Four Things Sprint Needs More than the iPhone 5

Think the iPhone 5 can save Sprint from extinction? Think again. While not yet confirmed as of this writing, it seems as if Sprint S has struck some kind of deal* to secure Apple's AAPL undying support for the next several years. Rumors suggest that Sprint may have scored an exclusive with the iPhone 5 that will last until next year. Whether or not that proves to be the case, one thing is for certain: Sprint cannot survive on the iPhone 5 alone. With $20 billion reportedly invested in Apple's next phone, the cellular carrier is willing to bet its entire company on one device. Will it be worth the extreme cost? That remains to be seen. But no matter what happens, there are several other things Sprint needs more than an iPhone deal – exclusive or not. (*UPDATE: Apple confirmed that the iPhone 4S will come to Sprint, but the iPhone 5 has yet to be announced.) 4. Variety Sprint banked on 3D phones, thinking this was going to be the next big thing. Then, in one of its lame advertisements, the company asked consumers to make 3D phones the next big thing. Umm…what!? You don't ask consumers to support something. You show them why they should support it. None of Sprint's commercials were successful in doing that. But that was only part of the problem. Once consumers finally tried the phone, they found a device that was glitchy, unimpressive, and occasionally painful (as with the Nintendo 3DS, some users have complained of eye strain, feeling nauseous, etc.). Instead of banking on the success of just one phone (as Sprint might be doing with the iPhone), the company needs to realize that there's more to life than 3D or Apple. 3. Superior Marketing First things first: get rid of Dan Hesse. No, not out of the company – out of the commercials! He crops up, disappears, and then finds his way back into their silly 30-second ads. While he may very well be the nicest guy in the world, there is nothing about a speech from a corporate exec that makes me say, “Sign me up!” Rather, I am more likely to say, “Go away!” before turning the channel and running in the opposite direction. Sprint's other commercials (from the old lady who turned 100 to the hype and hoopla for unlimited data) aren't much better. In fact, this might be the best of the bunch, and it's not very good at all: To be fair, I can't say I've enjoyed any of T-Mobile's commercials. Verizon's are getting old. But AT&T's long-running “more bars” campaign is actually quite effective. Those spots are visually appealing without being too over-the-top. Sprint shouldn't copy AT&T. But the company definitely needs to find a new promotional direction. 2. Greater Reach For customers within Sprint's coverage area, the service is great, reliable, and fairly priced. Customers outside of the coverage area, however, are often left in the cold. That – and a nauseatingly endless marketing campaign – has given AT&T and Verizon a strategic edge. Realistically, Sprint may be without the needed capital to expand, especially if the iPhone deal proves to be true. But if the company doesn't expand soon, it may lose further ground to its competitors. While many consumers choose Sprint because of its unlimited pricing, many more choose AT&T and Verizon because of their larger coverage areas. 1. Reduced Costs Consumers come to Sprint for one thing: unlimited data. Many speculate that Sprint will soon be unable to provide unlimited data to its customers, citing the cost of bandwidth as the primary reason. Granted, one could argue that the profits made from text messaging (the weakest of any data sent) are high enough for any telecommunications company to give consumers a break every now and then. But in the long run, the cost of that bandwidth could very well make it impossible for Sprint to continue offering an unlimited data package. If that happens, the company will lose the one edge it has over Verizon and AT&T (and T-Mobile, for that matter). Thus, Sprint must reduce its expenses. This doesn't mean that the company should cut employee salaries, layoff workers, buy cheaper equipment, and allow the quality of its service to deteriorate. Rather, Sprint needs to invest more in research and development and find new and innovative ways to deliver its service to consumers. By doing so, Sprint will either come up with a way to reduce its costs without tarnishing its service – or uncover a grand excuse to charge us more for the features consumers want most. Either way, Sprint wins. Follow me @LouisBedigian
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