Prepaid plans often prove attractive to consumers during a recession because they are less expensive than traditional postpaid wireless plans. However, prepaid plans also generate less money per subscriber than postpaid plans. In this past quarter, for instance, Sprint generated $56 in average revenue per user (ARPU) for its postpaid plans and $31 in ARPU for its prepaid plans. Hesse alluded to his company’s success in prepaid services during his talk at J.P. Morgan and said that bringing customers in for non-contract low-rate services would not be enough to help the company turn around.

“One area we need to turn around is the decline in postpaid subscribers,” he said. “Our problem is that we're not bringing in new customers and that's largely a brand issue.”