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	<title>Comments on: Sprint is hemorrhaging customers and money- Palm is scared stiff</title>
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		<title>By: Jay Lucas</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413519</link>
		<dc:creator><![CDATA[Jay Lucas]]></dc:creator>
		<pubDate>Sat, 11 Apr 2009 01:25:43 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413519</guid>
		<description><![CDATA[I am currently a Sprint customer and have been for over 10 years. The service and reception has approved dramatically in the last few years. There are negatives and positives with every carrier. The main reason I stay with Sprint is their plans and pricing. Why does that not seem to be an issue for anyone in this vile economy? I am an Apple fan, but the iphone plans are $30-$60 a month more that the comparable Sprint plans. If the Pre turns out to be everything it seems to be, you will get the most technologically advanced phone on the market for well below any other carriers plan. That seems like a &quot;no brainer&quot; to me. I&#039;d love an iphone, but not for $30-$60 dollars a month more.]]></description>
		<content:encoded><![CDATA[<p>I am currently a Sprint customer and have been for over 10 years. The service and reception has approved dramatically in the last few years. There are negatives and positives with every carrier. The main reason I stay with Sprint is their plans and pricing. Why does that not seem to be an issue for anyone in this vile economy? I am an Apple fan, but the iphone plans are $30-$60 a month more that the comparable Sprint plans. If the Pre turns out to be everything it seems to be, you will get the most technologically advanced phone on the market for well below any other carriers plan. That seems like a &#8220;no brainer&#8221; to me. I&#8217;d love an iphone, but not for $30-$60 dollars a month more.</p>
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		<title>By: Troy Steuwer</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413518</link>
		<dc:creator><![CDATA[Troy Steuwer]]></dc:creator>
		<pubDate>Sat, 14 Mar 2009 20:10:45 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413518</guid>
		<description><![CDATA[I currently have an iPhone 3G with AT&amp;T and will be making the jump to Spring for the Pre. AT&amp;T has THE worst coverage in my area. I literally have been using the iPhone for about a year and can&#039;t even get service at my house. The phone is great for games and all, but the Pre is better. Sprints network in my area is top notch and our business uses it and their customer support is A++. I can&#039;t wait till the Pre comes out and I can go back to Sprint..]]></description>
		<content:encoded><![CDATA[<p>I currently have an iPhone 3G with AT&amp;T and will be making the jump to Spring for the Pre. AT&amp;T has THE worst coverage in my area. I literally have been using the iPhone for about a year and can&#8217;t even get service at my house. The phone is great for games and all, but the Pre is better. Sprints network in my area is top notch and our business uses it and their customer support is A++. I can&#8217;t wait till the Pre comes out and I can go back to Sprint..</p>
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		<title>By: spinedoc</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413517</link>
		<dc:creator><![CDATA[spinedoc]]></dc:creator>
		<pubDate>Sun, 22 Feb 2009 14:41:55 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413517</guid>
		<description><![CDATA[I had Sprint for 10 years before switching to ATT and the iphone.  I live in a marginal area and on the main road to and from the highway there were several spots that Sprint would drop, but ATT does not drop at all.  I did call Sprint every couple of months in the last 5 years about the dead spots but they never improved at all.  That and the iphone were the main reasons I split for ATT.

I must say though that Sprint was always good to me.  Their customer service was always excellent, and they always worked hard to keep me happy EXCEPT in the issue of the dead zones, which is why ultimately I moved on.  Loyalty is one thing, but losing business because of dropped calls is another.

I also mention my 10 year stint with Sprint because the vast majority of that stint was spent in hardware hell.  Sprint was always known to have no &quot;cool&quot; phones for a very very long time.  Only in the past couple of years has this changed.  But the lack of a SIM card is a large negative IMO.  On ATT I can use my bulky iphone during the business day, and switch to something more svelte for the nightlife.

