Bye...Bye Embarq? Quest? Who's Next?

When the pin drops it drops hard. Spring once again has been dealt a punch with the announcement by the regional spin off Embarq Wireless they will not renew there contract. Emarq Corp. currently serves customers in 18 states but is falling short of their subscriber base. Embarq, spun off in 2006 expected over 1 million subscribers but fallen short. Wait a second, you mean they have the ability to serve millions of customers in 18 states but can't even reach a million in 2 years? That sounds about right.

But wait the knockout isn't done yet. Quest Communications International Inc. said last week they are going to drop their reseller contract in favor of Verizon Wireless (i.e. Verizon Communications Inc.). Keeping in mind Sprint's customer base has been shrinking for the past year: 1Q -220 thousand, 3Q -337 thousand, 4Q -683 thousand, and 1Q 2008 -1,070 thousand. While Sprint has been trying to gain traction with its new $99 Unlimited Plan and dealings with ClearWire and others for the new Wi-Max technology coming to a locality to you soon you just don't know what is in store for Sprint, until you think about the T-mobile news. But that is for another blog another day.

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