Sprint may be making a comeback

Is Sprint Nextel on the comeback trail?

That's the buzz on various Web sites like The Wall Street Journal and TheStreet.com, as rumors fly that Verizon Wireless and AT&T executives say they are seeing fewer numbers ported from the struggling Sprint to their own networks.

The rumors have been bolstered by a research note published last week by a JPMorgan Chase analyst who quoted Denny Strigl, Verizon's COO, as saying that Sprint has been doing better in the past 30 days.

Press contacts for AT&T, Sprint, and Verizon declined to comment on the rumors, according to TheStreet story.

Regardless of what Sprint and others are or not saying publicly, the speculation sent Sprint's beleaguered stock price up 13 percent last week and up another 5.84 percent on Monday. This boost in share price occurred despite a heavy sell-off in the overall market.

So what's happening at Sprint? Could the company really be making a comeback so soon? One thing is for sure: Sprint is spending a great deal of money and effort trying to at least give the perception that things are changing at the company. In the last few months, it has announced an aggressive marketing campaign starring its CEO Dan Hesse.

(Credit: Sprint Nextel)

Sprint also said last week that its new Samsung Instinct smartphone is selling like hotcakes, which could be a positive trend for a company that has been desperately trying to retain old customers and attract new ones. The company said last week that it had record-breaking sales in the first week the device was on the market. And it's even sold out of the device at some store locations.

These sales are despite the fact that the Instinct, a touch-screen device that looks a lot like Apple's iPhone, hasn't gotten smashing reviews. Several reviewers, including CNET's own Kent German, have noted major weaknesses, notably its lack of Wi-Fi and instant messaging. The call and video quality are also somewhat "erratic," German said in his review. And the Internet browser isn't all that impressive. Not to mention the fact that the phone has a small amount of memory and no editing features for its camera.

In other words, it's no iPhone. But at $129, it's a passable substitute for some people looking for a smart phone that has some iPhone-like features and functionality.

But the Journal article cautions investors not to expect a quick turnaround from the company. Verizon Wireless and AT&T are still tough competitors. And even though it's more expensive than the Instinct, the iPhone 3G lands on store shelves at the end of next week. And at $199 a pop, many analysts expect it to be a hit. Verizon is also set to introduce a new touch-screen smartphone, the BlackBerry Thunder, which could drive subscriptions and help retain customers tempted by the new iPhone.

Sprint has a long road ahead of it in terms of figuring out what to do with some of its assets. The company has already said it will spin out its WiMax assets to create the new Clearwire venture. But there has also been speculation that Deutsche Telekom is interested in buying the company. And there are rumors that Hesse's team is looking to dump the Nextel business, which has been the source of much of the customer defections. Sprint has been pushing its former Nextel customers toward phones with a walkie-talkie feature that uses Sprint's PCS network instead of the Nextel network.

Sprint will report third-quarter earnings sometime in August. Until then, the market will just have to wait and see if Sprint is still bleeding customers or if it's bottomed-out and ready for a comeback.

[mjconver]

That's fine, but I'm still stuck with this POS ic502 for the next two years because of my contract. It's the worst of both Sprint and Nextel. Walkie-talkie access is spotty once you get outside DC, and the Sprint voice connection is a joke. Everybody else in my family has Verizon (We live in Fairfax, VA), and they can have a conversation from the bottom of the basement. On my @#$@# Sprint phone, If I don't walk outside and pull up the antenna, I get _roaming_ charges!

[Farthing Haypenny]

The only bright side for Sprint is that there are still people who have never experienced their customer service, and therefore remain a potential customer base.

[regulator1956]

I've had Sprint for years and rarely had to call Customer Service. Last week I called them and the woman answered quickly and stated her full name in her "hello." She was great, fast and easy.

[crazynexus]

Oddly enough, my parents have no problems with Sprint-Nextel. Then again, they're account falls under the government wing, so the tech support is actually very good (retired US Navy). Once they got the sprint hybrid phone, they've had zero problems with call quality, and they get all sorts of crazy extras for free, having been nextel customers since early 2000, when Nextel still required you to be a company to get in (they're farmers).

[VDOG]

I had used the same service, through all the buy outs and name changes, since 1988, 20 years. Finally in Atlanta I wind up an ATT customer. Service & coverage great, customer service the pits. For cost reasons alone I considered moveing to Sprint Everything Plan. I tried to give ATT a chance, even saying I would stay with them, pay over 60% more monthly for same services if they would just change out my phone. After 20 years (by their records), never late, huge bills No way! Went with Sprint and the customer service/tech support rocks. If the rumors I heard WERE true about Sprint, they have really turned it around. N. Atlanta, Sprint is the only way to go.

[Pelican71]

We have been with Sprint since 2000 and get good coverage in my part of MS and when I go home to Louisiana. We have had our issues with Customer Service but they always correct the problem. I've had the Instinct for over a week now and still enjoying it. It works for me. I don't believe that any one company is hands down better than the other, it depends on where you live and the coverage.

[AvonBarksdale]

I've had only bad expereiences with Sprint. They cancel my account and bill me the early termination fee without even knowing who canceled it. It takes forever for them to solve any problems for you. Sprint customer service loves to transfer you all over the call center. Don't care if they are improve sales. Never going back!

[baswwe]

Roaming Charges? modify your contract, $5 a month get you roaming free.

You probably can update your phone too.. just sign a new 2 yr agreement.

You have options my fellow sprint friend.

[pavbaby]

Sprint definitely has more aggressive pricing now than any of the other major carriers. If you get a new iphone 3G with unlimited calling and texting it will cost you $150/month compared to Sprints $100.month. Over the 2 year required under contract, that makes the iphone $1200 more expensive than the instinct or any other sprint phone. Is it really worth it?

[cellcol]

Kent German needs to get his ears checked. I have used the Instinct for almost 2 weeks now and the call quality is great. I change phones every year and know call quality. At least instinct has video which iphone does not at all. Also, how can a lack of wi-fi on a 3G phone with unlimited data plan be considered a major weakness. Overall, going by the plan pricing, no can beat Sprint. which also has one of the fastest data networks. iphone definetly has better software but it is not worth the thousand dollars extra.

[tekwiz4u]

A phone without Wi-Fi is bad. Sprint LOVES to charge customers for data, but I would like Wi-Fi to take care most of the need for checking emails or surfin the web. Its WAY faster then connecting to Sprint's network. If you pay for Sprint's unlimited plan, great. But having more choices for connectivity brings more value.

[johngarger]

Can someone give me an idea whether or not I should go for a smart phone or just use a more stylish phone and wait for some better technology? I am on the Sprint network, and was referred to http://www.sanyowireless.com , but I'm not seeing any options that look like smart phones. I don't need an MP3 player or a camera, I'd rather have a phone that is lighter and easier to carry. Any recommendations would be welcome.