Sprint has developed a 4G network, one that runs more than 10-times faster than 3G. But, more than that, 4G offers the bandwidth needed to handle all of the data that is now clogging the mobile networks and interfering with voice calls.
There is a new commercial from Sprint by their CEO, Dan Hesse that comes close to defining 4G, but still falls short. He talks about how other phone companies charge you for all of the data used, which is why most of us buy the phone in the first place. Voice is a "throw in". It is the right of entry for anyone in the mobile business. But, most of us are increasingly using our phones for data.
This situation is akin to what happened on the public phone networks in the late 1990s when data started increasing relative to voice. This is the time that Cisco blew away Nortel (where I worked), Lucent and others, who were focused primarily on voice. Cisco not only had routers that handled data better, they also understood and articulated the new value proposition of the Internet.
Mobile is now at that same point in time. Data is not quite 50% of the mobile network traffic, but it will be in the near future. All of this data clogs the network and makes it difficult to make a simple telephone call. 4G is the answer. It has the bandwidth to handle both voice and data.
Currently we have a "Coke vs. Pepsi" ware going on between Verizon and AT&T concerning who has better 3G coverage. Meanwhile, Sprint has built a 4G network that it has deployed. But, if one were to draw a perceptual map of the mobile phone companies based upon price and features, one would see Sprint gathered near Verizon and AT&T, which is a dangerous place for them to be. If they do not move into a new positioning, they could go out of business.
They are not going to get there with a CEO as a talking head in a commercial. I know that the CEO is intended to invoke trust and confidence, but Dan Hesse is not Steve Jobs and Eric Schmidt--he doesn't evoke images of high-tech prowess or innovation. While he has a background in data networks before joining Sprint, he comes across as just another CEO--nice and open, but not cutting-edge. He speaks slowly and precisely about an exciting new technology. It doesn't work to capture the listener and help them to emotionally connect with the technology so that they have a reason to change.
Sprint needs to redefine 4G around bandwidth and make it an emotional connection for customers. There is so much value in 4G and so little perceived value currently. A good play could be with the new mini-computers like I-Pod, Kindle, and others that will need greater bandwidth to realize their potential. The advertising needs to be refocused on products in use and greater use of social media needs to create and build buzz around what 4G could mean.
It's a shame that Sprint hasn't recognized this. They even have priced 4G comparable to 3G, thereby killing its perceived value. The only reason to take this pricing strategy is to attempt to siphon customers from Verizon and AT&T. I don't think that will happen. Palm found out that despite its features, the mobile world has become defined as I-Phone vs. Blackberry. Even Droid is having a tough time making inroads. Perhaps Google will do better, but if I were Sprint I would want to stay clear of a market in which Google and Apple want to do battle with Verizon.
At work, also, is the so-called "Market of Three" phenomena in which markets, when they mature, devolve into 3 major players. The #3 (in this case Sprint) has problems when it tries to be as broad and deep as the #1 and #2 players. The #3 needs to focus and find its niche.
Sprint might be better to rebrand itself as a technology, data company with voice as a plus rather than to continue to sell itself as a voice company with better data. Take the data plus route rather than the voice plus route and move into a different perceptual space with greater value than its competitors. It they do not reposition and rebrand themselves and 4G, they may find themselves either a take-over target or they will continue to be the 7-Up in the Coke-Pepsi war--a marginalized, afterthought of a brand.
Subscribe to:
Post Comments (Atom)
2 comments:
Very interesting, I am doing my Graduate Thesis at Columbia on Sprints rebranding efforts, which I view as positive from a brand recognition perspective. Interesting that you think that moving closer to Verizon and AT&T is a threat. I feel that if they can offer a similar quality of service at a lower price point, it can be a major advantage. Especially now that they are the last of the major four carriers to offer unlimited data (I realize this blog was written long before this was an issue). I would love to talk to you some time on the issue.
-Dan
Very interesting, I am doing my Graduate Thesis at Columbia on Sprints rebranding efforts, which I view as positive from a brand recognition perspective. Interesting that you think that moving closer to Verizon and AT&T is a threat. I feel that if they can offer a similar quality of service at a lower price point, it can be a major advantage. Especially now that they are the last of the major four carriers to offer unlimited data (I realize this blog was written long before this was an issue). I would love to talk to you some time on the issue.
-Dan
Post a Comment