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Mobile Technologies
by Editor on July 13, 2007
I've deliberately avoided posting about this subject the past few days, although I've been following it since it first appeared on The Consumerist website last week. I've also been encouraged to write about the post by a number of other bloggers.
I've vacillated between two schools of thought about this topic, but the one I keep coming back to relates to the underlying principles of capitalism, where Sprint are well within their rights to terminate any customer for pretty much any reason - they are, after all not in the business of providing communication service, but the business of making money for their shareholders. They just happen to be making money by providing communication services.
It can also be argued that the actions Sprint are taking in churning these customers off their books is beneficial to the company's bottom line, as it reduces the number of support calls, and hence the amount of money spent on providing such support. It also has a minor side effect of decreasing the number of accounts with billing problems (which are the primary cited reason for the high number of calls), which should have the impact of increasing revenues again.
Of course, weighed against this is the negative impact that all the exposure has generated across the Internet, and amongst mobile bloggers especially where the response has been almost universally negative. Ars Technica even popped up with their own experience.
Again, I can't help but think there is no real big issue here, there's simply a dispute between customers and the company they are purchasing a service from. Individual instances where customers are being mischarged, overcharged or generally billed for goods or services they didn't use aside, if Sprint choose to terminate a customer's service at no penalty to the customer, then that's their prerogative.
Sprint have however managed to shoot themselves in the foot by instigating another such customer purge, this time adversely affecting a group of US servicemen and women, by penalising them for using Sprint's own roaming service.
A few days after the original story appeared, another appear on The Consumerist with what appeared to be a rebuttal from Sprint, although delivered as if from a Sprint employee reporting anonymously, that claimed that the majority of the people who's accounts were being terminated were actually attempting to defraud Sprint. Consumerist reader ScoobyDoo was one of many who was less than trusting of the veracity of the account:
What I do think this situation shows is not that Sprint are necessarily a bad company (although there will always be debate about this), it seems to show there is a fundamental disconnect in the US mobile telecommunications industry, something that is also shown in the recent release of Apple's iPhone as an AT&T exclusive. With each company working hard to generate as much income for their shareholders as possible, the US-wide communications infrastructure is suffering, and consequently customers are having a hard time making use of such services. The original poster on the SprintUsers forum makes the point that whilst serving in Iraq - effectively a warzone - he received a better standard of service and operational coverage, at a lesser price, than he receives from the US telecommunications provider Sprint.
I remember myself when I used to employ people living in the US I always had to check in advance where in the country they would be to make sure that I could call them. In some cases, depending on location, I couldn't call as their carrier didn't provide international inbound call connectivity in certain regions. In some, especially to me, ludicrous instances I couldn't even send a text message, as there was no text sharing interconnect between carriers for roaming users, a situation that appears to still exist.
The equivalent situation in the UK would have the text voting provider laughed out of business, yet this seems to be the norm in the US.
Apple going with AT&T for the iPhone has also struck many people as odd, for the same reason: AT&T use a proprietary technology to deliver mobile services that is entirely incompatible with every other provider. Sprint phones are also incompatible with other providers, so those who are using Sprint are also locked in to that carrier if they want to continue using the handsets they have bought - and perhaps that is the real reason for the angst, not that the service is bad (which it apparently is), or that the company is doing what it is legally obliged to do (make money for it's shareholders), it's the fact there's no other choice that is driving the anger.
So I really think the larger issue here is not Sprint, but the parlous state of the mobile telecoms industry in the US. Common shortcodes (5 or 6 digit codes that work on all carriers) are a new phenomenon in the US (only being introduced in the past couple of years), and number portability is still a large issue. Coverage varies depending on your provider, and some areas you are limited in which provider you can even choose. Sprint dumping users is just a symptom of a much wider malaise.
I've vacillated between two schools of thought about this topic, but the one I keep coming back to relates to the underlying principles of capitalism, where Sprint are well within their rights to terminate any customer for pretty much any reason - they are, after all not in the business of providing communication service, but the business of making money for their shareholders. They just happen to be making money by providing communication services.
It can also be argued that the actions Sprint are taking in churning these customers off their books is beneficial to the company's bottom line, as it reduces the number of support calls, and hence the amount of money spent on providing such support. It also has a minor side effect of decreasing the number of accounts with billing problems (which are the primary cited reason for the high number of calls), which should have the impact of increasing revenues again.
