Sprint Corporation
(1) Identification of issues responsible for failure of marketing services strategies of Sprint Corp in meeting customer expectations:
Sprint's 4G network offering wireless broadband services Xohm with download speeds in the range of 2 Mbps to 4 Mbps was the first commercial network across USA to use mobile WiMax technology. However because of limited availability of devices that is able to access the network, Sprint was compelled to use conventional broadband and wireless business models. This move brought the company in direct competition with the present broadband services and 3G services and the product offering was not actually satisfying an unmet customer need and hence the prospects of the service remained narrow. (Reardon, 2008)
Sprint is targeting customers of existing cable and DSL cable providers with mobility. However with a small range of devices supporting WiMax currently, majority of the people purchasing the service will get similar mobility as offered by Data cards plugged in their Laptops and not wider range of mobility across the town. They can only receive signals when they are in the vicinity of a hotspot like airport, library. (Reardon, 2008)
On the price front too the service is not offering any great value. The home service mandates users to procure $79 WiMax modem that costs $25 upfront but its final price will be $35 monthly. The mobile service comes for $59 WiMax with a wireless card for laptops with a starting price of $30 that rises to $45 after a period of 6 months. This combo service that lets bandwidth share among other users at home with mobility comes at an initial price of $50 per month and rises to $65 per month. The pricing is at par with other providers like Baltimore Comcast offering 6 Mbps downloads that $43 and Verizon Communications offering 3 Mbps DSL service for $30 a month and hence there is hardly any differentiation on this aspect as well. The service availability is also limited to Baltimore with more cities to follow suit, but its people in the suburban areas will definitely be out of its range. (Reardon, 2008)
Proposed steps to be taken: Sprint's strongest asset is that it was the first company to roll out its all-fiber optic network. The company installed fiber optic cable along its routes which was a process started by SPCC as the transmission medium functioned at very high frequencies and used digital signals unaffected by electronic interference. Unlike majority of its rivals, Sprint has a presence across the entire value chain of telecom like local phone, long distance, Internet and wireless operations. What the company can do is cross-sell its services to its existing customers through a judicious bundling of its various offering. It has collaboration with Nortel Networks Corp to install a new switching technology -- the packet technology which it can bring into service. This service has advantages of allowing additional traffic on telecommunication lines by placing all its phone lines on the packet system. This would be a huge saving for the company and permit it to offer greater services to its customers. (Funding Universe, 2012)
(2) Implementation Plan Suggestion:
Currently, Sprint operates in various spectrums via its association with Clearwire 2.5GHz spectrum. An ideal implementation would be when Sprint pools companies to install a new network equipment and software that combines multiple spectrum bands or airwaves on a uniform multimode base station. This will help the base stations to allow for flexibility in offering new technologies using any of the 1.9GHz, 800 MHz or 2.5GHz as also other spectrum bands. This implementation of multimode technology across the Sprint network has been designed to (i) improve service by improving its quality, data sped, enhancing coverage. (ii) build a network flexibility ensuring that the most effective expansion of 4G (iii) lower operating costs through delivery of capital efficiency, reduction of lease, savings on roaming and improving efficiency. (Sprint, 2010)
Besides launching of next generation Push-to-Talk -- PTT with broadband capabilities and unification...
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