Business Services Industry
Customers: quality vs. quantity.(Industry Overview)
Wireless Week, October, 2002 by McCall, Margo
As many carriers have demonstrated, it's not difficult to buy market share. But what's becoming more clear, especially in light of Sprint PCS' recent experience with the credit-challenged, is the high long-term cost of stressing quantity over quality.
Sprint PCS was adding 1 million customers or more each quarter when its Clear Pay program was in full swing. But now that the carrier is forced to disconnect those customers in droves due to nonpayment, driving up chum rates and erasing positive subscriber growth for the third quarter, the full results of that strategy are coming to light.
In a sign that analysts are now more fully scrutinizing carriers' addition of new customers, there are worries that T-Mobile--hailed as this quarter's winner in...
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