According to an article in the Kansas City Business Journal (link below). Sprint’s promotions including free cellphone lines and rewards for Sprint Corp.’s sales representatives boosted the image of the wireless carrier’s financial health, making it appear better than reality, The report quotes a report in the Wall Street Journal.
Sprint sales representatives were paid commissions based on the number of lines they added, even if they were free. Free lines also help representatives meet monthly sales quotas, according to the report.
In mid-April, Sprint told regulators considering the merger with T-Mobile that recent gains in postpaid phone connections were driven by free lines given to existing Sprint customers, distorting the overall financial picture of the already-flailing carrier.
“While these public statements and the individual metrics cited are all accurate, they are incomplete,” Sprint’s lawyers said in an April filing with the FCC.
Sprint reported 309,000 postpaid net additions in the quarter ending Dec. 31, an improvement of 53,000 year-over-year, “as the company continued to offer some of the best unlimited plans in the industry and focused on growing revenue per customer,” a news release said.
Sprint will report fourth-quarter earnings on May 7, and analysts expect the company to lose about 50,000 postpaid phone connections in the first quarter of 2019.
Read the entire article HERE.
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