- Related Stories
-
Cingular Wireless rings up profits
January 24, 2007 -
Sprint Nextel continues network build despite financial woes
January 9, 2007 - Related Blogs
-
Sprint breaks up with high-maintenance customers
July 5, 2007
(continued from previous page)
That breaking point could be lower for Sprint than for some of its competitors. While other wireless operators, such as AT&T and Verizon Wireless, are raking in profits, Sprint Nextel has been losing money.
The company lost $211 million during the first quarter compared with a profit of $164 million for the same period a year earlier. Revenue for the quarter, which topped out at $10.1 billion, only grew 1 percent compared to the previous year. The company blamed the disappointing results on investments in network coverage and subsidies for handsets, among other things.
In general, the company has struggled since its Nextel acquisition to retain customers. In the first quarter it lost 220,000 monthly subscribers. The company has consistently had one of the highest churn rates in the industry, topping out at about 2.7 percent for the first quarter. By contrast, Verizon has kept its churn around 1.1 percent.
Given this fact, it might seem strange that the company, which is in desperate need of retaining subscribers, would cut any.
Rene said she had only been calling the customer support line to correct Sprint's billing mistakes.
"I wasn't calling to be annoying," she said. "I was just trying to get them to fix their mistake. I still like the service and feel like I am getting a great deal. I even renewed my contract a couple of months ago and upgraded to the new Treo 755."
She claims Sprint began charging her in January for additional services that had previously been included in a special plan the company offered her in 2005 when she renewed her contract for the third time. The plan consisted of 1,000 anytime voice minutes, free night and weekend calling, free text messaging, unlimited data usage, and free mobile-to-mobile minutes for $40 a month, a great deal to say the least.
When charges started showing up on her bill, Rene called customer support to straighten out the issue and was assured it had been a mistake and the same problem would not occur the following month.
But when her bill came the next month, the charges were still there, she said. For five straight months, Rene called the Sprint customer support line after she received her bill to clear up the erroneous charges, and each time was assured the problem had been fixed.
While she said the customer representatives she dealt with seemed helpful, she often had to sit on hold for 30 minutes or more. She was transferred to several different operators in different departments, she said. And numerous calls were dropped, forcing her to call back.
What Rene didn't realize is that Sprint was keeping a tally of her phone calls, counting each transfer as a separate call to the support line. Finally, without warning, she was told in the June 29 letter to find another carrier.
"Our records indicate that over the past year, we have received frequent calls from you regarding your billing or other general account information," the letter reads. "While we have worked to resolve your issues and questions to the best of our ability, the number of inquiries you have made to us during this time has led us to determine that we are unable to meet your current wireless needs."
"Therefore after careful consideration, the decision has been made to terminate your wireless service agreement effective July 30, 2007."
For the past week, Rene has been trying to get the decision overturned. But on Friday, she was informed that the company is still canceling her service.
Meanwhile, Rene's boyfriend, who is also a Sprint subscriber, says he has gotten 30 unsolicited telemarketing calls over the past several months from Sprint asking him if he wants to add additional lines to his service. Even though he has explicitly asked Sprint not to call him with additional offers, he is still receiving phone calls.
"It's ridiculous that they can call us as many times as they want to sell us something," Rene said. "But if I call to ask them to fix their error, they cancel my service."
See more CNET content tagged:
Sprint Nextel, cell phone carrier, AT&T Corp., profit, subscriber






Everyone has their limits, but that should not affect how we treat loyal customers. Especially a company that employs 1000+ people to keep customers happy. Looks like to me that they cant do the job.
5GB is a typical wireless limit... in the US and Europe... the
providers are gangsters... if they advertise unlimited then it is
unlimited... i hope the clients sue their provider!
bye bye.
That is the beab counters. Most companies that lose money tend
to "fire" staff. Customers are usually not fired unless it costs the
company. Soon they will be firing employees.
Oh yes, and top management will get millions in bonuses!!!
**** heads that they all are.
So, with that in mind, I wont say who is at fault here. Remember, you always get two sides of the story, one persons side and the other persons side, very rarely do you ever get the full truth.
