uploads///Telecom Sprint Platforms Postpaid Net Additions

Sprint Extends 50% Promotional Offer for Competitors’ Customers

Ray Sheffer - Author

Aug. 18 2020, Updated 5:31 a.m. ET

Sprint’s 50% promotional offer

Earlier in this series, we learned about the promotional effort by Sprint (S) for its unlimited voice, text, and data plans. The carrier remains aggressive on customer acquisitions in a saturated US wireless space.

On February 11, 2016, the fourth-largest US wireless player by subscribers decided to extend its 50% discount offer for select customers of its competitors, including AT&T (T), Verizon (VZ), and T-Mobile (TMUS).

According to the carrier’s press release, “Consumers will continue to have the opportunity to save 50 percent off most AT&T, T-Mobile and Verizon standard rate plans when they switch to Sprint.”

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Sprint’s postpaid customer acquisitions in fiscal 3Q15

Earlier during Sprint’s fiscal 3Q15 (calendar 4Q15) earnings call, Marcelo Claure, the telecom’s CEO, had mentioned the positive impacts of Sprint’s 50% promotional offer on customer demand. He noted, “The results of the offer exceeded our expectation in terms of customer demand and the number of lines per account that were coming in.”

During fiscal 3Q15, Sprint continued to have positive postpaid customer additions, including those of phone subscribers. Sprint platform’s postpaid additions grew YoY (year-over-year) significantly from just ~0.03 million in fiscal 3Q14 to reach ~0.5 million during fiscal 3Q15.

Sprint’s platform has been witnessing net additions of postpaid customers since fiscal 3Q14. Additionally, on a net basis, Sprint platform’s postpaid phone additions were ~0.37 million in fiscal 3Q15.

Instead of taking direct exposures to the stocks of US telecom companies, you may consider taking a diversified exposure to this space by investing in the Technology Select Sector SPDR ETF (XLK). XLK had a total of ~10.5% in some of the US telecom companies at the end of December 2015.


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