Saturday, June 6, 2009

Palm Pre To Reverse Declines - Sprint CEO

No doubt bolstered by positive reviews, Sprint Nextel Corp. CEO Dan Hesse said Saturday's release of Palm Inc.'s Pre smart phone represents a "coming out party" for Sprint as it seeks to reverse subscriber losses.


The Pre


The celebration might be cut short, though, if the wireless carrier can't keep up with the high demand it expects for the device.

Sprint, which will carry the Pre exclusively at least through the end of the year, lost 1.25 million of its valuable contracted subscribers during the first three months of the year _ even worse than the 1.1 million that fled to other wireless carriers in the fourth quarter.

Hesse said the Pre gives Sprint an opportunity to show off its competitive voice and data networks and service plans _ things that could help the company retain subscribers and lure new ones. He said Sprint has "vastly" improved its customer service and network performance.

"We are a very, very different company than we were 12 months ago," Hesse told a group of media, analysts and customers in New York on Friday, a day before the release of the Pre.

The Pre has a touch-screen and slide-out keyboard and will cost $200 with a two-year service plan and rebate. It also sports Palm's new operating system, webOS. Numerous early reviews, including one by The Associated Press, have been positive.

But while the phone may be easy to use, it could be hard to find. At an industry conference last month, Hesse said Sprint would not be heavily advertising the Pre early on because of expected shortages. Hesse said then that the Overland Park, Kansas-based carrier "won't be able to keep up with demand for the device in the early period of time."

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