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Kagan: Sprint 2016 comeback story

Don’t you just love it when we see a real comeback story. That’s what seems to be happening at Sprint. If things stay on the current track, it looks like 2017 will also be a strong growth year for the carrier.

This has happened before. Pull the camera back several years ago when T-Mobile US was crashing and burning, but today they are growing. Even though Sprint was not challenged as much as T-Mobile US, I expect them to continue the same vibrant growth path going forward.

Sprint brand perception at four-year high

Let’s take a closer look at some of what they have done over 2016. First, the Sprint brand perception just hit a four-year high, says YouGov BrandIndex. This market researcher surveyed 2.5 million people globally and asked about positive and negative things about the brand through ads, news or discussion. They say Sprint has improved their perception by 67%. That’s a very strong recovery over a very short period.

During the last decade, both AT&T Mobility and Verizon Wireless were hitting on all cylinders, while Sprint and T-Mobile US were struggling. Today both AT&T Mobility and Verizon Wireless are still the largest, however first T-Mobile US and now Sprint are making a serious comeback.

Several years ago, when T-Mobile US was almost dead in the water, they brought in new CEO John Legere, who jump-started the company. Since that point, T-Mobile US has been a growing over the last several years.

A few years later Sprint is taking the same path. Under new CEO Marcelo Claure they have jump-started themselves and are showing real growth and a strengthening brand. If things continue this path, I expect Sprint to continue to grow on the same growth wave during 2017.

Sprint has taken several different paths to rebuild the company during the last year. They spent time and money speeding up and improving their network reach and quality. They have introduced successful new marketing plans like “Unlimited Freedom” and cutting users bills by 50%. And these things are all working to rebuild the wireless carrier.

The wireless industry in the United States is changing. AT&T and Verizon Communications are heading in many different directions for growth by combining their wireless, wireline, television, mobile TV, internet, mobile internet and more. Sprint and T-Mobile US are more focused on the wireless side of the fence. I expect to see them increasingly move in new wireless directions as well.

New technologies like artificial intelligence, cloud, cognitive and many others represent a huge growth opportunity for this sector. Bottom line, there are many growth opportunities going forward on the wireless side.

Sprint grows organically and through mergers

Sprint is also trying to acquire the majority stake in Kentucky-based mobile virtual network operator Kroger I-wireless, which already uses the Sprint CDMA, WiMAX and LTE networks to provide wireless service. Kroger and Genie Global both are expected to retain a 15% stake in the company.

So, Sprint continues its growth through different organic means and through acquisitions. They have improved the service quality of their network meaning reach, speed and quality: things that are important to customers.

Sprint marketing strengthening: can you hear me now?

Their television advertising is livelier than ever with Paul Marcarelli, the former Verizon Wireless “can you hear me now” guy, as the new brand spokesperson. Sprint says the top four wireless networks are within 1% of each other on reliability, and they are using this marketing claim in their advertising.

Apparently, their marketing is working. Just look at how Verizon Wireless is responding with the Jamie Foxx ad campaign. Foxx is supposed to be Verizon Wireless and two goofy Foxx’s are standing there supposed to be Sprint and T-Mobile US. So quite obviously, the marketing coup is making a serious impact on Verizon Wireless for them to respond this way. I am sure after getting burned, Verizon Wireless has already rethought the way they interact with hired spokespeople.

Sprint growth expected to continue in 2017

While Sprint was never in crisis like T-Mobile US was, it has been quite a long time since it showed real growth, but things are starting to change. They are turning the ship around and this is making the U.S. wireless market a wider and healthier place.

In fact, the U.S. wireless industry is going through another important shift and attracting new players. Consider Google with their handsets and MVNO service reselling on the T-Mobile US and Sprint networks. Plus, I expect to see Comcast re-entering wireless in 2017, by working with Verizon Wireless. Once they do, I then expect to see Charter Spectrum heading in the same direction.

So, it looks like wireless continues to strengthen, to change and to grow. And it looks like the Overland Park, Kansas-based carrier is starting to show real growth both through organic growth and acquisitions. Let’s hope they stay on this growth track going forward.

They have done a great job during the last year. While their recovery is still new and we must keep our eyes on them, the fact is they look much stronger this year. They keep looking better as customers and investors are noticing. Keep it up, Sprint. It looks like you are finally on the growth side of the wave.

ABOUT AUTHOR

Jeff Kagan
Jeff Kaganhttp://jeffkagan.com
Jeff is a RCR Wireless News Columnist, Industry Analyst, Key Opinion Leader and Influencer. He shares his colorful perspectives and opinions on the companies and technologies that are transforming the industry he has followed for 35 years. Jeff follows wireless, wire line telecom, Internet, Pay-TV, cable TV, AI, IoT, Digital Healthcare, Cloud, Mobile Pay, Smart cities, Smart Homes and more.