Has Sprint Nextel focused too closely on being first at the expense of being best?

Perhaps no U.S. carrier has pushed the mobile data envelope like Sprint Nextel. But maybe the operator pushed a little too early.
Sprint launched its first streaming video offering more than five years ago – five years! – and within months had trotted out two additional video services, including MobiTV. In late 2004, the carrier was first to offer streaming audio with its Music Choice Today, a radio-like service that offered six channels of music as well as video clips, and was also the first to deploy full-track music downloads.
The operator was first to embrace mobile advertising, first to bundle GPS-enabled navigation with its price plans, first to offer mobile movies and first to create all-everything unlimited plans. Wherever Sprint goes, it seems, the competition follows. And wins.
T-Mobile USA earlier this month said it had topped the 30 million-subscriber mark as data revenues continue to climb. Verizon Wireless added 1.5 million customers in the first quarter, and AT&T Mobility continues to enjoy uptake of Apple’s iPhone.
Sprint, meanwhile, continues to hemorrhage money and lose customers in droves.
So is it a mistake for carriers to push multimedia services? Are customers really only interested in signal strength and the bottom line?
Well, maybe. But Sprint’s missteps are far bigger than any single marketing strategy, of course. The merger with Nextel Communications has been an epic mistake, costing billions, and the carrier’s inability to deal with unsatisfied subscribers is well documented.
It’s not like Sprint has struck out at every trip to the plate, though. MobiTV has surpassed many analysts’ expectations, topping 3 million subscribers – many of whom likely are Sprint users. And Sprint, like Verizon, appears to be gaining impressive traction with its branded GPS navigation offering.
But it does appear the operator was too quick to deploy – and market – some questionable services. 1KTV, Sprint’s initial mobile video effort, delivered a lackluster 15 frames per second, surely disappointing anyone who had envisioned TV-quality content. The carrier also slashed the price of its full-track downloads after it apparently was unable to entice users to shell out a whopping $2.50 per tune.
Whether Sprint’s latest effort at herding cats will succeed is unclear, and the carrier may never fully recover from the botched Nextel deal. But while Sprint deserves kudos for blazing a few trails in mobile multimedia services, it may have been too focused on being first – at the expense of being best.