AH Sprint CEO New Marcelo Claure Brightstar

Sprint’s CEO Claure: Investors To Expect A “Good” Q4 Thanks To “Cut Your Bill In Half” Promotion

December 8, 2014 - Written By Cory McNutt

I may be in the minority when it comes to this, but I am really rooting for Sprint to turn itself around and become a powerhouse in the four major U.S. wireless carriers. We need the T-Mobiles and Sprints for competition, otherwise Verizon and AT&T would run over the consumers more than they already do…and I am currently a Verizon customer, but feel that I pay way too much, however, where I live I can get their signal just about anywhere I travel. If T-Mobile and Sprint could offer that kind of coverage for less money, than I am your man.

We must remember though, that things are not always how they seem – Sprint claims to “cut your bill in half,” so you figure that you are paying $120 now, so with Sprint’s generous promotion you will get unlimited calls and text and keep the same data you have now, for $60? That is certainly what it looks like in the promotional video below. Not so, according to earlier reports that really looked at the promotion…because you are required to buy a new phone for each line either via Sprint’s leasing options – Sprint’s Easy Pay installments or a full retail, the actual monthly savings would reflect more like only 20-percent less than what you are now paying.

I really thought that Claure would come to Sprint with a real mission to make them a better network that customers would want to jump to on their own, but it has become clear that his main purpose, at least for now, is to increase their profitability in order to satisfy their investor demands.  Claure said, “We’re looking for one of the best Decembers Sprint has ever had. I think we sent a very strong message to Verizon and AT&T.”  He said at a recent investor conference that they should count on a “good” Q4 compared to the same quarter in 2013, when Sprint added 477,000 total wireless subscribers. They had a record iPhone 6 launch and he expects 12-percent of existing customers to upgrade devices in the fourth quarter. This promotion is only one way that Claure is taking steps to insure Sprint’s profitability – the other way is to cut costs via shedding another 2,000 employees in his quest to cut costs by $1.5 billion.  Claure said, “We have to be leaner.  If you want to have the best value in wireless, you have to have the customers to serve, and we have to make some adjustments.” Let’s just hope that he keeps enough employees to service those new customers.

Please hit us up on our Google+ Page and let us know what you think about Claure’s strategy and if you will be jumping to Sprint…as always, we would love to hear from you.