Also Sprint what&#039;s up with charging for call forwarding?  With the lack of SIM card I had to use my 2nd line, but got charged for call forwarding to it.]]></description>
		<content:encoded><![CDATA[<p>I had Sprint for 10 years before switching to ATT and the iphone.  I live in a marginal area and on the main road to and from the highway there were several spots that Sprint would drop, but ATT does not drop at all.  I did call Sprint every couple of months in the last 5 years about the dead spots but they never improved at all.  That and the iphone were the main reasons I split for ATT.</p>
<p>I must say though that Sprint was always good to me.  Their customer service was always excellent, and they always worked hard to keep me happy EXCEPT in the issue of the dead zones, which is why ultimately I moved on.  Loyalty is one thing, but losing business because of dropped calls is another.</p>
<p>I also mention my 10 year stint with Sprint because the vast majority of that stint was spent in hardware hell.  Sprint was always known to have no &#8220;cool&#8221; phones for a very very long time.  Only in the past couple of years has this changed.  But the lack of a SIM card is a large negative IMO.  On ATT I can use my bulky iphone during the business day, and switch to something more svelte for the nightlife.</p>
<p>Also Sprint what&#8217;s up with charging for call forwarding?  With the lack of SIM card I had to use my 2nd line, but got charged for call forwarding to it.</p>
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		<title>By: heavyharmonies</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413516</link>
		<dc:creator><![CDATA[heavyharmonies]]></dc:creator>
		<pubDate>Sun, 22 Feb 2009 04:04:22 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413516</guid>
		<description><![CDATA[Very disappointed at the shoddy sensationalist journalism in this article. I thought you guys were above that crap. :(]]></description>
		<content:encoded><![CDATA[<p>Very disappointed at the shoddy sensationalist journalism in this article. I thought you guys were above that crap. :(</p>
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		<title>By: James Middlefield</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413515</link>
		<dc:creator><![CDATA[James Middlefield]]></dc:creator>
		<pubDate>Sun, 22 Feb 2009 03:22:22 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413515</guid>
		<description><![CDATA[I have Qwest in Seattle, which is basically Sprint. 

Qwest wants me to leave Sprint and go to Verizon because they left Sprint for Verizon (I have no idea why, do you). 

I have been fine with Sprint/Qwest so far and like the new features that an Instinct or Pre would give me on Sprint at a lower cost than Verizon but I am about out of patience with Sprint and Pre. 

If Verizon came up with a good offer and a good phone I might just sign up if I don&#039;t get word soon on how long I have to wait for Sprint and Pre to get it together. 

Hurry it up guys or you&#039;re gonna lose us.]]></description>
		<content:encoded><![CDATA[<p>I have Qwest in Seattle, which is basically Sprint. </p>
<p>Qwest wants me to leave Sprint and go to Verizon because they left Sprint for Verizon (I have no idea why, do you). </p>
<p>I have been fine with Sprint/Qwest so far and like the new features that an Instinct or Pre would give me on Sprint at a lower cost than Verizon but I am about out of patience with Sprint and Pre. </p>
<p>If Verizon came up with a good offer and a good phone I might just sign up if I don&#8217;t get word soon on how long I have to wait for Sprint and Pre to get it together. </p>
<p>Hurry it up guys or you&#8217;re gonna lose us.</p>
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		<title>By: Shawn Roberts</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413514</link>
		<dc:creator><![CDATA[Shawn Roberts]]></dc:creator>
		<pubDate>Sun, 22 Feb 2009 02:41:59 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413514</guid>
		<description><![CDATA[@JamesFisher - okay, just checking.  I am rooting for the pre to be a big hit on Sprint and for Sprint to do well.

The comment about Palm being scared stiff was just made to drive traffic and comments to the site and it worked well.]]></description>
		<content:encoded><![CDATA[<p>@JamesFisher &#8211; okay, just checking.  I am rooting for the pre to be a big hit on Sprint and for Sprint to do well.</p>
<p>The comment about Palm being scared stiff was just made to drive traffic and comments to the site and it worked well.</p>
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		<title>By: Nick H</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413513</link>
		<dc:creator><![CDATA[Nick H]]></dc:creator>
		<pubDate>Sat, 21 Feb 2009 22:58:23 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413513</guid>
		<description><![CDATA[@Tyler - nice well thought out post.  

I&#039;ll just add to the other statements about the silly title of the blog - which apparently is getting the desired affect of causing people to come here.   

It&#039;s a cheap shot - and casts a shadow over the rest of your statements.  It doesn&#039;t matter that you make good points about Sprint - as you can see, most people are more irritated that you opened with a statement based completely on conjecture, but stating it like you knew something you don&#039;t.  Honestly, from reading the about page (I&#039;ve never heard of you) I&#039;m sorta of surprised you&#039;d resort to something like this - you seem to have enough experience to know the comments were coming.  Which, of course, futher&#039;s my initial reaction that it was deliberate - which is a good reason to never bother with your blog again.

