Sprint 4Q Loss Narrows,Pre-Paid Growth Falls Short |
Wall Street Journal - Feb 10, 2010 |
Sprint Nextel Corp. (S) posted a narrower fourth-quarter loss but faced increasing competition for wireless customers who pay in advance for service, as competitors cut their prices during the holidays.
The Overland Park, Kan., wireless carrier, however, showed some progress in reducing the number of its more lucrative contract customers that left in the period. A majority of the defections came from the Nextel end, while the Sprint side added customers for the first time in a year and a half.
"The company is showing slow and steady progress," said Philip Cuscik, an analyst at Macquarie Securities.
However, Sprint's pre-paid business--which are generally cheaper plans that don't offer long-term service contracts--has been the company's primary growth engine, with Sprint going as far as acquiring Virgin Mobile USA to broaden its reach of consumers. Over the past year, the business, primarily driven by its Boost Mobile line, has made up for staggering losses among post-paid customers, or those committed to long-term contracts.
Read Full Article from Wall Street Journal
- Posted: 2010-02-10 11:01:06
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