News by Andrew Kameka on Tuesday July 30, 2013.
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Sprint today reported its earnings for the second quarter of 2013 and revealed that the company lost money. A large amount of money. Despite increasing its revenue 8 percent compared to last year, costs associated with the shutdown of its Nextel iDEN network and other expenses led to a net loss of $1.6 billion for the quarter. Sprint lost $1.4 billion compared to the same period in 2012.
Nextel's closure cost Sprint customers because the carrier was only able to transition 4 million iDEN subscribers since it introduced the Network Vision plan in 2011. The carrier reported a 44 percent recapture rate of Nextel customers and a net loss of 1.3 million subscribers. When looking only at contract customers, Sprint had a net addition of 194,000 customers. However, including prepaid, wholesale, and Nextel subscribers drops Sprint to a 2 million decline in customers. It was a dramatic reversal from the 283,000 customers gained during this same period in 2012.
Sprint's outlook for the future is optimistic. The company has an influx of cash from new owner SoftBank, and increased spectrum holdings to deploy LTE across the United States. All devices released next year will be compatible with the spectrum acquire from Clearwire as Sprint pursues its tri-band LTE efforts.
Andrew is based in Miami, Florida.