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Optical/IP

Sprint's Deadbeat Descendants

The 2,100 job cuts that Sprint PCS (NYSE: PCS) announced today came as no surprise to Yankee Group analyst Roger Entner (see Sprint Cuts Costs and Jobs).

"Their whole problem was that they let deadbeats onto their networks," says the program manager of the Wireless/Mobile Services research group at Yankee. "If you sign up too many subscribers with bad payment histories, then you're going to have payment problems."

Entner reckons that other "under-performing" carriers will follow Sprint's example. "I wouldn't be surprised if there's an intense internal review going on at Cingular Wireless at the moment," he says.

— Dan Jones, Senior Editor, Unstrung www.unstrung.com
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