[Visionwhore]

Check out this story CNN did on our fav provider:

NEW YORK (CNNMoney.com) -- At first blush, there's not a lot for an investor to love about Sprint Nextel.

It is a lot smaller than AT&T and Verizon. Customers have been leaving the company for years, and Sprint Nextel lost another 75,000 net subscribers in the first quarter.

Analysts expect Sprint Nextel to report a financial loss for its second quarter on Wednesday morning. That would be the company's eleventh consecutive quarter without a net profit.

So why are shares of Sprint Nextel (S, Fortune 500) trouncing those of Ma Bell and Verizon so far this year?

Sprint Nextel's stock is up nearly 35% in 2010. Meanwhile, AT&T (T, Fortune 500) is down 7% and Verizon (VZ, Fortune 500) is off 14%, making them among the worst performers in the Dow Jones industrial average.

But Sprint Nextel seems to be benefiting from the fact that it's a turnaround story. Even though it's still losing money and subscribers, those losses are narrowing.

"During the financial crisis, there were some doubts about whether Sprint Nextel would even survive because it had a heavy debt load. So there is some relief that the company is not going under," sad Joseph Bonner, an analyst for Argus Research.

In addition, the company's widely-touted 4G wireless smartphones are earning raves from many gadget connoisseurs. The EVO, a phone made by Taiwanese tech firm HTC that runs on Google's (GOOG, Fortune 500) Android mobile operating system, could be a major hit for Sprint Nextel.

A blogger on tech site ZDNet wrote last month, for example, that "the EVO 4G from HTC and Sprint is the new top-dog Android phone and frankly, it beats the pants off anything from Cupertino."

Cupertino, for those of you who aren't members of the cult of Steve, is the town in California that is the home base of iPhone maker Apple (AAPL, Fortune 500).

Timothy Horan, an analyst with Oppenheimer & Co., wrote in a note previewing Sprint Nextel's second-quarter results that he expects EVO sales were "solid" in the quarter. For that reason, he thinks net subscriber losses will slow further.

Investors will also probably be eager to hear more about marketing plans for Sprint Nextel's next 4G phone, the Samsung Epic. That's due to launch in August, and Steve Clement, an analyst with Pacific Crest Securities, said this could have a favorable impact on sales in the third quarter.

"4G is a decent driver of growth for Sprint Nextel. That's why expectations and sentiment are improving and the company's subscriber base appears to be stabilizing," Clement said.

Finally, investors are also excited about Sprint Nextel's majority investment in wireless networking company Clearwire (CLWR), the firm that actually powers Sprint Nextel's 4G network. Sprint Nextel owns 51% of Clearwire.

But can Sprint Nextel actually turn this buzz into profits? Analysts aren't predicting a quarter in the black for the company until the first quarter of 2012.

Clement said he has a "neutral" rating on the stock because much of the good news may already be priced in to Sprint Nextel's shares. Because Sprint Nextel is unprofitable, analysts look more at a multiple using earnings before interest, taxes, depreciation and amortization, or EBITDA.

On that basis, Sprint Nextel is trading roughly in line with the valuations of AT&T and Verizon. But Clement pointed out that because the company's Clearwire stake is not consolidated within Sprint Nextel's results, the valuation for Sprint Nextel may be deceptively cheap. Factoring in Clearwire, it trades at a premium to its two larger rivals, which doesn't seem warranted.

Is Motorola back?
But perhaps the biggest problem for the company is that even though the sexy 4G phones are what geeks will drool over -- and pay a pretty penny for -- the real growth at Sprint Nextel is still being powered by its prepaid wireless brands such as Boost and Virgin Mobile.

In the first quarter, Sprint Nextel added a net of 348,000 prepaid subscribers while losing a net of 578,000 subscribers from its so-called post-paid calling plans.

Customers who pay for wireless service in advance are often derisively referred to as subprime cell phone users, because they are not required to get a credit check.

They also spend a lot less for wireless services than other Sprint Nextel customers. Average revenue per user for prepaid subscribers in the first quarter was $27 a month, compared to $55 a month for post-paid customers.

That's why Bonner has a "hold" on the stock. Sure, momentum may be on Sprint Nextel's side as people rave about the EVO and other 4G phones. But as long as the company is relying more on brands like Boost for a subscriber boost, profits may suffer.

