It appears after spinning off the newly formed Embarq, Sprint is now is planning to stop the spin for Boost Mobile. The company recently announced intentions to slow the growth of the wholly owned subsidiary as Boost Mobile’s growth has been reported as outpacing more financially viable areas. In fact close to half of newly acquired Sprint customers are from Boost Mobile.
My Perspective
Instead of shelving what appears to be the most popular “youth oriented mobile company” and also the saving face of Sprint, who is often maligned in the media, the company would be better served making adjustments to the Boost business model. Otherwise, Boost Mobile will just become a multi-million dollar waste. The goal of almost every communications company ultimately is to gain subscribers. Once acquired they can and should be funneled into more lucrative products and services. However, completely cutting off, or slowing a viable means of expanding the subscriber base potentially kills the opportunity for expansion. Also it solicits lack of brand trust and reliability in the mind of the consumer. Hopefully Sprint can make the correct adjustments without killing the brand.
