Not often will you see a sequential change in subscriber additions as Sprint Nextel saw between the fourth quarter of 2008 and the first quarter of 2009.That isn't to say Sprint Nextel's churn problems are behind it. The company apparently still is losing customers to AT&T and Verizon Communications.
But Sprint Nextel got a boost from Amazon Kindle users and prepaid customers.
In principle, an increase in prepaid, at the expense of postpaid, should put pressure on margins. So far that does not seem to be a problem. All in all, though, the first quarter was impressive, at least on the metric of net customer additions or losses.
If Sprint Nextel can follow through in the second quarter, it might be an inflection point.
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