So don't be surprised if investors start to Sprint for the exits if the company can't find a way to turn 4G hype into real subscriber growth and profits soon.

[DJRider]

Thanks for the good news. It is amazing that they never even mentioned all the wireless spectrum that Sprint owns. That is an ace in the hole and will eventually pay off big time!

[Dan]

They also fail to mention how many of Verizon's and AT&T's customers are actually on prepaid services.

Now, hopefully Sprint can gain customers while continuing to improve CS. They also need to make the stores and call centers more in tune with what the other is doing, and stop the game of "just goto the store and they will give you X" or "well call *2 about getting that fee waived, they can probably do it."

If a CS rep makes a customer a promise, the results of the promise should fall directly on that rep and his or her supervisor. If a store rep suggests calling *2 about something, it should be done in store. If the offer is restricted to account services, the store rep should make the call to see about getting it extended to the customer.

Its the "stupid" crap that happens that gives Sprint the biggest black eyes. Pay the workers a fair wage, make them responsible for what they do, and keep the customer happy. No more passing the buck.

[Hans Gruber]

Nobody really cares about customer service. The notorious poor customer service just rubs salt on the wound of Sprint customers. I call customer service maybe once a year at most.

The real tragedy is the $10 fee tacked onto 4G service. What is it for? It's just a nickle and dime fee that Sprint is needlessly passing onto customers. Instead of taking advantage of their golden opportunity with 4G, Sprint is tacking on fees. Sprint would be gaining 500,000 customers each quarter without the 4G $10 fee.

Everybody things Sprint sucks without knowing why. It's just a reputation that has developed over the years. Sprint could have scored a major victory with 4G and the already excellent EVO by charging no additional fees.

Does anybody else here believe Dan Hesse is a sociopath? He is just creepy in those black and white Sprint commercials. He is devoid of human emotion. Sprint needs a spokesmodel.

[VisionsDivine]

Originally Posted by Hans Gruber

Sprint needs a spokesmodel.

This article kind of makes me wish I bought Sprint stock when it was only $1.35 per share about a year and a half ago.

[03CBRkid]

Clearwire seem to get lots of promotion. Every mall I go in has 1 kiosk if not 2.

[Visionwhore]

Yeah, I think that Sprint's future will correlate strongly with the success or failure of Clearwire. Its not entirely dependent on Clearwire though as Sprint is also invested in LTE in the event that this format wins out (imho).

[jessep28]

Just saw the news that Sprint gained 110,000 subscribers in the second quarter.

[BusyBeingBrutal]

Originally Posted by Hans Gruber

Nobody really cares about customer service. The notorious poor customer service just rubs salt on the wound of Sprint customers. I call customer service maybe once a year at most.

The real tragedy is the $10 fee tacked onto 4G service. What is it for? It's just a nickle and dime fee that Sprint is needlessly passing onto customers. Instead of taking advantage of their golden opportunity with 4G, Sprint is tacking on fees. Sprint would be gaining 500,000 customers each quarter without the 4G $10 fee.

Everybody things Sprint sucks without knowing why. It's just a reputation that has developed over the years. Sprint could have scored a major victory with 4G and the already excellent EVO by charging no additional fees.

Does anybody else here believe Dan Hesse is a sociopath? He is just creepy in those black and white Sprint commercials. He is devoid of human emotion. Sprint needs a spokesmodel.

After reading your reply in another thread as well as this one. Im thinking Dan Hesse took a pee in your cereal?

No really though, what did Sprint do to you?

[woods3336]

Anybody else notice the Clement dude let slip that the EPIC 4G will be released in August? Interesting....

"Investors will also probably be eager to hear more about marketing plans for Sprint Nextel's next 4G phone, the Samsung Epic. That's due to launch in August, and Steve Clement, an analyst with Pacific Crest Securities, said this could have a favorable impact on sales in the third quarter."

[UALOneKPlus]

Originally Posted by woods3336

Anybody else notice the Clement dude let slip that the EPIC 4G will be released in August? Interesting....

"Investors will also probably be eager to hear more about marketing plans for Sprint Nextel's next 4G phone, the Samsung Epic. That's due to launch in August, and Steve Clement, an analyst with Pacific Crest Securities, said this could have a favorable impact on sales in the third quarter."

Yup. Looking forward to it!!