Sprint released their financial report for the first quarter of 2010 on April 28. There were some encouraging signs for Sprint. They had their first sequential total net operating revenues and wireless service revenues in almost three years. It was also the best year-over-year improvement in net post-paid subscriber results in five years.
The cellular operators lost $865 million, a diluted loss of 29 cents per share. 75,000 subscribers left Sprint in the first quarter of 2010. The upside would be that Sprint offers what other cellular operators don’t, including a 4G WiMAX network.
“Our ongoing focus on improving the customer experience, generating cash and strengthening the brand continues to pay off. Customer satisfaction has improved for the ninth consecutive quarter and we generated more than $500 million in Free Cash Flow,” Sprint Nextel CEO Dan Hesse said, “The January launch of the award-winning and critically acclaimed Sprint Overdrive TM 3G/4G Mobile Hotspot, the upcoming launch of the world’s first 3G/4G Android handset, HTC EVO 4G, and the introduction of the industry’s first true money-back guarantee demonstrate Sprint’s innovation.”
The company’s prepaid offerings continue to expand after a $50 unlimited offer on its CDMA networks and increased handset selection. The handset offerings include the introduction of the first Blackberry for Boost Mobile. Sprint unveiled several other new devices including the Motorola i1, first push-to-talk Android smart phone and Motorola Brute i680, the durable push-to-talk device that works on Nextel’s Direct Connect network. Sprint also released phones from Blackberry, Samsung, LG, and Kyocera. The most impressive device would be the HTC EVO 4G. It’s the first WiMAX-enabled phone available in the U.S. It works as a mobile hot spot along with connecting to 3G networks where the 4G service is unavailable.
Sprint began offering 4G service in Houston during the first quarter of 2010. WiMAX is available in 28 markets, serving 40 million people. Sprint teams with Clearwire to launch 4G networks in Los Angeles, Boston, New York, San Francisco, Miami, Kansas City and Washington, D.C. Sprint hopes to cover up to 120 million people by the end of 2010.
There are positive signs for Sprint with this release. They’re depending on WiMAX to expand and increase their subscriber base and increase their revenue for the rest of 2010. They’ve done some interesting advertising, including a 30 second spot that highlights the 4G speeds on the iPhone along with a 4G Case for iPad users.