Sprint plans to cut thousands of more jobs as part of its effort to slash at least $2 billion in operating expenses from the business, according to Sprint Chairman and SoftBank CEO Masayoshi Son. Sprint CEO Marcelo Claure said he has been very direct with employees about the need to slash costs in a bid to get back to profitability, something Sprint hasn't really achieved in 11 years.
With Sprint choosing to sit out the 600 MHz incentive auction, it has been widely assumed that T-Mobile and other competitive carriers will be able to bid for the "set aside" airwaves-- up to 30 MHz in a given market-- without having to worry about AT&T and Verizon Wireless. However, that likely won't be the case, and in many rural markets AT&T and Verizon will be able to fully bid on reserve spectrum and put pressure on smaller carriers during the auction, and potentially after it as well.
Sprint is seeing positive early results from its plans to densify its network, but the company's executives did not provide many details about how far along the project is and how long it will take.
Sprint reported that it gained postpaid handset customers on the Sprint network in the third quarter, the first time it had done so in a full quarter in more than two years. The company is on the verge of cutting billions of dollars in expenses in a bid to get back to profitability, and Sprint CEO Marcelo Claure and his leadership team think they are at a turning point in the company's turnaround.
Apple's entrance into direct-co-consumer smartphone leasing is being embraced by T-Mobile US and is a tactic pioneered by Sprint. However, AT&T Mobility and Verizon Wireless remain wary of leasing, preferring instead to get customers on equipment installment plans, in which subscribers can keep their devices after fully paying for them in installments.
Sprint is starting to slash costs as part of a broader effort to cut $2.5 billion in expenses. The carrier expects to provide more details on the looming layoffs associated with the cost-cutting as well as its network densification plans when it reports quarterly earnings tomorrow.
Sprint was criticized by several technology news sites for marketing a new $20 per month plan yesterday as "unlimited" even though after 1 GB of high-speed data usage, customers will see their speeds reduced to 2G speeds for the remainder of their billing cycle. Sprint counters that it is providing customers with choice and will not charge overage fees, and that if customers want more high-speed data, they can simply purchase more.
After three years of offering free Wi-Fi calling and free texting over Sprint's cellular network, Sprint MVNO Scratch Wireless confirmed to FierceWireless it will begin charging for those services starting Nov. 16.
Verizon Wireless plans to cut management positions as it consolidates its regional offices to speed up decision-making and get employees closer to customers. However, it's unclear how many layoffs will come as a result of the changes.
In the wireless speed race, network latency has become an issue as users try to access more bandwidth-hungry content.