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Sprint Poised to Reclaim Ground in US Wireless Market

New Churn Management Strategies Will Lead Mid-Term Recovery

In this holiday season, Strategy Analytics has some good cheer for SprintNextel, which has had a challenging year. The Boston-based analyst firm recently published, “SprintNextel New Brooms Bullish – But Are The Bristles Up To The Job?” which analyzed SprintNextel’s plans to tame the churn albatross and roll out ultra high-speed mobile services, and concluded that the 2007 outlook is positive.

SprintNextel’s inability to hold onto its subscribers, as evinced by its terrible churn rate compared to other US carriers, may finally be at an end. At its recent analyst event, Sprint gave details of plans to retain its best customers and make the experience of being a Sprint customer much more appealing.

“SprintNextel has taken a very can-do attitude toward resolving its problems,” commented Sara Harris, Senior Industry Analyst at Strategy Analytics and author of the report. “Although no-one should expect overnight results, the combination of targeted capex to address network quality issues (notably in IDEN hotspots), the rollout of hybrid IDEN/CDMA handsets and a commitment to messaging the strength of the SprintNextel brand via the Power Up campaign will yield medium term results.”

David Kerr, VP of the Global Wireless Practice, added, “SprintNextel must act on its plans to simplify the business, engage disenchanted Nextel channel members and aggressively spend on marketing to overcome the Verizon Wireless “its the network” media blitz. Success in these short term imperatives will allow SprintNextel to differentiate itself long-term as a media content, industry-friendly brand supporting cost effective transport solutions for multimegabit video, TV and broadband value propositions.”

About Strategy Analytics
Strategy Analytics, Inc. – a global research and consulting firm – provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA, and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com.

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