A report from Strategy Analytics concluded that 2007 will be a good year for Sprint Nextel, which had a rough time in 2006 because of subscriber churn. SA analyst Sara Harris: "Although no-one should expect overnight results, the combination of targeted capex to address network quality issues (notably in IDEN hotspots), the rollout of hybrid IDEN/CDMA handsets and a commitment to messaging the strength of the Sprint Nextel brand via the Power Up campaign will yield medium term results."
SA's David Kerr VP of the global wireless practice noted, "Sprint Nextel must act on its plans to simplify the business, engage disenchanted Nextel channel members and aggressively spend on marketing to overcome the Verizon Wireless 'its the network' media blitz. Success...will allow Sprint Nextel to differentiate itself long-term as a media content, industry-friendly brand, supporting cost effective transport solutions for multimegabit video, TV and broadband value propositions."
For more on Sprint's expected comeback:
- read this brief from Strategy Analytics