“I want to acknowledge the Sprint story and its 120-year legacy that is now part of our legacy as we enter this new era,” said Mike Sievert, CEO of T-Mobile, in a statement, adding, “We did it! Another historic one. ” Day for new T-Mobile! “
Sprint was born from thousands of kilometers of telegraph wire that ran along the Southern Pacific Railroad tracks to make it easier to send trains. The name “Sprint” was short for the system: Southern Pacific Railroad Internal Networking Telecommunications. In the 1970s, the group opened private customers access to the long distance network.
As a result of the failed merger, Sprint’s balance sheet was exhausted, so that the same amount of money was no longer available to invest in improvements to its network as its competitors.
However, an below-average network was enough to attract customers, as Sprint was willing to charge below-average prices. Over time, however, this became less attractive. Nowadays people need their phones for everything from banking to paying for the subway. So low prices are less important than a network that works anywhere, anytime.
“Sprint used the weird slogan: We’re almost as good for less money,” said Moffett. “And, for obvious reasons, almost no good is a terribly convincing value proposition.”
According to Moffett, the company lost money to many customers who attracted it with strong promotions. They would choose Sprint over competitors if it offered them a discounted service, but if they raised their prices to a price that was sustainable for the company, they would switch carriers.
Sprint had net losses of hundreds of millions of dollars last year. It has also lost tens of thousands of postpaid subscribers who are most likely to pay their monthly bills and are the least likely to change providers.
The new T-Mobile
However, the combination of Sprint and T-Mobile will not be easy. They use different network bands and technologies – something that T-Mobile is familiar with after the merger with MetroPCS in 2012. The integration can take some time.
Although Sprint is dead, T-Mobile is in a festive mood.
“This is so much more than just renaming thousands of sprint locations with a fresh coat of magenta,” said Sievert. “This is about giving customers even more access to our expanded retail presence … and taking advantage of the new T-Mobile!”