Of course, weighed against this is the negative impact that all the exposure has generated across the Internet, and amongst mobile bloggers especially where the response has been almost universally negative. Ars Technica even popped up with their own experience.
Again, I can't help but think there is no real big issue here, there's simply a dispute between customers and the company they are purchasing a service from. Individual instances where customers are being mischarged, overcharged or generally billed for goods or services they didn't use aside, if Sprint choose to terminate a customer's service at no penalty to the customer, then that's their prerogative.
Sprint have however managed to shoot themselves in the foot by instigating another such customer purge, this time adversely affecting a group of US servicemen and women, by penalising them for using Sprint's own roaming service.
A few days after the original story appeared, another appear on The Consumerist with what appeared to be a rebuttal from Sprint, although delivered as if from a Sprint employee reporting anonymously, that claimed that the majority of the people who's accounts were being terminated were actually attempting to defraud Sprint. Consumerist reader ScoobyDoo was one of many who was less than trusting of the veracity of the account:
I call shenanigans.Although balanced against this, other posters such as BNET41 say:
This guy is probably speaking on behalf of Sprint PR and is trying to slow down the backlash they got from their little stunt.
They probably thought they could fire these 1000 customers without anyone noticing, but forgot about the Internet.
The story he's telling may apply to a couple of customers, but the previous poster proves that not everyone was a scammer, and Sprint should be ashamed of itself for trying to pin the blame on their customers when it is evident that THEY are also to blame in some cases.
If you've ever worked as a CSR you'd know how common this is. There seem to be people out there who have nothing better to do than try to get free stuff.In all of this, the one party that has yet to make a public announcement is Sprint itself, or at least not anywhere I've seen.
What I do think this situation shows is not that Sprint are necessarily a bad company (although there will always be debate about this), it seems to show there is a fundamental disconnect in the US mobile telecommunications industry, something that is also shown in the recent release of Apple's iPhone as an AT&T exclusive. With each company working hard to generate as much income for their shareholders as possible, the US-wide communications infrastructure is suffering, and consequently customers are having a hard time making use of such services. The original poster on the SprintUsers forum makes the point that whilst serving in Iraq - effectively a warzone - he received a better standard of service and operational coverage, at a lesser price, than he receives from the US telecommunications provider Sprint.
Why on earth I cant get coverage at the United States Military Academy, 40 minutes away from New York City is a mystery to me. I had a cell phone the entire time I was in Iraq with a middle eastern company. I payed LESS to call home and keep in touch from the otherside of the world than I do now with Sprint to call within the country. It also did not matter if I was in a major city or out in the middle of nowhere in the desert, I ALWAYS had full coverage. Never had a dropped call, and the customer reps of that company spoke better English than those with Sprint do.It is this small section of the post that caught my attention and got me thinking - how can it be that in such a technologically advanced country, obtaining cellphone coverage, roaming and interconnects between existing providers is such a problem?
I remember myself when I used to employ people living in the US I always had to check in advance where in the country they would be to make sure that I could call them. In some cases, depending on location, I couldn't call as their carrier didn't provide international inbound call connectivity in certain regions. In some, especially to me, ludicrous instances I couldn't even send a text message, as there was no text sharing interconnect between carriers for roaming users, a situation that appears to still exist.
More than 30 million viewers tune in to 'America Idol' each week to vote for their favorite contestants by dialing into the toll-free telephone numbers or texting in on their Cingular Wireless phones.To expand on that small quote - you can only vote for American Idol is you have a Cingular mobile phone. If you're on any other network, you cannot send in a voting text.
The equivalent situation in the UK would have the text voting provider laughed out of business, yet this seems to be the norm in the US.
Apple going with AT&T for the iPhone has also struck many people as odd, for the same reason: AT&T use a proprietary technology to deliver mobile services that is entirely incompatible with every other provider. Sprint phones are also incompatible with other providers, so those who are using Sprint are also locked in to that carrier if they want to continue using the handsets they have bought - and perhaps that is the real reason for the angst, not that the service is bad (which it apparently is), or that the company is doing what it is legally obliged to do (make money for it's shareholders), it's the fact there's no other choice that is driving the anger.