I seriously doubt coming into this Palm thought &#039;Gee, Sprint is doing SO well let&#039;s go with them&#039;.   They had their reason, be it from previous relationships or great deal from Sprint or perhaps some strategy you haven&#039;t thought of.

Bottom line is I don&#039;t think Palm is being taken by surprise.   

It&#039;s moot anyway.  You talk like it&#039;s an iPhone sort of deal, which it isn&#039;t.  I absolutely will not do business with AT&amp;T - thus Apple will NEVER have me as an iPhone customer no matter how awesome people think it is.   Apples loss as I am not the only one.  Sprint haters can simply wait til the end of the year - most of them are going to already be tied up in contracts anyway.   

For the record, I have been with Sprint over 9 years, mostly at this point due to my corporate discount, and I&#039;ve been using Palm PDAs/Palm phones since they came out.  I should also say neither Verizon nor T-Mobile have particularly shown me any reason to jump ship.]]></description>
		<content:encoded><![CDATA[<p>@Tyler &#8211; nice well thought out post.  </p>
<p>I&#8217;ll just add to the other statements about the silly title of the blog &#8211; which apparently is getting the desired affect of causing people to come here.   </p>
<p>It&#8217;s a cheap shot &#8211; and casts a shadow over the rest of your statements.  It doesn&#8217;t matter that you make good points about Sprint &#8211; as you can see, most people are more irritated that you opened with a statement based completely on conjecture, but stating it like you knew something you don&#8217;t.  Honestly, from reading the about page (I&#8217;ve never heard of you) I&#8217;m sorta of surprised you&#8217;d resort to something like this &#8211; you seem to have enough experience to know the comments were coming.  Which, of course, futher&#8217;s my initial reaction that it was deliberate &#8211; which is a good reason to never bother with your blog again.</p>
<p>I seriously doubt coming into this Palm thought &#8216;Gee, Sprint is doing SO well let&#8217;s go with them&#8217;.   They had their reason, be it from previous relationships or great deal from Sprint or perhaps some strategy you haven&#8217;t thought of.</p>
<p>Bottom line is I don&#8217;t think Palm is being taken by surprise.   </p>
<p>It&#8217;s moot anyway.  You talk like it&#8217;s an iPhone sort of deal, which it isn&#8217;t.  I absolutely will not do business with AT&amp;T &#8211; thus Apple will NEVER have me as an iPhone customer no matter how awesome people think it is.   Apples loss as I am not the only one.  Sprint haters can simply wait til the end of the year &#8211; most of them are going to already be tied up in contracts anyway.   </p>
<p>For the record, I have been with Sprint over 9 years, mostly at this point due to my corporate discount, and I&#8217;ve been using Palm PDAs/Palm phones since they came out.  I should also say neither Verizon nor T-Mobile have particularly shown me any reason to jump ship.</p>
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		<title>By: Jamesfisher</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413512</link>
		<dc:creator><![CDATA[Jamesfisher]]></dc:creator>
		<pubDate>Sat, 21 Feb 2009 21:09:31 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413512</guid>
		<description><![CDATA[I am in fact a real live person, a spokesperson for Sprint -- James Fisher]]></description>
		<content:encoded><![CDATA[<p>I am in fact a real live person, a spokesperson for Sprint &#8212; James Fisher</p>
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		<title>By: Tyler!</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413511</link>
		<dc:creator><![CDATA[Tyler!]]></dc:creator>
		<pubDate>Sat, 21 Feb 2009 13:33:46 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413511</guid>
		<description><![CDATA[Whether the author is right or not about Sprint&#039;s &quot;bleak&quot; outlook (which it&#039;s pretty clear he is - things aren&#039;t looking good for them), he&#039;s still making unforgivably wild assumptions about Palm.  You can&#039;t make up a title like &quot;Palm is Scared Stiff&quot; without offering up actual evidence.  That&#039;s just irresponsible.

Palm may not actually be all that scared.  A year of exclusivity with Sprint may actually do Palm some good and I can offer some evidence as to why.

