Sprint-Nextel (NYSE: S) began a new program to gain customers which may be desperate or brilliant. An evaluation of the results may end up being more important than Sprint’s initial intension.
Sprint will offer people who are AT&T (NYSE: T) and Verizon Wireless customers $100 or more for their iPhones if they become Sprint customers. The money is a “trade in”, which acts as a credit for the cost of the Sprint subscription. If the Sprint program does not work, it will be one more nail in the coffin as investors and customers view the No.3 wireless company as no longer viable. Sprint, in other words, cannot afford to have the program be a bust.
The odds that Sprint will pick up a large number of the AT&T and Verizon customer bases are poor. AT&T and Verizon has complex cancellation policies which can cost customers a great deal to cancel. Many subscribers do not want to pay these fees no matter what Sprint’s proposition is. Another customer worry, although it may be naive, is likely to be whether the transition will allow them to take all of their services and data files with them.
And, finally, as DailyD points out, the iPhone 5 will be out soon. So, why would anyone move to Sprint until each of the major carriers sets iPhone 5 pricing and plans?
Douglas A. McIntyre
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