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Worst of the Week: Sprint network craziness and T-Mobile loves scotch

WOTW looks at this week’s Sprint network news and T-Mobile encouraging early morning drinking

Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!

And without further ado:

The telecom world was shaken a week ago when it was reported Sprint was set to again undertake a network overhaul program that would see significant disruptions to service.

Obviously, I was excited to hear the news because it meant someone, somewhere had invented a time machine and unbeknownst to me had zapped me back in time. I mean how cool is that? Time travel!

For those outside the loop on this, the basics are Re/Code released a story claiming Sprint has “finalized” plans to re-architect its network away from its current reliance on traditional cell tower companies and backhaul suppliers and instead focus on tapping “government-owned properties” and microwave backhaul solutions. The moves are expected to save the carrier up to $1 billion per year in operating expense, or less than half of the $2.5 billion in annual opex the carrier previously said it was looking to trim.

Of course, I soon found out time travel was not part of this action and also as the week progressed there were conflicting comments as to the voracity of the initial report. Some stated the story’s outcome did not line up with the facts presented, while others simply laid out the financial model of what the story was stating.

Even better, those companies mentioned in the story all witnessed their stock prices somehow drop faster than the already plummeting various stock exchanges. Overall, a pretty good week and of course ripe for some WOTW commentary.

Normally, anytime the words “Sprint” and “network” are uttered in the same sentence, I am onboard for whatever craziness comes next. No one does “network” quite like Sprint, whether it’s launching one of the market’s first CDMA networks, or being one of the first to tap into the 1.9 GHz “PCS” spectrum, or being one of the first to commercially launch WiMAX services, or using the 2.5 GHz spectrum band for a wide-area deployment, or attempting an on-the-fly network overhaul program. Sprint is the king of crazy network moves and as a reporter following the wireless telecom space that kind of crazy is gold Jerry! Gold!

However, the details of this latest rumor have me a bit hesitant to start painting my face yellow and black. I understand Sprint is under some pressure to slash its spending habit, and in that effort all avenues need to be explored. But, I am not sure I can stomach another round of Sprint network “improvements.”

Maybe it’s my advancing age or that the last round of Sprint network moves resulted in thousands of job cuts and millions of customer defections. Covering a train wreck does get a bit old.

Does anyone really want to see Sprint again start throwing around network equipment in an attempt to squeeze out cost and operational efficiencies? I guess investors might, but my guess is that most of those investors are not Sprint customers or employees.

Sprint to this point has been pretty quiet on all the hubbub, which has not helped calm jittery investors or jittery reporters. The carrier this week did say it would be announcing its latest quarterly results on Jan. 26, which according to the investment community is a week ahead of what was expected. Not that Sprint’s quarterly results are not already a hot ticket, but I am guessing Jan. 26 is going to be especially Sprint heavy.

One side of me want’s Sprint to come out and just lay all of its cards on the table, admitting that after an exhaustive review of all operations a completely new network architecture is needed and while it will be painful in the short term, a complete overhaul is needed to ensure the long-term survival of the company.

The other side of me want’s Sprint to completely ignore the situation and continue on like the past week never took place. Every time someone asks about the story, Sprint simply responds with a “no comment.” That tact would drive everyone crazy, and how cool would that be?

Regardless of what happens, it’s obvious Sprint’s network story is far from written and somehow 2016 may be the year Sprint is remembered for its craziest network moves. Who would have thought?

Thanks for checking out this week’s Worst of the Week column. Here is a quick, but satisfying extra:

–Not to be outdone in terms of attention this week – though perhaps more wanted than not – T-Mobile US targeted both Sprint and Verizon Wireless in its latest war on rivals.

First, T-Mobile US rolled out a new promotion for its MetroPCS prepaid brand offering current Sprint, Virgin Mobile and Boost Mobile customers a discount on rate plans should they jump ship. The discounts ranged up to 50% in one instance, but not in terms of Sprint’s recently extended 50% off rate plan promotion targeting T-Mobile US, Verizon Wireless and AT&T Mobility.

Showing its competitive mojo, T-Mobile US took the extra dig at Sprint by calling the promotion “the biggest offer in Sprint’s history.” Well done.

But, T-Mobile US saved its best for Verizon Wireless, which appears to be the new competitive fascination for CEO John Legere. Obviously not taking too kindly to Verizon Wireless’ latest advertising campaign citing tests from an independent network testing firm (cough, cough, Rootmetrics) that showed T-Mobile US lacking the “balls” of its rivals, the carrier struck back with a “Pop-Up Video” version.

Even better, T-Mobile US produced a “drinking” game to go along with Verizon Wireless’ announcement of Q4 results. The game incited participants to take a drink or two should Verizon management utter certain phrases during the conference call.

verizon_drinking_game(1)

As the call kicked off at 8:30 am ET, I would hope those that did indeed partake took the high road and stuck with breakfast drinks, though I can only guess a few couldn’t resist their true passions.

Sure, all of this is slathered in marketing hype and hyperbole, but I am all for anyone adding a level of blurriness to Verizon’s normally staid earnings results.

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