Sprint hand against the two giants Google Voice

"In 2008 and 2010, our wireless business in the post-paid subscribers has been declining, on the contrary, our two major competitors, the number of users has been on the rise." When the Sprint last year's results for the interpretation of the words ringing in our ears, the The third-largest mobile operator in the United States has embarked upon a new journey: In late March, Sprint announced its voice service with Google to integrate Google Voice VoIP service.

It seems in some foreign analysts, Sprint move "as to the communications market dropped a bomb." Google Voice will be eroded as a direct source of major profit operators - voice service revenue. Why Sprint reform his own life at this time?

Difficult by the traditional competitive advantages

For operators, the user scale is essential.

"If we can not attract and retain mobile users, our financial condition will be destroyed. After that, we will likely face a range of issues, such as the need to deal with the acquisition of other companies sent a letter of intent by a third party such as capital controls." Sprint Annual Report 2010, the risk of prompt wrote. The largest U.S. mobile operator Verizon Wireless will also be a certain objective is: to get cash to expand its market share to an ongoing investment.

Indeed, at present, several major U.S. carriers are trying to invest a lot of money to build 4G networks and access networks throughout the United States to try to make their own network coverage ahead of the competition. This is a competition of capital, the need for good financial support. And a declining number of users Sprint, leading to its wireless business revenue is not optimistic.

According to report, Sprint's wireless business post-paid subscribers negative growth in 2007, when the user reducing the total number 1224000; from 2008 to 2010, the number of users reached 4.073 million loss, 3.546 million and 85.5 million. The end of 2010, followed by the number of paid subscribers only 33.249 million. Dragged down by this, the wireless sector profits last year, only $ 4,531,000,000, down 12.8%.

Instead, its two major competitors - Verizon Wireless and the second largest U.S. mobile operator AT & T's subscriber growth has been maintained. End of last year's data show that both the number of users increased by 5.38% and 12.2%, respectively, 94,100,000 and 95,536,000.

Faced with this situation, Sprint has been trying to turn the tide. However, a key factor in the competition - the terminal side, Sprint was defeated.

AT & T has exclusive carrier in the United States because the iPhone, which has attracted many new users into the net. Data show that in the iPhone AT & T just took over the 12 months to absorb the 920 million new customers, Verizon Wireless over the same period over 6.6 million out of the Jinsi Cheng, a part of the credit from the iPhone.

In the AT & T exclusive iPhone agreement has not expired, jealous of the Verizon Wireless have jointly RIM, RIM's exclusive carrier in the United States's first touch-screen phone BlackBerry Storm, is also pushing Motorola Droid. Finally, in February this year, when the iPhone after the expiration of an exclusive sales agreement, Verizon to do so to obtain the right to operate the iPhone.

There is no doubt that operators compete for the user terminal is a major weapon. This is why AT & T and Verizon Wireless so "love" iPhone reasons. From the current situation, Sprint is not particularly competitive end products.

Now, unable to gain an advantage in the terminal area, Sprint would want to create a price advantage to attract users. Sprint said its offer is "value-driven wireless network service", thus the price of services is "very competitive." For example, Sprint offers $ 50 unlimited calling, text messaging business. In addition, they "also sold below cost terminal."

But in fact, Sprint to do, other operators are doing. For example, "to sell below cost terminal," in the implementation of each operator. Cost of service, AT & T also provides a monthly fee as low as $ 15 per month business.

Overall, Sprint and services in the terminal price is not an edge, but also does not Verizon Wireless and AT & T's financial strength. Today, Sprint and AT & T want to buy meets the fourth largest U.S. mobile operator T-mobile thing, which was aggravated. Sprint can only choose most drastic revolution.

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