Several weeks ago I wrote a eulogy for fallen mobile virtual network operator Mobile ESPN. In it I cited the MVNO’s lofty aspirations for the wireless space, but noted that the company misjudged the market’s appetite for a sports-focused operator with little pricing differentiation. In essence, Mobile ESPN was too enamored with its own offering to see what people truly wanted.
That condition seems to be catching.
Just over a year after plunking down $35 billion to combine the Sprint and Nextel brands, as well as the privilege of running two separate networks and back-offices, the awkwardly named carrier appears to be suffering similar illusions.
Now I’m not suggesting Sprint Nextel is going to go the way of Mobile ESPN, they own way too much spectrum, network resources and customers for that, but I do see a similar consumer disconnect.
Sprint Nextel continues to parade around its mobile data position with plans to launch a WiMAX network using its 2.5 GHz spectrum as well as plans to cover 40 million potential customers with CDMA EV-DO Rev. A services by the end of the year. The carrier has already launched Rev. A in San Diego. However, the same day Sprint Nextel announced it lost more than 180,000 direct postpaid customers during the third quarter, J.D. Power and Associates produced a new consumer survey with Sprint Nextel at its traditional place below the industry average.
And which carrier was at the top of the list? T-Mobile USA Inc., which despite not having a wireless data presence even remotely close to what Sprint Nextel can offer has hovered near the top of nearly every consumer survey produced by J.D. Power and Associates over the past several years.
And unlike Sprint Nextel, which perhaps by coincidence announced EV-DO Rev. A plans just prior to announcing its past two quarterly reports, T-Mobile USA seems content to deploy UMTS technology on its network without moving forward with the technology’s higher-speed HSDPA enhancement.
And don’t get me started on Sprint Nextel’s haphazard advertising campaign. While I like most people enjoy cowboys slapping each other, wireless consumers seem more interested in network quality and coverage reassurances over slapstick or how “powerful” your network is.
While I’m sure Sprint Nextel will eventually get a handle on its operations-though I am only basing that on the fact it owns so much spectrum, network assets and a sizeable customer base-its competitors are happily picking off unsatisfied customers.