On another note, there are a few companies around here with horrible customer service and I like to cost them money, so I sometimes call them for nothing when I get bored. . .
Maked me feel better anyway.
So now it looks like Sprint makes billing errors, customer calls in to complain, customer is dumped because of "too many calls to customer service"
I had previously decided that when my current contract is up, that I will not be staying with Sprint, this merely reinforces my decision.
The business plan for the new millenium: Money for nothin'!
I'm not a fan of companies that gives up when reps throw up their hands. I've called call centers and the majority of them are clock watchers, line transferers, and shoulder shruggers. I'm not demeaning the profession at all, but it takes ONE bad seed to affect the teams perfomance. So when a customer repeatedly call to dispute errors on a bill that shouldv'e been taken care of the 1st time, and they have to call again to explain it?....well...I'd be irratated.
Handle the real issue at hand, fix it the first time and you'll spend less time writing letters to customers for your mistakes.
Since I started with Spring in June, I have spent over 2 hours on hold trying to fix their screwups.
Most recently, is my first bill. They have overcharged me by about $40 with the assurance that I'll be credited with my next bill.
Can someone please tell me why I should make an interest free loan to Spring?
To be honest, there is real money in this, and I think Spring owes us interest on these advance payments.
What do you all think?
customer service. Starting with the fact that when you call to
"order service" you get someone in the US to answer your call;
but if you call about "billing or support" issues you get routed
to India or Philippines, where usually they do not have the same
systems and can barely understand what they say - to the point
of frustration.
Can't companies learn from a place like American Express? I
have been a member since I was 22 (34 now) and have never
ever experienced bad customer service. They are the most
helpful people I can think of. Second in my list is Apple; in my
experience their customer service is just as good as Amex; and
that is something to say when they are trying to solve (for
hours) computer issues with grandma on the phone.
Business move or not Sprint has fallen into crappy policy, and I
am glad I am not their customer anymore. Luckily, I left right
before they bought Nextel -which was another piece of crap
company-. Maybe they learn their bad habits way too quick.
Anyway my conclusion is that they all treat us as numbers not customers. They don't need to treat us well as long as their accountants say the numbers work out.
For you changing from sprint is going to feel satisfying as you are not only getting the iphone but you get to stick you finger up at sprint as well. For me unfortunately the choice is to get a new contract with a company that has treated me like dirt already or not get the phone I would like.
- They are a bad company.....
- by gwats1957 July 9, 2007 9:47 AM PDT
- I'm a verizon customer for about 12 years now and I can see a
- Like this Reply to this comment
-
-
- Sorry Bud Your Mistaken
- by zeus1973usa August 9, 2007 5:57 PM PDT
- Verizon and Sprint both run on the same type of Network CDMA :D, Sorry you do not have a SIM chip. To get a SIM Chip you need to Suffer through GSM Tech aka (AT&T or T-Mobile), were T-Mobile is realy the only one that will willingly unlock your phone, unfortunatly T-Mobile was last getting on the Digital Band Wangon and is trailing. As for DATA Services, Sprint has the best one with the best price. When they say unlimited DATA they actualy mean it, try using a Router with AT&T or Verizon, and see how fast u get a nasty letter. Now for Sprints Current problems, they are going through some growing pains merging 2 complete diferent billing systems. THERE IS NO EASY WAY OF DOING IT. Unfortunatly, the consumer ends up paying, and that is unfortunate. I do know that if you are wanting to be on the cutting edge of Technology there are going to be some speed bumbs, this is only one of them. Sprint has a track record of looking in the futeure, and bringing new tech to the consumer faster and cheeper then any othere carrier. I know there is someone out there that will disagree with me so have at it
- Like this
-
Showing 1 of 2 pages (49 Comments)bad carrier a mile off. Sprint/Nextel is a dead carrier walking.
I'm in the middle of my last 2 year deal with verizon. I can't see
ever having another phone without a sim card or the ability to
take my phone overseas or use a cheap SIM card to save money.
By the end of my Verizon deal, I'll have two unlocked phones
ready for my next wireless deal.