First, it&#039;s only a year.  It&#039;s not a five year exclusivity agreement like Apple has with AT&amp;T.  Apple has been able to count on people abandoning their carriers to join up with AT&amp;T because AT&amp;T has the marketing bucks and customer service chops to make the switch worthwhile for most people.  Sprint, however, knows they can&#039;t generate the same kind of draw and they&#039;re counting on the majority of the Palm Pre sales to come from their current customer base.  The evidence for this?  Their newly launched Customer Loyalty program for high-paying customers.  It&#039;s pretty clear that Sprint&#039;s tactic is to get the Pre into the hands of current customers.  Is the fact that most people aren&#039;t willing to switch to Sprint for the Palm Pre enough to make Palm scared stiff?  Unlikely.  We know from Palm&#039;s presentation at CES that the Pre is only the first of a family of new devices that will be built on the WebOS and there&#039;s a very good chance that those other devices will NOT have an exclusivity deal with Sprint.

Also, the Pre may be highly anticipated and everything, but Palm does not want to repeat the mistake Motorola made with the Razor a few years back, which is to devalue the product through market saturation.  There have been reports lately in tech news about slowing mobile phone sales that aren&#039;t necessarily due to the slowing economy (though I&#039;m sure the economy is a factor).  In reality, the slowdown is because the mobile phone market is so absolutely saturated.  In fact, in Europe, there are more mobile phones than there are people.  This type of saturation doesn&#039;t negatively affect carriers since it only benefits them when everyone owns a mobile phone.  It does, however, create a problem for companies like Palm and RIM and even Apple:  The only way they can sell more devices in a saturated market is for you to ditch your current device and upgrade to theirs.

So why does this information translate into Palm not being &quot;scared stiff&quot;?  Because they&#039;ve spun Apple&#039;s exclusivity gimmick in such a way that it encourages in-carrier upgrades to their device rather than cross-carrier migration.  It will more-than-likely work to Palm&#039;s benefit since high-anticipation, initial scarcity, customers perceiving value, and a short-lived exclusivity agreement with a single carrier all translates into more consistent sales over a longer period of time, rather than a short and massive burst of sales and then a huge decline.  And longer more consistent sales of WebOS devices means better adoption (and then subsequent saturation) within the market.

Think about it.  If you&#039;re with Verizon or AT&amp;T and you hear that it&#039;s only a year before you can get your hands on the Pre (or, in all likelyhood, even sooner before another WebOS device becomes available on your network), you look at the year-long exclusivity agreement and shrug your shoulders and say to yourself, &quot;Meh.  I can wait.&quot;  

That&#039;s even more true during a time when everyone is suffering financially; rather than deal with disconnect fees and pro-rated fees and new customer fees and setup fees and the hassle of porting your phone number to a new carrier, wouldn&#039;t you rather just be rewarded for your loyalty to your carrier by being given a cheap and simple way to upgrade to a newer, more exciting device?  And all in exchange for a longer term agreement with your carrier?  Sure you would.  Sprint gets that.  In fact, retaining customers has been Dan Hesse&#039;s outspoken priority since he came on board with Sprint.  Obviously getting new customers is nice, but not if you&#039;re hemorrhaging the old ones, which is something ALL the carriers are going to start worrying about if times get so tough that customers start looking for ways to cut their personal budgets and begin eliminating their mobile phones.

