Sprint Confirms Jobs To Be Cut 

Will Sprint Cut It’s Staff?

Sprint’s new CEO Marcelo Claure addressed employees for the first time and promised price reductions are coming very soon, according to a report.

Sprint didn’t deny the report of Marcelo’s comments. A spokesman also confirmed Friday that Sprint is “focusing on providing the best value in the market.”

According to the account of Claure’s comments, he told workers, “We’re going to change our plans to make sure every customer in America thinks twice about signing up to a competitor.” The report, which first appeared in LightReading.com, also said that “very disruptive” rate plans are coming this week.

Sprint didn’t dispute Light Reading’s report, but a spokesman said Sprint is not commenting on “any potential pricing plans before they are announced.”

The spokesman, Doug Duvall, said Marcelo held his first all-employee town hall meeting before a standing-room-only crowd. He added: “He shared his passion for his family, work and soccer team and his commitment to leading Sprint. He discussed Sprint’s challenges and pledged to get Sprint ‘back in the game’ by focusing on providing the best value in the market, completing our network build and optimizing Sprint’s cost structure.”

By confirming Sprint wants to offer the “best value in the market,” it’s pretty clear that Sprint, the third-largest U.S. carrier, will soon wage a price war with the T-Mobile, the fourth-largest U.S. carrier that has quickly been gaining on Sprint.

Analysts recently said Sprint’s recent “Framily plan” isn’t competitive in the market, which former CEO Dan Hesse acknowledged in late July before his departure on Monday.

The Sprint Framily plans costs $160 a month for 4GB of data, but comes with overage charges and won’t allow tethering. Meanwhile, T-Mobile has a family plan offered through September that costs $100 a month for four lines and 10GB of data, although each line is limited to 2.5GB.

Hesse had earlier described subscriber plans Sprint was testing that have tiers of data and unlimited data.

According to Light Reading, Claure also told employees that price cuts are needed because Sprint’s network isn’t at the level of performance and reach that it should be. “When you have a great network, you don’t have to compete on price,” he reportedly said. “When your network is behind, unfortunately you have to compete on value and price.”

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Will Sprint Acquisition Efforts Succeed

Sprint Corp is meeting with banks to devise a funding plan for its bid for smaller rival T-Mobile US Inc, a source familiar with the situation said, as the mobile carrier works to ease regulatory concerns that the deal would hurt competition.

The source said that Sprint, which is owned by Japan’s SoftBank Corp, is looking to fund the bulk of T-Mobile’s estimated $50 billion price tag with corporate bonds and cover the rest with syndicated loans and convertible bonds.

Sprint is currently having discussions with at least five banks, the source told Reuters, including JP Morgan, Goldman Sachs and Deutsche Bank.

Bloomberg, which first reported that Sprint was in talks with banks on Thursday morning in Asia, said the carrier was also talking to Mizuho Financial Group Ltd and Citibank. Softbank is expected to make a formal offer in June or July, Bloomberg added.

Sprint spokeswoman Roni Singleton told Reuters the company does not comment on rumors and speculation. T-Mobile and SoftBank both declined to comment on the Bloomberg report.

Sprint is facing a battle ahead with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, the source said.

Two of the most vocal opponents to the deal are Federal Communications Commission Chairman Tom Wheeler and U.S. antitrust chief William Baer, who have pointed to T-Mobile’s success since U.S. authorities rejected a 2011 merger between AT&T Inc and T-Mobile on the grounds the market needs at least four major players to be competitive.

The failure of that deal cost AT&T a $6 billion break-up fee, a penalty Sprint feels confident it can avoid, the source said, adding that it is leaning towards having Deutsche Telekom, which currently owns 67 percent of T-Mobile, retain part of that stake.

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T Mobile Sees Growth

T-Mobile US has reported a fourth-quarter boost in customer growth and offered to pay customers to ditch rival service providers, escalating already intense competition in the U.S. wireless market.

The company, the No. 4 U.S. mobile operator, promised payments of up to $350 per line to consumers who break their contract with any of its bigger rivals and switch to T-Mobile.

The offer came just days after AT&T Inc promised a $200 credit to T-Mobile customers who switch. While AT&T also offered up to $250 for switching customers who trade in their phone, T-Mobile said it would pay up to $300 for trade-ins.

The companies have been targeting each other because they use the same network technology, making it easy for consumers to bring their phone when they switch, but some on Wall Street are concerned they will cause an industry-wide price war.

T-Mobile said it hoped that whole families as well as individuals would switch to its service in response to the new cash offer, which is aimed at covering early contract termination fees typically charged by wireless operators.

John Legere, the outspoken chief executive of T-Mobile, said he hoped the offer would end the “industry scam” of family plans, which tie entire families into long-term contracts.

