Sprint Nextel ARPU Discussion with Analysts

Do you want to see why the Big Boys only look 2 quarters ahead? This discussion on a con call with the analysts points it out. Basically, Sprint is losing its high-end Nextel clients. The affiliate businesses they bought had lower ARPU. Package rates are lower with more minutes resulting in less overage. Family plans on CDMA network is also eating into revenues and thus margins. It is a frank talk, but you can pick up on the fact that Sprint isn't alone in this. Handsets (like the RAZR) are driving adoption, but the market is flat - so like TV, providers are now just stealing from each other. As Sprint's MVNO partners steal users, Sprint's numbers will decline, but so should their retail overhead (if done right). ... Lesson is that most markets are static, so providers are just moving the pie around. Until you can capture a niche or create a new sub-set (like RAZR or like Web 2.0 example, MySpace or YouTube) - it may just be a commodity. How do you add value? It is time for creativity.