Sprint’s marketing drive towards the end of the year 2014 (3rd Quarter), designed for converting rival companies’ subscribers with its promotion of the ‘cut your bill in half‘ campaign has paid back rich dividends.
Sprint’s CEO Marcelo Claure, who recently spoke at an investor conference in Las Vegas said that Sprint’s focused campaign not only reversed its earlier customer losses to rival companies but instead it also drove new converts towards the Sprint network. Claure also did not hesitate to confidently assert that the Overland Park’s telecom player will continue to drive converts towards its fold.
The Kansas based wireless carrier company reported that it had added 967,000 new subscribers to its network in the third quarter. Additionally, the company reported that the subscribers to the lucrative contract based wireless plans saw a 20 percent jump in its numbers and reached a total of 30,000 new additions in the same quarter. This positive development for the company boosted its shares by almost 7 percent before Thursday’s opening bell. This news came on the back of Sprint’s aggressive campaign last year to cut the bills of other network’s subscribers by half if they converted to Sprint.
The telecom network arena over the recent years has witnessed stiff competition and falling consumer rates, thus making telecommunication one of the cheapest commodities in the United States. This has also worn off on most major telecom companies that are struggling to stay afloat in this business. As a result, companies are increasingly resorting to aggressive tactics because the subscriber market has saturated in terms of numbers and may not witness any significant expansion. Consequently, Sprint, which trails in the shadow of the first two giants, AT&T and Verizon, sees converting rival companies’ subscribers towards its network as the only viable option that could lead to sustained profitability.
Continuing in the same breath, CEO Claure stated that Sprint will look for the next round of growth via addition of more subscribers. Sprint also reported the growth in Q3 as its highest number of gross additions in the postpaid consumer segment in the past three years.
The recent turnaround comes on the back of the appointment on August 11, of Brightstar Corp.’s founder Claure as Sprint’s CEO. The former CEO Dan Hesse was dropped from the position after the failure of merger talks between Sprint and T-Mobile.
[ Source ]