Legere joked that AT&T’s recent offer would actually play to T-Mobile’s advantage because it would allow AT&T customers to try a different service with less financial risk than before.

“If it doesn’t work they’ll pay you to come back,” Legere said in announcing the offer at the Consumer Electronics Show in Las Vegas.

T-Mobile, which is 67 percent owned by Deutsche Telekom, managed to turn the corner on four years of customers losses in 2013 by criticizing its rivals and promoting its service plans as being more flexible and consumer friendly.

It said it added 1.645 million net customers in the fourth quarter, up from 1.023 million in the quarter before, marking its third quarter of customer growth for 2013.

The fourth-quarter additions included 869,000 valuable post-paid customers, which was up 13 percent from the third quarter, according to the company.

It said customer defections, known in the industry as churn, stayed at third-quarter levels of 1.7 percent and compared with 2.5 percent in the fourth quarter of 2012.

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T-Mobile To Make More Cuts

T-Mobile USA will eliminate an additional 900 jobs in a restructuring, on top of a 1,900-job reduction at its call centers that was announced in March, the carrier confirmed on Wednesday.

T-Mobile, now with about 36,000 employees, has faced more than two years of subscriber losses. Last year, the wireless carrier lost out on a $39 billion deal to be taken over by AT&T — federal regulators rejected the deal.

In its first quarter results announced May 9, T-Mobile said it lost 510,000 contract customers. It now serves 33.4 million customers.

Not having the iPhone 4S to sell, compared to the other three major U.S. carriers, also hurt T-Mobile and lead to more contract deactivations, the company said in its first-quarter results.

A T-Mobile spokeswoman said in an email that the elimination of 900 jobs was the result of a “restructuring of key functions and departments across the company, including the elimination of some positions and outsourcing of others.”

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Want A $19/Month Mobile Plan?

A new wireless operator is gearing up to launch next week with plans offering unlimited data, voice and texting for $19 a month and no contract.

Republic Wireless, a division of Bandwith.com, will provide the service through Voice over IP using the nearest available Wi-Fi hotspot starting Tuesday, Nov. 8, a spokesman confirmed via email.

When a wireless phone user is traveling, the service will be provided through traditional cellular connections, initially over the Sprint network.

One important catch: Republic will require that its users have a new Android-based smartphone equipped with hardware and software that supports automatic switching from Wi-Fi to cellular. The device must have single phone number that works on both networks.

Republic hasn’t disclosed further details on phones the network will support. The company said more details will be made available on the launch date.

Republic calls its Wi-Fi and cellular mixture “Hybrid Calling,” a strategy it said reduces the costs for network services and makes the $19 flat monthly “membership” rate possible.

Republic estimates that smartphone users are within reach of Wi-Fi over 60% of the time, said the spokesman, Kevin LaHaise.

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Sprint Finally Gets The iPhone

Sprint Nextel confirmed that it will offer the next version of Apple Inc’s iPhone, ending months of speculation about whether it would become the third U.S. carrier to sell the popular device.

But the No. 3 U.S. mobile provider would not say whether its iPhone would come with a flat-fee service for unlimited data use – an offering analysts see as Sprint’s only hope for making its iPhone more competitive than rivals.

While selling the device should help Sprint keep subscribers from fleeing to other operators, some analysts worried whether the costs would outweigh the benefits because Apple phones come at a steep premium to other devices.

This is a huge gamble for Sprint and people are justifiably worried that they won’t be able to make any money doing it. It’s not a company that’s in great financial shape right now,” said Stifel Nicolaus analyst Chris King.

Analysts questioned how Sprint will be able to find the money to pay a premium to Apple on top of its obligations to pay back billions of dollars in debt and its plan to spend about $5 billion on an network upgrade in coming years.

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Is Sprint’s Future Questionable?

Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.

Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.

The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.

Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.

“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”

Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.

But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.

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Android Takes Top Spot

Android smartphones bested iPhone and BlackBerry devices for the first time in the U.S. in the latest Nielsen Co. survey conducted right before Verizon Wireless began selling Apple’s iPhone.

Android devices made by several phone makers were used by 29% of the U.S. market in the November through January reporting period. That compares to 27% each for both Apple iPhones and BlackBerry devices from Research in Motion, Nielsen said.

In Nielsen’s most recent report from December, the three top smartphone operating systems were in a statistical dead heat, a Nielsen spokeswoman said Friday.

Microsoft’s Windows Mobile and Windows Phone 7 smartphones garnered 10% of the U.S. market from November through January, while the WebOS from Hewlett-Packard gained 4% and Symbian from Nokia earned 2%.  Read More…