So I really think the larger issue here is not Sprint, but the parlous state of the mobile telecoms industry in the US. Common shortcodes (5 or 6 digit codes that work on all carriers) are a new phenomenon in the US (only being introduced in the past couple of years), and number portability is still a large issue. Coverage varies depending on your provider, and some areas you are limited in which provider you can even choose. Sprint dumping users is just a symptom of a much wider malaise.
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/80887
Mr Wong
Vote for Sprint's Customer Service Shows Greater Issues in US Telecoms:
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Rating: 8.17 out of 6 vote(s) cast.
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Response from:
FreeOpinion
(07/13/07 10:33am)
Response from:
Anna
(07/13/07 1:20pm)
www.swedishplate.com
Selfadhesive Flags for your mobile phone - the new world trend which makes your phone look even better! This is the original Mobile Flag - it is of highest quality, manufactured in Sweden, it is water and sun light resistant. The dimension is 40 x 20 mm and fits therefore all phones. Sold in package of five flags.
www.swedishplate.com
Selfadhesive Flags for your mobile phone - the new world trend which makes your phone look even better! This is the original Mobile Flag - it is of highest quality, manufactured in Sweden, it is water and sun light resistant. The dimension is 40 x 20 mm and fits therefore all phones. Sold in package of five flags.
www.swedishplate.com
Response from:
Tanbir
(07/15/07 7:16pm)
It is clear to those that travel or pay attention to the United States that the mobile industry is in every way several years behind other developed nations and in many cases developing nations. To add to their to their much publicised discriminatory approach to their subscribers give a thought to the limited services that these same subscribers have access to. Whilst many people around the world enjoy the ability to access online content from wherever they choose, 'Walled Gardens' still appear to be the norm in the States. Several operators don't even allow the use of third party software that require an Internet connection such as Opera Mini, Mobizines or Widsests. So in response to FreeOpinion's comment, acknowledging choice as a positive should not extend to just the operators' selection of technologies but also to the choices they offer their customers.
Response from:
FreeOpinion
(07/16/07 7:34am)
Tanbir,
Very salient point. Looking at the technology direction of major carriers in the coming years to see which ones embrace a more open architecture and business model will be interesting. Changing direction doesn't happen easily, but the currents here are strong, namely monetizing access to the internet from a mobile perspective as voice is now a mature commodity.
FO
Very salient point. Looking at the technology direction of major carriers in the coming years to see which ones embrace a more open architecture and business model will be interesting. Changing direction doesn't happen easily, but the currents here are strong, namely monetizing access to the internet from a mobile perspective as voice is now a mature commodity.
FO
Response from:
burun estetigi
(12/03/08 12:15pm)
You’re the best! thanks for being so smart and sharing your work with me….hope to be able to make something super with the brushes and symbols you made, again….thank you my lady!!
Response from:
Customer Service training
(03/10/09 10:57pm)
Customer service is the lifeblood of business. Just like the root system of a tree produces more fruit the better its developed.
Response from:
James
(05/22/09 2:57pm)
For complete customer care from Sprint, including billing concerns, you can contact Jaime Trevino at the Executive & Regulatory Department call 1-877-727-0665, Monday through Friday, between 7 a.m. and 5 p.m., Central Time
Response from:
neon
(08/18/09 10:06am)
**Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
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The Telecom industry in the US has never agreed to one technology to delivery cellular service. We use market choice to drive efficiency while Europe favored one technology across the contitent.
This gave rise to a situation where an area roughly the size of the US (actually smaller) was given one standard and set of equipment proviers to manage. Also, governments back telcos as the cost of offering this service is horrific.
Limited regulation in wireless allowed a choice of offerings. While the larger US was tasked with multiple technologies, and each technology was linked to a seperate set of companies, none with government backing I might add.
This technology is expensive to provide, maintain and evolve. The dynamics of this evolution will be different between the US and the rest of the world for these and other reasons (cultures communicate differently using text for instance) for decades to come.
It's easy to pick on Sprint but I've heard horror stories about every carriers care practices and performance. Acknowledging choice as a positive will encourage the kind of innovation that will eventually solve these problems.
Phones and services on them will be easier to use.
Care will improve as the complexity of call plans and technology imporve/simplify.
Choice keeps us all honest to what consumers want. But a hard difficult job will be hard and difficult no matter how many competitors you have.
Hang in there.