Sprint joins the rewards train
In an attempt to stay competitive in an increasingly tight wireless market, Sprint (S) recently joined its peers by launching a rewards program. The My Sprint Rewards gives Sprint customers access to special perks from the operator and discounts from brand partners. To access the rewards, customers download My Sprint Rewards app to their Android or iOS device. Benefits include discounts on AMC movie tickets.
To try to build a loyal customer base in the wireless market, hot with competition, operators are turning to rewards strategies. T-Mobile (TMUS) has its T-Mobile Tuesdays rewards program while AT&T (T) has AT&T Thanks and Verizon (VZ) has VerizonUp.
Soaring competition cited as a reason for the merger push
Sprint has been under intense pressure in the saturated US wireless market. In the third quarter of 2018, the company lost 34,000 postpaid phone subscribers. Its rivals T-Mobile, Verizon, and AT&T reported postpaid phone subscriber gains in the quarter. In addition to traditional wireless providers, Sprint also faces competition from cable companies Comcast (CMCSA) and Charter Communications (CHTR), which have expanded into the mobile market. Sprint has cited this growing competition as a reason behind its decision to try to merge with its rival T-Mobile.
Regulators in the United States are reviewing the merger proposal, which has Dish Network (DISH) and other companies have opposed on claims that it would stifle competition in the wireless market.
Sprint’s revenue jumped 6.4%
Sprint’s revenue rose 6.4% year-over-year to $8.4 billion in its second quarter of fiscal 2018, which ended in September.