Sprint Nextel is currently at the receiving end of criticisms after subscribers and dealers of its $50 unlimited calling and data plan complained that text messages were often delayed for hours.
Sprint Nextel’s new brand Boost Mobile uses an alternative technology other than Sprint’s main network. Apparently, the network capacity is inadequate as other than being delayed—sometimes for as long as 7 to 9 hours—the messages were sometimes not received at all by supposed recipients.
Sprint Nextel, however, was quick to assure users that the problem has already been fixed. Sprint Nextel CEO Dan Hesse admitted that the huge influx of new customers took them by surprise but that they have already increased the capacity of the texting platform. Hesse defended the company during a recent earnings call with investors.
“We did have some delays. We were surprised. We had more demand than anticipated. We have taken the steps necessary to boost capacity,” he said.
Last week, company spokesman John Votava shrugged off rumors that the company’s network was experiencing problems.
Votava said the new plan registers about a dozen new subscribers daily, about four times the rate before the company introduced its Boost brand.
One of the most vocal critics of Sprint’s problematic Boost service is Verizon Communications CEO Ivan Seidenberg. Seidenberg told the Wall Street Journal that Sprint’s network simply did not have the capacity for a more efficient service.
Not all subscribers, however, are unhappy over Boost’s service. Reportedly, North Carolina users say voice calls via Sprint’s Boost functions faultlessly as well as its push-to-talk feature. While some subscribers admitted having experienced delays in text messaging, they say the quality of voice calls is still better than with previous providers.
This wasn’t the first time that Sprint came under fire for its text messaging service. Subscribers have long grumbled about delayed messages, but the company still managed to win new subscribers over by capitalizing on its popular push-to-talk feature. This feature is very useful to emergency or disaster responders or work crews.
The new Boost plan was meant to cater to subscribers who want the text messaging feature more than the push-to-talk.
Boost Mobile’s unlimited $50 voice and data plan was launched in January. Hype about the success of the plan’s unlimited talking and texting, web browsing, and walkie-talkie features quickly spread, attracting a huge number of new users.
Analysts have estimated that Boost drew around half a million subscribers in the first quarter of this year. Those additions, however, are expected to be offset by losses in its postpaid subscription.
Sprint’s postpaid subscribers are declining at an alarming rate, losing around 1.25 million subscribers during the first quarter. These figures bring Sprint’s total customer base to 49.1 million, compared to 49.3 million at the closing of 2008.
The Overland Park, Kansas-based company reported net operating revenues of $8.2 billion. The free cash flow is around $800 million, while the cash balance is at $4.5 million. These figures, Sprint’s officials insist, spell stability.
Sprint Nextel is currently the third largest telecommunications network in the United States next to Verizon Wireless and AT&T Mobility.
Unless the company is able to get its act together and fix its text messaging issues for good, it will continue to lose thousands of wireless customers every quarter, offsetting its initial gains with the Boost subscription.
{ 0 comments… add one now }