Comment, Leap Wireless Still Crashing | Jeff Kagan Tech Analyst

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Jeff KAGAN

Tech Analyst

     

Comment, Leap Wireless Still Crashing | Jeff Kagan Tech Analyst

Leap Wireless seems to be crashing as customer loss increases.

Some competitors seem to be growing while others are not. Leap is not.

Leap is a pre-paid provider. They use the Cricket brand.

What can they do to turn this ship around is the question? They are losing far more customers than they are winning and that is a serious problem.

This is not a new problem. They lost 289,000 customers during this most recent quarter compared with a loss of 103,000 customers a year ago.

This is much worse than expected.

Another problem is as a result Leap is now cutting the money they used to build out their networks for the changing marketplace.

That set’s the stage for continuing bad performance.

Leap has begun selling a pre-paid version of the iPhone in June.

The iPhone is obviously not the magic bullet they hoped it would be. I wonder whether that was a mistake.

The company has been in a long term decline over the last several years. It has not been profitable since 2007. Some say the reason is the recession, but I disagree. Some companies are growing and others are struggling.

The reason is marketing, advertising and public relations. Some companies do a great job and others don’t.

Look at Tracfone. This is still the largest pre-paid service and is still growing strong.

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Jeff KAGAN| Tech Industry Analyst www.jeffKAGAN.com

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