprint is now bigger than ever and the rise of 4G networks from all major US carriers makes it tougher for Sprint to tout its new network as a differentiator.