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09/07/2007 - Sprint Expels Subscribers Over Heavy DA Usage

This is very strange (from the WSJ [sub req’d]); Sprint is terminating heavy directory assistance users:
The country’s third-largest wireless provider, with more than 53 million subscribers, has sent letters to about 1,000 subscribers terminating their contracts, according to Roni Singleton, a company spokeswoman.

“The number of inquiries you have made to us … has led us to determine that we are unable to meet your current wireless needs,” the letter, dated June 29, states.

The terminated subscribers called an average of 25 times a month, a rate 40 times higher than average customers, Ms. Singleton said.

Sprint charges $1.25 per directory assistance call. Thus these are revenue-generating customers. But beyond this, it suggests an opportunity to create a free, ad-supported DA model. AT&T has 1-800-YellowPages, Verizon is in the process of building one, and of course Jingle, Google and Microsoft all have free DA services.

Indeed, conventional directory assistance will lose more and more ground over time to these ad-supported models. Time for Sprint to get ahead of the curve.

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