The squeaky wheel doesn't always get the grease.
At least not if the squeaky wheel is a Sprint Nextel customer. On
June 29, 2007, Sprint sent letters notifying some customers that their
service would be canceled by the end of July due to excessive calls to
customer service.
"Our records indicate that over the past year, we have received
frequent calls from you regarding your billing or other general account
information," the letter reads. "While we have worked to resolve your
issues and questions to the best of our ability, the number of
inquiries you have made to us during this time has led us to determine
that we are unable to meet your current wireless needs."
"Therefore after careful consideration, the decision has been made
to terminate your wireless service agreement effective July 30, 2007."
Subscribers who have gotten letters from Sprint terminating their
service won't have to pay the early termination fee. Their account
balances will also be set to zero. But subscribers will have to sign up
with a new wireless provider by July 30 if they want to keep their
phone numbers. Otherwise, the numbers won't be available after the
Sprint service ends, the letter states.
(You can take a look at one of these letters posted within this discussion stream on a Sprint users' forum.) And click here to see an image of one of the letters.
The company's new tagline: 'Sprint Ahead.'
(Credit: Sprint Nextel)
A Sprint spokeswoman acknowledged that a group of letters had been
sent out on June 29. She said that only a "small minority" of customers
were impacted.
"We have to be able to quickly and efficiently serve customers,"
said Roni Singleton, a Sprint spokeswoman. "And when we are unable to
consistently solve our customers' problems it results in a lot of
frustration and longer waits for other customers. So after looking
through our records, we were able to determine that there were
customers who we could couldn't meet their current needs."
Singleton said it was normal business practice for Sprint to audit
customer service interactions. She also said the company has always
reserved the right in its terms of use to terminate the contract for
whatever reason.
Posting on the Sprint users' message board, one customer who
received one of these letters said the calls she made to Sprint were
for errors in the company's billing. She also questioned how the
company counted the number of calls.
"I absolutely didn't call as much as they say I did, but I did
always have the hang up/transfer scenario--even today calling in I was
hung up on twice and transferred at least five times," she said in one
of her posts. "I mean I DREAD calling in and sitting on hold, why on
earth would I do it unless I had to!"
Clearly, Sprint is trying to shed customers who seem to eat up too
many resources. But it seems crazy that a company that's already having
a hard time keeping subscribers would be willing terminate contracts.
For years, Sprint has had a reputation for poor customer service and
poor network coverage, and as a result, the company is suffering. For
the first quarter of 2007, it reported a loss of 220,000 post-paid
monthly subscribers--customers who pay monthly. This was the third
quarter in a row the company had a substantial loss of these types of
customers. The company has consistently had one of the worst churn
rates in the wireless industry. At the end of the first quarter of
2007, Sprint reported a churn rate of 2.7 percent.
This issue has gotten me wondering about wireless contracts in
general. If you are a Sprint customer who recently received one of
these letters, or you've received a similar letter from another
carrier, please write me at [email protected].