RedSpark

It's on 70% of Sprint's LTE sites according to Günther's last AMA...

Keeping customers is less expensive than winning them back.... if they are winnable from another carrier, and they may not be for some time. Revenue drops if people leave. I'm saying this is a way to stem what's about to happen this quarter with churn. Sprint's revenue is more impacted by new customer promos ($90/month for 5 lines) that last for a year and then spike, giving people a reason to leave. Sprint should end that promo for new customers and offer a great price to everyone. Unlimited Freedom Premium at Unlimited Freedom Prices, include taxes and fees... and if the deal breaker is 10 GB of Tethering, make it 5 GB.

Sprint could match this by at least giving all customers Unlimited Freedom Premium for free, not as a $20/month per line upsell. You are getting 720p but what's advertised to customers is mobile optimized. T-Mobile is able to say HD. Verizon says HD. T-Mobile's plan includes Taxes and Fees. Sprint's doesn't... and Verizon's doesn't. Sprint can either cut prices/add features and keep customers... or it's going to keep prices and loyal, not easily replaced, customers leave. Revenue drops either way. At least with the former way, Sprint still has loyal customers.

So even though Sprint says 480p you get 720p? The promo runs out in March 2018, and it's only for new customers. On an Apples to Apples comparison as advertised feature for feature, Verizon is cheaper for existing customers.

But they're not the cheapest for current customers who want HD Resolution Streaming. Sprint tacks on $20/month per Line for that. Verizon and T-Mobile include HD Resolution streaming at no additonal cost for all plan customers, new or existing. Waiting for Verizon to raise prices is not a strategy. Sprint is at risk of bleeding out its most loyal customers and being left with new promo customers who have no loyalty at all... especially when their bill increases after the promo runs out in March 31, 2018.

Here's more from Sprint.... http://newsroom.sprint.com/blogs/devices-apps-and-services/sprint-is-the-leader-of-the-pack-when-it-comes-to-unlimited-data-talk-and-text.htm Doesn't look good...

They're not even supposed to talk until a federally imposed quiet period is over... http://www.kansascity.com/news/business/technology/article131994539.html "The culprit is Uncle Sam’s complex process of buying up airwaves licenses from television stations and reselling them to telecommunications companies. T-Mobile, Verizon, Comcast and others are in the final stages of that auction of wireless spectrum they could use to enhance or build wireless networks across the nation." "As Washington began the auction process, regulators imposed a quiet period aimed at preventing bidders from colluding. Experts say the anti-collusion order effectively put merger talks and other strategic communications off-limits until the federal auction ends." Per this article, that could be in March or April...

Stalling in the hopes of a merger?

Because Sprint wanted to show Net Adds and ARPU growth for each quarter... and get to positive FCF. However, doing so neglected existing customers and now it's biting them badly. If those customers leave en masse, it's a big problem... because they aren't coming back. Sprint will be stuck with rate chasing customers on promo pricing that could up and leave in a year or less. This is going to be a disaster.

This is a crucial moment for Sprint. I think it's in real trouble here if Marcelo doesn't respond appropriately.

Unlimited Freedom Premium needs to be lowered to what regular Unlimited Freedom costs, include taxes/fees and make it available to all customers.

This could be a high churn quarter of loyal customers with multiple lines. Basically, Sprint could be back in the same position it was when Marcelo arrived: costing more than the competition and losing valuable existing customers through churn: Pretty unbelievable... but the math doesn't lie: 5 lines on Unlimited Freedom Premium (HD Resolution Streaming) for existing customers is $290/month. 5 lines on Verizon's new Unlimited Plan (HD Resolution Streaming) for new and existing customers is $200/month. Never mind the ED customers who had 2 Year Contracts pulled out from under them. Marcelo is either not getting the advice he needs or he's not listening to it. Big problem if this doesn't change. Sprint's on the edge of a cliff here, and this could get bad very quickly.

Big mistake. Huge. He's just not getting it.

The next Quarterly Report will be indicative of the trend line.

Unless I'm misreading it: http://www.fiercewireless.com/wireless/sprint-lowers-capex-guidance-again-raising-concerns-over-network More needs to be said: "“While Sprint is uniquely positioned to operate in a lower capital intensity as a result of our LTE foundation and our deep spectrum position, we do expect capex to accelerate in the fourth quarter and into 2017 as part of our densification program,” Robbiati said." I think more Investor/Customer confidence is needed here. It just doesn't seem like enough is happening in light of the Verizon announcement. Sprint is at risk of finding itself as the most expensive carrier again for Unlimited Plans with HD Streaming. In fact, the numbers show that for 5 Unlimited Freedom Premium lines with HD Streaming and 5GB of Hotspot per line, Sprint is $290/month (with AutoPay). Verizon Unlimited with HD Streaming and 10GB of Hotspot per line is $200/Month (with AutoPay).

Today would be a good day for Sprint to say that it's increasing it...

Yes. And Sprint needs to offer the same at $60/month.

Marcelo can't simply fall back on 5 lines with mobile optimized audio/video until 3/31/2018 since it's for new customers only. The pricing of Unlimited Freedom Premium has to drop down and the regular Unlimited Freedom should be deprecated, with all plan customers upgraded. I hope it happens.

Legere has just started to respond on Twitter. Update: https://twitter.com/JohnLegere/status/831239592820871169 6/ Starting Fri, #TMobileONE price includes HD video & 10GB high-speed ????hotspot data –all at no extra charge. AND taxes & fees are included! Gotta match this Marcelo...

Marcelo and Team need to be on this as well and counter the momentum of Verizon's move before it builds. Hope we hear something from him soon.

You're up Marcelo.

They were probably both watching the Grammy's and saw it for the first time. John was on a plane to SF yesterday: https://twitter.com/JohnLegere/status/830917117847314433 Perhaps John learned about this via GoGo Inflight Internet. Last thing that John Tweeted about was Adult Swaddling in Tokyo: https://twitter.com/JohnLegere/status/831212395573895168 He just doesn't get it. As for Marcelo, he acknowledged Verizon's move... but made no announcement of a response. https://twitter.com/marceloclaure/status/830977056682999808 Otherwise, his most recent tweet was about NBA Basketball: https://twitter.com/marceloclaure/status/831146161444679680

Sprint needs more tower sites in more places. Putting 2.5GHz and 3CA on the existing footprint only goes so far. HPUE looks good as demoed, but without good pricing to match, it may not be enough.

SoftBank spent +$31 Billion on ARM. (http://www.theverge.com/2016/9/5/12798302/softbank-arm-acquisition-complete) Oh well. Should have seen it coming with Son pinching pennies on Sprint.

How many people are on your Framily? Sprint has really locked down the Framily eligibility rules. For comparison, Verizon hits $45/month pricing with 4 lines. On Sprint Framily, you need to have to have 7-10 lines to match... and that gets harder to do as the rules get more strict. Legere is still shell shocked by Verizon's move in my opinion. Look at his Twitter. He just can't come up with a coherent response. Marcelo on the other hand hasn't responded on Twitter except by referring to new customer pricing.... which makes me nervous. We'll see.