Sprint's Instinct Looking Good

"Sprint hasn't had a big EVDO phone to compare this to," says Moffett. "They've sold out of the handset in lots of stores, which is clearly good news, but it's far from being definitive. It remains to be seen if sales are sustainable with both AT&T and Verizon reloading with the iPhone and [Research In Motion's (RIMM Quote - Cramer on RIMM - Stock Picks) ] Blackberry Bold.

Moffett says that if Sprint was indeed seeing churn rates decline, the company's next move should be to solve the problem it has articulating its value proposition to customers. Verizon has used the "Can you hear me now?" tagline for strategic positioning, and AT&T has the ubiquitous position with "More bars in more places," but Sprint has been unable to offer a "best network" strategy.

"Sprint is trying to carve out a more ambiguous position with the 'Now' network strategy," Moffett says. "The value proposition isn't quite as obvious. Why should someone pick Sprint when it's not quite as clear?"

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