Summary
1. It is a plus that in the wholesale business, “Sprint's involvement is largely hidden from the public.” 2. Putting the emphasis on network utilization rather than on the brand is what is really important now. 3. Sprint may never be able to fully rehabilitate its brand.
Analysis
Who could blame Amazon for “hav[ing] their brand and their brand only.” Sprint cannot count on its name to increase its valuation anymore – only its ability to bring in additional revenues at decent profit margins.
The wholesale wireless market is likely to remain a distant secondary concern for AT&T and Verizon. In some cases, AT&T wishes it had “excess capacity” and Verizon is doing well with bringing in retail business. It is reasonable to assume that Sprint could “outflank rivals” by putting a lot more attention on “makers of consumer gadgets.”
It is not just “about [reducing] expenses for billing and customer service” for Sprint; it is that its track record in these areas has not been stellar. And in going beyond dealing with the MVNOs “to a wider array of products,” the growth potential appears to be impressive. Yet, Sprint needs to become more proactive in providing resources to manufacturers that approach the service provider so that it can improve on its 20% success rate. These companies need assistance in developing “a solid business strategy and the ability to ‘manage the daily challenges of offering wireless service.’”
Sprint may have “an edge...because of its vast reservoir of radio spectrum.” However, as we have pointed out in the past, its operational costs are going to be higher given the bands that it operates in the spectrum. But Sprint’s mixed record on “wholesale cellphone deals” should not be looked at to determine its future potential in “consumer electronics.” The MVNO business is a whole different ballgame.
