Tuesday, September 20, 2011

Sprint: Lack of iPhone has been Biggest Factor in Churn

The iPhone is the number one factor for churn on the Sprint network, said Dan Hesse, Sprint's CEO, speaking at the Goldman Sachs 20th Annual Communicopia Conference. Hesse did not confirm whether Sprint will begin selling the iPhone next month, but did say the company overall brand and customer metrics continue to improve despite the lack of the iPhone to date, and that financial guidance to date has not taken into account the iPhone in its portfolio. Some notes:

  • Sprint will be unveiling its network vision on October 7th. Hesse said this network architecture will give it a lot of flexibility both in terms of technology, possible network partnerships, network sharing agreements, and market scenarios.

  • Sprint now serves over 52 million subscribers and is the fastest growing among major US operators in the post-paid category.

  • Sprint continues to lose Nextel customers.

  • The company has been free cash positive for a number of quarters.

  • Simple rate plans have proven successful.

  • Sprint believes that anti-competitive consolidation is at the fundamental objection at the heart of the DOJ lawsuit to block the AT&T=T-Mobile deal. Sprint does not believe AT&T can adequately address this issue.