Again, just to recap:  Palm wants consistent sales over a longer period of time and the only way to achieve that in an already saturated market is to create scarcity and high levels of anticipation.  Palm does NOT want to massively introduce a new mobile platform and an innovative new device to an already saturated market and risk &quot;flash&quot; saturation.  And Sprint happens to be in enough trouble that they could really benefit from some customer loyalty and longer agreements with their customers.  I honestly don&#039;t think Palm is &quot;scared stiff&quot;.  I think, for Palm anyways, everything&#039;s going according to plan.]]></description>
		<content:encoded><![CDATA[<p>Whether the author is right or not about Sprint&#8217;s &#8220;bleak&#8221; outlook (which it&#8217;s pretty clear he is &#8211; things aren&#8217;t looking good for them), he&#8217;s still making unforgivably wild assumptions about Palm.  You can&#8217;t make up a title like &#8220;Palm is Scared Stiff&#8221; without offering up actual evidence.  That&#8217;s just irresponsible.</p>
<p>Palm may not actually be all that scared.  A year of exclusivity with Sprint may actually do Palm some good and I can offer some evidence as to why.</p>
<p>First, it&#8217;s only a year.  It&#8217;s not a five year exclusivity agreement like Apple has with AT&amp;T.  Apple has been able to count on people abandoning their carriers to join up with AT&amp;T because AT&amp;T has the marketing bucks and customer service chops to make the switch worthwhile for most people.  Sprint, however, knows they can&#8217;t generate the same kind of draw and they&#8217;re counting on the majority of the Palm Pre sales to come from their current customer base.  The evidence for this?  Their newly launched Customer Loyalty program for high-paying customers.  It&#8217;s pretty clear that Sprint&#8217;s tactic is to get the Pre into the hands of current customers.  Is the fact that most people aren&#8217;t willing to switch to Sprint for the Palm Pre enough to make Palm scared stiff?  Unlikely.  We know from Palm&#8217;s presentation at CES that the Pre is only the first of a family of new devices that will be built on the WebOS and there&#8217;s a very good chance that those other devices will NOT have an exclusivity deal with Sprint.</p>
<p>Also, the Pre may be highly anticipated and everything, but Palm does not want to repeat the mistake Motorola made with the Razor a few years back, which is to devalue the product through market saturation.  There have been reports lately in tech news about slowing mobile phone sales that aren&#8217;t necessarily due to the slowing economy (though I&#8217;m sure the economy is a factor).  In reality, the slowdown is because the mobile phone market is so absolutely saturated.  In fact, in Europe, there are more mobile phones than there are people.  This type of saturation doesn&#8217;t negatively affect carriers since it only benefits them when everyone owns a mobile phone.  It does, however, create a problem for companies like Palm and RIM and even Apple:  The only way they can sell more devices in a saturated market is for you to ditch your current device and upgrade to theirs.</p>
<p>So why does this information translate into Palm not being &#8220;scared stiff&#8221;?  Because they&#8217;ve spun Apple&#8217;s exclusivity gimmick in such a way that it encourages in-carrier upgrades to their device rather than cross-carrier migration.  It will more-than-likely work to Palm&#8217;s benefit since high-anticipation, initial scarcity, customers perceiving value, and a short-lived exclusivity agreement with a single carrier all translates into more consistent sales over a longer period of time, rather than a short and massive burst of sales and then a huge decline.  And longer more consistent sales of WebOS devices means better adoption (and then subsequent saturation) within the market.</p>
<p>Think about it.  If you&#8217;re with Verizon or AT&amp;T and you hear that it&#8217;s only a year before you can get your hands on the Pre (or, in all likelyhood, even sooner before another WebOS device becomes available on your network), you look at the year-long exclusivity agreement and shrug your shoulders and say to yourself, &#8220;Meh.  I can wait.&#8221;  </p>
<p>That&#8217;s even more true during a time when everyone is suffering financially; rather than deal with disconnect fees and pro-rated fees and new customer fees and setup fees and the hassle of porting your phone number to a new carrier, wouldn&#8217;t you rather just be rewarded for your loyalty to your carrier by being given a cheap and simple way to upgrade to a newer, more exciting device?  And all in exchange for a longer term agreement with your carrier?  Sure you would.  Sprint gets that.  In fact, retaining customers has been Dan Hesse&#8217;s outspoken priority since he came on board with Sprint.  Obviously getting new customers is nice, but not if you&#8217;re hemorrhaging the old ones, which is something ALL the carriers are going to start worrying about if times get so tough that customers start looking for ways to cut their personal budgets and begin eliminating their mobile phones.</p>
<p>Again, just to recap:  Palm wants consistent sales over a longer period of time and the only way to achieve that in an already saturated market is to create scarcity and high levels of anticipation.  Palm does NOT want to massively introduce a new mobile platform and an innovative new device to an already saturated market and risk &#8220;flash&#8221; saturation.  And Sprint happens to be in enough trouble that they could really benefit from some customer loyalty and longer agreements with their customers.  I honestly don&#8217;t think Palm is &#8220;scared stiff&#8221;.  I think, for Palm anyways, everything&#8217;s going according to plan.</p>
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		<title>By: Ben</title>
		<link>http://gigaom.com/mobile/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413510</link>
		<dc:creator><![CDATA[Ben]]></dc:creator>
		<pubDate>Sat, 21 Feb 2009 06:24:35 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/2009/02/20/sprint-is-hemorrhaging-customers-and-money-palm-is-scared-stiff/#comment-413510</guid>
		<description><![CDATA[i still don&#039;t understand why these phone making companies insist on bundling their hardware with a particular carrier. it&#039;s absolutely retarded.]]></description>
		<content:encoded><![CDATA[<p>i still don&#8217;t understand why these phone making companies insist on bundling their hardware with a particular carrier. it&#8217;s absolutely retarded.</p>
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