The Case Against: Sprint

'The Case Against' is a recurring analysis of why a company, person or other business venture is not a good long-term investment. All opinions are the author's and are not a recommendation to buy or sell any stocks, bonds or other financial instruments. Buying and activating a new smartphone should be a simple procedure. And, it may well be for people with service providers other than Sprint. For Sprint users, however, the process is laborious, frustrating and ultimately will drive all but the most dedicated customers away. Having been a Sprint customer since 1999, I can say that the company has never had a smooth way to activate a new device on an existing number. Having done this eight or nine times in the last 10 years, I can say that every single time that online or automated phone activation failed and, I needed human intervention. This, however, was never that big a deal as Sprint provided that human help and a short customer service call would result in a newly-activated device. So, of course, before the launch of the new iPhones, Sprint eliminates its telephone-based customer service for activation issues, instead forcing customers to make appointments at Sprint's retail stores. After my failed online activation on a Friday evening, I made an appointment at the nearest Sprint store for noon on a Saturday. I arrived for my noon appointment at 11:30 a.m. and, of course, was delivered to a technician a convenient hour later at 12:30 p.m. At this point, I was carrying two phones, my previous iPhone 4S which was receiving data, but could not make or receive calls and my new, iPhone 5S, which was basically a pretty paperweight. Over the next two hours, the Sprint store team activated my wife's phone number on both of my phones (leaving her not knowing she did not have a working phone) and erased all of my contacts. Ultimately, at around 3 p.m. I had a working iPhone 5S, albeit one without any of my apps loaded and none of my contacts. So, basically, Sprint, in eliminating phone customer service for activations had robbed me of over three hours to not really do what I used to be able to much more successfully do over the phone in a matter of minutes. Already an underdog in the cell phone space, Sprint lags behind competitors AT&T and Verizon. The company also faces competition from lesser players including T-Mobile and Metro PCS and, it's losing on all fronts. Sprint, aside from the iPhone, has a selection of phones that lags behind its competitors. Take, for example, it's slow adoption of the Windows 8 Phone and, when it finally offered phones running the alternative iOS, it was not the flagship Nokia line, it was oddball models from HTC. The company also hangs its hat on offering unlimited data plans, which AT&T and Verizon mostly do not do, but, even there the company offers higher prices than its no-contract competitors. So, with lesser phones and more expensive plans, all Sprint really has left is serving its not small base of existing customers, like, for example, someone like me who has had a family plan with them since 1999. And, since Sprint customer service now stops just short of spitting in your eye and giving you a wedgie, well, the die is cast and the ship is sinking. If Sprint really wanted to win, or at least not lose, the smartphone war, it would invest in customer service, appoint a customer advocate who could make real changes and treat its long-time subscribers like the valuable annuity they are, Instead, I imagine we'll get more “conveniences” like having to drive to a store to do something that could easily be accomplished over the phone. As a subscriber, my loyalty has been tested and my patience likely ends the next time I'm ready to buy a new phone. As a potential stockholder, I'm running away screaming as fast as I possibly can. Daniel B. Kline is a Benzinga staff writer and editorial consultant who can be reached at dan(at)notastep(dot)com.