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Sprint Nextel to slow down growth of Boost Mobile

Boost Mobile seems like an independent, free spirited mobile company, but it is actually a division of Sprint Nextel. It has been very successful for a company that has otherwise struggled, accounting for about 8% of Sprint’s total customer base. In fact, it appears that they have been too successful.

Sprint Nextel will be actively slowing down the growth of their Boost Mobile division. They haven’t said how they will do it specifically, but they seem serious about doing it.

There is a logical reason behind this otherwise odd move. The problem is Nextel’s iDEN PTT network, which has caused many headaches for the company. The government has forced the company to limit the use of that network because it has been shown to interfere with some public safety frequencies.

People are using Boost as a cheap and easy way to access that network without having to commit to a long (and therefore more profitable) contract with the parent company. Sprint will slow down Boost, then, to commit their allotted network space to longer term, contract customers.



About T.O. Whenham

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