Sprint Adds Almost 1 Million Prepaid Customers In Q2

  • July 29, 2009
Sprint Nextel continued to shed contract subscribers in the second quarter, but added nearly 1 million prepaid customers through its Boost Mobile unit. Sprint lost a total of 257,000 net wireless subscribers in the quarter, including 991,000 contract customers. But that decline was offset by a gain of 938,000 prepaid customers, powered by Boost's $50 monthly unlimited plan for calling and data.

The surge in prepaid business underscores the impetus behind Sprint's $483 million acquisition of rival prepaid service Virgin Mobile USA, announced Tuesday. The deal gives Sprint a commanding position in the growing prepaid market, leaving only TracFone as a major competitor in the segment.

Overall, Sprint had a net loss of $384 million on net operating revenue of $8.1 billion in the quarter. The net loss was wider than the $344 million it reported in the year-earlier period. Wireless service revenue was flat compared to last quarter at $6.4 billion and down 9% from a year ago because of fewer subscribers.

Sprint didn't disclose how many Palm Pre smartphones have been sold since the device's June 6 launch, but CEO Dan Hesse said the carrier expects to add more subscribers through the Pre as it gains wider distribution through retail outlets such as Best Buy and RadioShack. He also indicated Sprint's exclusive deal to sell the Pre would last into 2010. Verizon Wireless CEO Lowell McAdam suggested this spring that Verizon would begin also offering the Pre starting early next year. --Mark Walsh
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