Monday, May 04, 2009

Update: Boost Mobile Credited for Sprint Nextel Profit in 1st Quarter

Earlier today, I cited a growing trend toward prepaid mobile plans, specifically among Sprint (NYSE:S) customers who were opting for Boost Mobile, (Sprint's prepaid divison.)

The telecom leader defied the analysts' projections with a profit rise in the first quarter. Many experts expected Sprint to post a loss after 1.25 million customers left, but thanks to Boost Mobile's appeal, Sprint boasted a succesful quarter. According to a report from Bloomberg, 764,000 new subscribers enlisted for prepaid plans.

 

More customers, plagued by the economic slump which has hurt credit scores and spending, will reject contracts in favor of prepaid service this year, the company said. Contract customer turnover declined to 2.3 percent, meeting the prediction of Soleil Securities/Nelson Alpha Research analyst Michael Nelson. That compares with the 1.2 percent reported by AT&T Inc. and 1.1 percent at Verizon Communications Inc.

Posted By Matt O'Hern at 01:10 PM
Permanent Link: Update: Boost Mobile Credited for Sprint Nextel Profit in 1st Quarter | Comments (2)

(2) Comments on Update: Boost Mobile Credited for Sprint Nextel Profit in 1st Quarter

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