Sprint's positioning in the U.S. market could change if Softbank manages to acquire Sprint. Consider that Softbank has been known as a carrier with deep experience in "innovative" mobile services including mobile payments, content and the use of analytics to shape consumer experiences.
Japanese and South Korean carriers are considered global leaders in mobile payments and analytics, and Softbank undoubtedly would try to leverage its experience at Sprint. That could mean a bigger profile for Sprint in both mobile payments and mobile commerce, as well as mobile advertising.
Sprint and T-Mobile USA have had different strategies in recent years, but a Softbank change of ownership could shift the profile even more.
Sprint has been a bigger player in the wholesale market. T-Mobile USA has been a bigger player in the "value" segment of the market. Sprint has emphasized "simplicity" with a value twist.
In buying MetroPCS, T-Mobile USA has deepened its exposure to the prepaid segment of the market. It isn't clear whether Softbank would necessarily want to go that direction, as it might make more sense to move in the direction of "software and application innovation." To the extent that Sprint wants to participate in the value segment, it has subsidiary brands for that purpose.
Neither Sprint nor T-Mobile USA initially had access to the Apple iPhone, so neither carrier might have been said to be competing for the iPhone customer, arguably a "premium" segment of the market.
That changed recently when Sprint got rights to sell the iPhone. T-Mobile USA still hasn't gotten such rights. So the more logical direction for Sprint, in the event of a Softbank acquisition, would be in the direction of a premium positioning.
Friday, October 12, 2012
Sprint Strategy Could Change if Acquired by Softbank
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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