Just like a sappy love song, Sprint wants you back – if you’re a former customer, that is.
The carrier confirmed Tuesday it is running a limited time promotion offering previous Sprint customers an extra $200 service credit when they switch back to #TeamYellow.
“We’re always looking for new ways to remind people of the value Sprint offers and to encourage wireless users to experience our network improvements,” a Sprint spokeswoman said.
The promotion applies to customers who activate a new account and line of service, and comes on top of Sprint’s offer of up to $650 per line to cover the cost of switcher fees. According to a report from RCR Wireless, the $200 offer is slated to end September 15.
The move comes as Sprint fights to boost subscriber figures as it improves its network. Over the past year, Sprint has boosted performance with a number of network upgrades, including the deployment of more of its 2.5 GHz spectrum and two-carrier aggregation. The carrier said earlier this week it is continuing tests for the roll out of three-carrier aggregation, which is expected to bump speeds up to more than 200 mbps on compatible devices.
Since November, the carrier has been offering discounted service to those who switch from competitors, but has heretofore produced only lukewarm results. In the first quarter, Sprint pulled in just 22,000 postpaid phone net additions. The carrier continued to improve that figure with 173,000 postpaid net additions in the second quarter, but BTIG analyst Walter Piecyk said the figures just aren’t good enough for a sustained turnaround.
“The issue is still whether that level of growth and continued cost cutting is enough to generate free cash flow, which is important for investors,” Piecyk said earlier this month. “It will take more than 173,000 net adds, so the question is do you believe they can get there.”
By Piecyk’s calculations, Sprint would have to gain more than 3 million postpaid voice customers to halt its cash burn. That ground will not be easily given up by the likes of Verizon, AT&T and T-Mobile, he said.
Sprint’s new offer is clearly an attempt to pick up the pace on net additions and show customers what its improved network is capable of. Just how successful this effort will be, though, remains to be seen.