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iPhone customers use 50% less data says Sprint

Written by Rich Fiscus (Google+) @ 27 Oct 2011 18:46 User comments (11)

iPhone customers use 50% less data says Sprint During their Q3 earnings call today, Sprint CEO Dan Hesse told analysts they expect the lifetime value of an iPhone customer to be 50 percent higher than for other smartphone users.
Although the iPhone was not available through Sprint until just after the beginning of Q4, meaning its impact isn't reflected in the Q3 numbers, Hesse and CFO Joe Euteneuer made a point of emphasizing the importance of the iPhone to their operations over the life of their 4 year deal with Apple.

Over that period, Sprint is obligated to spend a minimum of around $15.5 billion according to Eutenuer. This is nearly $5 billion less than was previously rumored.

Hesse predicted:

We expect the customer lifetime value of an iPhone customer to be at least 50 percent, yes at least 50 percent, greater than a typical smartphone user, driven primarily by more efficient use of our network and lower churn.


Additionally, he said:

iPhone users are expected to use significantly less 3G than the typical user of a dual mode 3G/4G device. Even adjusting for more total new customers being added to the network, we believe we'll put less load on our 3G network than we would have if we did not carry the iPhone.


Eutenuer explained further, saying:

We expect iPhone customers to be among our most profitable, as the higher up front acquisition costs are expected to be offset by longer customer tenure and lower support costs, including data efficiency.


However, these estimates are based on the assumption the iPhone will add significantly more customers than Sprint would have otherwise had. Euteneuer also explained that the cost for adding an iPhone customer is nearly 40 percent higher than the cost for a other smartphones.

This is nearly a $200 difference, attributable primarily to the higher cost of the phone itself.

If the iPhone drops in popularity, or if the Internet usage of iPhone customers, which they estimate to be around 50 percent lower than the typical smartphone user, increases, their predictions go out the window.

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11 user comments

127.10.2011 19:10

It's more like iPhone users go to wi-fi as much as possible. If you have spotty connections, which is why I switched from Sprint. I use wi-fi when I can.

227.10.2011 20:48

Wi-Fi for me too when i'm home


Franco

327.10.2011 23:43

Of course their iPhone owners aren't using much data. With all the terrible speeds that their 3G network offers and the iPhone's lack of Wimax, it's pretty hard for them to use a significant amount of data. Some of them are getting damn near Edge data speeds and it's pathetic.

428.10.2011 0:23
llongtheD
Inactive

It almost sounds like a Sprint CEO trying to sell himself on the extra 40% upfront costs of adding iPhone users. Or maybe just reassure Sprint shareholders. Either way, they must have made a suckers deal to get the iPhone on their network.

This message has been edited since its posting. Latest edit was made on 28 Oct 2011 @ 0:49

If your fish seems sick, put it back in the water.

528.10.2011 6:26

No 4G, no flash support, fewer free apps...why would they expect more data use?



628.10.2011 7:05
sheri1983
Inactive

Originally posted by KillerBug:
No 4G, no flash support, fewer free apps...why would they expect more data use?
You sound like a Verizon salesman.

728.10.2011 14:10

I just switched to sprint. The iPhone 4 uses 50% less bandwith maybe, but their 3G is god awful. Ive traveled for 4 major cities in the last 2 weeks, using speedtest.net app, constantly between 0.02 and 0.44. Slower than edge.

829.10.2011 0:30

Originally posted by sheri1983:
Originally posted by KillerBug:
No 4G, no flash support, fewer free apps...why would they expect more data use?
You sound like a Verizon salesman.

LoL...verizon doesn't have a 4G iPhone with support for Flash and the Android Market either.


930.10.2011 15:46
sheri1983
Inactive

Originally posted by KillerBug:
Originally posted by sheri1983:
Originally posted by KillerBug:
No 4G, no flash support, fewer free apps...why would they expect more data use?
You sound like a Verizon salesman.

LoL...verizon doesn't have a 4G iPhone with support for Flash and the Android Market either.
Lotsa "4G" 'droids with Flash & Android Market support ... depending on what you consider "4G", how you define "Flash support" (theoretical vs. actual/practical), and which market.

102.11.2011 10:33

Originally posted by KillerBug:
No 4G, no flash support, fewer free apps...why would they expect more data use?
That was my exact first thought, you just wouldn't use as much data if your device was too slow or didn't support some 80% of the web...

1115.11.2011 4:27

The only conclusion I can come to on this matter is that iPhone users are 50% less horny and porn downloading. Oh yeah and maybe some of what was suggested before...

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